DoD's $9.8M contract for Scranton AAP press system rebuild awarded to General Dynamics

Contract Overview

Contract Amount: $9,857,660 ($9.9M)

Contractor: General Dynamics Ordnance and Tactical Systems Inc

Awarding Agency: Department of Defense

Start Date: 2007-05-09

End Date: 2010-09-30

Contract Duration: 1,240 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: Defense

Official Description: REBUILD OF BLISS III PRESS SYSTEM AT SCRANTON AAP.

Place of Performance

Location: SCRANTON, LACKAWANNA County, PENNSYLVANIA, 18505

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $9.9 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS INC for work described as: REBUILD OF BLISS III PRESS SYSTEM AT SCRANTON AAP. Key points: 1. Contract awarded for critical infrastructure repair at a key defense facility. 2. The contract was competed after excluding other sources, suggesting specific technical requirements. 3. Performance period spans over three years, indicating a substantial project scope. 4. The contract type is Cost No Fee, which shifts cost risk to the government. 5. The facility is located in Pennsylvania, impacting regional economic activity. 6. The North American Industry Classification System (NAICS) code points to facilities support services.

Value Assessment

Rating: fair

The contract's Cost No Fee (Cost Plus Fixed Fee) structure means the government bears the cost risk, which can lead to higher final prices if costs are not managed effectively. Benchmarking this specific 'press system rebuild' is difficult without more granular cost data. However, the duration and scope suggest a significant investment. The award value of approximately $9.8 million for a three-year rebuild project appears within a reasonable range for specialized industrial maintenance, but a detailed cost breakdown would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the initial intent might have been broader competition, specific circumstances or technical requirements led to the exclusion of certain potential bidders. The number of bidders is not explicitly stated, but the 'exclusion of sources' implies a limited pool of qualified entities. This approach can sometimes lead to higher prices if the qualified pool is small and lacks robust competition.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through a wider bidding process. The government may have paid a premium to secure the specialized expertise required for this critical rebuild.

Public Impact

The primary beneficiaries are the Department of Defense and the Army, ensuring operational readiness at the Scranton Army Ammunition Plant. The service delivered is the critical rebuild of the Bliss III Press System, essential for ammunition production or maintenance. The geographic impact is concentrated in Scranton, Pennsylvania, potentially creating or sustaining local jobs during the contract period. Workforce implications include the need for specialized skilled labor for the construction and technical aspects of the press system rebuild.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type increases government's financial risk.
Limited competition after exclusion of sources may result in suboptimal pricing.
Lack of detailed cost breakdowns hinders precise value-for-money assessment.
Specialized nature of the rebuild might limit the pool of qualified contractors, impacting competition.

Positive Signals

Award to a known entity (General Dynamics) suggests a level of confidence in contractor capability.
The contract addresses a critical infrastructure need, ensuring continued operational capability.
The project is located in Pennsylvania, potentially providing economic benefits to the region.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on facilities support and maintenance for critical manufacturing or processing equipment. The market for specialized industrial rebuilds like press systems is often niche, dominated by a few large defense contractors or specialized engineering firms. Benchmarking is challenging without comparable projects, but spending on maintaining and upgrading aging defense infrastructure is a significant component of the DoD's budget.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration, as the 'sb' field is false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the prime contractor, General Dynamics, is likely responsible for the majority of the work, and the direct impact on the small business ecosystem may be limited unless they are utilized as subcontractors.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and the relevant Department of the Army contracting command. The 'Cost No Fee' structure necessitates close monitoring of costs incurred by the contractor to ensure reasonableness and allowability. Transparency is generally provided through contract award databases, but detailed cost reports and performance metrics are usually internal to the agency. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Defense Industrial Base Infrastructure Modernization
Army Ammunition Plant Operations and Maintenance
Specialized Industrial Equipment Repair
Facilities Support Services Contracts

Risk Flags

Cost-plus contract type increases government financial exposure.
Limited competition may lead to higher costs.
Lack of detailed cost transparency.
Potential for scope creep in Cost No Fee contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS INC. REBUILD OF BLISS III PRESS SYSTEM AT SCRANTON AAP.

