DoD awards $82.8M for 30MM and 25MM cartridges to General Dynamics
Contract Overview
Contract Amount: $82,759,444 ($82.8M)
Contractor: General Dynamics Ordnance & Tactical Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-03-22
End Date: 2012-06-30
Contract Duration: 1,927 days
Daily Burn Rate: $42.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 25MM M793, M910 AND 30MM M788 CTGS
Place of Performance
Location: MARION, WILLIAMSON County, ILLINOIS, 62959, UNITED STATES OF AMERICA
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $82.8 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC. for work described as: 25MM M793, M910 AND 30MM M788 CTGS Key points: 1. Contract awarded to General Dynamics Ordnance & Tactical Systems, Inc. 2. Significant award for small arms ammunition manufacturing. 3. Full and open competition was utilized. 4. Contract duration spans over 5 years.
Value Assessment
Rating: good
The total award amount of $82.8 million for ammunition over approximately 5 years suggests a reasonable price point, especially given the competitive nature of the award. Benchmarking against similar large-scale ammunition procurements would provide further clarity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors can bid.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it promotes market competition, potentially leading to lower prices and better value for government procurements.
Public Impact
Ensures supply of critical ammunition for military operations. Supports a major defense contractor and its manufacturing capabilities. Impacts readiness and training for Army personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation over the contract duration.
- Dependence on a single supplier for a critical defense item.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides supply stability.
Sector Analysis
This contract falls within the defense sector, specifically small arms ammunition manufacturing. Spending benchmarks in this area are highly dependent on caliber, quantity, and specific contract terms, but $82.8M over 5 years for 30MM and 25MM rounds indicates a substantial procurement.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as General Dynamics Ordnance & Tactical Systems, Inc. is a large corporation. There is no specific set-aside for small businesses mentioned.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract management teams within the Army to ensure delivery, quality, and adherence to terms.
Related Government Programs
- Small Arms Ammunition Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of detailed unit cost data.
- Potential for price volatility.
- Long-term reliance on a single supplier.
- No small business participation noted.
Tags
small-arms-ammunition-manufacturing, department-of-defense, il, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $82.8 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC.. 25MM M793, M910 AND 30MM M788 CTGS
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $82.8 million.
What is the period of performance?
Start: 2007-03-22. End: 2012-06-30.
What is the unit cost of the ammunition and how does it compare to market rates?
The provided data does not allow for a precise unit cost calculation as it aggregates different types of cartridges (M793, M910, M788) and does not specify the quantity of each. Without this breakdown and current market pricing for these specific rounds, a direct comparison is not feasible. Further analysis would require detailed quantity breakdowns per item and current industry pricing data.
What are the risks associated with relying on General Dynamics for this critical ammunition supply?
Key risks include potential supply chain disruptions affecting General Dynamics, unforeseen cost increases due to raw material fluctuations, or performance issues with the ammunition. While competition was initially open, long-term reliance on a single prime contractor can reduce leverage for future negotiations and potentially lead to complacency if not actively managed.
How effectively does this contract meet the Army's long-term ammunition needs in terms of quantity and technological relevance?
The contract duration of approximately 5 years suggests it addresses medium-term needs. The specific calibers (25MM and 30MM) are relevant for certain platforms, but the contract's effectiveness in meeting future technological requirements or evolving battlefield needs is not detailed. A review of the Army's broader ammunition strategy would be needed to assess long-term sufficiency.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W52P1J05R0047
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 6658 ROUTE 148, MARION, IL, 62959
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $82,759,444
Exercised Options: $82,759,444
Current Obligation: $82,759,444
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-03-22
Current End Date: 2012-06-30
Potential End Date: 2012-06-30 00:00:00
Last Modified: 2015-09-09
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