DoD awards $38.9M for M61A2 20MM Gun Systems to General Dynamics-OTS, Inc
Contract Overview
Contract Amount: $38,903,843 ($38.9M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-05-24
End Date: 2017-01-31
Contract Duration: 2,444 days
Daily Burn Rate: $15.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: M61A2 20MM GUN SYSTEM (BASE PERIOD QTY - 30)
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $38.9 million to GENERAL DYNAMICS-OTS, INC. for work described as: M61A2 20MM GUN SYSTEM (BASE PERIOD QTY - 30) Key points: 1. The contract value is $38.9 million for 30 units. 2. General Dynamics-OTS, Inc. is the sole awardee. 3. The contract type is Firm Fixed Price, indicating price certainty. 4. This falls under the Defense sector, specifically small arms manufacturing.
Value Assessment
Rating: fair
The contract value of $38.9 million for 30 units suggests a per-unit cost of approximately $1.3 million. Benchmarking this against similar advanced weapon systems is difficult without more specific data on capabilities and features.
Cost Per Unit: $1,296,794.77
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without competition, there is a reduced incentive for the contractor to offer the lowest possible price, potentially leading to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these gun systems compared to a competitively bid scenario.
Public Impact
Essential component for military aircraft, impacting air defense capabilities. Supports the operational readiness of U.S. Air Force and Navy fighter jets. Procurement ensures continued availability of a critical weapon system for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery.
- Potential for higher costs due to lack of competition.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Award to established manufacturer with proven capabilities.
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of small arms and ordnance. Spending in this area is critical for maintaining military readiness and technological superiority.
Small Business Impact
The awardee, General Dynamics-OTS, Inc., is a large business. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The firm fixed price contract type provides some level of financial accountability, but the sole-source nature warrants close monitoring of performance and costs.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost overruns without competition
- Limited transparency on justification for sole-sourcing
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 $38.9 million to GENERAL DYNAMICS-OTS, INC.. M61A2 20MM GUN SYSTEM (BASE PERIOD QTY - 30)
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 $38.9 million.
What is the period of performance?
Start: 2010-05-24. End: 2017-01-31.
What is the justification for the sole-source award, and were alternative sources considered?
The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies typically cite reasons such as unique capabilities, urgent needs, or lack of viable alternatives. Without this justification, it's difficult to assess if taxpayers received fair value or if opportunities for cost savings through competition were missed.
How does the per-unit cost compare to similar advanced Gatling-style cannons with comparable fire rates and capabilities?
Benchmarking the per-unit cost of $1.3 million against similar advanced Gatling-style cannons is essential for value assessment. If comparable systems are available at a significantly lower price point, it suggests this contract may be overpriced. Conversely, if the M61A2 offers unique advantages justifying the cost, the value proposition improves.
What is the expected lifespan and maintenance cost of the M61A2 20MM Gun System to fully understand its total cost of ownership?
Understanding the lifespan and maintenance costs provides a more comprehensive view of the total cost of ownership beyond the initial procurement price. High maintenance expenses or a short operational lifespan could significantly increase the overall financial burden on the government, impacting the long-term value of this acquisition.
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: N0042109R0013
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 128 LAKESIDE AVE, BURLINGTON, VT, 05401
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: $39,103,843
Exercised Options: $38,903,843
Current Obligation: $38,903,843
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-05-24
Current End Date: 2017-01-31
Potential End Date: 2017-01-31 00:00:00
Last Modified: 2019-04-30
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