DoD Awards $40.8M for HE-T Cartridges to General Dynamics, Sole-Source

Contract Overview

Contract Amount: $40,875,365 ($40.9M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-07-31

End Date: 2026-09-25

Contract Duration: 786 days

Daily Burn Rate: $52.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER FOR IM HE-T CARTRIDGES

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33716

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $40.9 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: DELIVERY ORDER FOR IM HE-T CARTRIDGES Key points: 1. Significant award for ammunition manufacturing, highlighting defense spending. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration of 786 days suggests a substantial requirement. 4. Focus on specific ammunition type indicates specialized defense needs.

Value Assessment

Rating: fair

The award value of $40.8M for HE-T cartridges is substantial. Without specific unit cost data or benchmarks for similar ammunition, a precise value assessment is difficult. The firm fixed-price contract type offers some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The sole-source nature of this award may result in a higher cost to taxpayers due to the lack of competitive bidding.

Public Impact

Ensures supply of critical ammunition for Army operations. Potential for increased costs due to lack of competition. Supports a specific defense contractor, General Dynamics. Long-term supply chain stability for this munition type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration

Positive Signals

Firm fixed-price contract
Ensures critical supply

Sector Analysis

This award falls within the defense sector, specifically ammunition manufacturing. Defense spending on munitions is a significant portion of the overall budget, with costs varying widely based on type and quantity.

Small Business Impact

The awardee, General Dynamics Ordnance and Tactical Systems, Inc., is a large business. There is no indication that small businesses were involved in this specific delivery order, nor is there a stated requirement for subcontracting.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the price paid is fair and reasonable. Further oversight may be needed to confirm the justification for not competing the requirement.

Related Government Programs

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

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Limited transparency in price discovery
Long contract duration may mask inefficiencies

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.9 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. DELIVERY ORDER FOR IM HE-T 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 $40.9 million.

What is the period of performance?

Start: 2024-07-31. End: 2026-09-25.

What is the justification for the sole-source award of this significant ammunition contract?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs that preclude competition. A thorough review of the contracting officer's justification is necessary to validate the necessity of this approach.

How does the unit cost of these HE-T cartridges compare to similar munitions procured competitively?

Without specific unit cost data for these HE-T cartridges and comparable competitive procurements, a direct comparison is not possible. The firm fixed-price nature provides some cost certainty, but the sole-source award mechanism raises concerns that the price may not be as competitive as it could be if multiple bidders were involved.

What is the long-term strategic impact of awarding such a large contract solely to one provider?

Awarding a large, long-term contract solely to one provider can create dependency and potentially stifle innovation within the broader defense industrial base. While it ensures a steady supply, it may limit opportunities for other capable companies to develop and compete, potentially impacting future supply chain resilience and cost-effectiveness.

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

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: $40,875,365

Exercised Options: $40,875,365

Current Obligation: $40,875,365

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $14,017,208

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