DoD awards $21M for cluster munition demilitarization, with General Dynamics securing the contract

Contract Overview

Contract Amount: $21,066,320 ($21.1M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-03-20

End Date: 2026-06-30

Contract Duration: 467 days

Daily Burn Rate: $45.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DEMIL OF CLIN 8 CLUSTER MUNITIONS

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33716

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: DEMIL OF CLIN 8 CLUSTER MUNITIONS Key points: 1. Contract value of $21.1 million for demilitarization services. 2. Services are for cluster munition demilitarization, a critical safety and environmental task. 3. Contract awarded to General Dynamics Ordnance and Tactical Systems, Inc. 4. Performance period spans from March 2025 to June 2026. 5. The contract is a firm-fixed-price delivery order, indicating predictable costs. 6. This award falls under the Ammunition (except Small Arms) Manufacturing industry.

Value Assessment

Rating: good

The contract value of $21.1 million appears reasonable for the specialized demilitarization of cluster munitions. While direct comparisons are difficult due to the niche nature of this service, the firm-fixed-price structure suggests cost control. Benchmarking against similar environmental remediation or hazardous material disposal contracts would provide further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bids suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the number of proposals received would offer a clearer picture of the competition's intensity.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government receives the best value. This process increases the likelihood that the awarded price reflects market rates.

Public Impact

The Department of the Army benefits from the safe and compliant demilitarization of hazardous cluster munitions. This service contributes to environmental safety and reduces potential risks associated with unexploded ordnance. The contract supports specialized workforce skills in hazardous material handling and disposal. The primary geographic impact is likely within Florida, where the contractor is located, and potentially at demilitarization facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during demilitarization.
Dependence on a single contractor for a critical safety function.
Ensuring compliance with evolving environmental regulations during disposal.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded through full and open competition, suggesting competitive pricing.
Contract duration allows for structured and planned execution of services.

Sector Analysis

This contract falls within the defense industrial base, specifically related to ordnance and munitions. The market for demilitarization services is specialized, driven by government requirements for the safe disposal of aging or excess munitions. General Dynamics Ordnance and Tactical Systems is a significant player in this sector, providing a range of defense manufacturing and support services. Spending in this niche area is often project-specific and tied to military readiness and safety protocols.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award is likely minimal, though General Dynamics may engage small businesses in its broader supply chain.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms. As a firm-fixed-price delivery order, performance and cost are monitored against the agreed-upon terms. Transparency is maintained through contract databases like FPDS. The Inspector General's office within the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Ordnance Demilitarization Programs
Hazardous Material Disposal Services
Munitions Management
Environmental Remediation Contracts

Risk Flags

Potential environmental hazards
Safety risks associated with ordnance
Regulatory compliance challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. DEMIL OF CLIN 8 CLUSTER MUNITIONS

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 $21.1 million.

What is the period of performance?

Start: 2025-03-20. End: 2026-06-30.

What is the historical spending by the Department of Defense on cluster munition demilitarization?

Historical spending data for cluster munition demilitarization specifically is not readily available in aggregated public databases. However, the Department of Defense has been engaged in ongoing efforts to demilitarize and dispose of cluster munitions in compliance with international agreements and safety standards. This often involves significant investment in specialized facilities, technology, and personnel. Spending can fluctuate based on the volume of munitions requiring disposal, the complexity of the munition types, and the availability of demilitarization capabilities. Past awards for similar services, though not always for cluster munitions, can provide a benchmark, but a comprehensive historical trend for this precise category requires deeper analysis of specific program budgets and disposal initiatives.

How does the awarded price compare to similar demilitarization contracts?

Directly comparing the $21.1 million award for cluster munition demilitarization to 'similar' contracts is challenging due to the specialized and often unique nature of munitions disposal. Contracts for hazardous waste disposal or general environmental remediation can serve as a very broad benchmark, but they do not capture the specific risks, technologies, and regulatory compliance required for ordnance. General Dynamics Ordnance and Tactical Systems, Inc. is a known entity in this space, suggesting their pricing is informed by industry expertise. A more precise comparison would require access to data on previous cluster munition demilitarization contracts, including the quantity and type of munitions, the scope of work, and the specific disposal methods employed.

What are the primary risks associated with this contract for General Dynamics?

The primary risks for General Dynamics Ordnance and Tactical Systems, Inc. in this contract revolve around the inherent dangers of handling and demilitarizing explosive ordnance. Unforeseen complexities in the munitions, such as degradation or unstable components, could lead to safety incidents or require additional resources and time, potentially impacting profitability under a firm-fixed-price contract. Environmental compliance is another significant risk; failure to adhere to stringent regulations could result in fines or reputational damage. Furthermore, the specialized nature of the work means that any disruption to the supply chain for necessary components or disposal agents could cause delays. Finally, ensuring the safety and training of personnel involved in these high-risk operations is a continuous challenge.

What is the track record of General Dynamics Ordnance and Tactical Systems, Inc. in handling hazardous materials?

General Dynamics Ordnance and Tactical Systems, Inc. (GD-OTS) has a well-established track record in the defense industry, including extensive experience with ordnance manufacturing, maintenance, and demilitarization. They are known for producing and servicing a wide range of munitions and weapon systems. Their capabilities often include the safe handling, processing, and disposal of hazardous materials associated with these systems. While specific details of past demilitarization projects are often sensitive, GD-OTS's long-standing presence and numerous contracts with the Department of Defense suggest a robust understanding of safety protocols and regulatory requirements for handling explosive and hazardous materials. Their performance on previous contracts would be a key factor in the DoD's decision-making process for awarding this current task.

How does the duration of the contract (467 days) impact the project's effectiveness?

The contract duration of approximately 467 days (roughly 15.5 months) for the demilitarization of cluster munitions is a critical factor influencing project effectiveness. This timeframe suggests a planned, methodical approach to the complex and potentially hazardous task. It allows sufficient time for mobilization, detailed planning, execution of demilitarization processes, waste disposal, and final reporting, all while adhering to strict safety and environmental standards. A shorter duration might indicate rushed operations, increasing risk, while an excessively long period could suggest inefficiencies or a less urgent need. This duration appears to strike a balance, providing adequate time for safe and compliant execution without unnecessary delays, thereby contributing to the overall effectiveness and successful completion of the demilitarization mission.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 11399 16TH CT N STE 200, SAINT PETERSBURG, FL, 33716

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: $21,066,320

Exercised Options: $21,066,320

Current Obligation: $21,066,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J21D0024

IDV Type: IDC

Timeline