DoD awards $2.3M for A-10 30mm Gun Housing, with General Dynamics-OTS as sole awardee

Contract Overview

Contract Amount: $2,319,208 ($2.3M)

Contractor: General Dynamics-Ots, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-24

End Date: 2027-06-11

Contract Duration: 2,451 days

Daily Burn Rate: $946/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 30 MM GUN HOUSING FOR THE A-10 AIRCRAFT

Place of Performance

Location: SACO, YORK County, MAINE, 04072

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $2.3 million to GENERAL DYNAMICS-OTS, INC. for work described as: 30 MM GUN HOUSING FOR THE A-10 AIRCRAFT Key points: 1. Contract awarded under full and open competition, suggesting a competitive process. 2. The contract is for a critical component of the A-10 aircraft, indicating a focus on sustainment. 3. Fixed-price contract type aims to control costs for the government. 4. The duration of the contract suggests a long-term need for this part. 5. Awarded by the Defense Logistics Agency, which manages a wide range of military equipment. 6. The North American Industry Classification System (NAICS) code points to specialized aircraft parts manufacturing.

Value Assessment

Rating: fair

The contract value of $2.3 million for 30mm gun housings for the A-10 is difficult to benchmark without more specific data on unit costs and production volumes. Given the fixed-price nature, the government has some cost certainty. However, without comparative pricing from other suppliers or historical data for this specific part, assessing the overall value for money is challenging. The sole awardee, General Dynamics-OTS, Inc., suggests a specialized manufacturing capability, but the absence of competitive bids in the award phase warrants further scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bids received, which is crucial for understanding the actual level of competition. A high number of bids typically leads to better price discovery and potentially lower costs for the government. Conversely, if only one or a few bids were submitted despite the open competition, it might suggest limited market capacity or specialized requirements.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of suppliers to compete, potentially driving down prices and increasing innovation. However, the ultimate benefit depends on the number of actual bids received and the resulting price.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating the A-10 Thunderbolt II aircraft, ensuring the continued operational readiness of their primary armament. The contract delivers essential components for the 30mm GAU-8/A Avenger Gatling gun, a key weapon system for the A-10's close air support mission. Geographic impact is likely concentrated around maintenance depots and operational bases where A-10s are stationed. Workforce implications may include skilled manufacturing labor at General Dynamics-OTS, Inc. and potentially at subcontractors involved in the supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific unit cost data makes it difficult to assess if the $2.3M award represents a fair price.
The absence of the number of bids received under 'full and open competition' limits the assessment of competitive pressure.
Limited information on the specific technical requirements and potential obsolescence risks associated with the gun housing.

Positive Signals

Awarded under full and open competition, which theoretically promotes a competitive marketplace.
The contract utilizes a firm fixed-price type, providing cost certainty for the government.
The Defense Logistics Agency's involvement suggests established procurement processes for defense components.

Sector Analysis

The defense manufacturing sector, particularly aircraft parts and auxiliary equipment, is characterized by high barriers to entry due to specialized technology, stringent quality control, and long qualification processes. Contracts like this are crucial for maintaining the readiness of aging but vital platforms like the A-10. Spending in this sub-sector is driven by sustainment needs for existing fleets, modernization programs, and occasional new platform development. Benchmarking requires comparison to similar component manufacturing contracts within the aerospace and defense industry, considering factors like material complexity and production volume.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. While General Dynamics-OTS, Inc. is a large entity, the subcontracting opportunities for small businesses within their supply chain are not detailed in this data. The absence of set-aside provisions means that large businesses were eligible to compete and potentially win the entire award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting and financial management offices, as well as the Defense Contract Audit Agency (DCAA) for financial audits. The Defense Logistics Agency (DLA) has its own internal oversight mechanisms for contract execution and performance. Inspector General (IG) investigations could be initiated if specific concerns regarding fraud, waste, or abuse arise. Transparency is facilitated through contract databases like FPDS, but detailed performance metrics and audit reports are often not publicly available.

