DoD Awards $36.3M for MK80 Series Bomb Kits to General Dynamics

Contract Overview

Contract Amount: $36,329,257 ($36.3M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-03-03

End Date: 2025-12-31

Contract Duration: 1,034 days

Daily Burn Rate: $35.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ORDERING PERIOD 5 FOR THE MK80 SERIES GENERAL PURPOSE AND BLU-109 TRITONAL BOMB KITS. THIS DELIVERY ORDER IS AWARDING FMS REQUIREMENTS FOR THE BLU-109/B BOMB BODY AND APPLICABLE COMPONENTS.

Place of Performance

Location: GARLAND, DALLAS County, TEXAS, 75040

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $36.3 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: ORDERING PERIOD 5 FOR THE MK80 SERIES GENERAL PURPOSE AND BLU-109 TRITONAL BOMB KITS. THIS DELIVERY ORDER IS AWARDING FMS REQUIREMENTS FOR THE BLU-109/B BOMB BODY AND APPLICABLE COMPONENTS. Key points: 1. Significant award for critical munitions components. 2. Sole-source award raises questions about competition. 3. Long-term contract (2025) with potential for follow-on orders. 4. Defense sector spending on ordnance manufacturing.

Value Assessment

Rating: fair

The contract value of $36.3M for bomb kits appears reasonable given the nature of the components and the duration of the ordering period. However, without more detailed cost breakdowns or benchmarks for similar FMS requirements, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process. The justification for sole-source is not provided.

Taxpayer Impact: The lack of competition for this significant award may lead to suboptimal pricing, impacting taxpayer value.

Public Impact

Ensures supply of critical components for allied nations through FMS. Supports U.S. defense industrial base and manufacturing capabilities. Potential for extended production runs and sustainment contracts. Impacts global munitions availability and strategic deterrence.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Lack of justification for sole-source award.
Long contract duration without clear performance metrics.

Positive Signals

Supports Foreign Military Sales (FMS) requirements.
Secures critical defense manufacturing capabilities.
Firm fixed price contract provides cost certainty.

Sector Analysis

This award falls within the defense sector, specifically ammunition manufacturing. Spending in this area is driven by national security needs, modernization efforts, and international security cooperation. Benchmarks for similar ordnance contracts are often proprietary or classified.

Small Business Impact

The awardee, General Dynamics Ordnance and Tactical Systems, Inc., is a large business. There is no indication that small businesses were involved as subcontractors in this specific delivery order, which is common for large, specialized defense contracts.

Oversight & Accountability

Oversight would typically involve program management reviews, quality assurance checks, and financial audits by the Department of Defense. The sole-source nature necessitates careful justification and review to ensure fair and reasonable pricing.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Long contract duration without clear performance metrics.
Limited transparency on cost breakdown and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.3 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. ORDERING PERIOD 5 FOR THE MK80 SERIES GENERAL PURPOSE AND BLU-109 TRITONAL BOMB KITS. THIS DELIVERY ORDER IS AWARDING FMS REQUIREMENTS FOR THE BLU-109/B BOMB BODY AND APPLICABLE COMPONENTS.

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 $36.3 million.

What is the period of performance?

Start: 2023-03-03. End: 2025-12-31.

What is the specific justification for awarding this contract sole-source, and what steps were taken to ensure a fair and reasonable price without competition?

The provided data does not include the justification for the sole-source award. Typically, such justifications would cite reasons like unique capabilities, urgent needs, or lack of viable alternatives. Without this information, it's impossible to assess the fairness of the price or the necessity of bypassing competition, which is crucial for taxpayer value.

How does the unit cost of these bomb kits compare to similar components procured competitively or through other FMS agreements?

A direct comparison of unit costs is not possible with the provided data. Benchmarking requires access to detailed cost breakdowns, production volumes, and pricing from comparable contracts. The sole-source nature of this award makes external price validation challenging, potentially obscuring whether the price is optimal.

What are the key performance indicators (KPIs) and quality assurance measures in place to ensure the effective delivery and performance of these bomb kits?

While the contract is firm fixed price, specific KPIs and quality assurance measures are not detailed in the provided summary. Standard defense procurement includes rigorous testing and inspection protocols. Effective delivery relies on adherence to specifications and timely fulfillment of the ordering period requirements.

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

Address: 1200 N GLENBROOK DR, GARLAND, TX, 75040

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: $36,329,257

Exercised Options: $36,329,257

Current Obligation: $36,329,257

Actual Outlays: $492,754

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $23,408,494

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W52P1J19D0015

IDV Type: IDC

Timeline