DoD awards $41.9M for 20MM MK244-0 APDS Linked Cartridges to General Dynamics

Contract Overview

Contract Amount: $41,872,651 ($41.9M)

Contractor: General Dynamics Ordnance & Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-05-30

End Date: 2023-06-30

Contract Duration: 1,492 days

Daily Burn Rate: $28.1K/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: 20MM MK244-0 APDS LINKED CARTRIDGES, NSN:1305-01-484-9674

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $41.9 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC. for work described as: 20MM MK244-0 APDS LINKED CARTRIDGES, NSN:1305-01-484-9674 Key points: 1. Spending of $41.9M on ammunition manufacturing. 2. General Dynamics secured the contract for linked cartridges. 3. Full and open competition after exclusion of sources was used. 4. The contract spans over 4 years, indicating a significant supply need.

Value Assessment

Rating: good

The contract value of $41.9M for linked cartridges appears reasonable given the quantity and duration. Benchmarking against similar ammunition contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a specific reason for excluding certain potential bidders. This method might limit price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for defense procurement. The chosen competition method's impact on price efficiency is a key consideration for maximizing value.

Public Impact

Ensures supply of critical ammunition for military operations. Supports defense manufacturing capabilities and associated jobs. Contributes to the readiness of armed forces. Potential for follow-on contracts based on performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method could impact price.
Long contract duration may require price adjustments.
Reliance on a single supplier for this specific munition.

Positive Signals

Secures essential defense materiel.
Awarded to an established defense contractor.
Contract includes delivery orders, allowing for phased procurement.

Sector Analysis

This contract falls within the defense sector, specifically ammunition manufacturing. Spending benchmarks for similar defense procurement contracts vary widely based on item type, quantity, and technological complexity.

Small Business Impact

The contract was awarded to General Dynamics Ordnance & Tactical Systems, Inc., a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The Department of Defense's contracting process, including the use of delivery orders under a larger contract, is subject to oversight. The 'exclusion of sources' clause warrants scrutiny to ensure fairness and competition.

Related Government Programs

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

Risk Flags

Limited competition
Potential supply chain concentration
Long-term sustainment costs
Dependence on specific technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.9 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC.. 20MM MK244-0 APDS LINKED CARTRIDGES, NSN:1305-01-484-9674

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 $41.9 million.

What is the period of performance?

Start: 2019-05-30. End: 2023-06-30.

What was the specific justification for excluding sources in the 'Full and Open Competition After Exclusion of Sources' award?

The justification for excluding sources typically relates to factors such as proprietary technology, unique manufacturing capabilities, or specific security requirements that only a limited number of contractors can meet. Without further details from the contract award notice, it's difficult to ascertain the precise reason for excluding other potential bidders in this instance.

How does the per-unit cost of these cartridges compare to similar munitions procured by other allied nations or through different contract vehicles?

A direct comparison of per-unit cost is challenging without access to detailed pricing data and specifications for comparable munitions. Factors like technological advancements, material costs, order volume, and specific performance requirements significantly influence pricing. A thorough analysis would require benchmarking against contracts with similar scope and technical parameters.

What are the long-term implications for defense readiness if this specific type of ammunition becomes difficult to source due to limited manufacturing capabilities?

A limited manufacturing base for critical ammunition poses a significant risk to long-term defense readiness. It could lead to supply chain vulnerabilities, price escalations, and potential shortages during periods of heightened demand. Diversifying manufacturing sources or investing in alternative technologies would be prudent strategies to mitigate such risks.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $41,872,651

Exercised Options: $41,872,651

Current Obligation: $41,872,651

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $21,609,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18D0093

IDV Type: IDC

Timeline