DoD Awards $19.2M for 3,384 120mm KE-W A1 Cartridges to General Dynamics

Contract Overview

Contract Amount: $19,210,407 ($19.2M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-08-23

End Date: 2014-02-07

Contract Duration: 533 days

Daily Burn Rate: $36.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACT AWARD FOR 3,384 120MM KE-W A1 CARTRIDGES.

Place of Performance

Location: RED LION, YORK County, PENNSYLVANIA, 17356

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $19.2 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: CONTRACT AWARD FOR 3,384 120MM KE-W A1 CARTRIDGES. Key points: 1. Significant award for specialized ammunition, indicating a need for advanced ordnance. 2. Sole-source award to General Dynamics, raising questions about competitive pricing. 3. Focus on a specific munition type suggests a targeted military requirement. 4. The contract duration of 533 days allows for production and delivery over time.

Value Assessment

Rating: questionable

The contract value of $19.2 million for 3,384 units results in a per-unit price of approximately $5,680. Without comparable contract data for similar advanced ammunition, it is difficult to definitively assess if this price is competitive.

Cost Per Unit: $5,680

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and may result in a higher cost to the taxpayer than if multiple vendors had competed.

Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for these specialized ammunition rounds.

Public Impact

Ensures supply of critical 120mm ammunition for military operations. Supports a key defense contractor, potentially impacting jobs in the sector. Highlights the ongoing investment in advanced military hardware. Limited public information available on the specific capabilities of the KE-W A1 cartridge.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price scrutiny.
Lack of public benchmark data for this specific munition.
Potential for cost overruns in sole-source contracts.

Positive Signals

Addresses a specific, likely critical, military requirement.
Award to an established defense contractor with known capabilities.

Sector Analysis

This contract falls within the Ammunition (except Small Arms) Manufacturing sector. Spending in this sector is driven by defense budgets and geopolitical needs. Benchmarks are difficult to establish due to the specialized nature of the product.

Small Business Impact

The awardee, General Dynamics Ordnance and Tactical Systems, Inc., is a large business. There is no indication that small businesses were involved as subcontractors in this specific award.

Oversight & Accountability

As a sole-source award, oversight is crucial to ensure fair pricing and adherence to contract terms. The Department of the Army's contracting activity suggests internal review processes are in place.

Related Government Programs

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

Risk Flags

Sole-source award limits competitive pricing.
Lack of transparency in pricing justification.
Potential for higher costs due to limited competition.
Specific munition type may have limited alternative suppliers.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. CONTRACT AWARD FOR 3,384 120MM KE-W A1 CARTRIDGES.

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 $19.2 million.

What is the period of performance?

Start: 2012-08-23. End: 2014-02-07.

What is the justification for the sole-source award, and what steps were taken to ensure the price is fair and reasonable?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without specific documentation, it's presumed the Army determined General Dynamics was the only source capable of meeting the requirement. Steps to ensure fair pricing might include historical price analysis, independent cost estimates, or negotiation techniques, but these are not publicly detailed.

How does the per-unit cost of $5,680 compare to similar advanced 120mm ammunition rounds, and what factors contribute to this price?

Direct comparisons are challenging without access to classified or proprietary data on similar advanced 120mm rounds. Factors influencing the price likely include the advanced technology (KE-W A1 suggests kinetic energy penetrator with a specific warhead), specialized manufacturing processes, material costs, research and development amortization, and the relatively small quantity ordered, which can increase per-unit costs.

What is the expected operational impact or strategic advantage of fielding the 120mm KE-W A1 cartridges, and how does this award contribute to readiness?

The KE-W A1 designation implies an advanced kinetic energy penetrator round, likely designed for enhanced anti-armor capabilities against modern threats. Fielding these cartridges contributes to the Army's readiness by ensuring its main battle tanks and compatible systems are equipped with up-to-date and effective munitions, maintaining a technological edge.

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

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, 90

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: $19,210,407

Exercised Options: $19,210,407

Current Obligation: $19,210,407

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $21,825,690

Contract Characteristics

Cost or Pricing Data: YES

Timeline