Army awards $255M for 32,668 IM HE-T tank rounds to General Dynamics

Contract Overview

Contract Amount: $254,875,736 ($254.9M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-30

End Date: 2029-08-27

Contract Duration: 1,580 days

Daily Burn Rate: $161.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE A TOTAL OF 32,668 120MM INSENSITIVE MUNITION HIGH EXPLOSIVE WITH TRACER (IM HE-T) TANK AMMUNITION CARTRIDGES.

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33716

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $254.9 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: PURCHASE A TOTAL OF 32,668 120MM INSENSITIVE MUNITION HIGH EXPLOSIVE WITH TRACER (IM HE-T) TANK AMMUNITION CARTRIDGES. Key points: 1. Significant investment in advanced tank ammunition. 2. Sole awardee indicates potential lack of competition. 3. Long-term contract duration raises questions about price stability. 4. Focus on insensitive munitions suggests modernization efforts.

Value Assessment

Rating: fair

The per-unit cost of approximately $7,800 is difficult to benchmark without specific technical details and market comparisons for this specialized munition. Further analysis is needed to determine if this price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. Without competitive bidding, the government may not have achieved the best possible price or terms.

Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a fully competed procurement.

Public Impact

Enhances the firepower and safety of Army tanks. Supports the defense industrial base in Florida. Ensures readiness for potential combat scenarios.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
High unit cost potential

Positive Signals

Modernization of critical munitions
Support for domestic manufacturing

Sector Analysis

This procurement falls under the Ammunition (except Small Arms) Manufacturing sector. Spending in this area is critical for national defense readiness, with benchmarks often driven by specific technological advancements and geopolitical demands.

Small Business Impact

The data indicates this contract was awarded to a large business (General Dynamics) and did not include small business set-asides. There is no indication of subcontracting opportunities for small businesses in this award.

Oversight & Accountability

The Department of the Army is the contracting agency. Oversight will be crucial to ensure delivery timelines, quality standards, and cost controls are met throughout the contract's duration.

Related Government Programs

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

Risk Flags

Sole-source award may result in higher costs.
Long contract duration increases price risk.
Potential for technological obsolescence.
Lack of transparency in pricing justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $254.9 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. PURCHASE A TOTAL OF 32,668 120MM INSENSITIVE MUNITION HIGH EXPLOSIVE WITH TRACER (IM HE-T) TANK AMMUNITION 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 $254.9 million.

What is the period of performance?

Start: 2025-04-30. End: 2029-08-27.

What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. The contracting officer must still conduct a price analysis to ensure the price is fair and reasonable, often by comparing to historical prices, commercial data, or using cost-plus-incentive-fee structures if appropriate.

How does the 'insensitive munition' requirement impact the cost and availability compared to standard high explosive rounds?

Insensitive munitions (IM) are designed to reduce the probability of unintended detonation when subjected to specific threats like bullet impact or fuel fires. This often requires more complex manufacturing processes, specialized materials, and rigorous testing, which generally leads to a higher per-unit cost compared to conventional munitions.

What are the potential risks associated with a contract spanning nearly five years for ammunition delivery?

Long-term contracts for ammunition carry risks such as potential price escalation due to inflation or material cost fluctuations, technological obsolescence if newer systems emerge, and reduced flexibility if military requirements change. Ensuring robust price adjustment clauses and performance metrics is vital.

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: $509,751,472

Exercised Options: $254,875,736

Current Obligation: $254,875,736

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $130,448,132

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15QKN25D0015

IDV Type: IDC

Timeline