DoD's $25.5M Facilities Support Services contract awarded to Day & Zimmermann Hawthorne Corp
Contract Overview
Contract Amount: $25,488,040 ($25.5M)
Contractor: DAY & Zimmermann Hawthorne Corporation
Awarding Agency: Department of Defense
Start Date: 2010-06-30
End Date: 2012-09-30
Contract Duration: 823 days
Daily Burn Rate: $31.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE AWARD FEE
Sector: Other
Official Description: AWARD OF DOLLARS FOR OPTION
Place of Performance
Location: HAWTHORNE, MINERAL County, NEVADA, 89415
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $25.5 million to DAY & ZIMMERMANN HAWTHORNE CORPORATION for work described as: AWARD OF DOLLARS FOR OPTION Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Fixed Price Award Fee contract type implies performance incentives for the contractor. 3. Contract duration of 823 days indicates a medium-term service requirement. 4. The award is for facilities support services, a critical operational function. 5. The contractor, Day & Zimmermann Hawthorne Corporation, has secured this significant award. 6. The contract was awarded by the Department of the Army, a major DoD component.
Value Assessment
Rating: fair
Benchmarking the value of this $25.5 million contract for facilities support services is challenging without specific performance metrics or comparable contract data. The fixed-price award fee structure suggests an attempt to control costs while incentivizing performance. However, the absence of detailed cost breakdowns or comparisons to similar services across the DoD or other federal agencies makes a definitive value assessment difficult. Further analysis would require understanding the scope of 'facilities support services' and the specific performance standards tied to the award fee.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this facilities support services requirement. While competition is present, the exact number of bids received and the spread of those bids would provide a clearer picture of the competitive intensity and its impact on price discovery.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service quality. The presence of multiple bidders suggests that taxpayer funds are being utilized in a manner that seeks value through market forces.
Public Impact
The Department of the Army benefits from essential facilities support services, ensuring operational readiness. This contract supports the maintenance and operation of government facilities. The services provided likely impact military personnel and civilian employees working in these facilities. Geographic impact is centered in Nevada, where the contract is being performed. The contract supports jobs within the facilities management and support services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics makes it difficult to assess true value for money.
- The fixed-price award fee structure can sometimes lead to contractor gaming if not carefully managed.
- Limited public information on the specific scope of 'facilities support services' hinders detailed analysis.
- The contract's duration could lead to vendor lock-in if not managed proactively.
- No explicit mention of small business subcontracting goals requires further investigation.
Positive Signals
- Awarded through full and open competition, indicating a healthy market approach.
- The fixed-price award fee structure provides an incentive for contractor performance.
- The contract is managed by the Department of the Army, a major federal agency with established oversight processes.
- The contract is for essential facilities support services, crucial for government operations.
- The contractor, Day & Zimmermann Hawthorne Corporation, is a known entity in government contracting.
Sector Analysis
Facilities Support Services fall under the broader professional, scientific, and technical services sector. This sector is characterized by a wide range of specialized services essential for the operation and maintenance of government and commercial infrastructure. The market size for such services is substantial, with significant government spending allocated annually. This contract represents a portion of the Department of Defense's investment in maintaining its vast real estate and operational facilities, aligning with broader trends of outsourcing non-core functions to specialized service providers.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While there is no direct indication of subcontracting requirements or performance in the provided data, larger federal contracts often include provisions for small business subcontracting. The absence of a small business set-aside suggests that the primary competition was open to all responsible sources, and the impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Army, likely through contracting officers and program managers responsible for facilities support. Accountability measures are embedded within the Fixed Price Award Fee structure, which links payment to performance. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.
Related Government Programs
- Facilities Maintenance and Repair Services
- Base Operations Support Services
- Logistics and Support Services
- Government Property Management
- Professional, Scientific, and Technical Services
Risk Flags
- Potential for scope creep in facilities support services.
- Performance monitoring challenges in award fee contracts.
- Reliance on contractor performance for critical infrastructure.
- Limited transparency on specific service deliverables.
