DoD's $24.6M Facilities Support Contract Awarded to Day & Zimmermann Raises Concerns Over Competition and Value
Contract Overview
Contract Amount: $24,630,714 ($24.6M)
Contractor: DAY & Zimmermann, Inc -KS DIV
Awarding Agency: Department of Defense
Start Date: 2000-02-28
End Date: 2008-12-31
Contract Duration: 3,229 days
Daily Burn Rate: $7.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Place of Performance
Location: PARSONS, LABETTE County, KANSAS, 67357, UNITED STATES OF AMERICA
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $24.6 million to DAY & ZIMMERMANN, INC -KS DIV for work described as: Key points: 1. Significant contract value of $24.6 million over its duration. 2. Lack of competition raises questions about price discovery and potential overspending. 3. Long contract duration (3229 days) may limit opportunities for market-driven cost reductions. 4. Facilities Support Services sector is crucial but requires vigilant oversight to ensure efficiency.
Value Assessment
Rating: questionable
The contract's 'COST NO FEE' pricing structure, combined with a lack of competition, makes a direct value assessment difficult. Without competitive bids, it's hard to determine if the $24.6 million represents a fair market price for the facilities support services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This significantly hinders price discovery and may lead to inflated costs for taxpayers, as there was no market pressure to achieve the lowest possible price.
Taxpayer Impact: The absence of competition likely resulted in higher costs for taxpayers compared to a competitively awarded contract, potentially by millions of dollars over the contract's life.
Public Impact
Taxpayers may have paid more than necessary due to the lack of competitive bidding. The long duration of the contract limits the government's ability to renegotiate terms or seek better pricing. Essential facilities support services could be procured more cost-effectively through open competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus pricing structure (implied by 'COST NO FEE')
- Long contract duration
- Potential for cost overruns
Positive Signals
- Essential service provision
- Established contractor relationship (implied)
Sector Analysis
Facilities Support Services are essential for maintaining government infrastructure. Spending benchmarks in this sector vary widely based on scope and location, but competitive procurement is key to ensuring cost-effectiveness. This $24.6M contract represents a significant investment in maintaining DoD facilities.
Small Business Impact
The provided data does not indicate any specific provisions or considerations for small businesses in this contract award. Further analysis would be needed to determine if small businesses had an opportunity to participate or benefit.
Oversight & Accountability
The 'NOT COMPETED' status and 'COST NO FEE' structure warrant close oversight to ensure the contractor is performing efficiently and that costs are reasonable and allocable. Accountability is diminished without a competitive baseline.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs
- Limited transparency in pricing
- Long contract duration may prevent cost optimization
- Insufficient justification for sole-source award (based on provided data)
Tags
facilities-support-services, department-of-defense, ks, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.6 million to DAY & ZIMMERMANN, INC -KS DIV. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is DAY & ZIMMERMANN, INC -KS DIV.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $24.6 million.
What is the period of performance?
Start: 2000-02-28. End: 2008-12-31.
What was the justification for not competing this significant facilities support contract?
The justification for not competing this $24.6 million facilities support contract is not provided in the data. Typically, sole-source awards require a documented justification, such as a critical need, lack of qualified sources, or national security imperative. Without this justification, it's difficult to assess the necessity of bypassing the competitive process.
How can the government ensure cost-effectiveness with a 'COST NO FEE' contract awarded non-competitively?
Ensuring cost-effectiveness in a non-competitively awarded 'COST NO FEE' contract relies heavily on robust government oversight, detailed cost auditing, and performance monitoring. The government must meticulously track all incurred costs, verify their allowability and allocability, and ensure the contractor meets all performance standards and deliverables outlined in the contract.
What is the potential financial risk to taxpayers given the contract's structure and duration?
The primary financial risk to taxpayers stems from the lack of competition and the 'COST NO FEE' structure over a long duration (3229 days). This combination creates a significant risk of cost inflation, as the contractor faces minimal pressure to control expenses or seek efficiencies. The government could be paying substantially more than necessary for these services over the contract's lifespan.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Contractor Details
Address: 23018 ROOKS ROAD, SUITE A, PARSONS, KS, 67357
Business Categories: Category Business, Not Designated a Small Business
Timeline
Start Date: 2000-02-28
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2016-08-25
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