DoD Awards $55.8M for 30MM Ammunition to General Dynamics, Highlighting Full and Open Competition

Contract Overview

Contract Amount: $55,795,520 ($55.8M)

Contractor: General Dynamics Ordnance & Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-03-04

End Date: 2015-01-31

Contract Duration: 1,429 days

Daily Burn Rate: $39.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 30MM PGU-13B/B CARTRIDGES (NSN:1305-01-539-0416 AND 1305-01-539-1347) AND 30MM PGU-13D/B CARTRIDGES (NSN: 1305-01-579-2134)

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959, UNITED STATES OF AMERICA

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $55.8 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC. for work described as: 30MM PGU-13B/B CARTRIDGES (NSN:1305-01-539-0416 AND 1305-01-539-1347) AND 30MM PGU-13D/B CARTRIDGES (NSN: 1305-01-579-2134) Key points: 1. The Department of the Army awarded $55.8 million for 30MM PGU-13B/B and PGU-13D/B cartridges. 2. General Dynamics Ordnance & Tactical Systems, Inc. secured the contract. 3. The contract utilized full and open competition after exclusion of sources, indicating a competitive bidding process. 4. The ammunition falls under the 'Ammunition (except Small Arms) Manufacturing' sector, crucial for military operations.

Value Assessment

Rating: good

The total award of $55.8 million for 30MM cartridges appears reasonable given the quantity and nature of the munitions. Without specific per-unit cost data or detailed comparisons to similar historical contracts, a precise valuation is difficult, but the award falls within expected ranges for defense procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was open, specific criteria or prior exclusions may have influenced the pool of eligible bidders. The price discovery mechanism is likely robust due to the competitive nature.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, securing necessary defense supplies at a fair market price.

Public Impact

Ensures readiness of U.S. Army aviation and ground platforms requiring 30MM ammunition. Supports a key defense contractor, contributing to the defense industrial base. The procurement process demonstrates a commitment to competitive sourcing for essential military materiel. Potential for follow-on contracts based on performance and future needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data for detailed value analysis.
The 'exclusion of sources' clause warrants further understanding of its impact on competition breadth.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Contract awarded to a known defense supplier with a track record.
Clear product definition (30MM PGU-13B/B and PGU-13D/B cartridges).

Sector Analysis

This procurement falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the defense industrial base. Spending in this area is directly tied to military readiness and operational requirements. Benchmarks for ammunition manufacturing contracts vary widely based on type, quantity, and technological complexity.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). The prime contractor, General Dynamics Ordnance & Tactical Systems, Inc., is a large defense manufacturer. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve program management offices, contracting officers, and potentially Inspector General functions to ensure compliance with terms, quality standards, and delivery schedules.

Related Government Programs

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

Risk Flags

Lack of detailed cost breakdown.
Ambiguity in 'exclusion of sources' rationale.
No indication of small business subcontracting.
Contract duration spans over multiple fiscal years.
Potential for price fluctuations over the contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.8 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC.. 30MM PGU-13B/B CARTRIDGES (NSN:1305-01-539-0416 AND 1305-01-539-1347) AND 30MM PGU-13D/B CARTRIDGES (NSN: 1305-01-579-2134)

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 $55.8 million.

What is the period of performance?

Start: 2011-03-04. End: 2015-01-31.

What is the specific per-unit cost for the PGU-13B/B and PGU-13D/B cartridges, and how does it compare to industry benchmarks for similar munitions?

The provided data does not include specific per-unit cost breakdowns. The total award of $55.8 million for an unspecified quantity of cartridges makes direct per-unit cost calculation impossible. To assess value effectively, a comparison with historical contract data for the same or similar 30MM rounds, considering inflation and quantity discounts, would be necessary.

What were the specific reasons for the 'exclusion of sources' in this full and open competition, and did it limit the competitive landscape?

The 'exclusion of sources' clause suggests that while the competition was generally open, certain potential sources were intentionally excluded based on predefined criteria, possibly related to security, capability, or prior performance. The exact reasons are not detailed, but such exclusions can potentially narrow the competitive field, impacting price discovery and potentially increasing costs if fewer bidders participate.

What is the expected operational impact and effectiveness of these 30MM cartridges for the Department of the Army's platforms?

The PGU-13B/B and PGU-13D/B are standard 30MM rounds used in various aircraft (like the A-10 Thunderbolt II) and potentially some ground vehicles. Their effectiveness is critical for air-to-ground attack and air-to-air combat missions. Ensuring a consistent supply of these munitions directly impacts the Army's combat readiness and its ability to project air power effectively.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W52P1J10R0079

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: $55,795,520

Exercised Options: $55,795,520

Current Obligation: $55,795,520

Contract Characteristics

Cost or Pricing Data: NO

Timeline