DoD awards $48.7M for APDS Cartridges to General Dynamics, raising questions on value and competition

Contract Overview

Contract Amount: $48,704,031 ($48.7M)

Contractor: General Dynamics Ordnance & Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-04-15

End Date: 2014-06-30

Contract Duration: 1,902 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 20MM MK244 MOD 0 ARMOR PIERCING DISCARDING SABOT (APDS) CARTRIDGES

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $48.7 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC. for work described as: 20MM MK244 MOD 0 ARMOR PIERCING DISCARDING SABOT (APDS) CARTRIDGES Key points: 1. Significant award for specialized ammunition, indicating a critical defense need. 2. General Dynamics is a major defense contractor, suggesting established capabilities. 3. Contract duration of 1902 days points to a long-term supply requirement. 4. The 'IL' status code might indicate a specific type of contract or funding, requiring further investigation.

Value Assessment

Rating: questionable

The total award of $48.7M for 20MM APDS cartridges needs benchmarking against historical prices and similar procurements. Without per-unit cost data, assessing value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While advertised as full and open competition, the award details do not specify the number of bids received or the evaluation process. This lack of transparency makes it hard to confirm if the best price was achieved.

Taxpayer Impact: The impact on taxpayers is uncertain without a clear understanding of the price competitiveness and value delivered.

Public Impact

Ensures supply of critical ammunition for military operations. Supports a major defense contractor and its supply chain. Potential for cost overruns if pricing was not optimized. Long-term contract may lock in prices, impacting future cost savings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of per-unit cost data hinders value assessment.
Transparency of 'full and open competition' is not fully detailed.
Contract duration could lead to price inflexibility.

Positive Signals

Addresses a specific, likely critical, defense materiel requirement.
Awarded to a known, capable defense manufacturer.

Sector Analysis

This contract falls under the defense sector, specifically ammunition manufacturing. Spending benchmarks for such specialized munitions are highly variable and depend on quantity, technology, and geopolitical factors.

Small Business Impact

The data indicates the prime contractor is General Dynamics, a large business. There is no explicit information on small business participation in this specific contract award.

Oversight & Accountability

The contract was awarded under definitive contract terms. Oversight would typically involve contract performance monitoring by the Department of the Army to ensure delivery and quality standards are met.

Related Government Programs

Ammunition (except Small Arms) Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of per-unit cost data.
Ambiguity in 'full and open competition' details.
Potential for price inflexibility due to long contract duration.
No clear indication of small business involvement.
Limited transparency on bid evaluation process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.7 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC.. 20MM MK244 MOD 0 ARMOR PIERCING DISCARDING SABOT (APDS) CARTRIDGES

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 $48.7 million.

What is the period of performance?

Start: 2009-04-15. End: 2014-06-30.

What was the per-unit cost of the APDS cartridges, and how does it compare to industry benchmarks or previous procurements?

The provided data does not include the per-unit cost, making a direct comparison impossible. The total award of $48.7M for an unspecified quantity of 20MM APDS cartridges prevents a precise calculation. Further analysis would require access to the contract's detailed pricing structure or historical procurement data for similar items.

Given the 'full and open competition' designation, what was the competitive landscape, and were multiple bids evaluated to ensure optimal pricing?

While the contract type is listed as 'full and open competition,' the data lacks specifics on the number of bids received or the evaluation criteria used. This absence of detail raises concerns about the robustness of the competition and whether it truly resulted in the best possible price for the government and taxpayers.

What is the strategic importance of these specific APDS cartridges, and how does their procurement align with current military readiness requirements?

The procurement of 20MM APDS cartridges suggests a requirement for armor-piercing capabilities in specific combat scenarios or platforms. The long contract duration (1902 days) implies a sustained need. Understanding the exact military application and threat landscape would clarify the strategic alignment and necessity of this expenditure.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W52P1J08R0093

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, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,704,031

Exercised Options: $48,704,031

Current Obligation: $48,704,031

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline