DoD awards $76.6M for MK 46 MOD 2 GWS, a sole-source contract for naval platforms

Contract Overview

Contract Amount: $76,615,984 ($76.6M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2015-01-09

End Date: 2019-12-31

Contract Duration: 1,817 days

Daily Burn Rate: $42.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MK 46 MOD 2 GWS - LCS AND DDG 1000 CLASS SHIPS

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $76.6 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: MK 46 MOD 2 GWS - LCS AND DDG 1000 CLASS SHIPS Key points: 1. Contract awarded to General Dynamics Land Systems Inc. for specialized naval gun weapon systems. 2. The contract covers the MK 46 MOD 2 GWS, indicating a focus on specific naval armament. 3. Sole-source award suggests limited market availability or unique contractor capabilities. 4. The contract duration spans nearly five years, from January 2015 to December 2019. 5. Firm Fixed Price contract type aims to provide cost certainty for the government. 6. The award value of $76.6 million represents a significant investment in naval defense capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and specific application to naval platforms. Without competitive bids, it's difficult to ascertain if the $76.6 million represents optimal value for money. However, the firm fixed-price structure provides a degree of cost control. Further analysis would require comparing the unit cost of the MK 46 MOD 2 GWS to similar systems or previous procurements, if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder was considered. This typically occurs when a product or service is unique, proprietary, or when there are urgent needs that preclude a competitive process. The lack of competition limits the government's ability to explore alternative solutions or leverage market forces to drive down prices.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. It also reduces transparency in the procurement process.

Public Impact

The primary beneficiaries are the U.S. Navy and potentially other maritime forces requiring advanced gun weapon systems. The contract delivers critical armament systems for LCS (Littoral Combat Ship) and DDG 1000 class ships. Geographic impact is primarily on naval bases and shipyards where these vessels are deployed and maintained. Workforce implications include specialized manufacturing and technical support roles within General Dynamics Land Systems and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the procurement process due to non-competitive nature.
Dependence on a single contractor for critical naval armament systems.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Award to an established defense contractor with a track record in weapon systems.
Focus on equipping advanced naval platforms like LCS and DDG 1000.

Sector Analysis

The defense sector, specifically naval armament manufacturing, is characterized by high technological barriers to entry and significant government investment. Companies like General Dynamics Land Systems operate within a market shaped by defense budgets, geopolitical factors, and the need for specialized, high-reliability systems. This contract for the MK 46 MOD 2 GWS fits within the broader category of ordnance and weapon systems procurement, a critical component of national defense spending.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' flag is also false, suggesting no specific subcontracting goals for small businesses were mandated within this award. This means the prime contractor, General Dynamics Land Systems, has discretion over subcontracting, and there may be limited direct benefit or opportunity for small businesses through this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures, potentially involving the Defense Contract Management Agency (DCMA) for performance monitoring. As a sole-source award, transparency might be limited compared to competitively bid contracts. Accountability measures would be tied to the firm fixed-price terms and delivery schedules outlined in the contract.

Related Government Programs

Naval Gun Systems Procurement
Littoral Combat Ship (LCS) Program
DDG 1000 Class Destroyer Program
Ordnance and Ammunition Manufacturing
Defense Weapon Systems Contracts

Risk Flags

Sole-source award
Potential for higher costs
Limited competition
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.6 million to GENERAL DYNAMICS LAND SYSTEMS INC.. MK 46 MOD 2 GWS - LCS AND DDG 1000 CLASS SHIPS

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $76.6 million.

What is the period of performance?

Start: 2015-01-09. End: 2019-12-31.

What is the historical spending trend for MK 46 MOD 2 GWS or similar naval gun systems by the Department of Defense?

