DoD awards $45.2M for tank rounds to General Dynamics, with no competition

Contract Overview

Contract Amount: $45,215,684 ($45.2M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-10-16

End Date: 2026-10-16

Contract Duration: 2,557 days

Daily Burn Rate: $17.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IM HE-T DELIVERY ORDER 2 FOR 8,625 TANK ROUNDS TO KUWAIT, EGYPT AND IRAQ.

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33716

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $45.2 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: IM HE-T DELIVERY ORDER 2 FOR 8,625 TANK ROUNDS TO KUWAIT, EGYPT AND IRAQ. Key points: 1. Significant award for ammunition manufacturing, highlighting defense spending. 2. Sole-source contract raises questions about price discovery and value. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on international military aid delivery to key allies.

Value Assessment

Rating: fair

The contract value of $45.2M for 8,625 tank rounds is difficult to assess without a competitive benchmark. The fixed-price nature provides some cost certainty, but the lack of competition may have led to a higher price than achievable through bidding.

Cost Per Unit: $5,230 per round

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. Without competition, the government may not have achieved the best possible price or terms, as there was no market pressure to drive down costs.

Taxpayer Impact: Taxpayers may be paying a premium for these tank rounds due to the absence of a competitive bidding process.

Public Impact

Supports military readiness for allied nations (Kuwait, Egypt, Iraq). Contributes to the defense industrial base, specifically ammunition production. Impacts the availability of critical munitions for potential future conflicts. Funds a significant contract for a major defense contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Long-term delivery schedule

Positive Signals

Supports key allies
Firms up defense supply chain

Sector Analysis

This award falls within the defense sector, specifically ammunition manufacturing. Defense spending on munitions is crucial for national security and supporting allies. Benchmarks for similar sole-source ammunition contracts are often opaque.

Small Business Impact

This contract was awarded to General Dynamics Ordnance and Tactical Systems, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific delivery order.

Oversight & Accountability

The Department of the Army awarded this delivery order. Oversight would focus on ensuring timely delivery, quality of munitions, and adherence to the fixed-price terms, especially given the sole-source nature.

Related Government Programs

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

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in price justification
Long contract duration (2019-2026)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.2 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. IM HE-T DELIVERY ORDER 2 FOR 8,625 TANK ROUNDS TO KUWAIT, EGYPT AND IRAQ.

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 $45.2 million.

What is the period of performance?

Start: 2019-10-16. End: 2026-10-16.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of adequate competition. Without further documentation, it's difficult to ascertain the specific reasons. However, sole-source contracts often raise concerns about whether the government truly explored all competitive options or if there were specific circumstances necessitating this approach.

How does the per-unit cost compare to similar tank rounds procured competitively?

A direct comparison of the $5,230 per-unit cost to competitively procured tank rounds is challenging without access to specific contract data. Historically, sole-source procurements can result in higher per-unit costs compared to those achieved through robust competition. Further analysis would require benchmarking against other recent, similar, and competitively awarded contracts for tank ammunition.

What is the long-term strategic value of supplying these tank rounds to Kuwait, Egypt, and Iraq?

Supplying tank rounds to these nations can enhance their defense capabilities and interoperability with U.S. forces, contributing to regional stability and counter-terrorism efforts. This aligns with U.S. foreign policy objectives and strengthens alliances. The long-term value depends on the evolving geopolitical landscape and the effectiveness of these nations' military operations.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

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: $45,215,684

Exercised Options: $45,215,684

Current Obligation: $45,215,684

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $5,572,991

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15QKN18D0020

IDV Type: IDC

Timeline