DoD awards $105M to General Dynamics for M2 Machine Guns, awarded via sole-source contract
Contract Overview
Contract Amount: $105,192,152 ($105.2M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-07-13
End Date: 2010-07-30
Contract Duration: 1,113 days
Daily Burn Rate: $94.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: M2 MACHINE GUN
Place of Performance
Location: SACO, YORK County, MAINE, 04072
State: Maine Government Spending
Plain-Language Summary
Department of Defense obligated $105.2 million to GENERAL DYNAMICS-OTS, INC. for work described as: M2 MACHINE GUN Key points: 1. High contract value of $105M for a single weapon system. 2. Sole-source award to General Dynamics-OTS, Inc. limits competitive pricing. 3. Risk of inflated costs due to lack of competition. 4. Spending falls within the Defense sector, specifically small arms manufacturing.
Value Assessment
Rating: questionable
The contract value of $105M for M2 Machine Guns is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar ordnance contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to General Dynamics-OTS, Inc. This lack of competition likely resulted in higher prices and reduced opportunities for price discovery.
Taxpayer Impact: Taxpayer funds may have been spent inefficiently due to the absence of competitive pressure on pricing.
Public Impact
Procurement of essential military hardware for the Department of the Army. Potential for extended delivery timelines impacting readiness. Significant financial outlay by the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Essential defense equipment
- Established manufacturer
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of small arms and ordnance. Spending benchmarks for similar weapon systems are difficult to ascertain without competitive data.
Small Business Impact
The contract was awarded to General Dynamics-OTS, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
Oversight of sole-source contracts is crucial to ensure fair pricing and prevent waste. The Department of Defense's contracting process should include justifications for non-competitive awards.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency in pricing
- No small business participation noted
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, me, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $105.2 million to GENERAL DYNAMICS-OTS, INC.. M2 MACHINE GUN
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS-OTS, 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 $105.2 million.
What is the period of performance?
Start: 2007-07-13. End: 2010-07-30.
What is the justification for the sole-source award of this significant contract?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of viable alternatives. Without specific documentation, it's impossible to confirm the exact reason for awarding this contract to General Dynamics-OTS, Inc. without competition.
How does the unit cost of the M2 Machine Gun compare to historical or industry benchmarks?
Without access to specific unit cost data and comparable market information, it is challenging to establish a precise benchmark. Sole-source contracts often obscure direct cost comparisons, making it difficult to determine if the price paid was optimal.
What is the long-term strategic value of this procurement for the Army?
The M2 Machine Gun is a critical component of infantry and vehicle firepower. Ensuring a reliable supply chain for this weapon system is strategically important for maintaining combat readiness and operational effectiveness across various Army units.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W52H0907R0245
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 128 LAKESIDE AVE, BURLINGTON, VT, 00
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $105,192,152
Exercised Options: $105,192,152
Current Obligation: $105,192,152
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-07-13
Current End Date: 2010-07-30
Potential End Date: 2010-07-30 00:00:00
Last Modified: 2014-03-09
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