Army awards $194.8M contract for small arms ammunition to General Dynamics

Contract Overview

Contract Amount: $171,238,338 ($171.2M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-08-23

End Date: 2008-06-30

Contract Duration: 1,042 days

Daily Burn Rate: $164.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200512!001823!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05G0002 !A!N! !N!0001 ! !20050823!20100823!194860813!194860813!001381284!N!GENERAL DYNAMICS ORDNANCE AND !11399 16TH COURT N - SUIT!SAINT PETERSBU !FL!33716!04000!510!24!BALTIMORE !BALTIMORE (CITY) !MARYLAND !+000171177551!N!N!000000000000!1305!AMMUNITION, THROUGH 30 MM !A6 !AMMUNITION !000 !* !332992!E! !4! ! ! ! ! !20200930!B! ! !B! !A!Y!J!2!002!B! !A!N!A! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33716

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $171.2 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: 200512!001823!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05G0002 !A!N! !N!0001 ! !20050823!20100823!194860813!194860813!001381284!N!GENERAL DYNAMICS ORDNANCE AND !11399 16TH COURT N - SUIT!SAINT PETERSBU !FL!33716!04000!510!24!BALTIMORE !BALT… Key points: 1. Contract awarded to General Dynamics Ordnance and Tactical Systems, Inc. for ammunition. 2. Full and open competition was utilized for this procurement. 3. The contract has a firm fixed price type. 4. The sector is manufacturing, specifically small arms ammunition.

Value Assessment

Rating: good

The contract value of $194.8 million over 1042 days appears reasonable for ammunition procurement, especially given the firm fixed price structure which shifts risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was used, suggesting a competitive bidding process that should lead to fair pricing. The award to a single contractor implies they offered the best value.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes competitive pricing and potentially lower costs.

Public Impact

Ensures supply of essential ammunition for U.S. Army operations. Supports domestic manufacturing capabilities in the defense industrial base. Potential for follow-on contracts based on performance and needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is relatively long (1042 days).
No specific small business set-aside mentioned.

Positive Signals

Firm fixed price contract provides cost certainty.
Full and open competition indicates a robust bidding process.

Sector Analysis

This contract falls within the manufacturing sector, specifically the production of small arms ammunition. Defense spending in this area is critical for national security and readiness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for procurement.

Related Government Programs

Small Arms Ammunition Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for supply chain disruption.
Limited long-term price competition.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $171.2 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. 200512!001823!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05G0002 !A!N! !N!0001 ! !20050823!20100823!194860813!194860813!001381284!N!GENERAL DYNAMICS ORDNANCE AND !11399 16TH COURT N - SUIT!SAINT PETERSBU !FL!33716!04000!510!24!BALTIMORE !BALTIMORE (CITY) !MARYLAND !+000171177551!N!N!000000000000!1305!AMMUNITION, THROUGH 30 MM !A6 !AMMUNITION !000 !* !332992!E! !4! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS ORDNANCE AND 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 $171.2 million.

What is the period of performance?

Start: 2005-08-23. End: 2008-06-30.

What was the basis for selecting General Dynamics as the sole awardee under full and open competition?

While full and open competition was utilized, the specific award criteria and evaluation process are not detailed in this data. Typically, the award would go to the offeror whose proposal represented the best value to the government, considering factors such as price, technical capability, past performance, and other relevant criteria. Further documentation would be required to understand the precise rationale.

Are there any identified risks associated with the long-term supply of ammunition from a single source?

A long-term contract with a single source, even if awarded competitively, can pose risks such as potential supply chain disruptions if the contractor faces issues, or a lack of ongoing competitive pressure on pricing after the initial award. The government may mitigate this through performance monitoring and contingency planning.

How does the unit cost of this ammunition compare to industry benchmarks or previous contracts?

The provided data does not include specific unit costs or detailed pricing breakdowns, making a direct benchmark comparison impossible. To assess value, one would need to analyze the per-unit cost against historical data for similar ammunition types and against other competitive bids received during the procurement process.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 11399 16TH COURT N - SUIT, SAINT PETERSBU, FL

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J05G0002

IDV Type: IDC

Timeline