DoD Awards $20.5M for Ammunition Storage to Day & Zimmermann Hawthorne Corp

Contract Overview

Contract Amount: $20,473,743 ($20.5M)

Contractor: DAY & Zimmermann Hawthorne Corporation

Awarding Agency: Department of Defense

Start Date: 2009-09-17

End Date: 2010-12-31

Contract Duration: 470 days

Daily Burn Rate: $43.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE

Sector: Defense

Official Description: FUNDING FOR STORAGE OF FIELD SERVICE AMMUNITION AT HAWD

Place of Performance

Location: HAWTHORNE, MINERAL County, NEVADA, 89415

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to DAY & ZIMMERMANN HAWTHORNE CORPORATION for work described as: FUNDING FOR STORAGE OF FIELD SERVICE AMMUNITION AT HAWD Key points: 1. Contract awarded to a single large business, Day & Zimmermann Hawthorne Corporation. 2. Services involve field service ammunition storage, a critical but specialized function. 3. The contract was awarded under full and open competition, suggesting a competitive process. 4. The fixed-price award fee structure aims to incentivize performance while managing costs.

Value Assessment

Rating: good

The award amount of $20.5M for a 470-day duration appears reasonable for specialized ammunition storage services. Benchmarking against similar contracts for logistics and storage would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Taxpayer funds are being used for essential defense logistics, ensuring the secure storage of ammunition. The competitive award process aims to optimize the use of these funds.

Public Impact

Ensures the secure and efficient storage of critical field service ammunition. Supports the Department of the Army's logistical capabilities. Provides employment opportunities through the contractor, Day & Zimmermann Hawthorne Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if award fee targets are consistently met without strict cost controls.
  • Dependence on a single contractor for a critical national defense function.

Positive Signals

  • Awarded under full and open competition.
  • Fixed-price award fee structure incentivizes performance.
  • Contract supports essential military logistics.

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing various operational and maintenance functions. Spending in this sector is often driven by defense needs and infrastructure requirements.

Small Business Impact

The contract was awarded to a large business, Day & Zimmermann Hawthorne Corporation. There is no indication of small business subcontracting in the provided data.

Oversight & Accountability

The Department of the Army is responsible for overseeing this contract. The fixed-price award fee structure implies performance metrics that would be monitored to ensure accountability and value.

Related Government Programs

  • Facilities Support Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Contract awarded to a single large business.
  • Potential for contractor lock-in due to specialized nature of service.
  • Reliance on contractor's security protocols for sensitive materials.
  • Award fee structure requires careful monitoring of performance metrics.

Tags

facilities-support-services, department-of-defense, nv, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to DAY & ZIMMERMANN HAWTHORNE CORPORATION. FUNDING FOR STORAGE OF FIELD SERVICE AMMUNITION AT HAWD

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 $20.5 million.

What is the period of performance?

Start: 2009-09-17. End: 2010-12-31.

What is the historical performance of Day & Zimmermann Hawthorne Corporation on similar contracts?

Assessing the contractor's past performance is crucial for understanding their reliability and efficiency in handling sensitive materials like ammunition. Reviewing previous contract awards, performance reviews, and any past disputes or issues would provide valuable insight into their capabilities and potential risks associated with this specific award.

How does the per-unit cost of storage compare to industry benchmarks for similar ammunition types?

Benchmarking the per-unit storage cost against industry standards for comparable ammunition types is essential for validating the contract's value. This analysis would help determine if the government is paying a competitive rate and identify potential areas where costs could be reduced without compromising security or service quality.

What are the specific award fee criteria, and how are they measured to ensure fair and effective incentive?

Understanding the specific criteria for the award fee is vital for evaluating the effectiveness of the incentive structure. Detailed information on how performance is measured against these criteria, the scoring methodology, and the frequency of evaluations would clarify how the government ensures fair compensation tied to contractor performance and overall contract value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

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

Financial Breakdown

Contract Ceiling: $20,473,743

Exercised Options: $20,473,743

Current Obligation: $20,473,743

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAA0999D0022

IDV Type: IDC

Timeline

Start Date: 2009-09-17

Current End Date: 2010-12-31

Potential End Date: 2010-12-31 00:00:00

Last Modified: 2014-06-27

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