Army awards $171.5M for M829A4 120mm Armor Piercing Ammunition to General Dynamics

Contract Overview

Contract Amount: $171,567,492 ($171.6M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-06-11

End Date: 2029-12-24

Contract Duration: 1,657 days

Daily Burn Rate: $103.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER 1, PY6 FOR THE M829A4 CARTRIDGE, 120MM, ARMOR PIERCING, FIN STABILIZED, DISCARDING SABOT WITH TRACER (APFSDS-T)

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33716

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $171.6 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: DELIVERY ORDER 1, PY6 FOR THE M829A4 CARTRIDGE, 120MM, ARMOR PIERCING, FIN STABILIZED, DISCARDING SABOT WITH TRACER (APFSDS-T) Key points: 1. Significant award for advanced tank ammunition, crucial for armored warfare. 2. General Dynamics is a key player in defense ordnance manufacturing. 3. Potential risks include supply chain disruptions and evolving battlefield needs. 4. Spending falls within the Ammunition (except Small Arms) Manufacturing sector.

Value Assessment

Rating: good

The contract value of $171.5 million for a multi-year delivery order appears reasonable given the specialized nature of the M829A4 ammunition. Benchmarking against similar advanced ordnance contracts would provide further context, but the firm fixed-price structure suggests a degree of cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition scenario. This method may impact price discovery compared to a fully open process, potentially leading to higher costs if viable alternatives were not fully explored.

Taxpayer Impact: Taxpayer funds are allocated for critical defense materiel, ensuring force readiness. The limited competition aspect warrants scrutiny to ensure value for money is achieved.

Public Impact

Ensures continued supply of advanced ammunition for Abrams tanks. Supports a major defense contractor and its manufacturing capabilities. Impacts the readiness and effectiveness of armored units. Contributes to the overall defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the best price.
Reliance on a single source for critical components.
Potential for cost overruns if production challenges arise.

Positive Signals

Secures a vital munition for national defense.
Long-term contract provides stability for the supplier.
Firm fixed-price contract offers cost predictability.

Sector Analysis

This award falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the defense industrial base. Spending benchmarks for similar advanced munitions are often high due to R&D and specialized production requirements.

Small Business Impact

The contract was awarded to General Dynamics Ordnance and Tactical Systems, Inc., a large business. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact.

Oversight & Accountability

The Department of the Army is the contracting agency. Oversight will focus on contract performance, delivery schedules, and adherence to the firm fixed-price terms to ensure accountability and prevent cost creep.

Related Government Programs

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

Risk Flags

Limited competition may result in higher costs.
Long contract duration increases risk of obsolescence.
Dependence on a single supplier for critical ordnance.
Potential for supply chain vulnerabilities.
Requires ongoing monitoring of technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $171.6 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. DELIVERY ORDER 1, PY6 FOR THE M829A4 CARTRIDGE, 120MM, ARMOR PIERCING, FIN STABILIZED, DISCARDING SABOT WITH TRACER (APFSDS-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 $171.6 million.

What is the period of performance?

Start: 2025-06-11. End: 2029-12-24.

What specific factors led to the exclusion of other sources in this 'limited' competition, and how were these justified?

The justification for excluding other sources typically relates to the unique capabilities, proprietary technology, or specific performance requirements that only a particular contractor can meet. For advanced munitions like the M829A4, this could involve specialized manufacturing processes, existing production lines, or specific testing and qualification data that other potential offerors lack. A thorough review of the Justification for Other Than Full and Open Competition (JOFOC) would detail these specific reasons and demonstrate why this limited approach was deemed necessary and in the government's best interest.

How does the unit cost of this M829A4 ammunition compare to previous procurements or similar advanced kinetic energy penetrators?

Comparing the unit cost requires access to historical pricing data for the M829A4 or comparable munitions. Factors influencing cost include inflation, material prices, production volume, and technological advancements. Without specific historical or benchmark data, it's difficult to definitively assess if the current price represents good value. However, the firm fixed-price contract suggests the government has negotiated a set price, aiming for cost certainty despite potential market fluctuations.

What are the primary risks associated with the long-term delivery schedule (2025-2029) for this ammunition, and what mitigation strategies are in place?

Primary risks include potential supply chain disruptions for raw materials or components, obsolescence of technology over the contract period, and shifts in military requirements. Mitigation strategies likely involve robust supplier management, contingency planning for material sourcing, periodic technical reviews to address obsolescence, and close collaboration between the Army and General Dynamics to adapt to evolving battlefield needs and ensure continued relevance of the munition.

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: NEGOTIATED PROPOSAL/QUOTE

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: $171,567,492

Exercised Options: $171,567,492

Current Obligation: $171,567,492

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,855,125

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15QKN25D0006

IDV Type: IDC

Timeline