DoD awards $20.75M for mortar shell bodies, with delivery orders continuing through March 2026

Contract Overview

Contract Amount: $20,753,373 ($20.8M)

Contractor: General Dynamics OTS (wilkes Barre), LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-24

End Date: 2026-03-31

Contract Duration: 553 days

Daily Burn Rate: $37.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER #2 60/81MM MORTAR SHELL BODIES

Place of Performance

Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18702

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC for work described as: DELIVERY ORDER #2 60/81MM MORTAR SHELL BODIES Key points: 1. Contract value represents a significant investment in essential munitions. 2. Competition dynamics suggest a potentially competitive bidding process for this order. 3. Delivery timelines indicate a sustained need for these components. 4. The contract falls within the broader defense manufacturing sector. 5. Performance will be monitored under a firm fixed-price agreement.

Value Assessment

Rating: good

The awarded amount of $20.75 million for mortar shell bodies appears reasonable given the nature of defense procurement. Benchmarking against similar contracts for ammunition components is challenging without more specific data on shell types and quantities. However, the firm fixed-price structure provides cost certainty for the government, suggesting a good faith effort in pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. The presence of three bidders suggests a healthy level of competition for this specific defense requirement, which generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it helps ensure that the government is not overpaying for critical munitions components.

Public Impact

The Department of the Army benefits from a reliable supply of mortar shell bodies. This contract supports the production of essential ammunition for military operations. The primary geographic impact is within the United States, supporting domestic manufacturing. The contract sustains jobs within the defense manufacturing workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality control for a large volume of components.

Positive Signals

Firm fixed-price contract limits cost overruns.
Award to a known defense contractor with relevant manufacturing experience.
Clear delivery schedule provides predictability.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically the production of ammunition components. The market for such specialized components is often dominated by a few key players due to high barriers to entry, including technical expertise and manufacturing capabilities. Spending in this area is critical for national security readiness.

Small Business Impact

While this contract was awarded under full and open competition, there is no explicit indication of a small business set-aside. The prime contractor, General Dynamics OTS, is a large entity. Subcontracting opportunities for small businesses may arise, but are not guaranteed by the contract terms as presented.

Oversight & Accountability

The Department of Defense employs various oversight mechanisms, including contract performance monitoring and quality assurance. Inspector General audits may be conducted to ensure compliance and prevent fraud. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal.

Related Government Programs

Department of Defense Ammunition Procurement
Army Combat Support Systems
Munitions Manufacturing Contracts

Risk Flags

Supply chain vulnerability for raw materials.
Potential for production delays impacting delivery schedule.
Ensuring consistent quality control across large batch production.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC. DELIVERY ORDER #2 60/81MM 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 $20.8 million.

What is the period of performance?

Start: 2024-09-24. End: 2026-03-31.

What is the historical spending trend for similar mortar shell body contracts with the Department of the Army?

Analyzing historical spending for similar mortar shell body contracts requires access to detailed procurement data over several fiscal years. Trends can indicate whether the current award represents an increase or decrease in demand, potentially influenced by geopolitical events, military readiness goals, or inventory management strategies. For instance, a sustained increase in spending might signal a heightened operational tempo or a strategic shift towards stockpiling. Conversely, a decrease could suggest modernization efforts or a reduction in active deployments requiring these specific munitions. Without specific historical data for this exact component, it's difficult to provide precise figures, but generally, defense spending on ammunition components fluctuates based on global security assessments and budgetary allocations.

How does the per-unit cost of these mortar shell bodies compare to industry benchmarks?

Determining the precise per-unit cost requires dividing the total contract value ($20.75 million) by the total number of shell bodies procured, which is not explicitly provided in the data. However, even if the number of units were known, direct comparison to industry benchmarks for '60/81mm mortar shell bodies' is complex. The defense industry often operates with different cost structures than the commercial sector due to stringent quality requirements, specialized manufacturing processes, and security protocols. Furthermore, General Dynamics OTS is a major defense contractor, and their pricing may reflect established relationships, economies of scale, and the specific technical specifications required by the Department of the Army. A true benchmark would necessitate comparing this contract against other government awards for identical or highly similar items, considering factors like quantity, material, and delivery timelines.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

While the provided data specifies a 'FIRM FIXED PRICE' contract type and a delivery schedule, it does not detail the specific Key Performance Indicators (KPIs) or the exact methods of performance measurement. Typically, for defense manufacturing contracts like this, KPIs would include adherence to the delivery schedule, quality control standards (e.g., defect rates, material integrity), compliance with technical specifications, and potentially production efficiency metrics. The Department of the Army would likely have a contracting officer's representative (COR) or a quality assurance specialist assigned to monitor the contractor's performance against these criteria. Failure to meet critical KPIs could result in penalties, contract modifications, or even termination, depending on the severity of the non-conformance.

What is the track record of General Dynamics OTS (Wilkes Barre), LLC in fulfilling similar defense contracts?

General Dynamics Ordnance and Tactical Systems (OTS) has a well-established track record in the defense industry, particularly in the manufacturing of munitions and related components. They are known for producing a wide range of artillery shells, mortar rounds, and other ordnance. Their history includes fulfilling numerous contracts for the U.S. Department of Defense and allied nations. While specific details on past performance for '60/81mm mortar shell bodies' would require a deeper dive into contract databases, the company's overall reputation suggests a capacity to meet the technical and production demands of such requirements. Past performance evaluations, often available through government contracting portals, would provide more granular insights into their reliability, quality, and timeliness on previous projects.

Are there any identified risks associated with the supply chain or manufacturing process for these mortar shell bodies?

Potential risks associated with the supply chain and manufacturing process for mortar shell bodies are common in the defense sector. These can include the availability and cost of raw materials (e.g., specific metals, propellants if integrated), reliance on specialized tooling and machinery, and the potential for disruptions in the global supply chain affecting component sourcing. For General Dynamics OTS, risks might also involve ensuring consistent quality across large production runs and managing labor resources. The firm fixed-price nature of the contract incentivizes the contractor to manage these risks effectively to maintain profitability. The Department of Defense likely has contingency plans and supplier diversification strategies in place to mitigate the impact of potential disruptions on critical munitions supply.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,753,373

Exercised Options: $20,753,373

Current Obligation: $20,753,373

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,952,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15QKN24D0030

IDV Type: IDC

Timeline