General Dynamics awarded $31M for bomb bodies, highlighting sole-source procurement in defense manufacturing

Contract Overview

Contract Amount: $31,063,718 ($31.1M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-11-19

End Date: 2026-12-31

Contract Duration: 772 days

Daily Burn Rate: $40.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER ISSUED FOR THE MK82-1 (NSN: 1325-00-585-3841), MK84-6 (NSN: 1325-01-074-5693), AND BDU-56/B (NSN: 1325-01-376-4400) BOMB BODIES.

Place of Performance

Location: GARLAND, DALLAS County, TEXAS, 75040

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: DELIVERY ORDER ISSUED FOR THE MK82-1 (NSN: 1325-00-585-3841), MK84-6 (NSN: 1325-01-074-5693), AND BDU-56/B (NSN: 1325-01-376-4400) BOMB BODIES. Key points: 1. The contract focuses on essential bomb components, indicating a critical need within the Department of Defense's ordnance supply chain. 2. Sole-source procurement suggests potential limitations in market competition or unique manufacturing requirements for these specific bomb bodies. 3. The firm-fixed-price structure aims to control costs, but the absence of competition warrants scrutiny of pricing and value. 4. Delivery orders for MK82-1, MK84-6, and BDU-56/B bomb bodies are crucial for ongoing military operations and readiness. 5. The contract's duration extends over two years, implying sustained demand for these munitions. 6. Texas is the primary performance location, potentially benefiting the regional defense industrial base.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to definitively assess if the $31 million price represents optimal value for money. However, the firm-fixed-price contract type provides some cost certainty. The specific nature of the bomb bodies (MK82-1, MK84-6, BDU-56/B) suggests they may be specialized or have unique manufacturing requirements that limit readily available alternatives, potentially justifying the awarded price in the absence of competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to General Dynamics Ordnance and Tactical Systems, Inc. The reasons for sole-sourcing are not detailed but could stem from proprietary technology, unique manufacturing capabilities, or a lack of alternative suppliers for these specific bomb bodies. The absence of a competitive bidding process means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may be paying a premium for these bomb bodies due to the lack of competition. Without a bidding process, there is less pressure on the contractor to offer the lowest possible price, and oversight is critical to ensure fair pricing.

Public Impact

The primary beneficiaries are the Department of the Air Force and Department of the Army, receiving critical ordnance components for their operations. The contract delivers essential bomb bodies (MK82-1, MK84-6, BDU-56/B) vital for air-to-ground munitions. Performance is primarily located in Texas, potentially supporting local jobs and the state's defense manufacturing sector. The contract ensures the continued availability of key munitions, supporting national defense readiness and military effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency regarding the justification for sole-sourcing raises concerns about procurement fairness.
Dependence on a single supplier for critical bomb components could pose supply chain risks.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
General Dynamics is an established defense contractor with a track record in ordnance manufacturing.
The contract ensures the supply of essential munitions, supporting military readiness.

Sector Analysis

This contract falls within the Ammunition (except Small Arms) Manufacturing sector (NAICS 332993), a critical component of the broader defense industrial base. The market for bomb bodies is specialized, often dominated by a few key manufacturers capable of meeting stringent military specifications. Spending in this sector is directly tied to defense appropriations and geopolitical demands. Comparable spending benchmarks are difficult to establish precisely due to the proprietary nature of specific munition designs and the limited number of qualified suppliers.

Small Business Impact

This contract does not appear to include specific small business set-asides, as indicated by 'sb: false'. The prime contractor, General Dynamics Ordnance and Tactical Systems, Inc., is a large business. There is no explicit information provided regarding subcontracting plans to small businesses. Without specific set-asides or mandated subcontracting goals, the direct impact on the small business ecosystem for this particular award is likely minimal, though the prime contractor may engage small businesses as part of their broader supply chain.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Defense's contracting and program management offices. As a delivery order under a larger contract vehicle, existing oversight mechanisms for that vehicle would apply. Transparency regarding the sole-source justification and pricing negotiations is crucial. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. The firm-fixed-price nature of the contract shifts some risk to the contractor, but government oversight is still necessary to ensure compliance with terms and conditions.

Related Government Programs

Department of Defense Ammunition Procurement
Ordnance Manufacturing Contracts
Bomb Body Production
General Dynamics Defense Contracts
Sole-Source Defense Acquisitions

Risk Flags

Sole-source procurement
Lack of competitive bidding
Potential for inflated pricing
Supply chain dependency on a single contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. DELIVERY ORDER ISSUED FOR THE MK82-1 (NSN: 1325-00-585-3841), MK84-6 (NSN: 1325-01-074-5693), AND BDU-56/B (NSN: 1325-01-376-4400) BOMB BODIES.

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 $31.1 million.

What is the period of performance?

Start: 2024-11-19. End: 2026-12-31.

What is the historical spending pattern for bomb bodies like the MK82-1, MK84-6, and BDU-56/B with General Dynamics or other contractors?

Analyzing historical spending for specific bomb bodies like the MK82-1, MK84-6, and BDU-56/B requires access to detailed contract databases and procurement histories. General Dynamics Ordnance and Tactical Systems, Inc. has a long-standing relationship with the Department of Defense for producing various ordnance items. Without specific contract numbers or NSNs for past awards, it's challenging to pinpoint exact historical spending figures for these precise bomb bodies. However, it is known that the U.S. military procures significant quantities of general-purpose bomb bodies annually to maintain operational readiness and support ongoing missions. Spending in this category can fluctuate based on global security environments, operational tempo, and modernization programs. The current $31 million award for a two-year period suggests a consistent, albeit not massive, demand for these components.

What is the justification for this contract being sole-sourced, and what are the implications for price?

The justification for this contract being sole-sourced is not explicitly detailed in the provided data. However, sole-source awards in defense procurement typically occur when only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique manufacturing capabilities, specialized tooling, or a lack of competition within the required timeframe. The primary implication for price is the potential for it to be higher than if the contract had been competed. Without competitive pressure, the contractor may not have the same incentive to offer the lowest possible price. The government relies on negotiation and oversight to ensure fair and reasonable pricing in sole-source situations, but the absence of competing bids inherently limits the government's leverage.

How does the performance location in Texas impact the defense industrial base and potential job creation?

The performance location being in Texas (ST: TX, SN: TEXAS) is significant for the regional defense industrial base. Texas has a robust and diverse defense manufacturing sector, and contracts like this contribute to its strength by supporting existing infrastructure and workforce. Awarding work to a facility in Texas can lead to job creation or retention in areas such as manufacturing, engineering, quality assurance, and logistics. It also reinforces the state's position as a key hub for defense production, potentially attracting further investment and related businesses. This localized economic impact can be substantial, benefiting both the contractor and the surrounding community through wages, taxes, and supply chain activity.

What are the risks associated with relying on General Dynamics Ordnance and Tactical Systems, Inc. as the sole supplier for these bomb bodies?

Relying on General Dynamics Ordnance and Tactical Systems, Inc. as the sole supplier for these specific bomb bodies presents several potential risks. Firstly, there's a supply chain risk: any disruption at the contractor's facility, whether due to natural disasters, labor issues, or unforeseen operational problems, could directly impact the availability of critical munitions for the Department of Defense. Secondly, a sole-source arrangement can reduce the government's leverage in future negotiations, potentially leading to higher prices over time if competition does not emerge. Thirdly, it can stifle innovation and technological advancement within the broader defense industrial base, as other potential manufacturers may not have the opportunity to develop or demonstrate competing capabilities for these specific components.

What is the significance of the firm-fixed-price contract type in this context?

The firm-fixed-price (FFP) contract type is significant because it places the primary responsibility for cost control on the contractor, General Dynamics Ordnance and Tactical Systems, Inc. Under an FFP agreement, the contractor agrees to a total price for the specified goods, and this price is not subject to adjustment based on the contractor's cost experience. This provides the government with a high degree of cost certainty, as the total expenditure is known upfront, assuming the contractor meets all contract requirements. While beneficial for budget predictability, the effectiveness of cost control in a sole-source FFP contract hinges on the initial negotiation and the contractor's efficiency. The government bears the risk of any cost overruns incurred by the contractor.

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: $31,063,718

Exercised Options: $31,063,718

Current Obligation: $31,063,718

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W519TC25D0001

IDV Type: IDC

Timeline