DoD Awards $52.5M for Small Arms, Ordnance to General Dynamics, Lacking Competition
Contract Overview
Contract Amount: $52,550,632 ($52.6M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-07-06
End Date: 2011-04-30
Contract Duration: 2,124 days
Daily Burn Rate: $24.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200510!298318!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042105C0110 !A!N! !N! ! !20050706!20060729!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVE !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHITTENDEN !VERMONT !+000007500591!N!N!000010000788!1005!GUNS, THROUGH 30 MM !A5 !WEAPONS !000 !* !332994!E! !1! ! ! ! ! !20200930!B! ! !A! !D!U!J!1!001!N!1A!A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y!1700!N00019!0001! !
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $52.6 million to GENERAL DYNAMICS-OTS, INC. for work described as: 200510!298318!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042105C0110 !A!N! !N! ! !20050706!20060729!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVE !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHIT… Key points: 1. Significant award of $52.5M for ordnance and small arms manufacturing. 2. Contract awarded to General Dynamics-OTS, Inc., a major defense contractor. 3. The contract was not competed, raising questions about price discovery and value. 4. Spending is concentrated in the Defense sector, specifically weapons manufacturing.
Value Assessment
Rating: questionable
The award amount of $52.5M for small arms and ordnance is substantial. Without competitive bidding, it is difficult to assess if this price represents fair market value compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was explicitly marked as 'NOT COMPETED'. This indicates a sole-source or limited competition scenario, which can lead to higher prices and reduced innovation due to a lack of market pressure.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these defense articles and services.
Public Impact
Taxpayers may be overpaying for essential defense equipment due to lack of competition. The award impacts the defense industrial base, specifically in ordnance manufacturing. This contract could set a precedent for future non-competitive awards in this category.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency in pricing
Positive Signals
- Award to established defense contractor
- Supports critical defense capabilities
Sector Analysis
This award falls within the Defense sector, specifically focusing on the manufacturing of small arms and ordnance. Spending benchmarks in this area are highly dependent on specific weapon systems and quantities, but large sole-source awards warrant scrutiny.
Small Business Impact
The data indicates this contract was awarded to a large business, General Dynamics-OTS, Inc. There is no indication of small business participation in this specific award.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential gap in oversight regarding the justification for and necessity of competitive sourcing. Further review of the contract file would be needed to assess accountability.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of Competition
- Potential for Inflated Pricing
- Limited Transparency
- Sole-Source Award
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 $52.6 million to GENERAL DYNAMICS-OTS, INC.. 200510!298318!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042105C0110 !A!N! !N! ! !20050706!20060729!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVE !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHITTENDEN !VERMONT !+000007500591!N!N!000010000788!1005!GUNS, THROUGH 30 MM !A5 !WEAPONS !000 !* !332994!E! !1! ! ! ! ! !202
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $52.6 million.
What is the period of performance?
Start: 2005-07-06. End: 2011-04-30.
What was the justification for not competing this significant contract for small arms and ordnance?
The justification for not competing this contract is not provided in the data. Typically, non-competitive awards require a documented justification, such as a critical need, lack of available sources, or national security concerns. Without this information, it's impossible to assess the validity of the non-competitive approach and its impact on value for money.
What is the risk associated with awarding a $52.5M contract without competition?
The primary risk is financial: the government may pay a higher price than if the contract were competed. There's also a risk of reduced quality or innovation, as the contractor faces less pressure to perform optimally. Furthermore, it can stifle competition among other potential suppliers, hindering the long-term health of the defense industrial base.
How effective is this contract likely to be in meeting the DoD's needs for small arms and ordnance?
Assuming General Dynamics-OTS, Inc. is a capable supplier, the contract is likely to be effective in delivering the required goods. However, the effectiveness in terms of achieving the best possible value for taxpayer dollars is questionable due to the lack of competition. The government may receive the needed items, but potentially at a suboptimal cost.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 128 LAKESIDE AVE, BURLINGTON, VT, 05401
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-07-06
Current End Date: 2011-04-30
Potential End Date: 2011-04-30 00:00:00
Last Modified: 2023-01-27
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