DoD Awards $35.8M for Guided Missile Directors and Repair Parts to General Dynamics-OTS
Contract Overview
Contract Amount: $35,814,966 ($35.8M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-01-31
End Date: 2027-06-30
Contract Duration: 1,611 days
Daily Burn Rate: $22.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MK 82/200 GUIDED MISSILE DIRECTORS, INTERIM REPAIR PARTS, AEGIS DISABLE SWITCH AND CONTROL UNIT KITS, AND SHIPPING STANDS.
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $35.8 million to GENERAL DYNAMICS-OTS, INC. for work described as: MK 82/200 GUIDED MISSILE DIRECTORS, INTERIM REPAIR PARTS, AEGIS DISABLE SWITCH AND CONTROL UNIT KITS, AND SHIPPING STANDS. Key points: 1. Spending focuses on critical missile components and repair parts for the Navy's AEGIS system. 2. General Dynamics-OTS, Inc. secured the contract through full and open competition. 3. The contract duration extends over four years, indicating a long-term need. 4. The award is for interim repair parts, suggesting a potential need for more permanent solutions.
Value Assessment
Rating: good
The contract value of $35.8 million for specialized missile components and repair parts appears reasonable given the nature of the equipment and the full and open competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a delivery order under an existing contract suggests a streamlined process.
Taxpayer Impact: Taxpayer funds are being used for essential defense equipment, with competition aiming to ensure cost-effectiveness.
Public Impact
Ensures continued operational readiness of naval assets equipped with AEGIS. Supports the maintenance and repair of advanced missile guidance systems. Contributes to the defense industrial base by awarding contracts to established manufacturers. Potential for follow-on contracts if interim parts prove effective and reliable.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Interim nature of repair parts may indicate a gap in long-term sustainment planning.
- Reliance on a single awardee for interim parts could limit future negotiation leverage.
- Potential for obsolescence of components over the contract duration.
Positive Signals
- Awarded through full and open competition.
- Supports critical national defense capabilities.
- Contract duration aligns with expected operational needs.
Sector Analysis
This spending falls within the Defense sector, specifically focusing on the manufacturing of guidance systems for naval platforms. Benchmarks for similar complex defense systems vary widely, but this award appears within a typical range for specialized components.
Small Business Impact
While the prime contractor is General Dynamics-OTS, Inc., the contract does not specify any set-asides for small businesses. Subcontracting opportunities for small businesses may exist but are not detailed in this award notice.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The use of a delivery order under a broader contract mechanism implies some level of pre-existing oversight and established performance metrics.
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
- Potential for obsolescence of components.
- Reliance on interim solutions.
- Lack of specific small business subcontracting goals.
- Long contract duration increases risk of changing requirements.
Tags
search-detection-navigation-guidance-aer, department-of-defense, vt, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.8 million to GENERAL DYNAMICS-OTS, INC.. MK 82/200 GUIDED MISSILE DIRECTORS, INTERIM REPAIR PARTS, AEGIS DISABLE SWITCH AND CONTROL UNIT KITS, AND SHIPPING STANDS.
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 $35.8 million.
What is the period of performance?
Start: 2023-01-31. End: 2027-06-30.
What is the projected cost savings achieved through the full and open competition for these missile components compared to a sole-source or limited competition scenario?
Quantifying exact savings from competition is challenging without a baseline. However, full and open competition generally drives down prices by encouraging multiple bidders to offer their best terms. This process likely resulted in a more favorable price than if only one or a few pre-selected vendors were considered, potentially saving millions in taxpayer funds over the contract's life.
What are the specific risks associated with using 'interim' repair parts, and what is the plan to transition to long-term, sustainable solutions?
Interim parts may have shorter lifespans, be less reliable, or not be fully integrated into long-term maintenance schedules, potentially leading to higher lifecycle costs or operational disruptions. The plan should involve rigorous testing of these interim parts, market research for permanent solutions, and a clear roadmap for obsolescence management and future procurement strategies.
How does the performance of General Dynamics-OTS, Inc. on previous contracts influence the assessment of this award's effectiveness?
Assessing effectiveness requires reviewing General Dynamics-OTS, Inc.'s past performance records, including on-time delivery, quality of goods, and adherence to budget on similar defense contracts. Positive past performance suggests a higher likelihood of successful contract execution. Conversely, any documented issues would raise concerns about the potential effectiveness and timely delivery of these critical missile components.
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: 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: $35,814,966
Exercised Options: $35,814,966
Current Obligation: $35,814,966
Actual Outlays: $753,123
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $7,083,214
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: 2023-01-31
Current End Date: 2027-06-30
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2026-01-07
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