DoD awards $82.6M for Ammunition Manufacturing, raising concerns over limited competition and taxpayer impact

Contract Overview

Contract Amount: $82,560,382 ($82.6M)

Contractor: General Dynamics Ordnance and Tactical Systems Inc

Awarding Agency: Department of Defense

Start Date: 2001-10-24

End Date: 2009-10-31

Contract Duration: 2,929 days

Daily Burn Rate: $28.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200210!000029!2100!AE30 !TACOM - PICATINNY !DAAE3002C1001 !A!N! !N! !20011024!20030630!003035870!005284864!106937436!N!CHAMBERLAIN MANUFACTURING CORP!156 CEDAR AVENUE !SCRANTON !PA!18505!69008!069!42!SCRANTON ARMY AMMUNI!LACKAWANNA !PENN !+000008621458!N!N!000000000000!1315!AMMUNITION, 75 MM THROUGH 125 MM !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !332993!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!3A!A!N!Z! ! !N!C!N! ! ! !A!C!A!A!000!A!C!Y! ! ! ! ! ! !0001!

Place of Performance

Location: SCRANTON, LACKAWANNA County, PENNSYLVANIA, 18505

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $82.6 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS INC for work described as: 200210!000029!2100!AE30 !TACOM - PICATINNY !DAAE3002C1001 !A!N! !N! !20011024!20030630!003035870!005284864!106937436!N!CHAMBERLAIN MANUFACTURING CORP!156 CEDAR AVENUE !SCRANTON !PA!18505!69008!069!42!SCRANTON ARMY AMMUNI!LACKA… Key points: 1. Significant contract value of $82.6M for ammunition manufacturing. 2. Limited competition raises questions about price discovery and potential overspending. 3. The contract is for a critical defense supply chain component. 4. Sector analysis indicates potential for higher costs due to lack of competitive bidding.

Value Assessment

Rating: questionable

The contract value of $82.6M for ammunition manufacturing appears high given the limited competition. Benchmarking against similar contracts is difficult without more data on specific ammunition types and quantities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a sole-source or limited competition award. This significantly impacts price discovery, potentially leading to higher costs for the government and taxpayers.

Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these ammunition supplies.

Public Impact

Taxpayers may be overpaying for essential ammunition due to a lack of competitive bidding. The Department of Defense's reliance on non-competed contracts can impact overall defense budget efficiency. Ensuring a robust and cost-effective supply chain for military munitions is crucial for national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for overpayment
Lack of transparency in pricing

Positive Signals

Essential defense procurement
Long-term contract duration

Sector Analysis

This contract falls within the Ammunition (except Small Arms) Manufacturing sector. Spending in this sector is critical for defense readiness, but often subject to specialized production requirements and limited supplier bases.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation in defense contracting.

Oversight & Accountability

The limited competition nature of this award warrants further oversight to ensure fair pricing and prevent potential waste, fraud, and abuse. Accountability for the justification of non-competitive awards is essential.

Related Government Programs

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

Risk Flags

Lack of Full and Open Competition
Potential for Inflated Pricing
Limited Transparency in Award Justification
No Indication of Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.6 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS INC. 200210!000029!2100!AE30 !TACOM - PICATINNY !DAAE3002C1001 !A!N! !N! !20011024!20030630!003035870!005284864!106937436!N!CHAMBERLAIN MANUFACTURING CORP!156 CEDAR AVENUE !SCRANTON !PA!18505!69008!069!42!SCRANTON ARMY AMMUNI!LACKAWANNA !PENN !+000008621458!N!N!000000000000!1315!AMMUNITION, 75 MM THROUGH 125 MM !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !332993!E! !3! ! ! ! ! !99990909!B

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 $82.6 million.

What is the period of performance?

Start: 2001-10-24. End: 2009-10-31.

What specific factors justified the limited competition for this ammunition contract, and how were these justified to ensure best value?

The justification for limited competition typically involves factors such as unique technical requirements, urgent needs, or a lack of available sources. Without access to the specific contract file and justification documentation, it's impossible to determine the precise reasons. However, the government is obligated to ensure that even in limited competition scenarios, the awarded price represents fair and reasonable value to the taxpayer.

How does the $82.6M contract value compare to industry benchmarks for similar ammunition types and quantities, considering the limited competition?

Direct comparison to industry benchmarks is challenging without detailed specifications of the ammunition procured (e.g., caliber, type, quantity, quality standards). Limited competition often inflates prices compared to fully competed contracts. A thorough review would require access to the contract's technical data package and a market research report to assess if the price paid was indeed fair and reasonable under the circumstances.

What is the long-term strategic impact of awarding such a significant contract without full and open competition on the overall defense supply chain for ammunition?

Awarding significant contracts without full competition can stifle innovation and reduce the number of capable suppliers in the long run. It may lead to complacency among existing suppliers regarding cost control and efficiency. Over time, this can create dependencies on a limited number of providers, potentially increasing vulnerability in the supply chain and driving up costs for future procurements.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline