DoD awards $32.7M for 60,486 M795 metal parts to General Dynamics under full and open competition

Contract Overview

Contract Amount: $32,745,920 ($32.7M)

Contractor: General Dynamics OTS (wilkes Barre), LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-16

End Date: 2026-01-30

Contract Duration: 1,324 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Defense

Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO MANUFACTURE, PRODUCE, AND DELIVERY 60,486 155MM HIGH EXPLOSIVE M795 METAL PARTS IN SUPPORT OF PROJECT MANAGER, COMBAT AMMUNITION SYSTEMS.

Place of Performance

Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18702

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $32.7 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO MANUFACTURE, PRODUCE, AND DELIVERY 60,486 155MM HIGH EXPLOSIVE M795 METAL PARTS IN SUPPORT OF PROJECT MANAGER, COMBAT AMMUNITION SYSTEMS. Key points: 1. Contract awarded to General Dynamics OTS for M795 metal parts. 2. Significant quantity of 60,486 units to be manufactured. 3. Full and open competition was utilized for this award. 4. The sector is Defense, specifically ammunition manufacturing.

Value Assessment

Rating: good

The contract is a fixed-price with economic price adjustment, which can offer some cost certainty while allowing for market fluctuations. The total award value of $32.7M for 60,486 units suggests a per-unit cost of approximately $541.70.

Cost Per Unit: $541.70

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of full and open competition is expected to result in a fair market price, maximizing taxpayer value for the procured ammunition components.

Public Impact

Ensures supply of critical ammunition components for the U.S. Army. Supports defense manufacturing capabilities within the United States. Potential for economic impact through manufacturing jobs in Pennsylvania.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause may lead to cost overruns if material costs rise significantly.
Long contract duration (over 3 years) increases exposure to market volatility.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Clear definition of goods (M795 metal parts) and quantity.
Supports a key defense industrial base supplier.

Sector Analysis

This contract falls within the Defense sector, specifically the manufacturing of ammunition. Spending in this area is critical for national security and is subject to rigorous procurement processes. Benchmarks for similar ammunition component contracts would typically consider material costs, manufacturing complexity, and volume.

Small Business Impact

The data indicates the awardee is General Dynamics OTS, a large business. There is no explicit mention of small business participation in this specific delivery order, suggesting it was not a primary focus or was subcontracted separately.

Oversight & Accountability

The contract is a delivery order under a larger framework, implying prior oversight. The Department of the Army is the contracting agency, and the fixed-price with economic price adjustment structure requires monitoring of cost drivers to manage potential price increases.

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 Economic Price Adjustment.
Long contract duration increases exposure to market volatility.
No explicit small business participation noted.
Reliance on a single large business contractor for a critical component.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.7 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC. THE PURPOSE OF THIS DELIVERY ORDER IS TO MANUFACTURE, PRODUCE, AND DELIVERY 60,486 155MM HIGH EXPLOSIVE M795 METAL PARTS IN SUPPORT OF PROJECT MANAGER, COMBAT AMMUNITION SYSTEMS.

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 $32.7 million.

What is the period of performance?

Start: 2022-06-16. End: 2026-01-30.

What is the historical pricing trend for M795 metal parts, and how does this award compare to previous contracts?

Analyzing historical pricing data for M795 metal parts is crucial to assess the value of this $32.7M award. Without specific historical contract data, it's difficult to definitively state if this price is competitive. However, the use of full and open competition suggests an effort to achieve a fair market price. Further analysis would involve comparing unit costs across similar timeframes and contract types.

What are the specific risks associated with the economic price adjustment (EPA) clause in this contract?

The primary risk of the EPA clause is potential cost escalation for the government if raw material prices or labor costs increase significantly during the contract period. This can lead to the final cost exceeding initial projections. Effective oversight is needed to monitor these cost drivers and ensure any price adjustments are justified according to the contract's terms.

How does the manufacturing capacity and performance history of General Dynamics OTS influence the reliability of this delivery?

General Dynamics OTS is a known entity in defense manufacturing, suggesting a degree of established capacity and experience. Their performance history on similar contracts would be a key indicator of reliability. Assuming a positive track record, their established processes likely mitigate risks related to production delays or quality issues, ensuring timely delivery of the M795 metal parts.

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: $32,745,920

Exercised Options: $32,745,920

Current Obligation: $32,745,920

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $6,284,524

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