Army awards $23.1M for packing and crating services to Day & Zimmermann Hawthorne Corp
Contract Overview
Contract Amount: $23,120,160 ($23.1M)
Contractor: DAY & Zimmermann Hawthorne Corporation
Awarding Agency: Department of Defense
Start Date: 2002-12-30
End Date: 2005-03-31
Contract Duration: 822 days
Daily Burn Rate: $28.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE AWARD FEE
Sector: Other
Official Description: 200303!000304!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999D0022 !A!N! !Y!0064 !20021230!20031231!121391718!121391718!007913486!N!DAY & ZIMMERMANN- HAWTHORNE CO!9 SOUTH MAINE AVENUE !HAWTHORNE !NV!89415!31500!021!32!HAWTHORNE AAP !MINERAL !NEVADA !+000000653621!N!N!000000000000!V003!PACKING/CRATING SERVICES !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !561210!E! !5!B!S! ! ! !99990909!B! ! !N!Z!A!N!M!2!003!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: HAWTHORNE, MINERAL County, NEVADA, 89415
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $23.1 million to DAY & ZIMMERMANN HAWTHORNE CORPORATION for work described as: 200303!000304!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999D0022 !A!N! !Y!0064 !20021230!20031231!121391718!121391718!007913486!N!DAY & ZIMMERMANN- HAWTHORNE CO!9 SOUTH MAINE AVENUE !HAWTHORNE !NV!89415!31500!021!32!HAWTHORNE AAP !MINER… Key points: 1. Contract awarded for essential packing and crating services, supporting ammunition logistics. 2. The contract value of $23.1M represents a significant investment in supply chain operations. 3. Competition was full and open, suggesting a robust bidding process. 4. The contract duration of 822 days indicates a medium-term need for these services. 5. The contractor, Day & Zimmermann Hawthorne Corp., has a track record in defense contracting. 6. Services are categorized under Facilities Support Services, highlighting operational infrastructure needs.
Value Assessment
Rating: good
The contract value of $23.1 million for packing and crating services appears reasonable given the duration and the nature of defense logistics support. Benchmarking against similar contracts for packing and crating services within the Department of Defense would provide a more precise value-for-money assessment. However, the fixed-price award fee structure suggests an incentive for performance and cost control, which is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of three bidders suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The level of competition is a positive sign for price discovery and ensuring taxpayer funds are used efficiently.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging contractors to offer their best value propositions.
Public Impact
The U.S. Army benefits from reliable packing and crating services essential for ammunition logistics. This contract ensures the secure and efficient handling of military supplies. The services are geographically focused on Hawthorne, Nevada, supporting local operations. The contract supports jobs within the defense logistics and support services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if award fee criteria are not met efficiently.
- Dependence on a single contractor for critical logistics support.
Positive Signals
- Full and open competition suggests a competitive market and potential for good value.
- Fixed Price Award Fee contract type incentivizes contractor performance and cost management.
- Contractor has experience in defense-related services.
Sector Analysis
The Facilities Support Services sector, particularly within defense, involves a wide range of operational and logistical support functions. This contract for packing and crating services falls under the broader category of logistics and supply chain management, which is a critical component of military readiness. The market for such services is competitive, with numerous providers capable of meeting stringent government requirements. Comparable spending in this sector often involves significant investments in warehousing, transportation, and specialized handling of sensitive materials.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further analysis would be needed to determine if small businesses were involved in the competitive bidding process or as subcontractors.
Oversight & Accountability
Oversight for this contract would typically fall under the U.S. Army's contracting command and potentially the Defense Contract Management Agency (DCMA). Accountability measures are embedded in the Fixed Price Award Fee structure, which links payment to performance. Transparency is generally maintained through contract awards databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Logistics Agency (DLA) Services
- Army Ammunition Activity Support
- Military Packaging and Crating Contracts
- Base Operations Support Contracts
Risk Flags
- Potential for performance issues impacting supply chain continuity.
- Risk of cost escalation if award fee criteria are not met efficiently.
Tags
department-of-defense, department-of-the-army, facilities-support-services, packing-and-crating, fixed-price-award-fee, full-and-open-competition, nevada, day-and-zimmermann-hawthorne-corporation, ammunition-logistics, medium-value-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.1 million to DAY & ZIMMERMANN HAWTHORNE CORPORATION. 200303!000304!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999D0022 !A!N! !Y!0064 !20021230!20031231!121391718!121391718!007913486!N!DAY & ZIMMERMANN- HAWTHORNE CO!9 SOUTH MAINE AVENUE !HAWTHORNE !NV!89415!31500!021!32!HAWTHORNE AAP !MINERAL !NEVADA !+000000653621!N!N!000000000000!V003!PACKING/CRATING SERVICES !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !561210!E! !5!B!S! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is DAY & ZIMMERMANN HAWTHORNE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $23.1 million.
What is the period of performance?
Start: 2002-12-30. End: 2005-03-31.
What is the historical spending pattern for packing and crating services by the U.S. Army?
Analyzing historical spending for packing and crating services by the U.S. Army requires access to comprehensive federal procurement data. While this specific contract is for $23.1 million over approximately two years, broader trends can reveal significant investment in logistics support. The Army, like other branches of the Department of Defense, relies heavily on specialized services to manage its vast inventory and operational needs. Spending in this area can fluctuate based on deployment tempos, modernization efforts, and strategic supply chain adjustments. Without specific historical data for this exact service category, it's difficult to provide precise figures, but it's reasonable to assume consistent, substantial spending given the scale of Army operations globally. Factors such as the type of goods being packed (e.g., ammunition, equipment), the required security, and the destination influence costs.
How does the contractor's performance on previous contracts compare to this award?
Assessing Day & Zimmermann Hawthorne Corporation's performance on previous contracts requires a detailed review of their past federal awards and performance evaluations. Companies in the defense sector often have a long history of government contracting, and their track record is a key factor in award decisions. Performance metrics typically include on-time delivery, quality of service, adherence to specifications, and cost control. A 'good' or 'excellent' past performance rating from agencies like the Army or other DoD components would indicate a lower risk for this new contract. Conversely, a history of performance issues, contract disputes, or quality deficiencies could raise concerns. Specific data on past performance ratings for Day & Zimmermann Hawthorne Corporation would be necessary for a definitive comparison.
What are the key risks associated with this type of packing and crating contract?
Key risks associated with this packing and crating contract include potential delays in delivery due to logistical complexities, damage to sensitive materials (like ammunition) during packing or transit, and cost overruns if not managed effectively under the fixed-price award fee structure. There's also a risk related to the contractor's capacity and ability to scale operations if demand increases unexpectedly. Furthermore, security risks associated with handling military-grade materials must be meticulously managed. Ensuring compliance with all relevant safety, environmental, and security regulations is paramount. The government also faces the risk of contractor non-performance or default, which could disrupt critical supply chains.
What is the estimated value of services provided per day or month under this contract?
To estimate the daily or monthly value, we can divide the total contract value by its duration. The total contract value is $23,120,159.87, and the duration is 822 days (from December 30, 2002, to March 31, 2005). Daily value = $23,120,159.87 / 822 days ≈ $28,126.77 per day. Monthly value (assuming an average of 30.44 days per month) = $28,126.77/day * 30.44 days/month ≈ $856,000 per month. This calculation provides a rough estimate of the average daily or monthly expenditure for these packing and crating services.
How does the North American Industry Classification System (NAICS) code 561210 inform our understanding of the contract's scope?
The NAICS code 561210, 'Facilities Support Services,' provides a broad classification for the contract's scope. This category encompasses establishments primarily engaged in providing operating staff for others. This can include services like building operation and maintenance, security systems operation, and other support services necessary for the functioning of facilities. For this specific contract, it indicates that the packing and crating services are part of a larger framework of supporting the operational readiness and infrastructure of a military facility or installation. It suggests that the contractor's role extends beyond simple packing to potentially include aspects of facility management related to logistics and storage.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › MOTOR POOL OR PACKING/CRATING
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIXED PRICE AWARD FEE (M)
Evaluated Preference: NONE
Contractor Details
Parent Company: DAY & Zimmermann Group Inc., the (UEI: 007913486)
Address: 2 S MAIN ST, BLDG # 2, HAWTHORNE, NV, 04
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAA0999D0022
IDV Type: IDC
Timeline
Start Date: 2002-12-30
Current End Date: 2005-03-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2014-06-27
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