General Dynamics OTS awarded $150.5M for artillery projectile production support, with a 995-day performance period

Contract Overview

Contract Amount: $150,516,821 ($150.5M)

Contractor: General Dynamics OTS (wilkes Barre), LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-12

End Date: 2026-03-03

Contract Duration: 995 days

Daily Burn Rate: $151.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SCAAP PRODUCTION BASED SUPPORT FOR UNIVERSAL ARTILLERY PROJECTILE LINE C AWARDED AS A UCA

Place of Performance

Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18702

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $150.5 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC for work described as: SCAAP PRODUCTION BASED SUPPORT FOR UNIVERSAL ARTILLERY PROJECTILE LINE C AWARDED AS A UCA Key points: 1. Contract value represents a significant investment in critical defense manufacturing capabilities. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Performance period of nearly three years indicates a need for sustained production support. 4. The contract type (firm fixed price) shifts cost risk to the contractor. 5. Focus on artillery projectile production highlights a key area of military readiness. 6. Geographic location in Pennsylvania may have implications for regional employment and industry.

Value Assessment

Rating: good

The contract value of $150.5 million for production support appears reasonable given the scope and duration. Benchmarking against similar large-scale defense manufacturing support contracts would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract is generally favorable for the government, as it caps potential cost overruns. However, without detailed cost breakdowns or comparisons to industry standards for this specific type of support, a definitive assessment of exceptional value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was broad, specific sources may have been excluded for defined reasons. The fact that it was competed broadly suggests that multiple capable vendors had the opportunity to bid. This level of competition is generally expected to drive more competitive pricing and ensure the government receives the best value. The specific reasons for any source exclusion would be critical to fully understanding the competitive landscape.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The primary beneficiaries are the U.S. Army and potentially other branches requiring artillery projectiles. Services delivered include essential production support for universal artillery projectile lines. Geographic impact is concentrated in Wilkes-Barre, Pennsylvania, supporting local industry and jobs. Workforce implications include potential job creation or retention within the defense manufacturing sector in Pennsylvania.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for reliance on a single prime contractor for critical production support.
Complexity of artillery projectile manufacturing may introduce unforeseen technical or logistical challenges.
Geographic concentration of award could pose risks if local disruptions occur.

Positive Signals

Award to a known entity (General Dynamics OTS) suggests established capabilities and experience.
Firm fixed-price contract structure provides cost certainty for the government.
Long-term contract duration allows for stable planning and execution of production support.

Sector Analysis

The defense manufacturing sector is a critical component of national security, involving complex supply chains and specialized production capabilities. This contract falls within the broader defense industrial base, specifically supporting the production of munitions. The market for such specialized support services is often characterized by a limited number of highly capable contractors due to stringent quality, security, and technical requirements. Spending in this area is directly tied to military readiness and strategic objectives.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, General Dynamics OTS, may engage small businesses as subcontractors to fulfill aspects of the production support, contributing to the broader small business ecosystem within the defense supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to meet specified performance standards. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Artillery Ammunition Production
Munitions Manufacturing Support
Defense Industrial Base Contracts
Army Weapon Systems Procurement
Tactical Vehicle Production Support

Risk Flags

Potential supply chain vulnerabilities for critical raw materials.
Risk of manufacturing defects impacting performance or safety.
Dependence on a single geographic location for critical production support.
Complexity of advanced munitions manufacturing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $150.5 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC. SCAAP PRODUCTION BASED SUPPORT FOR UNIVERSAL ARTILLERY PROJECTILE LINE C 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 $150.5 million.

What is the period of performance?

Start: 2023-06-12. End: 2026-03-03.

What is the historical spending pattern for artillery projectile production support by the Department of the Army?

Analyzing historical spending for artillery projectile production support by the Department of the Army requires examining contract data over several fiscal years. This involves identifying contracts awarded for similar services, such as manufacturing, assembly, testing, and logistical support related to artillery shells and components. Trends might reveal periods of increased investment driven by geopolitical events or modernization programs, contrasted with periods of lower spending during drawdowns or shifts in strategic focus. For instance, recent years may show an uptick in spending due to global security concerns and the need to replenish stockpiles. Comparing the current $150.5 million award to historical averages or peaks would indicate whether this represents a routine procurement or a significant surge in investment for this specific capability.

How does the per-unit cost of artillery projectiles produced under this contract compare to industry benchmarks?

Determining the per-unit cost of artillery projectiles under this contract is challenging without specific details on the quantity of projectiles to be produced and the breakdown of support costs versus direct production costs. The contract value of $150.5 million covers 'production based support,' which could encompass a wide range of activities beyond just manufacturing the projectile itself, such as tooling, facility maintenance, quality assurance, and supply chain management. To compare per-unit costs, one would need to isolate the direct manufacturing cost per projectile and then benchmark this against publicly available data for similar calibers and types of artillery ammunition, considering factors like material costs, labor, and overhead. Without this granular data, a direct per-unit cost comparison is not feasible from the provided summary.

What is General Dynamics OTS's track record with similar large-scale defense manufacturing contracts?

General Dynamics Ordnance and Tactical Systems (OTS) has a well-established track record in defense manufacturing, including significant experience with munitions and artillery systems. They are a major producer of various ordnance, including mortar rounds, artillery shells, and tank ammunition. Their history includes numerous large government contracts, often awarded through competitive processes. Assessing their track record would involve reviewing past performance evaluations, on-time delivery rates, quality metrics, and any past disputes or contract modifications on similar programs. Their long-standing presence and role as a key supplier to the U.S. military suggest a generally reliable performance history, though specific contract performance can vary.

What are the primary risks associated with the production of universal artillery projectiles, and how does this contract mitigate them?

Primary risks in universal artillery projectile production include supply chain disruptions for raw materials (e.g., propellants, metals), manufacturing defects leading to performance issues or safety hazards, adherence to stringent quality control standards, and potential cost overruns if not managed effectively. This contract, being firm fixed-price, mitigates cost overrun risks by placing that burden on General Dynamics OTS. The long performance period (995 days) allows for sustained focus and potentially better supply chain management. However, risks related to material availability and manufacturing quality remain inherent to the process and would be managed through the contractor's internal quality assurance processes and government oversight, including inspections and acceptance testing.

How does this contract align with current U.S. military readiness goals and modernization efforts?

This contract directly aligns with U.S. military readiness goals by ensuring the continued production and support of essential artillery projectiles, a core capability for ground forces. In an era of heightened global security concerns and potential near-peer competition, maintaining robust munitions stockpiles and production capacity is a strategic priority. The 'universal artillery projectile line' suggests standardization and efficiency, which supports modernization efforts by potentially enabling easier integration with various artillery platforms and future upgrades. Sustained production support ensures that the Army can meet training requirements and operational demands, contributing directly to overall force readiness.

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: $187,093,492

Exercised Options: $150,516,821

Current Obligation: $150,516,821

Actual Outlays: $24,100,000

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