DoD Awards $195M Contract to General Dynamics for Ordnance and Accessories

Contract Overview

Contract Amount: $47,312,731 ($47.3M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-12-29

End Date: 2017-06-03

Contract Duration: 4,174 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200603!502269!2100!W15QKN!TACOM - PICATINNY !W15QKN06C0065 !A!N! !N! ! !20051229!20101228!194860813!194860813!001381284!N!GENERAL DYNAMICS ORDNANCE AND !11399 16TH COURT N - SUIT!SAINT PETERSBU !FL!33716!63000!103!12!SAINT PETERSBURG !PINELLAS !FLORIDA !+000019377606!N!N!000019377606!5342!HARDWARE, WEAPON SYSTEM !A5 !WEAPONS !000 !NOT DISCERNABLE !332995!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!003!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!Y! ! ! !Y! ! !0001! !

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33716

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $47.3 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: 200603!502269!2100!W15QKN!TACOM - PICATINNY !W15QKN06C0065 !A!N! !N! ! !20051229!20101228!194860813!194860813!001381284!N!GENERAL DYNAMICS ORDNANCE AND !11399 16TH COURT N - SUIT!SAINT PETERSBU !FL!33716!63000!103!12!SAINT PETERSBURG !PINE… Key points: 1. Contract awarded for "Other Ordnance and Accessories Manufacturing" (NAICS 332995). 2. Significant value of $194.8M over its life. 3. Awarded under Full and Open Competition. 4. Contract duration of over 11 years (2005-2017).

Value Assessment

Rating: good

The contract value of $194.8M over 11 years suggests a substantial, long-term need. Benchmarking against similar ordnance contracts would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under Full and Open Competition, indicating a competitive bidding process. This method is generally expected to yield fair market prices.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the goods procured.

Public Impact

Ensures continued supply of critical ordnance and weapon system components for the Department of Defense. Supports a major defense contractor, contributing to jobs and economic activity in Florida. Long-term contract provides stability for both the government's supply chain and the contractor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 11 years) may lead to price escalation or outdated technology.
Lack of specific product details (PSC code missing) hinders deeper analysis.
Contract modifications or extensions could increase the total cost beyond initial estimates.

Positive Signals

Awarded through full and open competition, suggesting a competitive price.
Firm Fixed Price contract type provides cost certainty.
Contractor is a well-established entity in the defense sector.

Sector Analysis

This contract falls within the Defense sector, specifically related to ordnance and weapon systems manufacturing. Spending in this area is critical for national security and can fluctuate based on geopolitical events and military readiness requirements.

Small Business Impact

The data indicates the prime contractor is General Dynamics, a large business. There is no information provided on subcontracting to small businesses for this specific contract.

Oversight & Accountability

The contract was awarded by the Department of the Army, part of the DoD. Standard oversight mechanisms for defense contracts would apply, including performance monitoring and financial audits.

Related Government Programs

Other Ordnance and Accessories Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration
Missing Product Service Code (PSC)
Potential for cost escalation over time
Lack of small business subcontracting data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.3 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. 200603!502269!2100!W15QKN!TACOM - PICATINNY !W15QKN06C0065 !A!N! !N! ! !20051229!20101228!194860813!194860813!001381284!N!GENERAL DYNAMICS ORDNANCE AND !11399 16TH COURT N - SUIT!SAINT PETERSBU !FL!33716!63000!103!12!SAINT PETERSBURG !PINELLAS !FLORIDA !+000019377606!N!N!000019377606!5342!HARDWARE, WEAPON SYSTEM !A5 !WEAPONS !000 !NOT DISCERNABLE !332995!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $47.3 million.

What is the period of performance?

Start: 2005-12-29. End: 2017-06-03.

What was the average annual spending under this contract, and how does it compare to similar defense procurement programs?

The total contract value was approximately $194.8 million over a period of roughly 11 years and 4 months. This averages to about $17.1 million per year. Comparing this to similar defense procurement programs would require access to a broader dataset of ordnance and weapon system contracts, considering factors like quantity, specifications, and technological sophistication.

What specific risks are associated with a contract of this duration for ordnance manufacturing?

A contract spanning over a decade for ordnance carries risks of technological obsolescence, as weapon systems evolve. Material costs can fluctuate significantly over such a long period, potentially impacting the fixed price if not adequately hedged. Furthermore, geopolitical shifts could alter the demand or specifications for the ordnance, leading to potential contract adjustments or reduced utility.

How effectively did the full and open competition process ensure value for money for this significant defense expenditure?

The full and open competition process is designed to maximize value by encouraging multiple bidders to offer their best prices and terms. For this $194.8M contract, it suggests that General Dynamics' proposal was deemed the most advantageous. However, true effectiveness is best measured by comparing the final price against independent cost estimates and the performance outcomes achieved throughout the contract's lifecycle.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Other Ordnance and Accessories Manufacturing

Product/Service Code: HARDWARE AND ABRASIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 11399 16TH COURT N - SUIT, SAINT PETERSBU, FL, 33716

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline