DoD Awards $180M for Artillery Projectile Line Support, General Dynamics Wins Contract
Contract Overview
Contract Amount: $180,167,523 ($180.2M)
Contractor: General Dynamics OTS (wilkes Barre), LLC
Awarding Agency: Department of Defense
Start Date: 2022-11-23
End Date: 2024-11-22
Contract Duration: 730 days
Daily Burn Rate: $246.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRODUCTION BASE SUPPORT PROJECT FOR UNIVERSAL ARTILLERY PROJECTILE LINE AT SCAAP
Place of Performance
Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18702
Plain-Language Summary
Department of Defense obligated $180.2 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC for work described as: PRODUCTION BASE SUPPORT PROJECT FOR UNIVERSAL ARTILLERY PROJECTILE LINE AT SCAAP Key points: 1. Significant investment in critical defense production infrastructure. 2. General Dynamics OTS secured the contract, indicating strong capabilities in facilities support. 3. Potential risks include supply chain disruptions and long-term maintenance costs. 4. Spending falls within the Facilities Support Services sector.
Value Assessment
Rating: good
The contract value of $180M for a 2-year period appears reasonable for specialized production base support. Benchmarking against similar large-scale industrial facility maintenance contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a specific justification for limiting the initial pool. This method can sometimes lead to higher prices if competition is artificially constrained.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense production capabilities, aiming for long-term strategic advantage.
Public Impact
Ensures continued production of vital artillery projectiles for national defense. Supports jobs and economic activity within the defense industrial base. Contributes to military readiness and strategic deterrence capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method may impact price optimization.
- Reliance on a single contractor for critical infrastructure.
- Potential for cost overruns if unforeseen issues arise.
Positive Signals
- Supports a key defense manufacturing capability.
- Long-term contract provides stability for production.
- Fixed-price contract offers some cost certainty.
Sector Analysis
This contract falls under Facilities Support Services, a broad category encompassing maintenance, repair, and operational support for industrial facilities. Benchmarks for similar large-scale production support contracts are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The contract was awarded to General Dynamics OTS, a large business. There is no indication of specific set-asides or subcontracting goals for small businesses in the provided data.
Oversight & Accountability
The Department of the Army is the contracting agency. Oversight will focus on contract performance, adherence to schedule, and quality of services provided to ensure the production line remains operational.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may lead to suboptimal pricing.
- Potential for supply chain vulnerabilities impacting production.
- Dependency on a single contractor for critical infrastructure.
- Risk of scope creep or unforeseen technical challenges.
- Long-term maintenance costs could exceed initial projections.
Tags
facilities-support-services, department-of-defense, pa, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $180.2 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC. PRODUCTION BASE SUPPORT PROJECT FOR UNIVERSAL ARTILLERY PROJECTILE LINE AT SCAAP
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 $180.2 million.
What is the period of performance?
Start: 2022-11-23. End: 2024-11-22.
What is the specific justification for excluding sources in the full and open competition?
The justification for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' typically involves specific technical requirements, existing infrastructure compatibility, or unique capabilities that only a limited number of contractors can meet. A detailed review of the solicitation documents would reveal the precise reasons, which are crucial for understanding potential price impacts.
What are the key performance indicators (KPIs) for this contract to ensure effectiveness?
Key performance indicators would likely include metrics related to production uptime, maintenance response times, quality control of support services, adherence to safety protocols, and timely completion of scheduled maintenance. Effective monitoring of these KPIs by the Department of the Army is essential to ensure the artillery projectile line operates efficiently and reliably.
How does this contract contribute to the overall value proposition of the defense budget?
This contract contributes significant value by ensuring the operational readiness and capacity of a critical defense manufacturing asset. By maintaining the artillery projectile line, it directly supports national security objectives, reduces reliance on foreign suppliers, and potentially lowers long-term costs associated with emergency production ramp-ups or system obsolescence.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
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: 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: $224,628,405
Exercised Options: $224,628,405
Current Obligation: $180,167,523
Actual Outlays: $41,414,309
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J19D0075
IDV Type: IDC
Timeline
Start Date: 2022-11-23
Current End Date: 2024-11-22
Potential End Date: 2024-11-22 00:00:00
Last Modified: 2025-05-05
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