USSOCOM awards $5.8M for glide munitions support, with Dynetics Inc. securing the contract

Contract Overview

Contract Amount: $5,799,996 ($5.8M)

Contractor: Dynetics, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-03-05

End Date: 2026-06-01

Contract Duration: 453 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CONTINUATION ORDER FOR THE TRANSFER OF SMALL GLIDE MUNITIONS SUPPORT SERVICES. U.S. SPECIAL OPERATIONS COMMAND (USSOCOM) PROGRAM EXECUTIVE OFFICE, (PEO-FW) STRIKE DIVISION TO ARMY CONTRACTING COMMAND.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $5.8 million to DYNETICS, INC. for work described as: CONTINUATION ORDER FOR THE TRANSFER OF SMALL GLIDE MUNITIONS SUPPORT SERVICES. U.S. SPECIAL OPERATIONS COMMAND (USSOCOM) PROGRAM EXECUTIVE OFFICE, (PEO-FW) STRIKE DIVISION TO ARMY CONTRACTING COMMAND. Key points: 1. The contract focuses on support services for small glide munitions, a critical component for special operations. 2. Awarded by USSOCOM PEO-FW Strike Division to Army Contracting Command, indicating inter-agency collaboration. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not closely monitored. 4. The duration of 453 days suggests a need for ongoing, sustained support for these munitions. 5. The North American Industry Classification System (NAICS) code 332993 points to ammunition manufacturing, highlighting the specialized nature of the services. 6. The contract was awarded under full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparisons to similar support services for glide munitions. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as it reimburses the contractor for allowable costs plus a fixed fee, potentially leading to higher overall costs than fixed-price contracts if cost controls are not stringent. The awarded amount of $5.8 million for a 453-day period needs to be assessed against the scope of services provided to determine true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. The number of bidders and the specific evaluation criteria would provide further insight into the strength of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring that the government is not overpaying for necessary services.

Public Impact

Special Operations Forces (SOF) personnel will benefit from enhanced support for critical glide munitions, improving operational readiness. The services delivered will ensure the continued functionality and availability of specialized munitions for USSOCOM missions. The contract is geographically focused on Alabama (AL), where Dynetics, Inc. is located, potentially impacting the local economy through employment and subcontracting. The contract may have implications for a specialized workforce within the defense manufacturing and support sector, particularly in Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
The specific nature of 'support services' for munitions requires clear performance metrics to ensure effectiveness.
Reliance on a single contractor for specialized support could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The contract supports critical capabilities for U.S. Special Operations Command, aligning with national security priorities.
The contractor, Dynetics, Inc., is a known entity in the defense sector, potentially bringing relevant expertise.

Sector Analysis

This contract falls within the defense manufacturing and support services sector, specifically related to ammunition. The market for specialized munitions and their associated support services is highly concentrated, often involving a limited number of contractors with the requisite technical expertise and security clearances. Spending in this area is driven by defense appropriations and the evolving needs of military operations, particularly for special forces. Comparable spending benchmarks would typically be found within broader defense procurement data for weapon systems and ammunition.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary awardee, Dynetics, Inc., is likely a larger entity, and opportunities for small businesses would depend on their subcontracting plans, which are not detailed here. The absence of a small business set-aside means the competition was open to all qualified large and small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Special Operations Command (USSOCOM) Program Executive Office (PEO-FW) Strike Division, in conjunction with the Army Contracting Command. The Cost Plus Fixed Fee (CPFF) nature of the contract necessitates robust financial oversight to ensure costs are allowable and reasonable. Transparency will depend on the reporting requirements stipulated in the contract and the agency's commitment to public disclosure of contract performance information.

Related Government Programs

USSOCOM Procurement
Special Operations Forces Support
Ammunition Procurement
Defense Logistics Support
Weapon Systems Support Services

Risk Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Specialized nature of munitions support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.8 million to DYNETICS, INC.. CONTINUATION ORDER FOR THE TRANSFER OF SMALL GLIDE MUNITIONS SUPPORT SERVICES. U.S. SPECIAL OPERATIONS COMMAND (USSOCOM) PROGRAM EXECUTIVE OFFICE, (PEO-FW) STRIKE DIVISION TO ARMY CONTRACTING COMMAND.

Who is the contractor on this award?

The obligated recipient is DYNETICS, 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 $5.8 million.

What is the period of performance?

Start: 2025-03-05. End: 2026-06-01.

What is Dynetics, Inc.'s track record with USSOCOM and similar munitions support contracts?

Dynetics, Inc. has a history of engaging with Department of Defense contracts, including work related to advanced technologies and defense systems. While specific details on their past performance with USSOCOM for glide munitions support are not provided in this data snippet, their general experience in the defense sector suggests a capacity to handle such requirements. A deeper analysis would involve reviewing their contract history, past performance evaluations, and any awards or penalties received on previous government contracts. This would help ascertain their reliability and expertise in delivering specialized support services for critical defense assets like glide munitions.

How does the $5.8 million value compare to similar glide munitions support contracts?

Direct comparison of the $5.8 million value for this contract is difficult without access to a database of similar glide munitions support contracts, including their scope, duration, and specific services rendered. However, the contract's duration of 453 days (approximately 15 months) provides a basis for annualizing the cost. If the $5.8 million were spread evenly over the contract period, it would equate to roughly $4.64 million per year. This figure needs to be evaluated against the complexity and criticality of the support services. Contracts for specialized defense systems can vary significantly in cost based on technical requirements, research and development components, and the level of sustainment provided.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for munitions support?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, such as this one for glide munitions support, is the potential for cost overruns. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the actual expenses. Effective risk mitigation requires stringent oversight from the contracting agency to scrutinize all claimed costs, ensure they are reasonable and allocable to the contract, and maintain clear performance standards. Without robust monitoring, the government may end up paying more than necessary for the services rendered.

How effective is full and open competition in ensuring value for money for specialized defense support services?

Full and open competition is generally considered the most effective method for ensuring value for money, as it allows the widest possible range of qualified contractors to bid on a requirement. This broad competition typically drives down prices through market forces and encourages innovation. For specialized defense support services, however, the effectiveness can be moderated by the limited number of companies possessing the necessary technical expertise, security clearances, and infrastructure. While full and open competition was utilized here, the actual number of bids received and the specific evaluation criteria are crucial for determining the degree of price discovery and overall value achieved for taxpayers.

What is the historical spending trend for USSOCOM's glide munitions support services?

Historical spending data for USSOCOM's glide munitions support services is not directly available from the provided contract details. To assess historical spending patterns, one would need to access broader contract databases and analyze previous awards made by USSOCOM or its component commands for similar services over several fiscal years. This analysis would reveal trends in contract values, the number of awards, and the primary contractors involved. Understanding these patterns is essential for identifying any significant increases or decreases in spending, which could indicate changes in operational tempo, technological advancements, or shifts in procurement strategies for these critical munitions.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1002 EXPLORER BLVD, HUNTSVILLE, AL, 35806

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: $12,048,759

Exercised Options: $5,799,996

Current Obligation: $5,799,996

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865621DA015

IDV Type: IDC

Timeline