DoD Awards $37.7M Contract for Ammunition Storage at Hawthorne Army Depot
Contract Overview
Contract Amount: $37,667,227 ($37.7M)
Contractor: SOC Nevada LLC
Awarding Agency: Department of Defense
Start Date: 2019-06-15
End Date: 2020-06-14
Contract Duration: 365 days
Daily Burn Rate: $103.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: STORAGE OF SINGLE MANAGER OF CONVENTIONAL AMMUNITION AT HAWTHORNE ARMY DEPOT.
Place of Performance
Location: HAWTHORNE, MINERAL County, NEVADA, 89415
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $37.7 million to SOC NEVADA LLC for work described as: STORAGE OF SINGLE MANAGER OF CONVENTIONAL AMMUNITION AT HAWTHORNE ARMY DEPOT. Key points: 1. Contract awarded to SOC Nevada LLC for facilities support services. 2. Full and open competition was utilized for this award. 3. The contract value is $37.7 million over one year. 4. This contract addresses the storage of conventional ammunition. 5. No small business participation was noted.
Value Assessment
Rating: good
The contract value of $37.7 million for a one-year duration appears reasonable for specialized facilities support services like ammunition storage. Benchmarking against similar contracts for depot operations and logistics support would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust process for discovering the best value and price. This method typically leads to more competitive pricing by allowing all qualified vendors to submit proposals.
Taxpayer Impact: The competitive nature of the award is expected to ensure taxpayer funds are used efficiently for essential defense logistics.
Public Impact
Ensures the secure and efficient storage of conventional ammunition, a critical component of national defense readiness. Supports the operational needs of the Department of the Army by providing necessary infrastructure and services. The contract's execution in Nevada contributes to the local economy through employment and related services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
Positive Signals
- Full and open competition utilized.
- Clear need for specialized storage services.
- Firm fixed price contract type.
Sector Analysis
This contract falls under Facilities Support Services, a broad category encompassing a range of services necessary for the operation and maintenance of government facilities. Spending in this sector is often driven by defense readiness and infrastructure needs.
Small Business Impact
The data indicates that small businesses were not involved in this contract, either as prime contractors or subcontractors. Further investigation may be warranted to understand if opportunities were missed or if the nature of the service precluded small business involvement.
Oversight & Accountability
The Department of the Army, under the broader Department of Defense, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should ensure compliance and performance.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- No small business participation.
- Potential for cost escalation in future contract periods.
- Dependence on a single contractor for critical storage.
- Geographic concentration of critical asset storage.
Tags
facilities-support-services, department-of-defense, nv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.7 million to SOC NEVADA LLC. STORAGE OF SINGLE MANAGER OF CONVENTIONAL AMMUNITION AT HAWTHORNE ARMY DEPOT.
Who is the contractor on this award?
The obligated recipient is SOC NEVADA 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 $37.7 million.
What is the period of performance?
Start: 2019-06-15. End: 2020-06-14.
What is the historical cost trend for similar ammunition storage contracts?
Analyzing historical cost trends for similar ammunition storage contracts is crucial for assessing long-term value. Without this data, it's difficult to determine if the current $37.7 million award represents an increase, decrease, or stable pricing compared to previous agreements. Understanding these trends can highlight potential efficiencies or escalating costs within the defense supply chain.
Are there any identified risks associated with SOC Nevada LLC's performance history in similar contracts?
Assessing the performance history of SOC Nevada LLC on similar contracts is vital for risk management. Past performance issues, such as delays, cost overruns, or quality deficiencies, could indicate potential future problems. A review of past performance evaluations and any corrective actions taken would provide insight into the reliability of the contractor and the potential risks to mission accomplishment.
How does the efficiency of this storage facility compare to other Army ammunition depots?
Evaluating the efficiency of the Hawthorne Army Depot storage facility against other Army ammunition depots is key to understanding operational effectiveness. Metrics such as storage capacity utilization, inventory management accuracy, security protocols, and response times to logistical demands can be compared. Higher efficiency at Hawthorne could justify its operational costs, while lower efficiency might signal areas for improvement or reallocation of resources.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: DAY & Zimmermann Group Inc., the (UEI: 007913486)
Address: 2 S MAINE AVE, HAWTHORNE, NV, 89415
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,667,227
Exercised Options: $37,667,227
Current Obligation: $37,667,227
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J11D0002
IDV Type: IDC
Timeline
Start Date: 2019-06-15
Current End Date: 2020-06-14
Potential End Date: 2020-06-14 12:06:00
Last Modified: 2021-10-28
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