By Kevin Jackson, AMCFebruary 17, 2015
McALESTER, Okla. -- A large contract recently signed with a defense contractor for the production of general purpose bombs may push McAlester Army Ammunition Plant's annual public-private partnership (P3) revenue higher for the third consecutive year.
Last fiscal year (FY), MCAAP earned $19.5 million in P3 revenue from its 36 active public-private partnerships, the most in the past six years. The newly-signed $12.5 million contract modification with General Dynamics Ordnance and Tactical Systems (GD-OTS) will likely help the plant exceed its public-private partnership revenue goal of $14 million for fiscal year 2015.
The modification calls for MCAAP to load, assemble and pack (LAP) 4,327 MK84 2,000-pound general purpose bombs and produce 1,500 MK79 pallets to transport them, said Brian Foris, chief of MCAAP's Business Development and Community Outreach Office.
Work is expected to begin in early May and finish about three months later.
"The outlook for FY15 is good because we've secured contracts late in the last fiscal year and early this fiscal year with General Dynamics, Textron and Raytheon," Foris said.
Last year P3 revenue increased $6.3 million from FY13, making FY14 MCAAP's best in the past six years, Foris said.
Contract modifications with GD-OTS for the LAP of various general purpose bombs in support of foreign military sales yielded $9.5 million, nearly half of the revenue for FY14.
MCAAP has been loading, assembling and packing MK80 general purpose bombs and BLU-109 penetrator bombs for GD-OTS' U.S. government and international sales under the current contract since 2005. Each new order entails modifying the existing contract for a specific type and quantity of bombs. GD-OTS provides the components and MCAAP completes the work.
"They provide us the bomb bodies and internal components, and our workforce completes the LAP for live or inert bombs," Foris said.
"MCAAP continues to be a consistently responsive General Dynamics partner in supporting technical inquiries, as well as efforts to improve quality and delivery of our products," said David Dunavin, director and general manager, General Dynamics Ordnance and Tactical Systems, Inc. in Garland, Texas.
"General Dynamics Ordnance and Tactical Systems appreciates the on-going efforts by MCAAP personnel and looks forward to continuing our successful relationship in the future," he said.
Contracts with Textron Defense Systems and Raytheon Company last year brought in another $5.4 and $3.3 million in revenue, respectively.
MCAAP produces the CBU-105 Sensor Fuzed Weapon for Textron Defense Systems. It has contracts with Raytheon Company for the AGM-154 Joint Stand-Off Weapon, Excalibur, AGM-65 Maverick and Precision Extended Range Munition.
Even with the tightening of the Department of Defense budget, Foris is optimistic about MCAAP's revenue outlook.
"I don't know that revenue can keep pace with last year, but we will continue to remain a viable, effective and efficient resource for the Army and the Joint Warfighter," he said.
MCAAP has actively engaged in public-private partnerships since 1994 when it teamed with Raytheon Company to integrate the All Up Round (AUR) to the AGM-88 High-Speed Anti-Radiation Missile (HARM).
McAlester Army Ammunition Plant is the Department of Defense's premier bomb- and warhead-loading facility. It is one of 14 installations under the Joint Munitions Command and one of 23 organic industrial bases under the U.S. Army Materiel Command, which include arsenals, depots, activities and ammunition plants. MCAAP is vital to ammunition stockpile management and delivery to the Joint Warfighter for training and combat operations.