DoD Awards $37.7M Firm Fixed Price Contract for Ammunition to General Dynamics

Contract Overview

Contract Amount: $37,691,481 ($37.7M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-06

End Date: 2026-10-15

Contract Duration: 1,227 days

Daily Burn Rate: $30.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UCA DELIVERY ORDER FOR 3,200 IM HE-T

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33716

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $37.7 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: UCA DELIVERY ORDER FOR 3,200 IM HE-T Key points: 1. Contract awarded to a single, established defense contractor. 2. No competition was sought for this significant ammunition procurement. 3. Potential for higher costs due to lack of competitive bidding. 4. Spending is within the broad defense sector for ordnance.

Value Assessment

Rating: fair

The contract's value of $37.7 million for ammunition is substantial. Without competitive data, it's difficult to assess if this price is optimal compared to similar large-scale ammunition procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in less favorable terms for the government compared to a competitive process.

Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may be paying a premium for these munitions.

Public Impact

Ensures supply of critical ammunition for the Department of the Army. Supports a major defense contractor's operations and workforce. Potential for increased defense readiness through timely delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpayment

Positive Signals

Supports critical defense needs
Firm fixed price contract limits cost overrun risk for government

Sector Analysis

This contract falls within the defense sector, specifically for ammunition manufacturing. Spending benchmarks for similar large-scale ordnance procurements are highly variable and depend on specific munition types and quantities.

Small Business Impact

The contract was awarded to General Dynamics, a large prime contractor, and there is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The award was made by the Department of the Army. Oversight would typically involve contract management and performance monitoring to ensure delivery and quality standards are met.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competition
Potential for price inefficiency
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.7 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. UCA DELIVERY ORDER FOR 3,200 IM HE-T

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 $37.7 million.

What is the period of performance?

Start: 2023-06-06. End: 2026-10-15.

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

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified by factors such as urgent need, unique capabilities of the contractor, or lack of adequate competition. Further investigation into the contract file would be required to determine the specific rationale.

What are the risks associated with a sole-source ammunition contract?

The primary risk is the potential for inflated pricing due to the absence of competitive pressure. Other risks include reduced innovation, over-reliance on a single supplier, and potential for less stringent quality control if the contractor knows they are the only option.

How does this contract contribute to overall defense effectiveness?

This contract directly contributes to defense effectiveness by ensuring the supply of necessary ammunition for the Department of the Army. Timely delivery of the specified munitions is crucial for maintaining operational readiness and supporting ongoing military missions.

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: $37,691,481

Exercised Options: $37,691,481

Current Obligation: $37,691,481

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $84,825

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