DoD Awards $194.8M Contract for Aircraft Structural Components to General Dynamics

Contract Overview

Contract Amount: $88,558,238 ($88.6M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-27

End Date: 2009-10-30

Contract Duration: 1,494 days

Daily Burn Rate: $59.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200512!501417!2100!W91CRB!USA MATERIEL COMMAND ACQUISITION!W91CRB04D0004 !A!N! !Y!0014 ! !20050927!20070531!194860813!194860813!001381284!N!GENERAL DYNAMICS ORDNANCE AND !11399 16TH COURT N - SUIT!SAINT PETERSBU !FL!33716!00000! !LO!* !* !SLOVAKIA !+000041241149!Y!N!000000000000!K015!MODIFICATION OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !* !336411!E! !5!B!S! ! ! !20200930!B! ! !N!Z!B!U!J!1!001!N!4A!Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33716

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $88.6 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: 200512!501417!2100!W91CRB!USA MATERIEL COMMAND ACQUISITION!W91CRB04D0004 !A!N! !Y!0014 ! !20050927!20070531!194860813!194860813!001381284!N!GENERAL DYNAMICS ORDNANCE AND !11399 16TH COURT N - SUIT!SAINT PETERSBU !FL!33716!00000! !LO!* !* … Key points: 1. The contract, valued at $194.8 million, was awarded to General Dynamics Ordnance and Tactical Systems. 2. This award is for aircraft structural components, a critical part of defense readiness. 3. The acquisition method was 'Not Available for Competition', raising potential concerns about price discovery. 4. The sector is Defense, specifically focusing on aircraft parts manufacturing.

Value Assessment

Rating: fair

The contract value of $194.8 million for aircraft structural components appears significant. Benchmarking against similar contracts for specialized defense components is difficult without more detailed specifications, but the lack of competition suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft structural components.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The defense supply chain for critical aircraft parts is reliant on a single provider. The long duration of the contract (over 4 years) means sustained potential for inflated costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Long contract duration

Positive Signals

Award to established defense contractor
Supports critical defense infrastructure

Sector Analysis

This contract falls within the Defense sector, specifically related to the manufacturing of aircraft structural components. Spending in this area is crucial for maintaining military readiness, but often involves specialized, high-cost items.

Small Business Impact

The awardee, General Dynamics Ordnance and Tactical Systems, is a large corporation. There is no indication in the data that small businesses were involved in this specific contract, either as prime contractors or subcontractors.

Oversight & Accountability

The 'Not Available for Competition' designation warrants further oversight to ensure the government received fair value. Accountability for the pricing and performance rests with the Department of the Army and General Dynamics.

Related Government Programs

All Other Motor Vehicle Parts Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of price competition
Potential for cost inefficiencies
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.6 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. 200512!501417!2100!W91CRB!USA MATERIEL COMMAND ACQUISITION!W91CRB04D0004 !A!N! !Y!0014 ! !20050927!20070531!194860813!194860813!001381284!N!GENERAL DYNAMICS ORDNANCE AND !11399 16TH COURT N - SUIT!SAINT PETERSBU !FL!33716!00000! !LO!* !* !SLOVAKIA !+000041241149!Y!N!000000000000!K015!MODIFICATION OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !* !336411!E! !5!B!S! ! ! !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 $88.6 million.

What is the period of performance?

Start: 2005-09-27. End: 2009-10-30.

What specific factors prevented this contract from being competed?

The data indicates the contract was 'Not Available for Competition'. This could be due to factors such as proprietary technology, urgent need, or a lack of qualified alternative sources. Further investigation would be required to determine the precise justification for limiting competition.

What is the risk of cost overruns or inefficiencies given the limited competition?

The primary risk is cost overruns due to the absence of competitive pressure. Without competing bids, the contractor may have less incentive to offer the lowest possible price. Inefficiencies could also arise if performance monitoring is not rigorous.

How does this spending align with broader DoD procurement strategies for aircraft components?

This award represents a significant investment in a specific component category. Without more context on the strategic importance of these components and the overall market for them, it's difficult to assess alignment. However, a sole-source award suggests a potential gap in the competitive landscape or a strategic decision to rely on a specific supplier.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Parts Manufacturing › All Other Motor Vehicle Parts Manufacturing

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 10101 DR M L KING ST N, SAINT PETERSBU, FL, 33716

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,458,119

Exercised Options: $16,458,119

Current Obligation: $88,558,238

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W91CRB04D0004

IDV Type: IDC

Timeline