Tags
department-of-defense, department-of-the-army, facilities-support-services, fixed-price-award-fee, full-and-open-competition, nevada, professional-scientific-and-technical-services, medium-contract-value, service-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.5 million to DAY & ZIMMERMANN HAWTHORNE CORPORATION. AWARD OF DOLLARS FOR OPTION
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 $25.5 million.
What is the period of performance?
Start: 2010-06-30. End: 2012-09-30.
What specific services are included under 'Facilities Support Services' for this contract?
The term 'Facilities Support Services' is broad and can encompass a wide array of activities necessary for the operation and maintenance of physical infrastructure. For this specific Department of the Army contract, these services likely include, but are not limited to, general maintenance and repair of buildings and grounds, custodial services, pest control, refuse collection, security services, mail services, transportation support, and potentially minor construction or renovation activities. The precise scope would be detailed in the contract's Statement of Work (SOW), which outlines the specific tasks, deliverables, performance standards, and reporting requirements expected from Day & Zimmermann Hawthorne Corporation. Without access to the SOW, the exact nature and extent of the services remain generalized.
How does the 'Fixed Price Award Fee' contract type function, and what are its implications for cost control and performance?
A Fixed Price Award Fee (FPAF) contract establishes a fixed price for the work to be performed, but also includes a separate award amount that the contractor can earn based on achieving specific performance objectives. The contractor is paid the fixed price plus an award fee, determined by the government based on subjective and objective criteria outlined in the contract. This structure aims to incentivize high performance by offering additional profit potential beyond the base fixed price. For cost control, the fixed price component provides a ceiling. However, the award fee component introduces variability in the contractor's total compensation, which can be influenced by the government's assessment of performance. Effective management by the contracting officer is crucial to ensure the award fee criteria are clearly defined, measurable, and fairly applied to achieve the desired outcomes without excessive cost.
What is the track record of Day & Zimmermann Hawthorne Corporation with similar federal contracts?
Day & Zimmermann Hawthorne Corporation is a significant entity in the federal contracting landscape, with a history of performing various support services for government agencies, including the Department of Defense. While specific details of their past performance on identical 'Facilities Support Services' contracts would require a deeper dive into contract databases, the company generally has experience in areas such as logistics, maintenance, and operational support. Their ability to secure a $25.5 million contract through full and open competition suggests a demonstrated capability and a competitive standing within the industry. A comprehensive assessment of their track record would involve reviewing past performance evaluations, any past performance issues or disputes, and their success rates on similar-sized and scoped contracts across different agencies.
How does the $25.5 million award compare to historical spending on facilities support services by the Department of the Army?
The $25.5 million award for facilities support services represents a substantial investment by the Department of the Army. To contextualize this figure, it would be necessary to compare it against the Army's total annual spending on facilities management and support across all its installations. Historical data from sources like the Federal Procurement Data System (FPDS) or agency budget reports would reveal trends in facilities support contracting. If the Army typically awards multiple contracts of this magnitude annually, then $25.5 million might be within the expected range. Conversely, if this represents a significant portion of their annual budget for such services, it could indicate a major consolidation of requirements or a substantial increase in spending for this particular function. Without broader historical spending context, it's difficult to definitively state whether this award is high or low relative to past expenditures.
What are the potential risks associated with a multi-year facilities support contract of this value?
Several risks are associated with a multi-year facilities support contract valued at $25.5 million. One primary risk is contractor performance degradation over time, where initial high performance may wane if not continuously monitored and incentivized. Scope creep is another significant risk; the broad nature of facilities support can lead to the addition of unbudgeted tasks if not managed strictly through the contract's modification process. Cost overruns, despite the fixed-price component, can occur if unforeseen issues arise or if the initial cost estimates were inaccurate, especially with the award fee component. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, potentially reducing leverage in future contract negotiations. Finally, changes in government requirements or budget constraints could necessitate contract modifications or terminations, introducing financial and operational risks.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING 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: $25,488,040
Exercised Options: $25,488,040
Current Obligation: $25,488,040
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAA0999D0022
IDV Type: IDC
Timeline
Start Date: 2010-06-30
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2014-06-27
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