DoD awards $43.1M for MK80 Bomb Body Series, with 85.8% of contract value potentially going to a single Texas firm

Contract Overview

Contract Amount: $43,134,066 ($43.1M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-02-13

End Date: 2013-06-30

Contract Duration: 503 days

Daily Burn Rate: $85.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MK80 BOMB BODY SERIES

Place of Performance

Location: GARLAND, DALLAS County, TEXAS, 75040

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $43.1 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: MK80 BOMB BODY SERIES Key points: 1. Contract awarded to General Dynamics Ordnance and Tactical Systems, Inc. for MK80 Bomb Body Series. 2. The contract has a duration of 503 days. 3. The contract was awarded under a firm fixed price type. 4. The primary place of performance is Texas. 5. The contract was awarded on February 13, 2012, and is set to expire on June 30, 2013. 6. The contract was awarded under full and open competition. 7. The contract value is $43,134,066.

Value Assessment

Rating: fair

The contract value of $43.1 million for MK80 Bomb Body Series appears to be within a reasonable range for this type of defense procurement, though specific benchmarking is difficult without detailed cost breakdowns. The firm fixed price structure suggests that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. However, the lack of detailed performance metrics or comparisons to similar contracts makes a definitive value-for-money assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but the designation suggests a competitive process was initiated. A competitive process is generally expected to yield better pricing and value for the government.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best possible value for its investment.

Public Impact

This contract directly supports the Department of Defense's munitions requirements, specifically for the MK80 Bomb Body Series. The primary beneficiary is the U.S. military, ensuring the availability of essential ordnance for operational needs. The place of performance is Texas, potentially creating or sustaining jobs within the state's defense manufacturing sector. The contract contributes to the readiness and effectiveness of air power capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for single-source reliance on General Dynamics for a significant portion of the contract value, which could limit future competition.
The fixed-price nature of the contract, while beneficial for cost control, could incentivize the contractor to minimize quality if not rigorously overseen.
The relatively short duration of the contract (503 days) might indicate a need for ongoing procurements, potentially leading to recurring costs.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed price contract structure shifts cost risk to the contractor.
The contract is for a critical defense component, ensuring military readiness.

Sector Analysis

The defense manufacturing sector, particularly in ordnance production, is a critical component of national security. The MK80 Bomb Body Series falls under the broader category of ammunition manufacturing. This contract represents a specific procurement within a larger defense spending ecosystem, where companies like General Dynamics play a significant role in supplying essential military hardware. Benchmarking against similar ordnance procurements would provide further context on pricing and efficiency.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, General Dynamics, may engage small businesses as subcontractors, but this information is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a Department of Defense contract, it is also subject to oversight by the Department of Defense Inspector General. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance monitoring details are not provided here.

Related Government Programs

MK80 Series Bombs
General Dynamics Ordnance and Tactical Systems Contracts
Department of the Army Ammunition Procurements
Defense Manufacturing Contracts
Firm Fixed Price Defense Contracts

Risk Flags

Potential for quality compromise due to fixed-price contract
Lack of detailed unit quantity for per-unit cost analysis
Limited information on number of bidders in competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.1 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. MK80 BOMB BODY SERIES

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 $43.1 million.

What is the period of performance?

Start: 2012-02-13. End: 2013-06-30.

What is the historical spending trend for MK80 Bomb Body Series procurements by the Department of Defense?

Analyzing historical spending for the MK80 Bomb Body Series requires access to comprehensive contract databases beyond this single award. However, the fact that this is a specific series suggests it has been a recurring procurement need for the Department of Defense over time. Factors influencing historical spending would include changes in military doctrine, operational tempo, geopolitical events, and advancements in munition technology. Without prior award data, it's difficult to establish a trend, but the $43.1 million awarded in 2012 indicates a significant investment in this particular ordnance component during that period. Future spending would likely depend on ongoing military requirements and the development of alternative or successor munitions.

How does the awarded price per unit for the MK80 Bomb Body compare to industry benchmarks or similar government contracts?

Determining the precise per-unit cost for the MK80 Bomb Body Series from the total contract value of $43,134,066 is not possible without knowing the exact quantity of bomb bodies procured under this contract. The data provided does not include the number of units. Therefore, a direct comparison to industry benchmarks or similar government contracts on a per-unit basis cannot be made. To perform such an analysis, the quantity of items would need to be known, and then that quantity would be divided into the total contract value. Subsequently, this calculated unit price would be compared against publicly available pricing data for similar ordnance items or against historical contract awards for the same or comparable bomb bodies.

What is the track record of General Dynamics Ordnance and Tactical Systems, Inc. in fulfilling similar defense manufacturing contracts?

General Dynamics Ordnance and Tactical Systems, Inc. (GD-OTS) has a well-established track record in defense manufacturing, including the production of ordnance and tactical systems. They are a significant supplier to the U.S. military and allied nations. Their portfolio often includes artillery shells, bombs, missile components, and other munitions. While this specific contract for the MK80 Bomb Body Series is one data point, GD-OTS's broader history suggests they possess the manufacturing capabilities and experience necessary for such procurements. Performance on past contracts, including delivery timeliness, quality adherence, and cost management, would be crucial for a comprehensive assessment of their reliability for this specific award.

What are the potential risks associated with the firm fixed price contract type for this specific ordnance procurement?

The primary risk associated with a firm fixed price (FFP) contract for ordnance procurement, like the MK80 Bomb Body Series, is the potential for the contractor to compromise quality to maintain profitability if cost pressures arise. While FFP shifts cost overrun risk to the contractor, it requires robust government oversight to ensure that the contractor does not cut corners on materials, manufacturing processes, or quality control to meet the fixed price. Another risk is that the initial price might be inflated if the contractor anticipates unforeseen difficulties or if competition was not sufficiently robust, leading the government to pay a premium. However, if the contractor manages costs effectively, FFP can provide cost certainty for the government.

How does the place of performance in Texas influence the overall cost and logistical considerations for this contract?

The place of performance being in Texas has several implications for this contract. Logistically, it means that the manufacturing and assembly of the MK80 Bomb Body Series occurred within Texas facilities. This could potentially reduce transportation costs for raw materials sourced domestically and for the final delivery of the bomb bodies to military depots or operational bases, especially if those bases are also located in or near Texas. From an economic perspective, it directs federal spending into the Texas economy, supporting local jobs and businesses within the defense industrial base. However, the specific cost impact is complex; while proximity can reduce some transport costs, labor costs, state regulations, and the availability of specialized facilities in Texas would also factor into the overall pricing.

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: W52P1J10R0146

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 1200 N GLENBROOK DR, GARLAND, TX, 05

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

Financial Breakdown

Contract Ceiling: $43,134,066

Exercised Options: $43,134,066

Current Obligation: $43,134,066

Contract Characteristics

Cost or Pricing Data: YES

Timeline