DoD Awards $27.9M for 76 M61A2 20MM Gun Systems to General Dynamics-OTS
Contract Overview
Contract Amount: $27,937,498 ($27.9M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-01-26
End Date: 2025-01-31
Contract Duration: 1,101 days
Daily Burn Rate: $25.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: M61A2 20MM GUN SYSTEMS (76 UNITS)
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $27.9 million to GENERAL DYNAMICS-OTS, INC. for work described as: M61A2 20MM GUN SYSTEMS (76 UNITS) Key points: 1. Contract awarded for 76 M61A2 20MM Gun Systems. 2. General Dynamics-OTS, Inc. is the sole awardee. 3. The contract is valued at $27.9 million. 4. This falls under the Defense sector, specifically small arms manufacturing.
Value Assessment
Rating: fair
The contract price of $27.9 million for 76 units results in a per-unit cost of approximately $367,600. Benchmarking against similar advanced Gatling-style cannons suggests this pricing may be within a reasonable range, but detailed cost breakdowns are not available for definitive assessment.
Cost Per Unit: $367,600
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. While this can be efficient for specialized or proprietary systems, it limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award may result in a higher cost to taxpayers compared to a competitively bid contract.
Public Impact
Ensures continued operational readiness for naval aviation platforms requiring the M61A2 gun system. Supports a key defense contractor, contributing to the defense industrial base. Procurement of advanced weaponry is critical for national security capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of detailed cost breakdown for price validation.
Positive Signals
- Procurement of critical defense equipment.
- Long-term contract provides stability for supplier.
Sector Analysis
This procurement falls within the Defense sector, specifically the manufacturing of small arms and ordnance. Spending in this area is driven by military readiness requirements and technological advancements in weaponry. Benchmarks for such specialized systems are often proprietary or classified.
Small Business Impact
The awardee, General Dynamics-OTS, Inc., is a large business. There is no indication in the provided data that small businesses were involved as subcontractors or partners in this specific contract.
Oversight & Accountability
The contract is a definitive contract with a set duration, suggesting clear terms and conditions. However, the sole-source nature warrants scrutiny to ensure fair pricing and prevent potential cost overruns through robust oversight.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for higher costs
- Limited transparency on pricing justification
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, vt, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.9 million to GENERAL DYNAMICS-OTS, INC.. M61A2 20MM GUN SYSTEMS (76 UNITS)
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS-OTS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $27.9 million.
What is the period of performance?
Start: 2022-01-26. End: 2025-01-31.
What is the justification for the sole-source award of the M61A2 gun systems?
The justification for a sole-source award typically stems from factors such as unique technical requirements, proprietary technology, or the unavailability of other sources capable of meeting the government's needs within the required timeframe. Without further documentation, the specific rationale remains unclear, but it is crucial for the Department of Defense to have documented this justification.
How does the per-unit cost compare to similar advanced aircraft cannons in the market?
The per-unit cost of approximately $367,600 for the M61A2 gun system is substantial. While direct comparisons are difficult due to the specialized nature and potential classification of pricing for military hardware, similar advanced rotary cannons used in military aircraft can range from hundreds of thousands to over a million dollars depending on features, integration, and support packages.
What is the long-term strategic value of procuring these specific gun systems for the Navy?
The M61A2 20MM Gun System is a critical component of the armament for various naval aircraft, including fighter jets. Procuring these systems ensures the Navy maintains its air superiority and close air support capabilities, which are vital for mission effectiveness in combat operations and for projecting power.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001920R0007
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 326 IBM ROAD BUILDING 862, WILLISTON, VT, 05495
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,941,192
Exercised Options: $27,937,498
Current Obligation: $27,937,498
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $4,327,067
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-01-26
Current End Date: 2025-01-31
Potential End Date: 2025-01-31 00:00:00
Last Modified: 2025-07-21
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