Analyzing historical spending for the MK 46 MOD 2 GWS specifically is challenging without access to detailed procurement databases that track individual weapon system variants over time. However, the Department of Defense consistently allocates significant funds towards naval armament and weapon systems to maintain fleet readiness and technological superiority. Spending on such systems is influenced by shipbuilding schedules, modernization programs, and evolving threat assessments. For instance, programs like the Littoral Combat Ship (LCS) and the Arleigh Burke-class destroyers (which share some systems with DDG 1000) have seen substantial investment in their respective weapon suites over the years. General Dynamics Land Systems, as a major defense contractor, has a history of securing large contracts for various weapon platforms, indicating a sustained demand for their products within the defense budget.

How does the unit cost of the MK 46 MOD 2 GWS compare to other naval gun systems of similar caliber or capability?

Directly comparing the unit cost of the MK 46 MOD 2 GWS is difficult without specific unit pricing data from this sole-source contract and comparable data from other systems. The MK 46 MOD 2 is a 30mm naval gun system, often used for close-in defense against small boats, aircraft, and shore targets. Its cost would be influenced by factors such as the complexity of its fire control system, integration requirements with specific ship platforms (like the LCS and DDG 1000), and the volume of production. Systems like the BAE Systems Mk 8 (57mm) or the Leonardo OTO Melara 76mm Super Rapid gun are larger caliber and designed for different roles, likely resulting in higher unit costs. However, even within the 30mm category, variations in features, performance, and manufacturer can lead to significant price differences. The sole-source nature of this award means a competitive benchmark is absent, making external validation of its cost-effectiveness challenging.

What are the key performance metrics and operational requirements for the MK 46 MOD 2 GWS that justify its procurement?

The MK 46 MOD 2 Gun Weapon System (GWS) is designed to provide naval vessels, particularly the Littoral Combat Ship (LCS) and DDG 1000 class destroyers, with a robust capability for surface warfare, close-in defense, and force protection. Key performance metrics typically include accuracy (hit probability), rate of fire, effective range, reliability (mean time between failures), and integration with shipboard combat systems. Operational requirements often emphasize rapid target engagement, ability to counter asymmetric threats (like small, fast attack craft), and ease of maintenance in a maritime environment. The system's ability to automatically track and engage targets, coupled with its specific caliber and ammunition, makes it suitable for littoral operations where threats can emerge quickly and require immediate response. The procurement is justified by the need to equip these modern naval platforms with adequate defensive and offensive armament to fulfill their mission profiles.

What is General Dynamics Land Systems' track record with producing and delivering naval weapon systems, particularly for the specified ship classes?

General Dynamics Land Systems (GDLS) has a long and established track record in the defense industry, primarily known for its armored vehicles and ground combat systems. However, GDLS has also been involved in providing weapon systems and components for naval platforms. Their experience includes integrating complex systems and managing large-scale defense contracts. For the LCS program, GDLS has been a key partner, contributing to the ship's design and systems integration. While the MK 46 MOD 2 GWS might be a specific product line, GDLS's broader experience in defense manufacturing, program management, and working with the Navy suggests a capability to deliver on such contracts. Their history indicates an ability to meet stringent military specifications and delivery schedules, although specific performance on this particular GWS contract would require detailed review of delivery and performance reports.

Are there any known risks associated with the sole-source procurement of the MK 46 MOD 2 GWS, such as obsolescence or limited upgrade paths?

Sole-source procurements inherently carry risks, including potential for higher costs due to lack of competition and a reduced incentive for the contractor to innovate aggressively. For the MK 46 MOD 2 GWS, risks could include a limited upgrade path if the original manufacturer (or its sole supplier) does not invest in future enhancements or if alternative technologies emerge that are not compatible. Obsolescence is a concern for any weapon system; if the MK 46 MOD 2 relies on components with limited production runs or diminishing manufacturing sources, future sustainment could become problematic. Furthermore, reliance on a single source can create vulnerabilities in the supply chain. The government's long-term strategy should ideally include plans for potential future competition, technology insertion, or alternative system evaluations to mitigate these risks.

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: N0002414R5344

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: $76,615,984

Exercised Options: $76,615,984

Current Obligation: $76,615,984

Subaward Activity

Number of Subawards: 551

Total Subaward Amount: $501,360,307

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline