DoD awards $15.4M for HE LAP production, with 2 orders placed under a larger IDIQ

Contract Overview

Contract Amount: $15,355,957 ($15.4M)

Contractor: DAY & Zimmermann Kansas LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-04

End Date: 2028-09-30

Contract Duration: 1,122 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER FOR HE LAP PRODUCTION QUANTITIES.

Place of Performance

Location: PARSONS, LABETTE County, KANSAS, 67357

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $15.4 million to DAY & ZIMMERMANN KANSAS LLC for work described as: DELIVERY ORDER FOR HE LAP PRODUCTION QUANTITIES. Key points: 1. Contract value represents a portion of a larger indefinite-delivery, indefinite-quantity (IDIQ) contract, making direct value-for-money assessment challenging without full contract scope. 2. The contract was awarded under full and open competition, suggesting a competitive environment for this type of ammunition manufacturing. 3. The fixed-price contract type aims to control costs, but the final price is dependent on the quantities ordered. 4. The duration of the contract (over 3 years) indicates a sustained need for these specific ammunition components. 5. The North American Industry Classification System (NAICS) code 332993 points to a specialized manufacturing sector. 6. The award is a delivery order, meaning it's a specific task under an existing contract, not a new standalone award.

Value Assessment

Rating: fair

Assessing the value-for-money for this specific delivery order is difficult without the full scope and pricing of the parent IDIQ contract. The firm fixed-price nature provides some cost certainty for the government on the units ordered. However, without benchmark data for HE LAP production quantities or comparisons to similar ammunition manufacturing contracts, a definitive value assessment is limited. The total value of $15.4 million for two orders suggests a significant quantity, but the per-unit cost is not provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple potential bidders were allowed to submit proposals. The fact that this is a delivery order under an IDIQ suggests that the initial competition for the IDIQ likely established a competitive baseline. The specific number of bidders for this particular delivery order is not detailed, but the 'full and open' designation implies a robust competitive process was intended.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovation. It ensures that the government explores a wide range of potential suppliers, reducing the risk of paying inflated prices due to a lack of alternatives.

Public Impact

This contract directly supports the Department of Defense's readiness and operational capabilities by ensuring the supply of essential ammunition components. The primary beneficiaries are military personnel who rely on this ammunition for training and combat operations. The geographic impact is primarily within the United States, specifically Kansas where the contractor is located. The contract supports manufacturing jobs within the ammunition production sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on the total value and scope of the parent IDIQ contract hinders a comprehensive value assessment.
Specific performance metrics and quality control details for this delivery order are not publicly available.
The long contract duration could present risks if technology or requirements change significantly during its term.

Positive Signals

Awarded under full and open competition, suggesting a competitive market for this product.
Firm fixed-price contract type provides cost certainty for the awarded quantities.
The contractor, Day & Zimmermann Kansas LLC, is a known entity in defense manufacturing, implying some level of established capability.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on the production of ammunition. The NAICS code 332993, 'Ammunition (except Small Arms) Manufacturing,' categorizes this industry. The defense sector is characterized by long-term contracts, stringent quality requirements, and significant government oversight. Spending in this area is driven by national security needs and geopolitical factors. Comparable spending benchmarks would typically be found within the broader defense procurement data for munitions.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. As a delivery order under a potentially larger IDIQ, the small business participation might have been addressed at the IDIQ level. Without specific details, it's difficult to assess the direct impact on the small business ecosystem for this particular order.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense. As a delivery order under an IDIQ, the parent contract likely has established oversight mechanisms. The firm fixed-price nature simplifies some aspects of financial oversight, focusing on delivery and quality. Transparency is moderate, with the award details available, but the full contract terms and performance specifics are not public.