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 $9.9 million.

What is the period of performance?

Start: 2007-05-09. End: 2010-09-30.

What is the track record of General Dynamics Ordnance and Tactical Systems Inc. with similar press system rebuild contracts?

General Dynamics Ordnance and Tactical Systems Inc. (GD-OTS) is a major defense contractor with extensive experience in manufacturing and maintaining ordnance systems and related equipment. While specific details on 'press system rebuilds' for Bliss III systems are not publicly itemized, GD-OTS has a history of managing complex manufacturing and sustainment contracts for the Department of Defense. Their portfolio includes work on various ammunition production lines and associated heavy machinery. Assessing their specific performance on similar rebuilds would require delving into past performance evaluations and contract histories, which are often not fully public. However, their established presence in the defense industrial base suggests they possess the requisite capabilities for such specialized projects.

How does the Cost No Fee (CNF) contract type compare to other pricing arrangements for this type of service?

The Cost No Fee (CNF) contract type, often a variation of Cost Plus Fixed Fee (CPFF), places the primary financial risk on the government. The contractor is reimbursed for all allowable costs but does not receive a fee or profit. This is typically used when the scope of work is uncertain, or the contractor has little control over costs. For infrastructure rebuilds, other common types include Firm-Fixed-Price (FFP), where the price is set upfront, shifting risk to the contractor, or Cost Plus Incentive Fee (CPIF), which incentivizes cost savings. CNF is less common for projects with a defined scope like a rebuild, as it removes contractor incentive for cost efficiency. It suggests a high degree of uncertainty or a unique situation where the government prioritized securing the work over cost control.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' award method?

The 'Full and Open Competition After Exclusion of Sources' method implies that the initial solicitation was intended for broad competition, but certain sources were later excluded. This can occur due to highly specialized requirements, proprietary technology, or unique capabilities possessed by only a few entities. The primary risk is that excluding potential bidders, even if justified, can limit the competitive landscape. This reduced competition may lead to higher prices for the government than if a wider range of qualified contractors had participated. It also raises questions about whether the exclusion criteria were overly restrictive or if alternative solutions were adequately considered, potentially impacting overall value for taxpayers.

What is the significance of the Bliss III Press System to the Scranton AAP's operations?

The Bliss III Press System is likely a critical piece of machinery within the Scranton Army Ammunition Plant (AAP). Army Ammunition Plants are vital for the production, processing, and maintenance of munitions. Press systems, in particular, are often used for forming, assembling, or inspecting ordnance components. A 'rebuild' suggests that the existing system is either obsolete, worn out, or requires significant upgrades to meet current operational demands or safety standards. Ensuring this system is functional and efficient is paramount for the plant's ability to fulfill its mission, which directly impacts military readiness and supply chain security.

How does this $9.8M contract compare to historical spending on facilities support at Scranton AAP?

Analyzing this $9.8 million contract in the context of historical spending requires access to detailed historical contract data for the Scranton Army Ammunition Plant (AAP). Without that specific data, direct comparison is difficult. However, $9.8 million over approximately three years (1240 days) represents an average annual expenditure of roughly $3.27 million for this specific project. Facilities support services, which include maintenance, repair, and operation of infrastructure, are a significant and ongoing cost for military installations. This contract appears to be a substantial, targeted investment in a specific critical system rather than broad-spectrum facilities maintenance, suggesting a major capital improvement or repair effort.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 3

Pricing Type: COST NO FEE (S)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 156 CEDAR AVE, SCRANTON, PA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $9,857,660

Exercised Options: $9,857,660

Current Obligation: $9,857,660

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAA0902G0016

IDV Type: IDC

Timeline