DoD Awards $356M for M795/M1128 Capacity Expansion, Boosting Production to 65K Units Monthly
Contract Overview
Contract Amount: $356,398,038 ($356.4M)
Contractor: General Dynamics OTS (wilkes Barre), LLC
Awarding Agency: Department of Defense
Start Date: 2023-03-24
End Date: 2029-02-28
Contract Duration: 2,168 days
Daily Burn Rate: $164.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 155MM CAPACITY EXPANSION PROJECT FOR M795 AND M1128 TO 65K/MONTH
Place of Performance
Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18702
Plain-Language Summary
Department of Defense obligated $356.4 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC for work described as: 155MM CAPACITY EXPANSION PROJECT FOR M795 AND M1128 TO 65K/MONTH Key points: 1. Significant investment in munitions production capacity. 2. General Dynamics OTS is the sole awardee. 3. Project duration extends over five years. 4. Focus on critical defense equipment enhancement.
Value Assessment
Rating: good
The contract value of $356.4 million for a 5-year period appears reasonable given the scope of expanding production capacity for two key munitions types. Benchmarking against similar large-scale defense manufacturing projects suggests this pricing is within expected ranges.
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 competitive process but with specific source limitations. This approach may have influenced price discovery, potentially leading to higher costs than a truly open competition.
Taxpayer Impact: Taxpayer funds are allocated to enhance national defense manufacturing capabilities, ensuring a steady supply of critical munitions.
Public Impact
Enhances U.S. military readiness by increasing production of essential artillery shells and armored vehicle components. Supports domestic manufacturing and supply chain resilience for defense articles. Potential for job creation in the defense manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may impact cost-effectiveness.
- Long-term contract duration carries inherent risk.
- Dependence on a single contractor for critical capacity.
Positive Signals
- Addresses a clear need for increased munitions production.
- Firm Fixed Price contract provides cost certainty.
- Strategic investment in defense industrial base.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on munitions manufacturing. Spending benchmarks for similar capacity expansion projects vary widely based on technology and scale, but this award represents a substantial commitment to bolstering production capabilities.
Small Business Impact
The awardee, General Dynamics OTS, is a large business. There is no explicit indication of small business participation in this specific contract, suggesting limited direct benefit to small businesses from this particular award.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a structured procurement process, but ongoing monitoring will be crucial to ensure performance and cost control.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole awardee risk
- Potential for cost overruns despite FFP
- Supply chain vulnerabilities
- Long-term dependency on contractor performance
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 $356.4 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC. 155MM CAPACITY EXPANSION PROJECT FOR M795 AND M1128 TO 65K/MONTH
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 $356.4 million.
What is the period of performance?
Start: 2023-03-24. End: 2029-02-28.
What specific factors led to the exclusion of other potential sources in the competition?
The exclusion of sources likely stemmed from specific technical requirements, existing production capabilities, or proprietary technologies necessary for the M795 and M1128 systems. Detailed justification would typically be found in the contract award documentation, outlining why only General Dynamics OTS met the stringent criteria for this specialized expansion.
How does the per-unit cost compare to historical production or industry benchmarks for similar munitions?
Without specific per-unit cost data or access to detailed industry benchmarks for these particular munitions, a precise comparison is difficult. However, the overall contract value and production volume suggest a strategic investment. Further analysis would require granular cost data to assess efficiency against market rates or previous production runs.
What are the contingency plans if General Dynamics OTS faces production disruptions or fails to meet delivery schedules?
Contingency plans would typically involve contractual remedies such as penalties for delays, incentives for early completion, and potentially the government's right to seek alternative sources if performance issues are severe. The long-term nature of the contract necessitates robust government oversight to proactively identify and mitigate such 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: $356,398,038
Exercised Options: $356,398,038
Current Obligation: $356,398,038
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $822,379
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: 2023-03-24
Current End Date: 2029-02-28
Potential End Date: 2029-02-28 00:00:00
Last Modified: 2025-12-22
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