Army awards $22.2M for 30mm MK317 TPDS-T cartridges to General Dynamics

Contract Overview

Contract Amount: $22,231,331 ($22.2M)

Contractor: General Dynamics Ordnance & Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-05-30

End Date: 2026-08-31

Contract Duration: 2,650 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS DO IS FOR THE PROCUREMENT OF 30MM MK317 TPDS-T (ARMY) CARTRIDGES (AMMUNITION). NSN: 1305-01-664-0425.

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC. for work described as: THIS DO IS FOR THE PROCUREMENT OF 30MM MK317 TPDS-T (ARMY) CARTRIDGES (AMMUNITION). NSN: 1305-01-664-0425. Key points: 1. Procurement of 30mm MK317 TPDS-T cartridges for the Army. 2. Contract awarded to General Dynamics Ordnance & Tactical Systems, Inc. 3. Full and open competition after exclusion of sources was used. 4. Contract duration spans from May 2019 to August 2026. 5. Firm Fixed Price contract type.

Value Assessment

Rating: good

The contract value of $22.2 million for 30mm ammunition appears reasonable given the duration and quantity. Benchmarking against similar ammunition procurements would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a specific reason for limiting the initial pool of bidders. This method may impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential military ammunition, with the price determined through a competitive process, albeit one with initial source exclusions.

Public Impact

Ensures the Army has a supply of critical 30mm training ammunition. Supports a key defense contractor, General Dynamics. Procurement process aims for competitive pricing within specified parameters. Long-term contract provides supply chain stability for the duration.

Waste & Efficiency Indicators

Waste Risk Score: 83 / 10

Warning Flags

Limited competition method requires careful justification.
Long contract duration could be subject to price fluctuations.
Dependence on a single supplier for this specific munition.

Positive Signals

Addresses a specific military requirement.
Firm Fixed Price contract provides cost certainty.
Long-term delivery schedule ensures sustained supply.

Sector Analysis

This procurement falls within the defense sector, specifically ammunition manufacturing. Spending benchmarks for similar military hardware and munitions are typically high, driven by R&D, specialized manufacturing, and strategic importance.

Small Business Impact

The contract was awarded to General Dynamics Ordnance & Tactical Systems, Inc., a large business. There is no indication of small business participation in this specific award, which is common for large-scale defense manufacturing contracts.

Oversight & Accountability

The Department of the Army is the contracting agency. Oversight would involve monitoring contract performance, delivery schedules, and adherence to the firm fixed price. The 'exclusion of sources' clause warrants specific scrutiny.

Related Government Programs

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

Risk Flags

Limited competition raises concerns about potential price overruns.
Long contract duration increases exposure to market volatility.
Dependence on a single supplier for critical ammunition.
Lack of explicit small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC.. THIS DO IS FOR THE PROCUREMENT OF 30MM MK317 TPDS-T (ARMY) CARTRIDGES (AMMUNITION). NSN: 1305-01-664-0425.

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 $22.2 million.

What is the period of performance?

Start: 2019-05-30. End: 2026-08-31.

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

The justification for excluding other sources typically relates to factors such as unique technical capabilities, existing production lines, proprietary technology, or urgent need that only a specific contractor can meet. Detailed documentation would be required by the agency to support this decision, ensuring it aligns with federal acquisition regulations and promotes best value for the government.

How does the per-unit cost of these 30mm cartridges compare to similar training ammunition procured by other military branches or allied nations?

A comprehensive comparison would require access to detailed cost data for comparable munitions, including factors like material costs, manufacturing complexity, and quantity discounts. Without specific benchmark data, it's difficult to definitively assess if the per-unit cost is optimal. However, the firm fixed price and competitive award suggest an effort to control costs within the defined scope.

What are the long-term strategic implications of relying on General Dynamics for this specific type of ammunition?

Reliance on a single supplier for critical munitions can pose strategic risks, including supply chain vulnerabilities and potential price increases over time. However, it can also ensure specialized manufacturing expertise and production capacity. The Army likely assessed these risks and benefits, potentially implementing mitigation strategies like maintaining strategic reserves or exploring alternative sources for future procurements.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $22,231,331

Exercised Options: $22,231,331

Current Obligation: $22,231,331

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $5,175,423

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18D0093

IDV Type: IDC

Timeline