DoD's XM1128 Production Line Build Project Awarded $42.6M to General Dynamics OTS

Contract Overview

Contract Amount: $42,626,605 ($42.6M)

Contractor: General Dynamics OTS (wilkes Barre), LLC

Awarding Agency: Department of Defense

Start Date: 2022-04-21

End Date: 2025-06-17

Contract Duration: 1,153 days

Daily Burn Rate: $37.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: XM1128 PRODUCTION LINE BUILD PROJECT

Place of Performance

Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18702

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $42.6 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC for work described as: XM1128 PRODUCTION LINE BUILD PROJECT Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a potentially limited but justified bidding process. 2. The project focuses on establishing a production line, suggesting a long-term investment in defense manufacturing capabilities. 3. Fixed-price contract type aims to control costs, but potential for cost overruns exists if scope changes. 4. The duration of 1153 days points to a complex and lengthy build process. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. No small business set-aside was utilized, suggesting the scale or nature of the requirement may not have been suitable for such provisions.

Value Assessment

Rating: fair

Benchmarking the value of this specific production line build is challenging without comparable projects. The fixed-price nature provides some cost certainty, but the total contract value of $42.6 million for establishing a production line needs to be assessed against the expected output and lifespan of that line. The contract is a delivery order, which might indicate it's a component of a larger, potentially more competitively bid, IDIQ contract. Further analysis would require understanding the specific equipment and infrastructure being procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation suggests that while the competition was intended to be open, certain sources were excluded, possibly due to specific technical requirements, security clearances, or prior performance issues. The exact number of bidders is not provided, but the 'exclusion of sources' implies a narrower field than a standard full and open competition.

Taxpayer Impact: This procurement method, while potentially necessary for specialized defense needs, may limit price discovery and could result in higher costs for taxpayers compared to a broader competitive process. The exclusion of sources warrants scrutiny to ensure it was justified and did not unduly restrict competition.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the warfighter, through the establishment of domestic production capabilities for critical defense systems. The services delivered involve the construction and outfitting of a manufacturing production line. The geographic impact is concentrated in Wilkes-Barre, Pennsylvania, where General Dynamics OTS is located, potentially creating local jobs and economic activity. Workforce implications include the need for skilled labor in manufacturing, engineering, and project management at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources could lead to higher prices.
The fixed-price contract type may not fully account for unforeseen complexities in production line setup.
Reliance on a single contractor for this critical production line build could pose supply chain risks if not managed effectively.

Positive Signals

Awarding to an established defense contractor like General Dynamics OTS suggests a focus on reliability and expertise.
The fixed-price contract structure provides a degree of cost control for the government.
Establishing a domestic production line enhances national defense industrial base resilience.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on manufacturing and facilities support for defense equipment. The market for establishing specialized production lines is often concentrated among a few large defense contractors with the requisite expertise and security clearances. Spending in this area is driven by national security priorities and the need to maintain or modernize defense manufacturing capabilities. Comparable benchmarks would involve other large-scale manufacturing facility build-outs within the defense sector.

Small Business Impact

The contract data indicates that small business participation was not a primary consideration, as there is no indication of a small business set-aside (ss: false, sb: false). This suggests the requirement was likely too large or specialized for small businesses to fulfill independently. Subcontracting opportunities for small businesses may arise during the production phase, but this contract itself does not appear to be structured to directly benefit them.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a delivery order, it may be subject to oversight within the framework of the parent IDIQ contract. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Production Act Investments
Military Vehicle Manufacturing
Advanced Manufacturing Facilities
Department of Defense Production Contracts
Army Weapons Systems Production

Risk Flags

Limited competition justification
Potential for cost overruns
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.6 million to GENERAL DYNAMICS OTS (WILKES BARRE), LLC. XM1128 PRODUCTION LINE BUILD PROJECT

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS OTS (WILKES BARRE), LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $42.6 million.

What is the period of performance?

Start: 2022-04-21. End: 2025-06-17.

What is the specific defense system or component that the XM1128 production line is intended to support?

The provided data does not specify the exact defense system or component associated with the 'XM1128 PRODUCTION LINE BUILD PROJECT.' The designation 'XM1128' likely refers to a specific military program or prototype. To understand the full context and importance of this production line, further investigation into the 'XM1128' designation within Department of Defense procurement records or defense industry publications would be necessary. This would clarify the strategic value and intended output of the established manufacturing capability.

How does the $42.6 million cost compare to similar production line build projects within the defense sector?

Directly comparing the $42.6 million cost for the XM1128 production line build project to similar projects is challenging without access to proprietary data or a comprehensive database of defense manufacturing facility costs. However, establishing specialized production lines for defense systems can be a significant capital investment, often running into tens of millions of dollars, depending on the complexity of the equipment, automation levels, and facility requirements. Factors such as the specific technology involved, the scale of anticipated production, and the required security protocols heavily influence the overall cost. This figure appears within a plausible range for such endeavors in the defense industry, but a definitive value-for-money assessment would require detailed cost breakdowns and comparisons with analogous projects.

What are the key risks associated with establishing a new production line for defense articles?

Key risks associated with establishing a new production line for defense articles include technological obsolescence, where the production line may become outdated before it is fully utilized; supply chain disruptions, particularly for specialized components or raw materials; cost overruns due to unforeseen engineering challenges or material price increases; schedule delays impacting delivery timelines for critical defense systems; and potential quality control issues during the initial ramp-up phase. Furthermore, shifts in defense priorities or budget constraints could impact the long-term viability and utilization of the production line. Effective risk mitigation strategies, including robust project management, contingency planning, and strong supplier relationships, are crucial.

What is the track record of General Dynamics OTS (Wilkes-Barre), LLC in delivering similar production line projects?

General Dynamics Ordnance and Tactical Systems (OTS) has a significant track record in manufacturing and producing a wide range of defense products, including munitions, propulsion systems, and vehicle components. While specific details on their experience building entire 'production lines' for new systems are not detailed in the provided data, their history suggests a strong capability in complex manufacturing operations. They are a well-established entity within the defense industrial base, accustomed to meeting stringent government requirements for quality, schedule, and performance. Their experience likely encompasses the integration of machinery, process development, and quality assurance necessary for such a project.

What is the expected operational lifespan and output capacity of the XM1128 production line once established?

The provided contract data does not specify the expected operational lifespan or the output capacity of the XM1128 production line. This information is critical for a comprehensive assessment of the project's long-term value and return on investment. Understanding these parameters would allow for a more accurate projection of the line's contribution to meeting defense needs and its economic justification. Further details would likely be found in the program's strategic planning documents or technical specifications, which are not publicly available in this dataset.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 1500 HIGHWAY 315 BLVD, WILKES BARRE, PA, 18702

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,080,524

Exercised Options: $43,080,524

Current Obligation: $42,626,605

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J19D0075

IDV Type: IDC

Timeline