Department of Defense awards $22.9M contract for ammunition manufacturing to The Day & Zimmermann Group Inc
Contract Overview
Contract Amount: $22,918,540 ($22.9M)
Contractor: DAY & Zimmermann Group Inc., the
Awarding Agency: Department of Defense
Start Date: 2002-06-03
End Date: 2008-06-30
Contract Duration: 2,219 days
Daily Burn Rate: $10.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200209!000735!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999G0004 !A!N! !N!0025 !20020603!20030228!008057440!008057440!007913486!N!THE DAY & ZIMMERMANN GROUP INC!HWY 82 W !TEXARKANA !TX!75505!43720!037!48!LONE STAR ARMY AMMUN!BOWIE !TEXAS !+000001243257!N!N!000000000000!1390!FUSES AND PRIMERS !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !332993!E! !4! ! ! ! ! !99990909!B! ! !N!Z!D!N!J!1!001!N!1G!A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001!
Place of Performance
Location: TEXARKANA, BOWIE County, TEXAS, 75505
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $22.9 million to DAY & ZIMMERMANN GROUP INC., THE for work described as: 200209!000735!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999G0004 !A!N! !N!0025 !20020603!20030228!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 fuses and primers, a critical component in ammunition. 2. The contract was not competed, raising questions about potential cost savings. 3. The contractor, The Day & Zimmermann Group Inc., has a significant history with the Department of Defense. 4. The contract duration is substantial, spanning over 6 years. 5. The geographic location of the contractor is Texas, potentially impacting local economies. 6. The specific nature of the ammunition is classified, limiting public understanding of its use.
Value Assessment
Rating: fair
The awarded amount of $22.9 million for ammunition manufacturing appears to be a significant investment. Without comparable contract data for similar ammunition components or specific quantities, a precise value-for-money assessment is challenging. The firm fixed-price contract type suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, the lack of competition makes it difficult to benchmark pricing against market rates or other potential suppliers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source can fulfill the requirement, or in cases of urgent need. The lack of competition means that the government did not benefit from the price discovery and potential cost reductions that can arise from multiple bids. It is unclear from the data if a full and open competition was attempted and failed, or if it was deemed unnecessary from the outset.
Taxpayer Impact: Sole-source awards can potentially lead to higher prices for taxpayers as there is less pressure on the contractor to offer the most competitive bid. This also limits transparency in the procurement process.
Public Impact
The primary beneficiaries of this contract are the U.S. Army Industrial Operations and potentially other branches of the Department of Defense requiring ammunition. The contract delivers essential components for ammunition production, specifically fuses and primers. The geographic impact is primarily centered around the contractor's location in Texarkana, Texas, with potential indirect economic benefits. The contract supports jobs and operations at The Day & Zimmermann Group Inc. facility in Texas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in suboptimal pricing for taxpayers.
- The classified nature of the ammunition limits public scrutiny and understanding of its purpose.
- Long contract duration could indicate potential for cost creep if not managed effectively.
Positive Signals
- The contractor, The Day & Zimmermann Group Inc., is an established entity with experience in defense manufacturing.
- Firm Fixed Price contract type shifts cost risk to the contractor.
- The contract supports a critical defense supply chain component.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing of ammunition components. The market for defense manufacturing, particularly for specialized items like fuses and primers, can be concentrated among a few key suppliers due to stringent quality and security requirements. The total federal spending on ammunition manufacturing is substantial, with this contract representing a portion of that investment. Benchmarking this specific contract is difficult without detailed cost breakdowns and comparisons to similar sole-source awards.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the available information. The primary awardee is a large corporation. This suggests that the contract's value and specialized nature may not lend themselves to small business participation, potentially limiting the impact on the small business defense contracting ecosystem for this specific award.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and auditing agencies. The firm fixed-price nature provides some level of accountability by capping the government's financial exposure. However, the lack of competition and the classified nature of the end-product limit the extent of public transparency and oversight. Inspector General involvement would be contingent on specific allegations of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Ammunition Procurement
- Defense Industrial Base Manufacturing
- Ordnance and Ammunition Manufacturing
- U.S. Army Industrial Operations Contracts
Risk Flags
- Sole-source award
- Lack of competition
- Classified end-product
- Long contract duration
Tags
defense, department-of-defense, department-of-the-army, ammunition, manufacturing, fuses-and-primers, sole-source, firm-fixed-price, large-contract, texas, classified
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.9 million to DAY & ZIMMERMANN GROUP INC., THE. 200209!000735!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999G0004 !A!N! !N!0025 !20020603!20030228!008057440!008057440!007913486!N!THE DAY & ZIMMERMANN GROUP INC!HWY 82 W !TEXARKANA !TX!75505!43720!037!48!LONE STAR ARMY AMMUN!BOWIE !TEXAS !+000001243257!N!N!000000000000!1390!FUSES AND PRIMERS !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !332993!E! !4! ! ! ! ! !99990909!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 $22.9 million.
What is the period of performance?
Start: 2002-06-03. End: 2008-06-30.
What is the track record of The Day & Zimmermann Group Inc. with the Department of Defense?
The Day & Zimmermann Group Inc. has a long-standing and extensive history of contracting with the Department of Defense. They are a major defense contractor involved in various aspects of munitions production, maintenance, and logistics. Their involvement spans decades, and they have been a key supplier for numerous military programs. While specific contract details and performance metrics for all their engagements are not publicly available, their continued awards suggest a generally satisfactory performance history in meeting the DoD's requirements for complex and critical defense materiel. Their expertise in explosives and ordnance manufacturing is well-recognized within the defense industrial base.
How does the value of this contract compare to similar ammunition component contracts?
Direct comparison of this $22.9 million contract for fuses and primers to similar contracts is challenging due to the proprietary nature of defense procurement data and the specific technical requirements of ammunition components. Contracts for fuses and primers can vary significantly based on quantity, technological sophistication, quality assurance standards, and the specific type of ammunition they are intended for. Furthermore, the fact that this contract was sole-sourced limits the ability to benchmark against competitive bids. Without access to detailed cost breakdowns or a database of comparable sole-source awards for identical or highly similar components, a precise value comparison is not feasible. However, the amount suggests a significant quantity or a high-value component.
What are the primary risks associated with this sole-source contract?
The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competition. When a contract is not competed, the government loses the benefit of price discovery that occurs when multiple vendors submit bids. This can lead to the contractor charging a higher price than might be achievable in a competitive environment. Another risk is the potential for reduced innovation or efficiency, as there is less market pressure to improve processes or develop cost-saving measures. Finally, there's a risk related to the long-term dependency on a single supplier for critical components, which could create vulnerabilities in the supply chain if the contractor faces operational issues.
What is the expected effectiveness of this contract in meeting the DoD's ammunition needs?
The effectiveness of this contract is expected to be high in terms of meeting the Department of Defense's specific needs for fuses and primers, given the contractor's established expertise in this area. The Day & Zimmermann Group Inc. is a known entity in munitions manufacturing. The firm fixed-price nature of the contract incentivizes the contractor to deliver the specified components efficiently. However, the overall effectiveness in terms of broader strategic goals, such as maintaining a robust and cost-effective supply chain, is somewhat diminished by the sole-source nature. The contract ensures a supply of critical components but may not represent the most economically efficient or innovative solution available.
What are the historical spending patterns for ammunition manufacturing by the Department of Defense?
The Department of Defense historically spends billions of dollars annually on ammunition and related components. This spending fluctuates based on global security environments, ongoing military operations, and modernization programs. The DoD procures a vast array of ammunition types, from small arms to large-caliber munitions and specialized ordnance. Spending patterns are influenced by factors such as inventory levels, planned obsolescence of older systems, and the development of new weapon platforms requiring different types of ammunition. Contracts for components like fuses and primers are a significant subset of this overall spending, reflecting the complex and multi-stage nature of ammunition production.
What are the implications of the 'NOT DISCERNABLE OR CLASSIFIED' status for the ammunition type?
The 'NOT DISCERNABLE OR CLASSIFIED' designation for the ammunition type means that the specific end-use or nature of the ammunition being produced with these fuses and primers is not publicly disclosed. This is common for sensitive defense contracts where revealing details about the specific munitions could compromise operational security or reveal military capabilities. For analysts, this classification limits the ability to fully understand the strategic importance, potential applications, and associated risks of the contract. It also makes it more difficult to find directly comparable contracts or to assess the broader context of the spending beyond the component manufacturing itself.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: 2002-06-03
Current End Date: 2008-06-30
Potential End Date: 2008-06-30 00:00:00
Last Modified: 2008-03-31
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