DoD awards $42.8M contract for Small Arms Ammunition Manufacturing to General Dynamics Information S
Contract Overview
Contract Amount: $42,852,240 ($42.9M)
Contractor: General Dynamics Information S
Awarding Agency: Department of Defense
Start Date: 2003-04-15
End Date: 2005-12-10
Contract Duration: 970 days
Daily Burn Rate: $44.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: 200307!000574!2100!AE30 !TACOM - PICATINNY !DAAE3003C1095 !A!N! !N! !20030415!20051210!003591992!116187758!001381284!N!GENERAL DYNAMICS INFORMATION S!8800 QUEEN AVE SOUTH !BLOOMINGTON !VA!55431!06616!053!27!BLOOMINGTON !HENNEPIN !MINNESOTA !+000004000000!N!N!000000000000!AC15!RDTE/AIRCRAFT-ENG/MANUF DEVELOP !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !332992!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!V!2!003!A! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! ! ! ! !0001! !
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55431
Plain-Language Summary
Department of Defense obligated $42.9 million to GENERAL DYNAMICS INFORMATION S for work described as: 200307!000574!2100!AE30 !TACOM - PICATINNY !DAAE3003C1095 !A!N! !N! !20030415!20051210!003591992!116187758!001381284!N!GENERAL DYNAMICS INFORMATION S!8800 QUEEN AVE SOUTH !BLOOMINGTON !VA!55431!06616!053!27!BLOOMINGTON !HENNE… Key points: 1. Contract awarded for ammunition manufacturing, a critical defense sector. 2. General Dynamics Information S, a large business, secured the award. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract type is Cost Plus Incentive Fee, common for R&D and production where costs are uncertain.
Value Assessment
Rating: fair
The contract value of $42.8M over two years for ammunition manufacturing appears within a reasonable range for specialized defense production. Benchmarking against similar ammunition contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price, though the Cost Plus Incentive Fee structure introduces some cost uncertainty.
Public Impact
Ensures supply of essential small arms ammunition for military operations. Supports a major defense contractor, contributing to the defense industrial base. Potential for technological advancements in ammunition manufacturing through incentive fees.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can lead to cost overruns if not managed tightly.
- Reliance on a single large contractor for critical ammunition supply.
Positive Signals
- Full and open competition promotes market efficiency.
- Contract supports a key defense capability.
Sector Analysis
This contract falls within the Defense sector, specifically related to the manufacturing of ammunition. Spending in this area is driven by military readiness requirements and technological upgrades.
Small Business Impact
The awardee, General Dynamics Information S, is a large business. There is no indication of specific provisions or set-asides for small businesses in this particular contract award.
Oversight & Accountability
The use of full and open competition and a Cost Plus Incentive Fee structure implies oversight is needed to manage costs and ensure performance objectives are met. Contract performance monitoring by the Department of the Army is crucial.
Related Government Programs
- Small Arms Ammunition Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost overruns due to CPIF structure.
- Potential for supply chain disruption if contractor faces issues.
- Limited visibility into specific cost drivers without detailed reporting.
- Long-term reliance on a single large supplier.
Tags
small-arms-ammunition-manufacturing, department-of-defense, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.9 million to GENERAL DYNAMICS INFORMATION S. 200307!000574!2100!AE30 !TACOM - PICATINNY !DAAE3003C1095 !A!N! !N! !20030415!20051210!003591992!116187758!001381284!N!GENERAL DYNAMICS INFORMATION S!8800 QUEEN AVE SOUTH !BLOOMINGTON !VA!55431!06616!053!27!BLOOMINGTON !HENNEPIN !MINNESOTA !+000004000000!N!N!000000000000!AC15!RDTE/AIRCRAFT-ENG/MANUF DEVELOP !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !332992!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS INFORMATION S.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $42.9 million.
What is the period of performance?
Start: 2003-04-15. End: 2005-12-10.
What specific performance metrics or cost targets were established in the incentive fee structure, and how were they monitored?
The incentive fee structure likely tied bonuses to achieving specific production targets, quality standards, or delivery schedules while controlling costs. The Department of the Army would have established clear metrics and a robust monitoring system to track the contractor's performance against these benchmarks. Regular reporting and audits would be essential to ensure fair application of incentive fees and prevent cost overruns.
How does the unit cost of this ammunition compare to industry benchmarks for similar defense contracts?
Without specific unit cost data and detailed specifications of the ammunition, a direct comparison is difficult. However, the 'fair' rating suggests the price is not egregiously high. Benchmarking would require access to detailed cost breakdowns and comparison with other contracts for similar caliber and type of ammunition, considering factors like quantity and technological sophistication.
What is the long-term strategic impact of awarding this contract to a single large entity for ammunition manufacturing?
Awarding to a single large entity can ensure production capacity and expertise but may also create a dependency. This raises concerns about supply chain resilience and potential market concentration. The DoD likely assessed the contractor's capabilities and the broader industrial base before making this award, but ongoing evaluation of alternative sources and surge capacity is advisable.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Contractor Details
Address: 8800 QUEEN AVE SOUTH, BLOOMINGTON, VA, 55431
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $304,808
Exercised Options: $304,808
Current Obligation: $42,852,240
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2003-04-15
Current End Date: 2005-12-10
Potential End Date: 2005-12-10 00:00:00
Last Modified: 2019-02-22
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