DoD awards $10.5M for nonstandard ammunition to Iraq, with a 42-day delivery timeline

Contract Overview

Contract Amount: $10,463,071 ($10.5M)

Contractor: DAY & Zimmermann Incorporated

Awarding Agency: Department of Defense

Start Date: 2007-08-31

End Date: 2008-05-05

Contract Duration: 248 days

Daily Burn Rate: $42.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FMS NONSTARDARD AMMUNITION FOR THE COUNTRY OF IRAQ

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19130

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $10.5 million to DAY & ZIMMERMANN INCORPORATED for work described as: FMS NONSTARDARD AMMUNITION FOR THE COUNTRY OF IRAQ Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The fixed-price contract type aims to control costs for the Department of Defense. 3. Delivery was required within 248 days, indicating a moderate urgency. 4. The contract falls under the Ammunition (except Small Arms) Manufacturing sector. 5. The awardee, Day & Zimmermann Inc., is a significant player in defense manufacturing. 6. The contract value is relatively modest within the broader defense spending landscape.

Value Assessment

Rating: fair

The contract value of approximately $10.5 million for ammunition is difficult to benchmark without specific item details and quantities. However, the fixed-price nature of the award suggests an attempt to manage cost certainty. The award amount relative to the number of bids (10) and the relatively short performance period (248 days) does not immediately indicate overpayment, but a detailed cost analysis of the specific ammunition types would be necessary for a definitive value assessment. The benchmark of $4.2 million in prior comparable contracts suggests this award is within a reasonable range for similar procurements.

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. Ten bids were received, which suggests a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The robust competition for this contract likely resulted in a more cost-effective outcome for taxpayers, as multiple companies vied to provide the required ammunition at the best possible price.

Public Impact

The primary beneficiary is the country of Iraq, receiving essential ammunition for its defense needs. The contract supports the delivery of nonstandard ammunition, crucial for specific military operations. The geographic impact is primarily focused on the delivery destination in Iraq. The contract supports the manufacturing workforce within the United States, specifically at Day & Zimmermann Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of 'nonstandard' ammunition types over time.
Geopolitical risks associated with supplying ammunition to foreign nations.
Dependence on a single contractor for a specific type of ammunition.

Positive Signals

Awarded through full and open competition, indicating market responsiveness.
Fixed-price contract type helps control costs.
Contractor has a track record in defense manufacturing.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on ammunition production. The market for defense-related manufacturing is characterized by long-term government contracts, stringent quality requirements, and significant barriers to entry. The North American Industry Classification System (NAICS) code 332993 covers the manufacturing of ammunition (except small arms). Spending in this area is driven by national security needs and foreign military sales, with values often fluctuating based on global security dynamics and specific military requirements.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of ammunition manufacturing, it is likely that larger, specialized defense contractors are the primary participants. Subcontracting opportunities for small businesses may exist within the supply chain for raw materials or components, but the prime contract itself does not appear to be targeted towards small businesses.

Oversight & Accountability

The Department of the Army, within the Department of Defense, is responsible for overseeing this contract. Oversight mechanisms would typically include contract administration, performance monitoring, and quality assurance to ensure compliance with the terms and specifications. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Foreign Military Sales (FMS)
Ammunition Procurement
Defense Industrial Base
Weapons Manufacturing

Risk Flags

Potential for geopolitical instability impacting delivery or end-use.
Risk of 'nonstandard' ammunition becoming obsolete or difficult to support.
Dependence on contractor's production capacity and supply chain.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to DAY & ZIMMERMANN INCORPORATED. FMS NONSTARDARD AMMUNITION FOR THE COUNTRY OF IRAQ

Who is the contractor on this award?

The obligated recipient is DAY & ZIMMERMANN INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2007-08-31. End: 2008-05-05.

What is the specific type and quantity of 'nonstandard ammunition' being procured for Iraq?

The provided data does not specify the exact type or quantity of 'nonstandard ammunition.' The term 'nonstandard' suggests ammunition that may not conform to typical U.S. military specifications but is required for specific foreign platforms or operational needs. Understanding the precise nature of this ammunition is crucial for assessing its strategic value, potential interoperability issues, and the specific manufacturing capabilities required. Without this detail, a full analysis of the contract's technical requirements and associated risks is limited. Further investigation into the contract's statement of work or associated documentation would be necessary to identify the specific munition types.

How does the $10.5 million contract value compare to historical spending on similar ammunition procurements for Iraq or other foreign partners?

The contract value of $10.5 million is a single data point, and its comparability depends heavily on the specific type, quantity, and urgency of the ammunition. The data indicates a prior comparable contract value of $4.2 million (br: 42190), suggesting this award is larger. However, without knowing if the prior contract was for the same type of ammunition, quantity, or urgency, a direct comparison is difficult. Historical spending patterns for foreign military sales of ammunition can vary significantly based on geopolitical events, regional conflicts, and the specific needs of partner nations. A broader analysis of FMS ammunition contracts over several years would be needed to establish a robust historical spending benchmark.

What is Day & Zimmermann Incorporated's track record and experience in fulfilling ammunition contracts, particularly for international clients?

Day & Zimmermann Incorporated is a well-established defense contractor with extensive experience in manufacturing and supplying ammunition, munitions, and related defense products. They have a long history of supporting U.S. military and government requirements, as well as engaging in foreign military sales. Their capabilities often include demilitarization, modernization, and production of various ordnance. While specific details on their performance for this particular contract are not provided, their general reputation and established presence in the defense sector suggest a capacity to handle such procurements. Verifying past performance ratings and any significant issues on prior international contracts would provide a more complete picture.

What are the potential risks associated with supplying 'nonstandard' ammunition, and how are they mitigated in this contract?

Supplying 'nonstandard' ammunition carries several potential risks. These include logistical challenges due to different specifications, potential interoperability issues with existing systems, difficulties in future resupply or maintenance if the ammunition type is not widely produced, and potential security risks if the ammunition falls into unintended hands. Mitigation strategies within the contract would typically involve stringent quality control measures, clear specifications for the ammunition, secure transportation and delivery protocols, and potentially training for the recipient's personnel. The fixed-price nature of the contract also incentivizes the contractor to deliver conforming goods to avoid costly rework or disputes.

How does the 248-day performance period (approximately 8 months) align with typical delivery timelines for ammunition procurements of this nature?

A performance period of 248 days (approximately 8 months) for an ammunition contract of this value ($10.5 million) appears to be a moderate timeline. Ammunition production can be complex and require significant lead times for raw materials, manufacturing processes, and quality assurance. For standard, high-volume items, shorter timelines might be expected. However, for 'nonstandard' ammunition, specialized production runs, or procurements involving international logistics, an 8-month window could be reasonable. The urgency of the requirement, dictated by the needs of the Iraqi forces, would be the primary driver for the delivery schedule. Comparing this to other FMS ammunition contracts would provide better context.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W52P1J07R0104

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1818 MARKET ST FLR 10, PHILADELPHIA, PA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,463,071

Exercised Options: $10,463,071

Current Obligation: $10,463,071

Timeline