DoD Awards $60.8M for Guided Missile Directors, Competition Limited by Firm Fixed Price Contract
Contract Overview
Contract Amount: $60,843,018 ($60.8M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-05-19
End Date: 2026-09-04
Contract Duration: 2,299 days
Daily Burn Rate: $26.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GUIDED MISSILE DIRECTOR FOR USN
Place of Performance
Location: SACO, YORK County, MAINE, 04072
State: Maine Government Spending
Plain-Language Summary
Department of Defense obligated $60.8 million to GENERAL DYNAMICS-OTS, INC. for work described as: GUIDED MISSILE DIRECTOR FOR USN Key points: 1. Contract value of $60.8M for critical missile guidance systems. 2. General Dynamics-OTS, Inc. is the sole awardee. 3. Risk associated with single-source award for advanced defense technology. 4. Spending falls within the IT and Defense sectors.
Value Assessment
Rating: good
The contract value of $60.8M appears reasonable for specialized defense components. Benchmarking against similar complex guidance systems is difficult without more granular data, but the firm fixed price structure suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bids were solicited. However, the specific award type ('DELIVERY ORDER') and the nature of the product may lead to limited future competition for follow-on orders.
Taxpayer Impact: The firm fixed price contract aims to protect taxpayers from cost overruns on this specialized defense procurement.
Public Impact
Ensures continued operational readiness for U.S. Navy guided missile systems. Supports advanced defense manufacturing capabilities within the U.S. Potential for technological advancements in missile guidance systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited visibility into long-term sustainment costs.
- Potential for sole-source follow-on orders.
- Dependence on a single contractor for critical components.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Supports critical national defense capabilities.
Sector Analysis
This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' industry. Spending in this niche defense sector is often characterized by high R&D costs and long production cycles.
Small Business Impact
No specific small business set-aside was indicated for this contract. The prime contractor, General Dynamics-OTS, Inc., is a large business, suggesting limited direct opportunities for small businesses on this specific award.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The firm fixed price contract and delivery order structure provide some accountability, but ongoing monitoring of performance and cost is crucial.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded to a single entity.
- Long contract duration (2020-2026).
- High value for specialized defense equipment.
- Potential for future sole-source modifications.
- Limited public information on specific technical specifications.
Tags
search-detection-navigation-guidance-aer, department-of-defense, me, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.8 million to GENERAL DYNAMICS-OTS, INC.. GUIDED MISSILE DIRECTOR FOR USN
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 $60.8 million.
What is the period of performance?
Start: 2020-05-19. End: 2026-09-04.
What is the projected total lifecycle cost for these guided missile directors, including sustainment and upgrades?
The current award covers acquisition costs totaling $60.8M through September 2026. However, the total lifecycle cost is not detailed here. This would encompass ongoing maintenance, potential repairs, software updates, and future upgrades necessary to maintain the effectiveness of the missile systems over their operational lifespan, which could significantly exceed the initial procurement value.
What are the specific technical risks associated with relying on General Dynamics-OTS, Inc. for these critical components?
Technical risks include potential obsolescence of components, integration challenges with evolving naval platforms, and the contractor's ability to maintain consistent quality and performance over the contract duration. Dependence on a single supplier also heightens the risk if the contractor faces production issues, financial instability, or intellectual property disputes.
How effectively does this contract contribute to the U.S. Navy's overall strategic missile defense capabilities?
This contract directly supports the operational readiness of U.S. Navy guided missile systems by ensuring the supply of essential director components. Its effectiveness is tied to the reliability and performance of these directors in enabling accurate targeting and engagement, thereby contributing to the Navy's overall deterrence and defense posture.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002419R5111
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
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: $60,843,018
Exercised Options: $60,843,018
Current Obligation: $60,843,018
Subaward Activity
Number of Subawards: 70
Total Subaward Amount: $16,570,630
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002420D5109
IDV Type: IDC
Timeline
Start Date: 2020-05-19
Current End Date: 2026-09-04
Potential End Date: 2026-09-04 00:00:00
Last Modified: 2025-04-15
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