DoD Awards $23.4M for 120mm Mortar Shell Bodies to General Dynamics
Contract Overview
Contract Amount: $23,409,069 ($23.4M)
Contractor: General Dynamics OTS (wilkes Barre), LLC
Awarding Agency: Department of Defense
Start Date: 2019-12-20
End Date: 2025-09-30
Contract Duration: 2,111 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: PURCHASE OF 120MM MORTAR SHELL BODIES.
Place of Performance
Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18702
Plain-Language Summary
Department of Defense obligated $23.4 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC for work described as: PURCHASE OF 120MM MORTAR SHELL BODIES. Key points: 1. Significant award for critical ammunition components. 2. General Dynamics OTS is the sole awardee, raising questions about competition. 3. Fixed Price with Economic Price Adjustment contract type introduces potential cost escalation risk. 4. Long contract duration (2019-2025) suggests a sustained need for these components.
Value Assessment
Rating: fair
The contract value of $23.4 million for 120mm mortar shell bodies appears reasonable given the quantity and specialized nature of the product. However, without specific per-unit cost data or benchmarks for similar components, a definitive assessment of value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the data indicates only one awardee, General Dynamics OTS. This suggests that while the initial solicitation was open, only one offeror was selected, potentially limiting competitive pressure on pricing.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers. However, the single awardee warrants further scrutiny to ensure the pricing reflects true market competition.
Public Impact
Ensures supply of essential munitions for military operations. Supports defense manufacturing capabilities within the US. Potential for price increases due to economic price adjustment clause.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Single awardee despite full and open competition.
- Economic price adjustment clause.
- Long contract duration.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense manufacturing.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically ammunition production. Spending in this area is driven by military readiness requirements and geopolitical factors. Benchmarks for ammunition components can vary widely based on complexity and material costs.
Small Business Impact
The awardee, General Dynamics OTS, is a large business. There is no indication in the provided data that small businesses were involved as subcontractors or partners in this specific contract, which could be an area for improvement.
Oversight & Accountability
The Department of the Army awarded this contract. Standard oversight mechanisms for defense contracts would apply, including performance monitoring and financial reviews. The long duration necessitates ongoing vigilance to ensure continued value and adherence to terms.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to EPA.
- Limited competition despite open solicitation.
- Lack of transparency on unit pricing.
- Long contract duration may not reflect evolving needs.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.4 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC. PURCHASE OF 120MM MORTAR SHELL BODIES.
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS OTS (WILKES BARRE), LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $23.4 million.
What is the period of performance?
Start: 2019-12-20. End: 2025-09-30.
What was the competitive landscape during the bidding process, and why did only one offeror submit a viable proposal?
While the contract was solicited under 'full and open competition,' the data indicates only one awardee, General Dynamics OTS. Further investigation is needed to understand if other bids were received and rejected, or if market conditions limited the number of interested and capable suppliers. This information is crucial for assessing the effectiveness of the competition strategy and ensuring optimal pricing.
How has the economic price adjustment (EPA) clause impacted the contract's total cost over its duration?
The Fixed Price with Economic Price Adjustment (FPEPA) contract type allows for adjustments based on fluctuations in specified economic factors, such as labor or material costs. Understanding the specific indices used in the EPA and tracking their movement since the contract's award in 2019 is essential to quantify the actual cost impact on taxpayers. Without this data, the true cost efficiency remains unclear.
What is the projected unit cost for the 120mm mortar shell bodies, and how does it compare to industry benchmarks?
The provided data does not include a specific per-unit cost for the 120mm mortar shell bodies. The total award amount of $23.4 million for an unspecified quantity makes it difficult to establish a precise unit cost. Comparing this to industry benchmarks for similar components is necessary to determine if the pricing is competitive and represents good value for the government.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 1500 HIGHWAY 315 BLVD, WILKES BARRE, PA, 18702
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,409,069
Exercised Options: $23,409,069
Current Obligation: $23,409,069
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $6,610,695
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15QKN19D0084
IDV Type: IDC
Timeline
Start Date: 2019-12-20
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 12:09:00
Last Modified: 2025-08-06
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