DoD awards $29.9M for .50 Cal. Machine Guns to General Dynamics-OTS, Inc
Contract Overview
Contract Amount: $29,939,474 ($29.9M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-03-31
End Date: 2011-07-31
Contract Duration: 1,217 days
Daily Burn Rate: $24.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LIGHTWEIGHT .50 CAL. MACHINE GUN
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $29.9 million to GENERAL DYNAMICS-OTS, INC. for work described as: LIGHTWEIGHT .50 CAL. MACHINE GUN Key points: 1. Contract awarded to a single, established manufacturer. 2. Significant investment in ordnance manufacturing. 3. Potential for cost overruns due to Cost Plus Fixed Fee structure. 4. Focus on defense sector, specifically small arms.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure suggests potential for costs to exceed initial estimates. Benchmarking against similar ordnance contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in a higher price than a competed contract would have achieved.
Public Impact
Ensures supply of critical .50 caliber machine guns for military operations. Supports a specific defense contractor and its manufacturing capabilities. Potential for taxpayer funds to be used inefficiently due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of transparency in pricing.
Positive Signals
- Provides essential equipment for the armed forces.
- Supports domestic manufacturing capabilities.
Sector Analysis
This contract falls within the defense sector, specifically in the manufacturing of small arms and ordnance. Spending benchmarks for such specialized military equipment are often opaque but are typically high due to R&D and production complexities.
Small Business Impact
This contract does not appear to have specific provisions for small business participation. The awardee is a large defense contractor, suggesting limited direct benefit to small businesses.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and efficient use of taxpayer funds. Oversight should focus on cost justification and performance metrics.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
- Potential for cost overruns
- Limited small business participation
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, vt, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.9 million to GENERAL DYNAMICS-OTS, INC.. LIGHTWEIGHT .50 CAL. MACHINE GUN
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $29.9 million.
What is the period of performance?
Start: 2008-03-31. End: 2011-07-31.
What was the justification for awarding this contract on a sole-source basis instead of competing it?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services, or when urgent and compelling circumstances prevent competition. For specialized military hardware like machine guns, this could be due to unique technical requirements, existing infrastructure, or specific security considerations that make competition impractical or detrimental to national security.
How does the Cost Plus Fixed Fee structure impact the overall risk to the government?
The Cost Plus Fixed Fee (CPFF) structure shifts some financial risk to the government. While the contractor receives a fixed fee, the government bears the risk of cost overruns. This can incentivize contractors to incur higher costs if they believe it will lead to a larger overall profit, necessitating robust government oversight to manage expenditures effectively.
What is the long-term strategic value of this procurement for the Department of Defense?
The long-term strategic value lies in ensuring the continued availability of a critical weapon system. Procuring .50 caliber machine guns supports infantry, vehicle, and aircraft operations. Maintaining a reliable supply chain and manufacturing capability for such essential ordnance is vital for force readiness and national defense posture.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 128 LAKESIDE AVE, BURLINGTON, VT, 00
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,939,474
Exercised Options: $29,939,474
Current Obligation: $29,939,474
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-03-31
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2014-10-24
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