DoD Awards $156M for Artillery Projectile Line Support to General Dynamics OTS
Contract Overview
Contract Amount: $156,252,357 ($156.3M)
Contractor: General Dynamics OTS (wilkes Barre), LLC
Awarding Agency: Department of Defense
Start Date: 2023-02-17
End Date: 2025-04-16
Contract Duration: 789 days
Daily Burn Rate: $198.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PRODUCTION BASE SUPPORT PROJECT FOR UNIVERSAL ARTILLERY PROJECTILE LINE B AWARDED AS A UCA
Place of Performance
Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18702
Plain-Language Summary
Department of Defense obligated $156.3 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC for work described as: PRODUCTION BASE SUPPORT PROJECT FOR UNIVERSAL ARTILLERY PROJECTILE LINE B AWARDED AS A UCA Key points: 1. The contract is for production base support for a universal artillery projectile line. 2. General Dynamics OTS is the sole awardee, raising questions about competition. 3. The contract duration is 789 days, ending in April 2025. 4. The award was made under a full and open competition after exclusion of sources. 5. Facilities Support Services (NAICS 561210) is the sector for this contract.
Value Assessment
Rating: good
The contract value of $156.2M for 789 days appears reasonable for specialized production support services. Benchmarking against similar large-scale industrial support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a specific reason for excluding other potential bidders. This method can sometimes lead to less competitive pricing if the exclusion criteria are not strictly justified.
Taxpayer Impact: Taxpayer funds are being used for essential defense production support. The pricing will be influenced by the competitive landscape established by the exclusion of sources.
Public Impact
Ensures continued production of critical artillery projectiles for the U.S. military. Supports jobs and economic activity within the defense industrial base. Contributes to national security by maintaining manufacturing capabilities. Potential for cost efficiencies through specialized support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to exclusion of sources.
- Potential for cost overruns if support needs exceed estimates.
- Reliance on a single contractor for critical production support.
Positive Signals
- Supports a key defense manufacturing capability.
- Long-term contract provides stability for production.
- Awarded to an established defense contractor.
Sector Analysis
This contract falls within the Facilities Support Services sector, often associated with maintaining and operating industrial facilities. Spending in this area is crucial for defense readiness, with benchmarks varying widely based on the scale and complexity of the facility.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the awardee is General Dynamics OTS. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large contract.
Oversight & Accountability
The Department of the Army is the awarding agency. Oversight will focus on contract performance, adherence to terms, and ensuring the efficient use of funds for production support.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for sole-source dependency.
- Lack of transparency in the 'exclusion of sources' justification.
- Contract duration may not align with long-term strategic needs.
- No small business participation explicitly stated.
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 $156.3 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC. PRODUCTION BASE SUPPORT PROJECT FOR UNIVERSAL ARTILLERY PROJECTILE LINE B AWARDED AS A UCA
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 $156.3 million.
What is the period of performance?
Start: 2023-02-17. End: 2025-04-16.
What specific factors led to the exclusion of other sources in this 'full and open competition'?
The exclusion of sources typically occurs when specific technical capabilities, proprietary knowledge, or unique infrastructure are required that only a limited number of contractors possess. For this artillery projectile line, it might relate to specialized tooling, existing production lines, or specific safety and environmental compliance requirements that General Dynamics OTS uniquely meets.
How does the per-unit cost of artillery projectiles compare to industry benchmarks given this support contract?
This contract is for production base support, not the direct manufacturing of projectiles. Therefore, it doesn't directly impact the per-unit cost of the projectiles themselves. However, efficient support services can indirectly contribute to lower overall production costs by ensuring smooth operations and minimizing downtime.
What is the risk of production delays or cost overruns due to the limited competition structure?
The risk of delays or cost overruns is moderate. While the 'exclusion of sources' implies a specialized need, it can reduce competitive pressure on pricing and innovation. Robust contract management, clear performance metrics, and regular progress reviews by the Department of the Army are essential to mitigate these risks.
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: $184,748,022
Exercised Options: $156,252,357
Current Obligation: $156,252,357
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: 2023-02-17
Current End Date: 2025-04-16
Potential End Date: 2025-04-16 12:04:00
Last Modified: 2024-01-08
More Contracts from General Dynamics OTS (wilkes Barre), LLC
- Manufacture, Assembly, Inspection, Package, and Delivery of the 155MM Artillery M795 Projectile Body Assembly in Support of Ukraine — $700.1M (Department of Defense)
- 155MM Capacity Expansion Project for M795 and M1128 to 65k/Month — $356.4M (Department of Defense)
- M795 Metal Parts — $230.4M (Department of Defense)
- Production Base Support Project for Universal Artillery Projectile Line AT Scaap — $180.2M (Department of Defense)
- Purchase of M795 and 120MM Large Caliber Metal Parts — $177.7M (Department of Defense)
View all General Dynamics OTS (wilkes Barre), LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)