DoD awards $56.6M for 120mm APFSDS-T ammunition to General Dynamics

Contract Overview

Contract Amount: $56,624,752 ($56.6M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-07-30

End Date: 2030-12-25

Contract Duration: 8,183 days

Daily Burn Rate: $6.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CARTRIDGE, 120MM, APFSDS-T, KE-W A1 UCA

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33716

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $56.6 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: CARTRIDGE, 120MM, APFSDS-T, KE-W A1 UCA Key points: 1. Spending on specialized ammunition is critical for military readiness. 2. General Dynamics is a major defense contractor with established capabilities. 3. Long-term contract duration presents potential for price escalation risks. 4. The sector is characterized by high barriers to entry and specialized manufacturing.

Value Assessment

Rating: fair

The contract value of $56.6 million over 22 years suggests a moderate annual spend. Without comparable contract data or unit pricing, a precise value assessment is difficult. The firm fixed price structure offers some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a limited source justification. This limits price discovery and potentially leads to higher costs compared to a competitive environment.

Taxpayer Impact: Limited competition may result in taxpayers paying a premium for this essential munition.

Public Impact

Ensures supply of critical armor-piercing ammunition for Army ground vehicles. Supports domestic manufacturing capabilities for defense industrial base. Long-term contract provides stability for the supplier and predictable supply for the military.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
Potential for cost overruns

Positive Signals

Firm fixed price contract
Ensures critical supply
Supports domestic industry

Sector Analysis

This contract falls within the defense manufacturing sector, specifically ammunition production. Spending in this area is driven by military modernization and operational needs, with significant government oversight.

Small Business Impact

The contract was awarded to a large business (General Dynamics), with no indication of small business participation or subcontracting goals. This suggests limited direct benefit to small businesses in this specific award.

Oversight & Accountability

The long-term nature of the contract necessitates robust oversight to monitor performance, costs, and ensure continued justification for limited competition. The firm fixed price should aid accountability.

Related Government Programs

Ammunition (except Small Arms) Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source justification lacks detail
Long contract duration increases risk of price escalation
No small business participation noted
Lack of unit cost data hinders value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.6 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. CARTRIDGE, 120MM, APFSDS-T, KE-W A1 UCA

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 $56.6 million.

What is the period of performance?

Start: 2008-07-30. End: 2030-12-25.

What is the projected unit cost of the ammunition, and how does it compare to industry benchmarks or historical pricing for similar munitions?

The provided data does not include unit cost information, making direct comparison impossible. The total contract value of $56.6 million spread over an estimated 8,183 units (based on a rough calculation if 'no' implies units) suggests a significant per-unit cost. Further analysis would require access to detailed pricing breakdowns and benchmarks for 120mm APFSDS-T rounds.

What specific factors justify the 'NOT AVAILABLE FOR COMPETITION' status, and have alternative sourcing strategies been considered?

The justification for 'NOT AVAILABLE FOR COMPETITION' is not detailed in the provided data. Typically, such designations are based on factors like unique technical requirements, urgent need, or lack of capable sources. A thorough review would examine the specific technical specifications and market analysis that led to this determination to ensure no viable competitive options were overlooked.

How will the Department of Defense ensure cost-effectiveness and prevent potential price creep over the 22-year contract duration?

The firm fixed price (FFP) contract structure is the primary mechanism to control costs. However, over such a long period, the DoD should implement regular performance reviews, potentially incorporate economic price adjustment clauses carefully, and monitor market dynamics for opportunities to re-evaluate pricing or seek competition if feasible. Transparency in cost reporting will be crucial.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W15QKN08R0648

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 11399 16TH CT N STE 200, SAINT PETERSBURG, FL, 33716

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: $56,624,752

Exercised Options: $56,624,752

Current Obligation: $56,624,752

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline