DoD Awards $36.9M Conventional Ammunition Storage Contract to SOC Nevada LLC at Hawthorne Army Depot
Contract Overview
Contract Amount: $36,884,562 ($36.9M)
Contractor: SOC Nevada LLC
Awarding Agency: Department of Defense
Start Date: 2017-06-12
End Date: 2018-12-31
Contract Duration: 567 days
Daily Burn Rate: $65.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::CL,CT::IGF SINGLE MANAGER OF CONVENTIONAL AMMUNITION OF STORAGE AT HAWTHORNE ARMY DEPOT.
Place of Performance
Location: HAWTHORNE, MINERAL County, NEVADA, 89415
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $36.9 million to SOC NEVADA LLC for work described as: IGF::CL,CT::IGF SINGLE MANAGER OF CONVENTIONAL AMMUNITION OF STORAGE AT HAWTHORNE ARMY DEPOT. Key points: 1. Contract awarded to SOC Nevada LLC for ammunition storage services. 2. The contract was awarded under full and open competition. 3. This contract represents a significant investment in military logistics and infrastructure. 4. The sector is primarily Defense, with a focus on facilities support.
Value Assessment
Rating: good
The contract value of $36.9 million for a 1.5-year period appears reasonable for specialized storage services. Benchmarking against similar large-scale depot operations would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple qualified vendors can bid.
Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive bidding process for essential military logistics support.
Public Impact
Ensures the secure and efficient storage of conventional ammunition, critical for national defense readiness. Supports military operations by maintaining a ready supply of munitions. Contributes to the local economy in Nevada through contract performance and potential job creation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if storage needs exceed initial projections.
- Dependence on a single contractor for critical logistical functions.
Positive Signals
- Awarded through full and open competition, indicating competitive pricing.
- Contract supports a vital national defense function.
- Located at a key military installation (Hawthorne Army Depot).
Sector Analysis
This contract falls within the Defense sector, specifically focusing on facilities support services for ammunition storage. Spending benchmarks for similar depot management contracts can vary widely based on scope and duration.
Small Business Impact
The contract was awarded to SOC Nevada LLC, and there is no indication of small business participation in this specific award. Further analysis would be needed to determine if subcontracting opportunities exist.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is the contracting agency. Standard oversight mechanisms for defense contracts would apply, including performance monitoring and financial audits.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is relatively short (1.5 years), potentially leading to frequent re-competition costs.
- Reliance on a single contractor for critical ammunition storage.
- Potential for unforeseen environmental or security risks impacting storage costs.
- Lack of explicit small business subcontracting goals in the provided data.
Tags
facilities-support-services, department-of-defense, nv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.9 million to SOC NEVADA LLC. IGF::CL,CT::IGF SINGLE MANAGER OF CONVENTIONAL AMMUNITION OF STORAGE AT HAWTHORNE ARMY DEPOT.
Who is the contractor on this award?
The obligated recipient is SOC NEVADA LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $36.9 million.
What is the period of performance?
Start: 2017-06-12. End: 2018-12-31.
What is the projected cost per unit of ammunition stored under this contract?
The provided data does not specify a per-unit cost for ammunition storage. The contract value is a total amount for the service period. Detailed breakdowns of storage costs per item or volume would require access to the contract's pricing structure and specific service level agreements.
What are the key performance indicators (KPIs) for ensuring the security and integrity of the stored ammunition?
Key performance indicators would likely include metrics related to inventory accuracy, security breach incidents, environmental controls (temperature, humidity), and timely response to any required movements or inspections. Specific KPIs are typically detailed in the contract's Statement of Work (SOW).
How does the cost of this contract compare to historical spending on similar ammunition storage services at other depots?
Direct comparison is challenging without specific data on other depot contracts. However, the $36.9 million award for 1.5 years suggests a significant operational cost. Benchmarking against industry standards for large-scale logistics and storage facilities would be necessary for a comprehensive assessment.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: DAY & Zimmermann Group Inc., the (UEI: 007913486)
Address: 2 S MAINE AVE, HAWTHORNE, NV, 89415
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,884,562
Exercised Options: $36,884,562
Current Obligation: $36,884,562
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J11D0002
IDV Type: IDC
Timeline
Start Date: 2017-06-12
Current End Date: 2018-12-31
Potential End Date: 2018-12-31 12:12:00
Last Modified: 2021-09-15
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