DoD Spends $12.6M on 20mm APDS Linked Cartridges from General Dynamics

Contract Overview

Contract Amount: $12,566,355 ($12.6M)

Contractor: General Dynamics Ordnance & Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-06-17

End Date: 2026-12-31

Contract Duration: 562 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Defense

Official Description: 20-MILLIMETER (MM) MK244-0 ARMOR PIERCING DISCARDING SABOT (APDS) LINKED CARTRIDGES, DEPARTMENT OF DEFENSE IDENTIFICATION CODE (DODIC): AA61, NATIONAL STOCK NUMBER (NSN): 1305-01-484-9674

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC. for work described as: 20-MILLIMETER (MM) MK244-0 ARMOR PIERCING DISCARDING SABOT (APDS) LINKED CARTRIDGES, DEPARTMENT OF DEFENSE IDENTIFICATION CODE (DODIC): AA61, NATIONAL STOCK NUMBER (NSN): 1305-01-484-9674 Key points: 1. High-value contract for specialized ammunition, indicating critical defense needs. 2. General Dynamics is a key player in defense manufacturing, facing potential competition from other large firms. 3. Risk of supply chain disruption or price volatility for essential munitions. 4. Spending falls within the Ammunition Manufacturing sector, with significant government procurement.

Value Assessment

Rating: good

The fixed-price with economic price adjustment contract type allows for some cost flexibility. Benchmarking against similar ammunition contracts is difficult without more granular data, but the total award appears reasonable for the quantity and type of specialized ordnance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a limited number of qualified bidders. This method may impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayers are funding critical defense materiel. The limited competition structure warrants scrutiny to ensure the best possible price was achieved.

Public Impact

Ensures readiness for Army aviation and ground platforms requiring advanced anti-armor capabilities. Supports ongoing military operations and training exercises. Contributes to the defense industrial base and associated jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher prices.
Economic price adjustment introduces potential for cost overruns.
Dependence on a single supplier for critical munitions.

Positive Signals

Award to established defense contractor with proven capabilities.
Contract ensures supply of essential ammunition through 2026.
Fixed-price elements provide some cost certainty.

Sector Analysis

This contract falls under the Ammunition (except Small Arms) Manufacturing sector. Defense spending on specialized munitions like APDS is crucial for maintaining military superiority and readiness, with benchmarks often driven by technological advancement and geopolitical factors.

Small Business Impact

The awardee, General Dynamics Ordnance & Tactical Systems, Inc., is a large business. There is no indication of small business participation in this specific contract, which is common for highly specialized defense manufacturing.

Oversight & Accountability

The Department of the Army is the procuring agency. Oversight will focus on contract performance, delivery schedules, and adherence to the economic price adjustment clauses to manage taxpayer costs effectively.

Related Government Programs

Ammunition (except Small Arms) Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for price increases due to EPA.
Limited competition may reduce cost-saving opportunities.
Supply chain vulnerability for specialized components.
Long-term sustainment and obsolescence risk for ammunition technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC.. 20-MILLIMETER (MM) MK244-0 ARMOR PIERCING DISCARDING SABOT (APDS) LINKED CARTRIDGES, DEPARTMENT OF DEFENSE IDENTIFICATION CODE (DODIC): AA61, NATIONAL STOCK NUMBER (NSN): 1305-01-484-9674

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS ORDNANCE & 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 $12.6 million.

What is the period of performance?

Start: 2025-06-17. End: 2026-12-31.

What is the specific justification for excluding other sources in this 'Full and Open Competition After Exclusion of Sources' award?

The exclusion of sources typically occurs when only one or a limited number of responsible sources can fulfill the requirement due to factors like specialized technology, unique capabilities, or urgent needs. For advanced munitions like APDS, specific manufacturing processes or existing contracts might necessitate this approach, though it requires strong justification to ensure fair opportunity.

How will the economic price adjustment (EPA) be monitored to mitigate potential cost increases?

The EPA mechanism will likely be tied to specific indices for raw materials (like metals and propellants) and labor costs. The contracting officer and relevant oversight bodies will monitor these indices closely, ensuring that any price adjustments are justified according to the contract's terms and do not exceed reasonable market fluctuations or inflation rates.

What is the projected unit cost compared to historical data or similar international procurements?

Without access to historical data for this specific NSN or comparable international contracts for 20mm APDS, a precise unit cost benchmark is unavailable. However, the total award of $12.6 million for an unspecified quantity suggests a significant per-unit cost, reflecting the advanced technology and specialized manufacturing involved in producing armor-piercing ammunition.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 6658 ROUTE 148, MARION, IL, 62959

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: $12,566,355

Exercised Options: $12,566,355

Current Obligation: $12,566,355

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $290,957

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W519TC24D0009

IDV Type: IDC

Timeline