DoD Awards $10.9M Contract for Body Tube Assemblies to General Dynamics, Ending 2030

Contract Overview

Contract Amount: $10,894,417 ($10.9M)

Contractor: General Dynamics OTS (wilkes Barre), LLC

Awarding Agency: Department of Defense

Start Date: 2007-04-17

End Date: 2030-12-25

Contract Duration: 8,653 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROD - 81MM CTG BODY TUBE ASSEMBLY

Place of Performance

Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18711

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $10.9 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC for work described as: PROD - 81MM CTG BODY TUBE ASSEMBLY Key points: 1. Contract value of $10.9M for body tube assemblies. 2. General Dynamics OTS is the sole awardee. 3. Long contract duration until December 2030. 4. Spending falls under 'Other Ordnance and Accessories Manufacturing'.

Value Assessment

Rating: fair

The contract value of $10.9M appears reasonable for a long-term supply of specialized components. Benchmarking against similar ordnance contracts is difficult without more specific data on the complexity and quantity of these body tube assemblies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may impact price discovery by restricting the pool of potential bidders, potentially leading to higher prices than a truly open competition.

Taxpayer Impact: Taxpayer funds are committed to a long-term contract with potentially limited competition, warranting scrutiny of pricing and performance.

Public Impact

Ensures continued supply of critical components for defense systems. Supports a specific manufacturing facility in Pennsylvania. Long-term commitment may impact flexibility for future technological upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition raises concerns about price optimization.
  • Long contract duration (over 23 years) may not reflect evolving needs or technology.
  • Awardee is not a small business.

Positive Signals

  • Ensures a stable supply chain for essential defense components.
  • Contract is firm-fixed-price, providing cost certainty.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically 'Other Ordnance and Accessories Manufacturing.' Spending benchmarks for such specialized components are highly variable and depend on specific technical requirements and production volumes.

Small Business Impact

The awardee, General Dynamics OTS, is not a small business. This contract does not appear to include specific provisions or set-asides for small business participation.

Oversight & Accountability

The contract's long duration and limited competition warrant robust oversight to ensure performance, adherence to specifications, and fair pricing throughout its term. Regular reviews of the 'exclusion of sources' justification are crucial.

Related Government Programs

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

Risk Flags

  • Limited competition
  • Long contract duration
  • Lack of small business participation
  • Potential for price escalation over time
  • Need for strong oversight due to extended period

Tags

other-ordnance-and-accessories-manufactu, department-of-defense, pa, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC. PROD - 81MM CTG BODY TUBE ASSEMBLY

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS OTS (WILKES BARRE), LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2007-04-17. End: 2030-12-25.

What was the justification for excluding other sources in this full and open competition?

The justification for excluding other sources is critical to understanding the competitive landscape. If specific technical capabilities, proprietary designs, or existing infrastructure were required, it might explain the limited pool. However, without this information, it raises concerns about whether the exclusion unnecessarily restricted competition and potentially inflated costs for taxpayers.

How does the unit cost compare to similar body tube assemblies procured by other defense agencies or in previous years?

A comparative analysis of unit costs is essential for assessing value. Without access to specific unit pricing and volume data for this contract, and comparable data from other procurements, it's difficult to definitively state if the price is competitive. Benchmarking against historical data or similar items would reveal potential overpricing or cost savings.

What performance metrics are in place to ensure the effectiveness and quality of these body tube assemblies over the contract's long duration?

Given the contract's extensive duration until 2030, robust performance metrics and quality assurance protocols are paramount. These should include stringent testing, acceptance criteria, and mechanisms for addressing defects or performance degradation. Effective oversight will ensure the assemblies meet military specifications throughout their lifecycle.

Industry Classification

NAICS: ManufacturingOther Fabricated Metal Product ManufacturingOther Ordnance and Accessories Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W15QKN06R0323

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1500 HIGHWAY 315, WILKES BARRE, PA, 08

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,925,226

Exercised Options: $10,894,417

Current Obligation: $10,894,417

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2007-04-17

Current End Date: 2030-12-25

Potential End Date: 2030-12-25 00:00:00

Last Modified: 2012-07-19

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