DoD Awards $49.6M Contract for Iowa Melt/Pour Facility Design, Lacking Small Business Participation
Contract Overview
Contract Amount: $49,551,788 ($49.6M)
Contractor: American Ordnance LLC
Awarding Agency: Department of Defense
Start Date: 2019-05-24
End Date: 2025-01-31
Contract Duration: 2,079 days
Daily Burn Rate: $23.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PHASE 1 DESIGN CHARRETTE FOR MODERNIZED MELT/POUR FACILITY AT IAAAP
Place of Performance
Location: MIDDLETOWN, DES MOINES County, IOWA, 52638
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $49.6 million to AMERICAN ORDNANCE LLC for work described as: PHASE 1 DESIGN CHARRETTE FOR MODERNIZED MELT/POUR FACILITY AT IAAAP Key points: 1. Significant investment in critical defense infrastructure. 2. Sole contractor, American Ordnance LLC, holds extensive experience. 3. Potential for cost overruns due to Cost Plus Fixed Fee structure. 4. Limited small business involvement raises concerns about economic impact.
Value Assessment
Rating: fair
The contract value of $49.6M for a Phase 1 design charrette appears high for an initial design phase. Benchmarking against similar facility design contracts is difficult without more detailed scope information, but the duration and cost warrant scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive process. However, the specific award type (Delivery Order) and the single contractor selected for this phase warrant further investigation into the price discovery mechanisms employed.
Taxpayer Impact: Taxpayer funds are being utilized for a critical defense facility upgrade. The cost-plus-fixed-fee structure necessitates careful oversight to ensure value for money and prevent excessive profit.
Public Impact
Modernization of a key defense manufacturing facility. Potential job creation during the construction and operational phases. Ensuring the security and efficiency of munitions production.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration (2079 days) for a design phase.
Positive Signals
- Awarded under full and open competition.
- Addresses critical defense infrastructure needs.
- Experienced contractor selected.
Sector Analysis
This contract falls within the Facilities Support Services sector, specifically related to defense manufacturing infrastructure. Spending benchmarks for similar large-scale facility design charrettes are highly variable, but the scale of this award suggests a significant project.
Small Business Impact
The contract explicitly states no small business participation (ss: false, sb: false). This indicates a missed opportunity to engage small businesses in a significant federal contract, potentially limiting broader economic benefits.
Oversight & Accountability
The Cost Plus Fixed Fee (CPFF) contract type requires robust oversight from the Department of the Army to manage costs effectively and ensure the contractor is not incentivized to inflate expenses. Regular audits and performance reviews are crucial.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation.
- Cost Plus Fixed Fee contract type.
- High cost for an initial design phase.
- Long contract duration for design charrette.
Tags
facilities-support-services, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.6 million to AMERICAN ORDNANCE LLC. PHASE 1 DESIGN CHARRETTE FOR MODERNIZED MELT/POUR FACILITY AT IAAAP
Who is the contractor on this award?
The obligated recipient is AMERICAN ORDNANCE 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 $49.6 million.
What is the period of performance?
Start: 2019-05-24. End: 2025-01-31.
What specific design elements and deliverables are included in this $49.6M Phase 1 charrette to justify the significant cost?
The provided data lacks specifics on the design charrette's scope. A detailed breakdown of deliverables, such as conceptual designs, feasibility studies, site assessments, and preliminary engineering reports, is needed to assess the value. Without this, it's difficult to benchmark the cost against industry standards for similar initial design phases.
Given the full and open competition, why was only one contractor selected for this specific delivery order, and what was the competitive pricing achieved?
While the overall contract may have been awarded competitively, the selection of a single contractor for this specific delivery order warrants explanation. Understanding the rationale behind this choice and the price negotiation process is key to ensuring fair market value was obtained. Further details on the bidding process and price analysis are required.
How will the Department of Defense ensure cost control and prevent potential overruns with the Cost Plus Fixed Fee structure for this extensive design phase?
The CPFF structure necessitates stringent oversight. The DoD must implement rigorous monitoring of contractor costs, regular performance evaluations, and clear milestones. Establishing a realistic fixed fee based on thorough cost analysis and incentivizing efficiency will be critical to mitigating risks associated with this contract type.
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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: DAY & Zimmermann Group Inc., the
Address: 17575 HIGHWAY 79, MIDDLETOWN, IA, 52638
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,551,788
Exercised Options: $49,551,788
Current Obligation: $49,551,788
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52P1J09G0001
IDV Type: IDC
Timeline
Start Date: 2019-05-24
Current End Date: 2025-01-31
Potential End Date: 2025-01-31 12:01:00
Last Modified: 2024-12-03
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