DoD Awards $27.7M for 120MM Mortar Shell Bodies to General Dynamics OTS
Contract Overview
Contract Amount: $27,730,590 ($27.7M)
Contractor: General Dynamics OTS (wilkes Barre), LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-25
End Date: 2029-05-31
Contract Duration: 1,344 days
Daily Burn Rate: $20.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GDOTS DELIVERY ORDER #1 120MM MORTAR SHELL BODIES
Place of Performance
Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18702
Plain-Language Summary
Department of Defense obligated $27.7 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC for work described as: GDOTS DELIVERY ORDER #1 120MM MORTAR SHELL BODIES Key points: 1. Significant award for critical ammunition components. 2. General Dynamics OTS is a key supplier in this niche. 3. Potential for supply chain risks if production is disrupted. 4. Manufacturing sector focused on defense procurement.
Value Assessment
Rating: good
The contract value of $27.7M for 1344 days of delivery appears reasonable for specialized ammunition components. Benchmarking against similar defense contracts for ordnance manufacturing is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery and potentially lead to higher costs compared to broader competition.
Taxpayer Impact: Taxpayer funds are being used for essential defense materiel. The limited competition structure warrants scrutiny to ensure cost-effectiveness.
Public Impact
Ensures continued supply of critical mortar ammunition for the U.S. Army. Supports domestic defense manufacturing capabilities. Impacts readiness and operational capabilities of ground forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- Reliance on a single supplier for this specific component.
- Long contract duration could lead to price escalation risks.
Positive Signals
- Secures a vital defense supply chain.
- Supports a domestic manufacturing base.
- Clear delivery timeline established.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically ammunition production. Spending benchmarks for similar ordnance contracts are typically high due to specialized materials, complex manufacturing processes, and stringent quality control requirements.
Small Business Impact
The awardee, General Dynamics OTS, is a large business. There is no indication of small business participation in this specific delivery order, which is common for highly specialized defense manufacturing contracts.
Oversight & Accountability
The Department of the Army is the procuring agency. Oversight will focus on contract performance, delivery schedules, and adherence to quality specifications to ensure accountability and effective use of funds.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition.
- Sole-source potential for future needs.
- Long-term contract duration.
- Supply chain vulnerability.
- Price escalation risk.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.7 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC. GDOTS DELIVERY ORDER #1 120MM 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 $27.7 million.
What is the period of performance?
Start: 2025-09-25. End: 2029-05-31.
What is the historical cost trend for 120mm mortar shell bodies from this contractor or similar manufacturers?
Analyzing historical pricing data for 120mm mortar shell bodies is crucial. If previous contracts with General Dynamics OTS or other manufacturers show a consistent upward trend in pricing, it could indicate inflationary pressures or a lack of competitive pricing. Conversely, stable or decreasing prices would suggest efficient production or effective negotiation.
What are the specific reasons for excluding other sources in this 'full and open competition after exclusion of sources' award?
The exclusion of sources typically occurs when only a limited number of contractors possess the necessary technical capabilities, security clearances, or specialized facilities to produce the required item. Understanding these specific reasons is vital to assess if the exclusion was justified and if it truly limited competition unnecessarily, potentially impacting cost.
How does the per-unit cost of these mortar shell bodies compare to similar international procurements or commercial equivalents?
Benchmarking the per-unit cost against international procurements or commercial equivalents, where applicable, can reveal cost efficiencies or potential overspending. However, direct comparisons can be challenging due to differences in specifications, quality standards, and geopolitical factors influencing defense procurement pricing.
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: 2
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: $27,730,590
Exercised Options: $27,730,590
Current Obligation: $27,730,590
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN25D0029
IDV Type: IDC
Timeline
Start Date: 2025-09-25
Current End Date: 2029-05-31
Potential End Date: 2029-05-31 12:05:00
Last Modified: 2025-09-25
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