DoD awards $12.4M for 60MM & 81MM FRPC LAP to Day & Zimmermann, Inc

Contract Overview

Contract Amount: $12,391,310 ($12.4M)

Contractor: DAY & Zimmermann, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-03-01

End Date: 2012-03-01

Contract Duration: 1,827 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 60MM AND 81MM FULL RANGE PRACTICE CARTRIDGE (FRPC) LOAD/ASSEMBLY/PACK (LAP)

Place of Performance

Location: CAMDEN, OUACHITA County, ARKANSAS, 71701

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to DAY & ZIMMERMANN, INC. for work described as: 60MM AND 81MM FULL RANGE PRACTICE CARTRIDGE (FRPC) LOAD/ASSEMBLY/PACK (LAP) Key points: 1. Contract awarded to Day & Zimmermann, Inc. for ammunition Load/Assembly/Pack. 2. Full and open competition was utilized for this contract. 3. The contract value is $12.4 million over a 5-year period. 4. This falls under Small Arms Ammunition Manufacturing (NAICS 332992).

Value Assessment

Rating: good

The contract value of $12.4M over 5 years suggests a reasonable annual spend for ammunition LAP. Benchmarking against similar ammunition contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was used, which typically leads to better price discovery and competitive pricing. The number of bids received (9) indicates a healthy level of interest.

Taxpayer Impact: Competitive bidding in full and open solicitations generally ensures taxpayer funds are used efficiently for defense procurement.

Public Impact

Ensures readiness for military training exercises requiring 60MM and 81MM rounds. Supports domestic manufacturing capabilities for essential defense munitions. Provides sustained business for the awarded contractor, Day & Zimmermann, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 67 / 10

Warning Flags

Contract duration is relatively long (5 years), potentially locking in prices.
Firm Fixed Price contract offers limited flexibility for cost adjustments.

Positive Signals

Full and open competition utilized.
Multiple bids received (9).
Contract supports critical defense materiel.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically small arms ammunition. Spending benchmarks for this type of procurement are highly dependent on specific munition types and quantities.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), indicating standard oversight. The firm fixed price nature of the contract simplifies some oversight aspects.

Related Government Programs

Small Arms Ammunition Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Contract duration
Firm Fixed Price
No small business awardee indicated
Potential for price escalation if market conditions change significantly

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to DAY & ZIMMERMANN, INC.. 60MM AND 81MM FULL RANGE PRACTICE CARTRIDGE (FRPC) LOAD/ASSEMBLY/PACK (LAP)

Who is the contractor on this award?

The obligated recipient is DAY & ZIMMERMANN, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2007-03-01. End: 2012-03-01.

What is the historical performance of Day & Zimmermann, Inc. on similar defense contracts?

Assessing Day & Zimmermann's past performance on contracts for ammunition LAP or similar defense manufacturing is crucial. Reviewing their track record for on-time delivery, quality control, and adherence to budget on previous contracts can indicate their reliability and capability for this current award. This historical data informs future risk assessments and potential for contract success.

How does the per-unit cost of this contract compare to market rates for similar ammunition components?

Benchmarking the per-unit cost against industry standards and other government contracts for 60MM and 81MM FRPC LAP is essential. Significant deviations could indicate either exceptional value or potential overpricing. Understanding the market rate helps validate the fairness of the negotiated price and ensures taxpayer dollars are being used effectively.

What is the strategic importance of this specific ammunition type to current military operations?

The strategic importance of 60MM and 81MM FRPC LAP relates directly to military training and readiness. These rounds are fundamental for infantry units to practice indirect fire support. Ensuring a consistent and cost-effective supply is vital for maintaining troop proficiency and operational preparedness across various combat scenarios.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DAY & Zimmermann Group Inc., the (UEI: 007913486)

Address: HIGHLAND INDUSTRIAL PARK AREA 15 AT, CAMDEN, AR, 04

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,391,533

Exercised Options: $12,391,310

Current Obligation: $12,391,310

Contract Characteristics

Cost or Pricing Data: NO

Timeline