Related Government Programs

Department of Defense Ammunition Procurement
Army Ammunition Production Contracts
Indefinite-Delivery, Indefinite-Quantity (IDIQ) Contracts
Defense Manufacturing Sector Spending

Risk Flags

Potential for cost overruns if the parent IDIQ scope is significantly larger than anticipated.
Risk associated with long-term production contracts if material availability or technology changes.
Dependence on specific manufacturing capabilities for specialized ammunition components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to DAY & ZIMMERMANN KANSAS LLC. DELIVERY ORDER FOR HE LAP PRODUCTION QUANTITIES.

Who is the contractor on this award?

The obligated recipient is DAY & ZIMMERMANN KANSAS 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 $15.4 million.

What is the period of performance?

Start: 2025-09-04. End: 2028-09-30.

What is the total value and scope of the parent IDIQ contract under which this delivery order was placed?

The provided data only details a specific delivery order valued at $15,355,956.79 for HE LAP production quantities, consisting of two orders. The total value and comprehensive scope of the parent Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract are not specified in this data. IDIQ contracts are designed to provide a flexible framework for acquiring supplies or services over a period, with specific task orders or delivery orders issued as needed. Without access to the parent IDIQ's ceiling value, period of performance, and the full list of potential services or products, it is impossible to determine the overall commitment and potential spending under that contract. This limits the ability to assess the strategic importance and full financial implications of the program.

How does the per-unit cost of these HE LAP production quantities compare to historical averages or market benchmarks?

The provided data does not include the per-unit cost for the High Explosive (HE) Lap (likely referring to a specific type of projectile or component) production quantities. It only states the total value of the delivery order ($15,355,956.79) and that it comprises two orders. To perform a cost comparison, the total quantity of units ordered would need to be known, allowing for the calculation of a per-unit price. Without this quantity information, benchmarking against historical averages for similar ammunition components or current market rates for defense manufacturing is not feasible. Such a comparison is crucial for determining if the government is achieving a fair and reasonable price.

What is the track record of Day & Zimmermann Kansas LLC in fulfilling similar defense manufacturing contracts?

Day & Zimmermann Kansas LLC is a known entity within the defense manufacturing sector. The company has a history of producing various types of ammunition and ordnance for the U.S. military. While specific details on past performance for HE LAP production quantities are not provided in this data snippet, their established presence suggests they possess the necessary infrastructure, expertise, and security clearances required for such contracts. A comprehensive assessment would involve reviewing their past performance evaluations, any reported issues or successes on previous government contracts, and their overall capacity to meet demanding production schedules and quality standards.

What are the specific quality assurance and inspection protocols for this ammunition production contract?

The provided data specifies that the contract is for 'HE LAP Production Quantities' and is a 'FIRM FIXED PRICE' award. However, it does not detail the specific quality assurance (QA) and inspection protocols that will be applied to this contract. Defense contracts, especially for munitions, typically involve rigorous QA measures, including material inspection, in-process inspections, and final product testing, often adhering to military specifications (e.g., MIL-STD). These protocols are usually outlined in the contract's statement of work or incorporated by reference. Without these details, it's difficult to assess the robustness of the quality control measures designed to ensure the reliability and safety of the ammunition produced.

How does the duration of this delivery order (ending 2028) align with the projected needs for this type of ammunition?

This delivery order has an estimated completion date of September 30, 2028, giving it a performance period of approximately three years from the estimated start date. The alignment of this duration with projected needs depends on the U.S. military's strategic planning, inventory levels, and anticipated operational tempo. Ammunition requirements can fluctuate based on global security environments, training cycles, and modernization programs. A three-year duration suggests a sustained, predictable requirement for these specific HE LAP production quantities. However, without insight into the broader defense logistics and strategic foresight documents, it's challenging to definitively state whether this duration perfectly matches evolving needs or if it represents a conservative estimate.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 23102 RUSH RD, PARSONS, KS, 67357

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,355,957

Exercised Options: $15,355,957

Current Obligation: $15,355,957

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J22D0031

IDV Type: IDC

Timeline