Army awards $218.6M contract for ammunition to General Dynamics, highlighting manufacturing capabilities

Contract Overview

Contract Amount: $21,865,834 ($21.9M)

Contractor: General Dynamics Ordnance & Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-06-28

End Date: 2009-06-30

Contract Duration: 1,463 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200509!001320!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05C0046 !A!N! !N! ! !20050628!20060228!006317473!194860813!001381284!N!GENERAL DYNAMICS, ORDNANCE AND!8820 ROUTE 148 !MARION !IL!62959!46916!199!17!MARION !WILLIAMSON !ILLINOIS !+000000005782!Y!N!000000000000!1305!AMMUNITION, THROUGH 30 MM !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!J!2!002!N!3A!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001! !

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC. for work described as: 200509!001320!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05C0046 !A!N! !N! ! !20050628!20060228!006317473!194860813!001381284!N!GENERAL DYNAMICS, ORDNANCE AND!8820 ROUTE 148 !MARION !IL!62959!46916!199!17!MARION !WILL… Key points: 1. The contract is for ammunition, excluding small arms, valued at over $218 million. 2. General Dynamics Ordnance & Tactical Systems, Inc. is the sole awardee, indicating a specialized supplier. 3. The contract duration is over 3 years, suggesting a sustained need for these munitions. 4. The procurement method was 'Full and Open Competition After Exclusion of Sources', which warrants further scrutiny regarding its impact on price discovery.

Value Assessment

Rating: fair

The contract value of $218.6 million for ammunition manufacturing appears substantial. Benchmarking against similar large-scale ammunition production contracts would be necessary to definitively assess its pricing fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. While this implies some level of competition, the exclusion of specific sources may limit the breadth of competition and potentially impact price discovery.

Taxpayer Impact: The significant contract value suggests a considerable taxpayer investment. Ensuring competitive pricing through robust oversight is crucial for maximizing the value of this expenditure.

Public Impact

Ensures the U.S. Army maintains a supply of critical ammunition for its operations. Supports jobs and economic activity within the defense manufacturing sector, specifically in Illinois. Represents a significant investment in national defense readiness and military capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Procurement method warrants deeper investigation into competitive landscape.
Lack of specific unit cost data hinders granular value assessment.

Positive Signals

Awardee is a known entity in defense manufacturing.
Contract duration indicates a stable demand.
Supports a critical defense need.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on ammunition production. Spending in this area is critical for national security, and contract values can vary widely based on quantity, type, and technological sophistication of the munitions.

Small Business Impact

The awardee, General Dynamics Ordnance & Tactical Systems, Inc., is a large corporation. There is no immediate indication of small business participation in this specific contract, which is common for large-scale manufacturing awards.

Oversight & Accountability

The 'Full and Open Competition After Exclusion of Sources' method suggests a specific justification was made for excluding certain potential bidders. Oversight should focus on the rationale for exclusion and its impact on overall cost-effectiveness.

Related Government Programs

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

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed cost breakdown for value assessment.
Long contract duration may not reflect evolving needs.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC.. 200509!001320!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05C0046 !A!N! !N! ! !20050628!20060228!006317473!194860813!001381284!N!GENERAL DYNAMICS, ORDNANCE AND!8820 ROUTE 148 !MARION !IL!62959!46916!199!17!MARION !WILLIAMSON !ILLINOIS !+000000005782!Y!N!000000000000!1305!AMMUNITION, THROUGH 30 MM !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !202

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 $21.9 million.

What is the period of performance?

Start: 2005-06-28. End: 2009-06-30.

What was the specific justification for excluding sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did it impact the final price?

The justification for excluding sources under this procurement method typically relates to factors such as specialized capabilities, existing production lines, or specific technical requirements that only certain contractors can meet. Understanding this rationale is key to assessing whether the competition, though limited, was appropriate for the nature of the requirement. The impact on price is difficult to ascertain without comparative bids, but exclusions can sometimes lead to higher prices if the remaining pool of competitors is small.

How does the $218.6 million contract value compare to historical spending on similar ammunition types and quantities?

A direct comparison requires access to historical contract data for similar ammunition (e.g., 20-30mm rounds) from the Department of Defense. Factors like inflation, technological upgrades, and changes in demand significantly influence year-over-year spending. Without this comparative data, it's challenging to definitively state if this contract represents a cost-effective procurement or an outlier.

What are the key performance metrics and quality assurance measures in place to ensure the effectiveness and reliability of the awarded ammunition?

Effective ammunition contracts typically include stringent performance specifications, testing protocols, and quality assurance procedures. These ensure the munitions meet required standards for accuracy, range, lethality, and shelf-life. The contract likely details acceptance criteria and potential penalties for non-compliance, safeguarding the military's operational readiness and taxpayer investment.

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: ONLY ONE SOURCE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 8820 ROUTE 148, MARION, IL, 12

Business Categories: Category Business, Not Designated a Small Business

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