DoD awards $53.8M for 120mm tank cartridges to General Dynamics, facing limited competition

Contract Overview

Contract Amount: $53,849,149 ($53.8M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-04-02

End Date: 2026-09-01

Contract Duration: 882 days

Daily Burn Rate: $61.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER FOR KE-W A1 120MM CARTRIDGES

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33716

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $53.8 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: DELIVERY ORDER FOR KE-W A1 120MM CARTRIDGES Key points: 1. Significant award for essential military hardware. 2. General Dynamics is a major defense contractor. 3. Limited competition raises potential cost concerns. 4. Ammunition manufacturing is a critical defense sector.

Value Assessment

Rating: fair

The award amount of $53.8M for ammunition is substantial. Without a competitive bid, it's difficult to assess if this price represents fair value compared to market rates or previous contracts for similar items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed, indicating a sole-source or limited competition scenario. This approach can lead to higher prices due to the lack of market pressure to offer the best value.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential ammunition components.

Public Impact

Ensures supply of critical 120mm ammunition for Army operations. Supports a key defense manufacturing capability. Potential for increased costs due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing

Positive Signals

Essential defense procurement
Supports domestic manufacturing

Sector Analysis

This award falls within the defense sector, specifically ammunition manufacturing. Spending benchmarks for such specialized military hardware are often influenced by geopolitical factors and specific program requirements.

Small Business Impact

The data indicates that this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The Department of the Army awarded this delivery order. Oversight would typically involve contract management to ensure timely delivery and quality, with accountability for meeting the contract's terms.

Related Government Programs

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

Risk Flags

Limited competition may lead to higher costs.
Lack of transparency in pricing.
Potential for sole-source dependency.
No indication of small business utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.8 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. DELIVERY ORDER FOR KE-W A1 120MM CARTRIDGES

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 $53.8 million.

What is the period of performance?

Start: 2024-04-02. End: 2026-09-01.

What is the historical cost per unit for 120mm cartridges from this vendor or competitors?

Historical cost data per unit is crucial for evaluating the fairness of the $53.8M award. Without this benchmark, it's challenging to determine if General Dynamics' pricing is competitive or inflated. Further analysis would require access to past contract awards for similar ammunition types and quantities.

What are the specific justifications for not competing this delivery order?

The justification for not competing this delivery order is critical for understanding the risk associated with the procurement. Reasons could range from urgent need, unique technical requirements, or lack of available sources. A thorough review of the justification is necessary to assess if it adequately supports the non-competitive award and mitigates potential risks.

How does the delivery timeline and duration align with operational needs?

The delivery order spans from April 2024 to September 2026, a duration of 882 days. Aligning this timeline with the Army's operational requirements and inventory management strategies is key to assessing the effectiveness of this procurement. Any misalignment could lead to stock shortages or excess inventory, impacting readiness and cost.

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: 100 CARILLON PKWY, 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: $53,849,149

Exercised Options: $53,849,149

Current Obligation: $53,849,149

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,234,783

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15QKN23D0035

IDV Type: IDC

Timeline