DoD awards $528.8M contract for conveyor elements to General Dynamics-OTS, Inc
Contract Overview
Contract Amount: $5,288,004 ($5.3M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-06-29
End Date: 2026-05-15
Contract Duration: 1,416 days
Daily Burn Rate: $3.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8509172941!CONVEYOR ELEMENT,AM
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $5.3 million to GENERAL DYNAMICS-OTS, INC. for work described as: 8509172941!CONVEYOR ELEMENT,AM Key points: 1. Contract value of $528.8 million over 4 years. 2. General Dynamics-OTS, Inc. is the sole awardee. 3. Potential risks include reliance on a single supplier. 4. Spending falls within the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector.
Value Assessment
Rating: good
The contract value of $528.8 million appears reasonable for a multi-year supply of specialized conveyor elements. Benchmarking against similar defense logistics contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary defense equipment.
Public Impact
Ensures continued supply of critical components for defense operations. Supports a major defense contractor and its supply chain. Potential for long-term availability of specialized parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole awardee may limit future competition.
- Contract duration is significant (over 3 years).
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls under the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector, which is a critical component of defense logistics. Spending benchmarks for similar specialized equipment are difficult to ascertain without more granular data.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were involved in the supply chain or subcontracting opportunities.
Oversight & Accountability
The award was made by the Defense Logistics Agency, a key component of the Department of Defense's oversight for supply chain management. Contract performance will be monitored to ensure adherence to terms.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole awardee
- Long contract duration
- No small business participation indicated
- Specialized equipment procurement
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, vt, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.3 million to GENERAL DYNAMICS-OTS, INC.. 8509172941!CONVEYOR ELEMENT,AM
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $5.3 million.
What is the period of performance?
Start: 2022-06-29. End: 2026-05-15.
What is the specific nature of the 'conveyor element' and its criticality to defense operations?
The specific nature of the 'conveyor element' is not detailed in the provided data. However, its procurement by the Department of Defense suggests it is a critical component for military logistics, potentially used in ammunition handling, supply chain operations, or vehicle systems. Understanding its exact function would clarify its strategic importance and the necessity of this significant investment.
What are the potential risks associated with General Dynamics-OTS, Inc. being the sole awardee for this long-term contract?
The primary risk of a sole awardee for a long-term contract is reduced competition and potential price escalation in future modifications or renewals. It also creates a dependency on a single supplier, making the supply chain vulnerable to disruptions at General Dynamics-OTS, Inc. The government should actively monitor performance and explore options for fostering competition in subsequent contract actions.
How does the firm fixed price structure impact the government's ability to achieve cost savings or manage budget fluctuations?
A firm fixed price (FFP) contract provides the government with cost certainty, as the price is set and generally not subject to adjustment based on the contractor's cost experience. This structure is beneficial for managing budget fluctuations and protecting against cost overruns. However, it may limit the government's ability to benefit from contractor efficiencies if the contractor achieves lower costs than anticipated.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SPE7L321R0038
Offers Received: 3
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: $5,288,004
Exercised Options: $5,288,004
Current Obligation: $5,288,004
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $2,673,726
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-06-29
Current End Date: 2026-05-15
Potential End Date: 2026-05-15 00:00:00
Last Modified: 2025-12-03
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