Related Government Programs

A-10 Thunderbolt II Sustainment Programs
Aircraft Component Manufacturing
Defense Logistics Agency Procurement
Ordnance and Armaments Manufacturing
Fixed-Wing Aircraft Parts

Risk Flags

Potential supply chain concentration risk due to sole awardee.
Limited public data on specific performance metrics and quality assurance.
Aging aircraft platform may present long-term sustainment challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.3 million to GENERAL DYNAMICS-OTS, INC.. 30 MM GUN HOUSING FOR THE A-10 AIRCRAFT

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 $2.3 million.

What is the period of performance?

Start: 2020-09-24. End: 2027-06-11.

What is the historical spending trend for 30mm gun housings for the A-10 aircraft?

Analyzing historical spending for this specific component requires accessing detailed procurement data over multiple fiscal years. Without direct access to such granular historical data, it's challenging to establish a precise trend. However, the A-10 platform has been in service for decades, and its sustainment, including critical components like the gun housing, would necessitate ongoing procurement. Spending would likely fluctuate based on maintenance cycles, depot-level repair needs, and the overall operational tempo of A-10 squadrons. A significant increase or decrease in spending could indicate changes in platform utilization, the emergence of new supply chain issues, or the phasing out of the platform. General Dynamics-OTS, Inc. has been a long-standing supplier for defense components, suggesting a consistent, albeit potentially variable, demand for parts like these over time.

How does the awarded price compare to similar contracts for aircraft gun components?

Benchmarking this $2.3 million contract against similar contracts for aircraft gun components is difficult without access to a broader dataset of comparable procurements. Factors such as the specific caliber, complexity of the housing, materials used, and production volume significantly influence pricing. Contracts for smaller caliber weapon systems or simpler components would likely be priced lower, while those for advanced fighter jets or more intricate systems could be substantially higher. The fact that this is for the A-10, a dedicated ground-attack aircraft with a unique weapon system, means direct comparisons might be limited. A comprehensive analysis would require identifying contracts with similar NAICS codes (e.g., 336413) and similar contract types (firm fixed price) for components of comparable complexity and scale.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or the specific performance measurement criteria for this contract. However, for defense logistics contracts involving critical components, typical KPIs often include on-time delivery, quality acceptance rates (minimizing defects), and adherence to technical specifications. The Defense Logistics Agency (DLA) likely has standard performance metrics for such awards. Performance is usually monitored through contract administration, quality assurance inspections, and delivery tracking systems. Failure to meet these KPIs could result in penalties, corrective action requests, or impact future contract awards for the vendor. The firm fixed-price nature of the contract incentivizes the contractor to meet these performance standards to avoid cost overruns.

What is the track record of General Dynamics-OTS, Inc. in fulfilling similar defense component contracts?

General Dynamics Ordnance and Tactical Systems (OTS), now part of General Dynamics Land Systems, has a long history of supplying defense components, including weapon systems and related parts, to the U.S. military. Their track record typically involves manufacturing complex ordnance, munitions, and vehicle components. For aircraft parts, their experience would likely encompass specialized manufacturing capabilities adhering to stringent aerospace quality standards. While specific performance data for this exact contract is not detailed, General Dynamics as a whole has a significant presence in defense contracting, often fulfilling large-value, long-term agreements. Assessing their specific performance on similar aircraft component contracts would require reviewing past performance evaluations and contract histories, which are not publicly available in this dataset.

Are there any identified risks associated with the supply chain for these A-10 gun housings?

Potential risks associated with the supply chain for these A-10 gun housings could include reliance on a single source for critical raw materials or specialized manufacturing processes, which could lead to disruptions. The age of the A-10 platform might also present risks related to the availability of original tooling, specialized expertise, or obsolescence of certain manufacturing technologies. Furthermore, geopolitical factors or global supply chain disruptions could impact the timely delivery of components or raw materials. The fact that General Dynamics-OTS, Inc. is the sole awardee, even under full and open competition, might indicate a limited number of qualified manufacturers, potentially concentrating supply chain risk with that entity. Mitigation strategies would likely involve robust inventory management, supplier diversification where possible, and close monitoring of the supply chain by the DLA.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $2,319,208

Exercised Options: $2,319,208

Current Obligation: $2,319,208

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,654,643

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPRWA120D0016

IDV Type: IDC

Timeline