DoD Awards $23.2M for 40MM Thermal Training Cartridges to General Dynamics

Contract Overview

Contract Amount: $23,233,701 ($23.2M)

Contractor: General Dynamics Ordnance & Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-06-25

End Date: 2024-06-30

Contract Duration: 3,293 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 40MM LOW VELOCITY DAY NIGHT THERMAL TRAINING CARTRIDGES.

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC. for work described as: 40MM LOW VELOCITY DAY NIGHT THERMAL TRAINING CARTRIDGES. Key points: 1. Contract awarded to General Dynamics Ordnance & Tactical Systems, Inc. 2. Ammunition manufacturing sector, specifically training cartridges. 3. Full and open competition after exclusion of sources was used. 4. Significant duration of contract (over 9 years) with multiple awards.

Value Assessment

Rating: good

The contract value of $23.2M over 9 years suggests a reasonable price point for specialized training ammunition. Benchmarking against similar, high-volume training munition contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process but with specific source limitations. This method can impact price discovery by narrowing the potential bidder pool.

Taxpayer Impact: Taxpayer funds are used for essential military training equipment, ensuring readiness. The competitive nature, even if limited, aims to secure a fair price.

Public Impact

Ensures readiness for military personnel by providing necessary training equipment. Supports a key defense contractor, contributing to the defense industrial base. Procurement of specialized training ammunition is critical for realistic combat simulations.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Long contract duration may lead to price increases over time.
Limited competition method could potentially increase costs compared to broader solicitations.

Positive Signals

Use of competitive procedures ensures some level of price scrutiny.
Contract supports critical training needs for the armed forces.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically ammunition production. Spending benchmarks for similar training munitions vary widely based on type and quantity, but $23.2M over 9 years for 40MM cartridges appears within a reasonable range for specialized items.

Small Business Impact

The data indicates the primary awardee is a large business (General Dynamics). There is no explicit information on small business participation or subcontracting goals within this specific contract award.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the DoD. Oversight would typically involve contract management by the procuring agency to ensure delivery, quality, and adherence to terms.

Related Government Programs

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

Risk Flags

Long contract duration.
Limited competition.
Potential for price escalation over time.
Lack of explicit small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC.. 40MM LOW VELOCITY DAY NIGHT THERMAL TRAINING CARTRIDGES.

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS ORDNANCE & 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 $23.2 million.

What is the period of performance?

Start: 2015-06-25. End: 2024-06-30.

What is the average per-unit cost of these training cartridges, and how does it compare to industry benchmarks?

The total contract value is $23,233,701.42 for 40MM cartridges, with 7 awards noted. Without the exact quantity of cartridges, a precise per-unit cost cannot be calculated. However, if we assume a significant quantity over the contract's duration, the per-unit cost would need to be benchmarked against similar training munitions to assess value for money.

What specific factors led to the exclusion of other sources in this 'Full and Open Competition After Exclusion of Sources' award?

The exclusion of sources typically occurs when only a limited number of contractors possess the necessary technical capabilities, proprietary data, or specialized facilities to meet the requirement. For specialized munitions like these thermal training cartridges, specific manufacturing processes or existing government-furnished equipment might necessitate limiting the competitive pool.

How effectively does this contract support the Army's training objectives, and are there alternative or more cost-effective training solutions available?

These cartridges are crucial for realistic night and day training scenarios, directly supporting combat readiness. Effectiveness is high for specific simulation needs. Cost-effectiveness would depend on the frequency of use, the cost of alternatives (e.g., virtual simulators), and the overall training program's budget.

Industry Classification

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

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W15QKN14R0038

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 6658 ROUTE 148, MARION, IL, 62959

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: $260,996,524

Exercised Options: $23,233,701

Current Obligation: $23,233,701

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $5,773,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline