Army awards $12.1M contract for ammunition research and development to The Day & Zimmermann Group Inc
Contract Overview
Contract Amount: $12,095,971 ($12.1M)
Contractor: DAY & Zimmermann Group Inc., the
Awarding Agency: Department of Defense
Start Date: 2002-02-02
End Date: 2008-01-30
Contract Duration: 2,188 days
Daily Burn Rate: $5.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200208!000358!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999G0004 !A!N! !N!0021 !20020202!20030830!008057440!008057440!007913486!N!THE DAY & ZIMMERMANN GROUP INC!HWY 82 W !TEXARKANA !TX!75505!43720!037!48!LONE STAR ARMY AMMUN!BOWIE !TEXAS !+000013584089!Y!N!000000000000!AD11!RDTE/AMMUNITION-BASIC RESEARCH !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !332993!E! !4! ! ! ! ! !20040531!B! ! !N!Z!D!N!U!1!001!N!1G!A!N!Z! ! !N!C!N! ! ! !A!A!A!A!* !A!C!Y! ! ! ! ! ! !0001!
Place of Performance
Location: TEXARKANA, BOWIE County, TEXAS, 75505
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $12.1 million to DAY & ZIMMERMANN GROUP INC., THE for work described as: 200208!000358!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999G0004 !A!N! !N!0021 !20020202!20030830!008057440!008057440!007913486!N!THE DAY & ZIMMERMANN GROUP INC!HWY 82 W !TEXARKANA !TX!75505!43720!037!48!LONE STAR ARMY AMMUN!BOWIE… Key points: 1. Contract awarded for basic research in ammunition, indicating early-stage development. 2. Sole-source award suggests potential lack of market competition or specialized capability. 3. Long contract duration of over 6 years may indicate a complex or ongoing research effort. 4. Contract type is Cost Plus Fixed Fee, which can carry higher cost overrun risks. 5. The contractor has a significant presence in ammunition manufacturing. 6. Awarded by the Department of the Army, aligning with defense sector needs.
Value Assessment
Rating: fair
The contract value of $12.1 million over approximately six years for ammunition basic research appears to be within a reasonable range for R&D in this specialized field. However, without specific benchmarks for similar basic research contracts in ammunition, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to cost increases if not carefully managed, potentially impacting overall value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that the government did not benefit from a competitive bidding process, which could have potentially led to lower prices or more innovative solutions from a wider pool of contractors.
Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the best possible pricing and terms for taxpayers. This can result in higher costs compared to a fully competed contract.
Public Impact
The U.S. Army benefits from advanced research and development in ammunition technology. This contract supports the development of next-generation ammunition capabilities. The contract is geographically focused within Texas, supporting local industry. Potential for specialized workforce development in defense R&D within the Texarkana area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed effectively.
- Sole-source award limits competitive pressure, potentially impacting price and innovation.
- Long contract duration increases exposure to changing technological requirements and economic conditions.
Positive Signals
- Contract awarded to a known entity in the ammunition manufacturing sector.
- Focus on basic research suggests investment in future defense capabilities.
- Awarded by a major defense agency (Department of the Army).
Sector Analysis
This contract falls within the Research, Development, Test, and Evaluation (RDTE) sector, specifically focusing on ammunition. The defense industry's R&D spending is crucial for maintaining technological superiority. While specific market size data for 'ammunition basic research' is not readily available, the broader defense contracting market is substantial. This contract represents a small but important investment in the foundational technologies that underpin military ordnance capabilities.
Small Business Impact
There is no indication that this contract included small business set-asides. As a sole-source award to a large corporation, it is unlikely to have direct subcontracting opportunities for small businesses unless The Day & Zimmermann Group Inc. voluntarily includes them in their supply chain. This contract does not appear to directly benefit the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency may be limited due to the sole-source nature and the classified or sensitive aspects of ammunition research. Inspector General involvement would be contingent on specific allegations of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development
- Ammunition Procurement
- Ordnance Manufacturing
- Cost Plus Fixed Fee Contracts
Risk Flags
- Sole-source award may limit competition and potentially increase costs.
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Long contract duration requires sustained oversight and adaptability to changing needs.
Tags
defense, department-of-defense, department-of-the-army, ammunition, research-and-development, rdte, cost-plus-fixed-fee, sole-source, large-business, texas, basic-research, ammunition-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.1 million to DAY & ZIMMERMANN GROUP INC., THE. 200208!000358!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999G0004 !A!N! !N!0021 !20020202!20030830!008057440!008057440!007913486!N!THE DAY & ZIMMERMANN GROUP INC!HWY 82 W !TEXARKANA !TX!75505!43720!037!48!LONE STAR ARMY AMMUN!BOWIE !TEXAS !+000013584089!Y!N!000000000000!AD11!RDTE/AMMUNITION-BASIC RESEARCH !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !332993!E! !4! ! ! ! ! !20040531!B
Who is the contractor on this award?
The obligated recipient is DAY & ZIMMERMANN GROUP INC., THE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $12.1 million.
What is the period of performance?
Start: 2002-02-02. End: 2008-01-30.
What is the track record of The Day & Zimmermann Group Inc. with the U.S. Army, particularly in ammunition R&D?
The Day & Zimmermann Group Inc. is a well-established defense contractor with a significant history of supporting the U.S. military, particularly in the area of ammunition production and services. They have held numerous contracts with the Department of Defense over many years. While this specific contract focuses on basic research, the company's extensive experience in manufacturing and handling munitions suggests a strong foundational understanding relevant to R&D efforts. Their long-standing relationship with the Army indicates a level of trust and proven capability, though specific performance metrics for past ammunition R&D contracts would require deeper data analysis.
How does the $12.1 million value compare to similar ammunition R&D contracts?
Benchmarking the $12.1 million value for this specific 'ammunition basic research' contract against similar awards is challenging due to the specialized nature of the work and the limited public data on basic R&D efforts. However, considering the contract duration of over six years and the CPFF structure, the annual expenditure averages around $2 million. This figure is not exceptionally high for defense R&D, which often involves significant investment in personnel, facilities, and materials. Without access to a database of comparable basic research contracts in this niche, a definitive value comparison is difficult, but it appears to be within a plausible range for foundational technological development.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?
The primary risk with a CPFF contract is the potential for cost overruns. While the contractor receives a fixed fee, the 'cost plus' portion means the government reimburses the contractor's allowable costs. If the contractor's costs exceed initial estimates, the total contract price increases, potentially exceeding the original $12.1 million ceiling. This risk is amplified in R&D settings where project scope and technical challenges can be unpredictable. Effective oversight is crucial to scrutinize costs, ensure efficiency, and prevent unnecessary expenditures. The sole-source nature further necessitates vigilance, as there's no competitive pressure to drive down costs.
How effective is the sole-source award strategy for this type of ammunition research?
The effectiveness of a sole-source award for ammunition research depends heavily on the justification provided. If The Day & Zimmermann Group Inc. possesses unique, proprietary technology, specialized expertise, or critical infrastructure essential for this specific basic research that cannot be replicated by other firms, then a sole-source award might be justified to ensure the research progresses efficiently. However, sole-source awards inherently forgo the benefits of competition, such as potentially lower prices, broader innovation, and enhanced market responsiveness. Without a competitive process, it's harder to ascertain if the government is truly getting the best value and the most advanced solutions available in the market.
What are the historical spending patterns for ammunition R&D by the Department of the Army?
Historical spending patterns for ammunition R&D by the Department of the Army are substantial, reflecting a continuous need to modernize and enhance ordnance capabilities. While specific figures for 'basic research' are often aggregated within broader RDTE accounts, the Army consistently allocates significant resources towards improving lethality, safety, and effectiveness of ammunition systems. This includes research into new propellants, warheads, fuzing mechanisms, and materials. The Day & Zimmermann Group Inc. has historically been a major recipient of contracts related to ammunition manufacturing and sustainment, suggesting their involvement in R&D is a continuation of a long-term strategic relationship.
What are the implications of the contract's end date (January 30, 2008) given the award date (February 2, 2002)?
The contract spans a duration of approximately six years (2188 days), from early 2002 to early 2008. This extended period suggests that the 'ammunition basic research' involved is complex, long-term, and likely requires iterative development and testing. Such durations are not uncommon for foundational R&D projects in the defense sector, where breakthroughs can take considerable time. The long timeframe also implies a significant commitment of resources and a strategic focus on developing future capabilities rather than addressing immediate operational needs. It necessitates robust program management to ensure progress remains aligned with evolving military requirements and technological advancements over the project's lifecycle.
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
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 1818 MARKET ST FL 20, PHILADELPHIA, PA, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAA0999G0004
IDV Type: IDC
Timeline
Start Date: 2002-02-02
Current End Date: 2008-01-30
Potential End Date: 2008-01-30 00:00:00
Last Modified: 2009-02-12
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