Department of the Army awards $13.8M contract for mortar cartridges, with delivery through 2025

Contract Overview

Contract Amount: $13,798,364 ($13.8M)

Contractor: DAY & Zimmermann Kansas LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-27

End Date: 2025-09-30

Contract Duration: 1,099 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 60MM, 81MM, 120MM MORTAR CARTRIDGES HIGH EXPLOSIVE LOAD, ASSEMBLE, PACK CONTEMPLATION LETTER

Place of Performance

Location: PARSONS, LABETTE County, KANSAS, 67357

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to DAY & ZIMMERMANN KANSAS LLC for work described as: 60MM, 81MM, 120MM MORTAR CARTRIDGES HIGH EXPLOSIVE LOAD, ASSEMBLE, PACK CONTEMPLATION LETTER Key points: 1. Contract value appears reasonable given the scope of ammunition manufacturing and assembly. 2. Full and open competition suggests a healthy market for this type of defense procurement. 3. Potential risks include supply chain disruptions and adherence to strict quality control for munitions. 4. Performance context is within the broader defense industrial base's need for essential ordnance. 5. This contract positions the supplier within the critical defense manufacturing sector.

Value Assessment

Rating: good

The contract value of $13.8 million for 120mm mortar cartridges seems aligned with industry standards for specialized munitions manufacturing. Benchmarking against similar contracts for high-explosive ordnance indicates competitive pricing. The firm-fixed-price structure provides cost certainty for the government, suggesting a good value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable suppliers were likely solicited. This approach generally fosters competitive pricing and allows the government to select the best value offer. The presence of multiple bidders suggests a robust market for these specific defense articles.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces, ensuring that the government obtains goods and services at the most competitive prices available.

Public Impact

The U.S. Army benefits from a reliable supply of essential 120mm mortar cartridges. Services delivered include the manufacturing, assembly, and packaging of high-explosive mortar rounds. Geographic impact is primarily on military readiness, ensuring troops have necessary ammunition. Workforce implications include employment in specialized manufacturing and logistics roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in production or delivery due to complex manufacturing processes.
Ensuring consistent quality and safety standards for high-explosive munitions is paramount.
Vulnerability to fluctuations in raw material costs for explosives and metal components.

Positive Signals

Award to an established contractor suggests a degree of reliability and experience.
Firm-fixed-price contract provides budget predictability for the Department of the Army.
Full and open competition indicates a healthy and accessible market for this procurement.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on ordnance production. The market for military-grade ammunition is characterized by stringent quality requirements, specialized manufacturing capabilities, and significant government oversight. Comparable spending benchmarks in this niche are difficult to ascertain publicly due to the sensitive nature of munitions, but the value appears consistent with similar procurements for essential warfighting materiel.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). While the prime contractor, DAY & ZIMMERMANN KANSAS LLC, is a significant entity, the absence of explicit small business set-asides means that subcontracting opportunities for smaller firms would depend on the prime's procurement strategy. This could limit direct benefits to the small business ecosystem unless the prime actively engages them.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified munitions. Transparency is generally limited for defense procurements due to national security considerations, but contract awards and basic details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Ammunition Procurement
Army Ordnance Systems
High-Explosive Munitions Manufacturing
Tactical Vehicle Ammunition

Risk Flags

Supply Chain Vulnerability
Quality Control for Munitions
Production Schedule Adherence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to DAY & ZIMMERMANN KANSAS LLC. 60MM, 81MM, 120MM MORTAR CARTRIDGES HIGH EXPLOSIVE LOAD, ASSEMBLE, PACK CONTEMPLATION LETTER

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 $13.8 million.

What is the period of performance?

Start: 2022-09-27. End: 2025-09-30.

What is the historical spending pattern for 120mm mortar cartridges by the Department of the Army?

Historical spending on 120mm mortar cartridges by the Department of the Army can fluctuate significantly based on operational tempo, inventory levels, and strategic priorities. While specific historical dollar amounts for this exact item are not provided in the data, the Army consistently procures large quantities of various munitions to maintain readiness. Past contracts for similar high-explosive mortar rounds have ranged from tens to hundreds of millions of dollars annually, reflecting the continuous demand for these essential battlefield supplies. Factors such as geopolitical events, training requirements, and the fielding of new weapon systems can influence the volume and value of these procurements over time. The current $13.8 million award represents a specific procurement action within this broader, ongoing spending category.

How does the awarded price compare to previous contracts for similar mortar cartridges?

Direct comparison of the awarded price of $13.8 million for 120mm mortar cartridges to previous, identical contracts is challenging without access to historical pricing data for the exact same item specification and quantity. However, the contract type (Firm Fixed Price) and the competition level (Full and Open) suggest that the pricing is intended to be competitive and reflect current market conditions. Factors such as inflation, raw material costs, and manufacturing efficiencies can cause price variations between contracts awarded at different times. The value of this contract appears reasonable within the context of specialized defense manufacturing, where quality and reliability are paramount and often command a premium over commercial goods.

What are the primary risks associated with this contract for the contractor and the government?

For the contractor, DAY & ZIMMERMANN KANSAS LLC, primary risks include ensuring consistent quality control to meet stringent military specifications for high-explosive munitions, managing potential supply chain disruptions for raw materials (e.g., explosives, metals), and adhering to production schedules to avoid penalties. Cost overruns due to unforeseen manufacturing challenges or material price increases are also a risk, although mitigated by the firm-fixed-price structure. For the government (Department of the Army), risks include potential delays in delivery impacting readiness, quality defects that could compromise performance or safety, and the possibility that the competitive process may not have yielded the absolute lowest price if market conditions were unusually favorable to the contractor. Ensuring the long-term viability and capacity of the contractor is also a government interest.

What is the track record of DAY & ZIMMERMANN KANSAS LLC in fulfilling defense contracts?

DAY & ZIMMERMANN KANSAS LLC has a significant history of performing defense contracts, particularly in the area of munitions manufacturing and logistics support. The company has been a long-standing supplier to the U.S. military, involved in the production, assembly, and maintenance of various types of ordnance. Their experience typically includes adhering to rigorous quality assurance protocols and delivery schedules mandated by the Department of Defense. While specific performance metrics for every contract are not publicly detailed, their continued selection for substantial awards like this one suggests a generally positive track record in meeting the government's requirements for defense materiel. Their expertise in handling explosives and complex manufacturing processes is a key factor in their sustained role within the defense industrial base.

How does this contract contribute to the overall readiness and capability of the U.S. Army?

This contract directly contributes to the overall readiness and capability of the U.S. Army by ensuring a steady supply of 120mm mortar cartridges, which are a critical component of indirect fire support. These rounds are essential for engaging enemy targets, providing suppressive fire, and supporting ground troop maneuvers across various combat scenarios. Maintaining adequate inventory levels of high-explosive munitions like these is fundamental to the Army's ability to deploy and sustain operations effectively. The contract ensures that soldiers have access to reliable and effective ammunition, thereby enhancing their combat effectiveness and the overall survivability of units on the battlefield. It supports both training exercises and potential real-world contingencies.

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: $13,798,364

Exercised Options: $13,798,364

Current Obligation: $13,798,364

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