DoD's $111.6M Ammunition Contract Awarded to Day & Zimmermann, Inc. with No Competition

Contract Overview

Contract Amount: $11,161,768 ($11.2M)

Contractor: DAY & Zimmermann, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-09-27

End Date: 2009-09-30

Contract Duration: 1,099 days

Daily Burn Rate: $10.2K/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 $11.2 million to DAY & ZIMMERMANN, INC. for work described as: Key points: 1. Significant contract value of $111.6 million for ammunition manufacturing. 2. Lack of competition raises questions about potential overpricing and efficiency. 3. Contract duration of nearly 3 years suggests a substantial, ongoing need. 4. The sector is critical for defense readiness, but procurement methods matter.

Value Assessment

Rating: questionable

The contract value of $111.6 million for ammunition manufacturing is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value or if taxpayers are overpaying for the goods and services received.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment where multiple vendors vie for the contract.

Taxpayer Impact: The absence of competition means taxpayers may not be receiving the best possible price for this critical defense supply.

Public Impact

Ensures supply of essential ammunition for military operations. Potential for higher costs due to lack of competitive bidding. Reliability of supply chain for defense is maintained. Limited transparency in pricing due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Limited transparency

Positive Signals

Ensures critical supply
Long-term relationship with established vendor

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on ammunition production. Spending in this area is crucial for national security, but efficient procurement is vital to maximize taxpayer value.

Small Business Impact

The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained fair pricing and that the justification for not competing the contract was sound.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive pricing.
Potential for taxpayer overpayment.
Limited transparency in cost justification.
Risk of complacency from contractor due to no competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 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 $11.2 million.

What is the period of performance?

Start: 2006-09-27. End: 2009-09-30.

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

The justification for a sole-source award typically involves factors such as unique capabilities, urgent needs, or the unavailability of other sources. Without specific documentation, it's impossible to determine the exact rationale. However, the lack of competition inherently raises concerns about whether alternative vendors could have met the requirements, potentially at a lower cost.

How does the unit cost of this ammunition compare to similar contracts awarded competitively?

Benchmarking the unit cost is challenging without access to detailed pricing data and specific ammunition types. However, contracts awarded through full and open competition generally result in lower prices due to market forces. The absence of competition here suggests a higher likelihood of the unit cost being above the competitive market rate.

What measures are in place to ensure the quality and timely delivery of ammunition under this sole-source contract?

While the contract type is Firm Fixed Price, suggesting cost risk lies with the contractor, oversight is still crucial. The Department of Defense likely has quality assurance personnel and performance metrics in place to monitor delivery schedules and product specifications. However, the lack of competitive pressure might reduce incentives for exceeding basic requirements.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

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