Huntsville-based Dynetics has been awarded a USD470 million indefinite delivery, indefinite quantity (IDIQ) contract to ramp up production levels of its GBU-69/B Small Glide Munition (SGM) for the US Special Operations Command (USSOCOM).
The award follows an USSOCOM pre-solicitation notice, issued on 9 March this year, which provided for the anticipated award of a sole source contract to Dynetics in July covering no more than five ordering periods between calendar year (CY) 2018 and CY2022. The command is expected to procure approximately 700 additional SGMs per calendar year during the first two periods (covering CY18 and CY19), approximately 900 additional SGMs in CY 20 (due to ceiling limitations on the US Air Force Life Cycle Management Center (AFLCMC) IDIQ contract), and then approximately 1000 SGMs per CY for the final two periods (covering CY21 and CY22).
In June 2017 the AFLCMC Rapid Acquisition Cell awarded Dynetics a USD10.9 million sole source contract for the supply of 70 GBU-69B SGM all-up rounds (AURs) over a 13-month period, with an option for up to 30 more munitions. Work on this contract is expected to be finalised in June 2018. Later, in August 2017 the AFLMC Rapid Acquisition Cell, in support of USSOCOM, awarded an IDIQ contract to Dynetics enabling the AFLCMC to order approximately 900 SGM AURs through to the end of CY 20. However, following the award of the IDIQ contract, the US Secretary of Defense (SecDef) directed the Department of Defense (DoD) ‘to maximise munitions production, which is not within the scope of the AFLCMC IDIQ contract’. Therefore, USSOCOM has a requirement for a delta (difference or change in quantity) IDIQ contract to procure the additional SGMs necessary to maximise munitions production in accordance with the SecDef’s directive.
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