DoD awards $99M for 30MM PGU-15A/B ammunition to General Dynamics

Contract Overview

Contract Amount: $99,041,624 ($99.0M)

Contractor: General Dynamics Ordnance & Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-07-31

End Date: 2012-12-31

Contract Duration: 1,980 days

Daily Burn Rate: $50.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 30MM PGU-15A/B

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959, UNITED STATES OF AMERICA

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $99.0 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC. for work described as: 30MM PGU-15A/B Key points: 1. Contract awarded to a single, large business entity. 2. Full and open competition was utilized. 3. The contract is for ammunition manufacturing. 4. Spending occurred over a 5-year period.

Value Assessment

Rating: fair

The contract value of $99M over 5 years suggests a significant investment. Without specific unit pricing or comparison data, assessing value for money is difficult. The firm fixed price contract aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: Taxpayer funds were used for defense procurement. The competitive nature of the award suggests efforts were made to secure a reasonable price.

Public Impact

Supports military readiness and defense capabilities. Procurement of essential ammunition for training and operations. Economic impact through contract with a major defense supplier.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics.
Potential for cost overruns in long-term fixed-price contracts.
Dependence on a single supplier for critical ammunition.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract type.
Supports critical defense needs.

Sector Analysis

This contract falls within the defense sector, specifically ammunition manufacturing. Spending benchmarks for this type of procurement can vary widely based on quantity, specifications, and market conditions.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. The prime contractor is a large business.

Oversight & Accountability

Oversight would typically involve contract performance monitoring by the Department of the Army to ensure delivery and quality standards are met. Accountability rests with the contractor for fulfilling terms and the agency for managing the contract.

Related Government Programs

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

Risk Flags

Lack of detailed cost breakdown.
Limited information on specific performance metrics.
Potential for long-term price escalation if not managed.
Dependence on a single supplier for critical defense item.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $99.0 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC.. 30MM PGU-15A/B

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 $99.0 million.

What is the period of performance?

Start: 2007-07-31. End: 2012-12-31.

What was the average annual spending on this contract?

The total contract value was $99,041,624.48 over a period of 1980 days (approximately 5.4 years). This averages to roughly $18.34 million per year. This figure represents the total obligated amount across the contract's duration.

What are the primary risks associated with this type of ammunition procurement?

Key risks include potential supply chain disruptions for raw materials, obsolescence of technology over the contract's lifespan, and the possibility of cost increases if market prices for components rise significantly, despite the fixed-price nature. Ensuring consistent quality and performance is also critical.

How does the firm fixed price contract type impact cost effectiveness?

A firm fixed price contract is designed to provide cost certainty for the government, shifting most of the risk to the contractor. This can be cost-effective if the contractor accurately estimates costs and manages them efficiently. However, it may lead to higher initial prices to account for contractor risk.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W52P1J07R0056

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 6658 ROUTE 148, MARION, IL, 62959

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $99,041,624

Exercised Options: $99,041,624

Current Obligation: $99,041,624

Contract Characteristics

Cost or Pricing Data: NO

Timeline