DoD's $33.3M bomb body contract awarded to General Dynamics with no competition

Contract Overview

Contract Amount: $33,272,399 ($33.3M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-09-14

End Date: 2019-09-30

Contract Duration: 746 days

Daily Burn Rate: $44.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MK82-6 BOMB BODY (NSN: 1325-01-559-1663); MK84-10 BOMB BODY (NSN: 1325-01-548-1296)

Place of Performance

Location: GARLAND, DALLAS County, TEXAS, 75040

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $33.3 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: MK82-6 BOMB BODY (NSN: 1325-01-559-1663); MK84-10 BOMB BODY (NSN: 1325-01-548-1296) Key points: 1. The contract awarded to General Dynamics Ordnance and Tactical Systems, Inc. for bomb bodies represents a significant investment in munitions. 2. Lack of competition raises concerns about potential overpricing and limited market exploration for these critical defense components. 3. The contract duration of 746 days suggests a substantial, ongoing need for these specific bomb body types. 4. Performance context is limited due to the sole-source nature, making direct value-for-money assessments challenging. 5. The contract falls under the Ammunition (except Small Arms) Manufacturing sector, a key area for defense readiness. 6. The absence of small business participation is noted, with no set-aside or subcontracting requirements specified.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is difficult due to its sole-source nature and the lack of publicly available pricing details for comparable bomb bodies. Without competitive bids, it's challenging to ascertain if the $33.3 million awarded represents a fair market price or if there were opportunities for cost savings. The fixed-price contract type offers some cost certainty to the government, but the absence of competition limits the ability to assess overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in situations where competition is not feasible or in the government's best interest. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arises from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, there is less assurance that the price reflects the lowest possible cost for these essential defense components.

Public Impact

The primary beneficiaries are the Department of Defense and its operational units requiring advanced munitions. The contract delivers essential components for MK82 and MK84 bomb bodies, crucial for air-to-ground strike capabilities. The geographic impact is primarily within Texas, where General Dynamics Ordnance and Tactical Systems, Inc. is located, though the end-use is global for military operations. Workforce implications include continued employment and specialized manufacturing roles within the defense industrial base at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-source award.
No small business participation or subcontracting requirements noted, potentially limiting broader economic impact.
Contract duration of over two years suggests a long-term reliance on a single supplier for critical components.

Positive Signals

Award to an established defense contractor with presumed expertise in ordnance manufacturing.
Firm Fixed Price contract provides cost certainty for the government.
Contract addresses a critical need for specific bomb body types within the DoD inventory.

Sector Analysis

This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical sub-segment of the broader defense industrial base. The market for specialized ordnance components like bomb bodies is often concentrated among a few key defense contractors due to high barriers to entry, including specialized knowledge, manufacturing capabilities, and security clearances. Spending in this sector is directly tied to military readiness and operational requirements, with significant government investment driven by geopolitical factors and defense strategy.

Small Business Impact

This contract did not include any small business set-aside provisions, nor are there any indications of subcontracting goals for small businesses. This suggests that the primary contractor, General Dynamics, will be handling the entirety of the work. Consequently, the direct economic impact on the small business ecosystem for this specific award is minimal, missing an opportunity to foster broader participation in the defense supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and procurement regulations. Specific oversight mechanisms would include contract administration by the relevant Army contracting office, performance monitoring, and potentially audits by the Defense Contract Audit Agency (DCAA) or the Inspector General's office. Transparency is limited by the sole-source nature of the award, with detailed justifications for the procurement approach not readily available to the public.

Related Government Programs

Department of the Army Ammunition Procurement
Ordnance Manufacturing Contracts
Defense Industrial Base Support
Air-to-Ground Munitions Development

Risk Flags

Sole-source award
Lack of competition
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.3 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. MK82-6 BOMB BODY (NSN: 1325-01-559-1663); MK84-10 BOMB BODY (NSN: 1325-01-548-1296)

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 $33.3 million.

What is the period of performance?

Start: 2017-09-14. End: 2019-09-30.

What is the historical spending pattern for MK82 and MK84 bomb bodies by the Department of Defense?

Analyzing historical spending for specific bomb body types like the MK82 and MK84 is challenging without direct access to detailed procurement databases. However, general trends in defense spending indicate consistent investment in munitions to maintain operational readiness and replace expended inventory. The Department of Defense's overall budget for procurement, research, development, testing, and evaluation (RDT&E) often includes significant allocations for missile and ordnance systems. Fluctuations in spending can be influenced by ongoing military operations, strategic shifts, and the modernization of weapon systems. Without specific contract data for these bomb bodies over time, it's difficult to pinpoint precise historical spending figures, but it's reasonable to assume continuous procurement to support air power capabilities.

What are the specific technical requirements or justifications for awarding this contract on a sole-source basis?

The specific technical requirements or justifications for awarding this contract on a sole-source basis are not publicly detailed in the provided data. Generally, sole-source procurements are justified when only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique manufacturing capabilities, urgent and compelling needs where competition is not feasible, or if the existing system is unique and requires compatible components. For defense articles like bomb bodies, justifications might include specific performance characteristics, integration with existing platforms, or the contractor being the sole producer of a critical component. A formal Justification for Other Than Full and Open Competition (JOFOC) would typically be required and approved by the agency.

How does the price of this contract compare to similar bomb body procurements, if any?

Direct price comparison for this $33.3 million contract is difficult due to its sole-source nature and the lack of publicly available data on comparable bomb body procurements. Competitive solicitations for similar munitions would provide a benchmark for pricing. However, the absence of competition inherently limits the ability to assess if this price is optimal. Factors influencing price include the specific model of the bomb body (MK82 vs. MK84), quantity, material costs, manufacturing complexity, and any associated testing or certification requirements. Without competitive bids or publicly disclosed pricing from other agencies for identical or highly similar items, a robust value-for-money assessment based on price is not feasible.

What is General Dynamics Ordnance and Tactical Systems, Inc.'s track record with similar DoD contracts?

General Dynamics Ordnance and Tactical Systems, Inc. (GD-OTS) has a significant and established track record of supplying munitions and ordnance systems to the Department of Defense and allied nations. They are known for producing a wide range of products, including mortar systems, artillery shells, and bomb bodies. Their history with the DoD includes numerous contracts for various ordnance components, often awarded through competitive processes but also including sole-source arrangements for specialized or sole-source items. GD-OTS is a major player in the defense industrial base, and their experience suggests a capability to meet the technical and production demands for items like the MK82 and MK84 bomb bodies. Their performance history on prior contracts would be a key factor in the DoD's decision-making, even in sole-source situations.

What are the potential risks associated with relying on a single supplier for critical bomb components?

Relying on a single supplier for critical bomb components like bomb bodies introduces several potential risks. Firstly, it creates a dependency that can lead to supply chain vulnerabilities; any disruption at the sole-source manufacturer (e.g., production issues, labor strikes, natural disasters, geopolitical events affecting their operations) could halt the supply of essential munitions. Secondly, without competition, there is a reduced incentive for the supplier to innovate or offer cost reductions, potentially leading to higher long-term costs for the government. Thirdly, it limits the government's flexibility to switch suppliers if performance issues arise or if better alternatives become available. This sole-source award, therefore, carries inherent risks related to supply assurance, cost control, and strategic flexibility.

Industry Classification

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

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 1200 N GLENBROOK DR, GARLAND, TX, 75040

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,272,399

Exercised Options: $33,272,399

Current Obligation: $33,272,399

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $1,341,379

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W52P1J13D0050

IDV Type: IDC

Timeline