DoD awards $55.1M for MK 46 MOD 2 Gun Weapon System to General Dynamics, raising competition concerns
Contract Overview
Contract Amount: $55,139,815 ($55.1M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2010-06-02
End Date: 2015-12-18
Contract Duration: 2,025 days
Daily Burn Rate: $27.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MK 46 MOD 2 GUN WEAPON SYSTEM
Place of Performance
Location: ANNISTON, CALHOUN County, ALABAMA, 36207
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $55.1 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: MK 46 MOD 2 GUN WEAPON SYSTEM Key points: 1. Significant contract value of $55.1 million for a specialized weapon system. 2. Sole awardee, General Dynamics Land Systems Inc., indicates potential lack of competition. 3. Risk of inflated pricing due to limited competitive bidding. 4. Spending falls within the Defense sector, specifically ordnance manufacturing.
Value Assessment
Rating: questionable
The contract value of $55.1 million for the MK 46 MOD 2 Gun Weapon System is substantial. Without competitive benchmarking, it's difficult to definitively assess pricing, but the lack of competition raises concerns about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and may lead to higher costs for the government compared to a competitive process.
Taxpayer Impact: The sole-source award for this defense system means taxpayers may be paying a premium due to the absence of competitive pressure to lower prices.
Public Impact
Taxpayers fund advanced military hardware, with limited visibility into cost-effectiveness. The procurement of weapon systems directly impacts national defense capabilities. Potential for funds to be allocated to less competitive, higher-cost solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Definitive contract awarded
- Specific weapon system procured
Sector Analysis
This contract falls within the defense sector, specifically the manufacturing of ordnance and accessories. Spending benchmarks for such specialized systems are often opaque, but significant investments are typical for military readiness.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to a large defense contractor.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid was fair and reasonable, despite the lack of competition.
Related Government Programs
- Other Ordnance and Accessories Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated costs due to lack of competitive bidding.
- Limited transparency on cost justification for sole-source contracts.
- No indication of small business participation.
Tags
other-ordnance-and-accessories-manufactu, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.1 million to GENERAL DYNAMICS LAND SYSTEMS INC.. MK 46 MOD 2 GUN WEAPON SYSTEM
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS LAND SYSTEMS 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 $55.1 million.
What is the period of performance?
Start: 2010-06-02. End: 2015-12-18.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies explored?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or the unavailability of other sources. Without further documentation, it's unclear if alternatives were considered. A thorough review would examine the specific circumstances that led to this procurement method and assess whether competitive options were genuinely absent or simply not pursued.
How does the unit cost of the MK 46 MOD 2 Gun Weapon System compare to similar systems procured competitively?
Benchmarking the unit cost against competitively procured systems is crucial for assessing value. Given this was a sole-source award, direct comparison is difficult. However, analysis of historical data for similar weapon systems, or systems with comparable capabilities acquired through competitive means, could reveal significant price discrepancies and highlight potential overspending.
What is the long-term strategic value and operational effectiveness of the MK 46 MOD 2 Gun Weapon System to the Department of Defense?
The long-term value hinges on the system's role in the DoD's strategic objectives and its effectiveness in operational scenarios. Understanding its specific capabilities, reliability, and integration with existing platforms is key. A comprehensive assessment would involve military operational assessments and threat analyses to determine if the investment aligns with current and future defense needs.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Other Ordnance and Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002409R5414
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 38500 MOUND RD, STERLING HEIGHTS, MI, 48310
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,139,815
Exercised Options: $55,139,815
Current Obligation: $55,139,815
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-06-02
Current End Date: 2015-12-18
Potential End Date: 2015-12-18 00:00:00
Last Modified: 2015-12-17
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