DoD awards $156.5M contract for Ammunition Manufacturing to Day & Zimmermann, Inc

Contract Overview

Contract Amount: $15,653,148 ($15.7M)

Contractor: DAY & Zimmermann, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-09-27

End Date: 2008-09-30

Contract Duration: 734 days

Daily Burn Rate: $21.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: TEXARKANA, BOWIE County, TEXAS, 75505

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to DAY & ZIMMERMANN, INC. for work described as: Key points: 1. Contract awarded to a single, established vendor. 2. Focus on ammunition manufacturing suggests a critical defense need. 3. Long contract duration (734 days) implies significant project scope. 4. No small business participation noted.

Value Assessment

Rating: fair

The award value of $156.5 million for ammunition manufacturing is substantial. Without specific unit cost data or comparison points for similar ammunition contracts, assessing its value relative to market rates is difficult. The fixed-price nature aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process. The rationale for sole-sourcing is not provided.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the ammunition. Without transparency on the justification for sole-sourcing, the full impact on taxpayer funds is unclear.

Public Impact

Ensures supply of essential ammunition for military operations. Potential for increased costs due to lack of competition. Supports a large defense contractor's operations. Limited visibility into the specific types and quantities of ammunition procured.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
No small business participation
Limited transparency on sole-source justification

Positive Signals

Ensures critical supply chain for defense
Firm fixed-price contract controls cost uncertainty

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on ammunition production. Spending in this area is critical for national security. Benchmarks are difficult without specific ammunition type and quantity data.

Small Business Impact

The contract explicitly states no small business participation (sb: false). This indicates that the prime contractor, Day & Zimmermann, Inc., will likely handle the entire scope of work without subcontracting to smaller businesses.

Oversight & Accountability

The 'AW' (Awarding Agency) is listed as 'DO' (Department of Defense), and the 'SA' (Servicing Agency) is the Department of the Army. Oversight would typically fall under the Army's contracting command, but specific oversight mechanisms are not detailed.

Related Government Programs

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

Risk Flags

Sole-source award limits price competition.
No small business participation.
Lack of detailed cost breakdown.
Potential for inflated pricing.
Limited transparency on contract justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to DAY & ZIMMERMANN, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is DAY & ZIMMERMANN, 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 $15.7 million.

What is the period of performance?

Start: 2006-09-27. End: 2008-09-30.

What was the justification for awarding this contract on a sole-source basis rather than through full and open competition?

The provided data does not specify the justification for the sole-source award. Typically, sole-sourcing is employed when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this information, it's impossible to assess if competition was genuinely not feasible or if it represents a missed opportunity for cost savings.

How does the unit cost of this ammunition compare to industry benchmarks or previous contracts for similar items?

The data lacks specific unit cost information for the ammunition procured under this contract. The total award value is $156.5 million over 734 days. To assess value, detailed breakdowns of ammunition types, quantities, and their associated unit prices would be necessary for comparison against historical data or market surveys.

What is the potential impact on readiness and future procurement costs if this sole-source arrangement continues?

A continued sole-source arrangement could lead to sustained higher costs for taxpayers due to the absence of competitive pressure. It might also limit the government's ability to leverage innovation from a broader market. However, if Day & Zimmermann possesses unique capabilities essential for specific ammunition types, it could ensure consistent supply critical for readiness.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DAY & Zimmermann Group Inc., the (UEI: 007913486)

Address: HIGHWAY 82 W, TEXARKANA, TX, 01

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J04G0008

IDV Type: IDC

Timeline