DoD's $207.8M contract for Radio & TV Comm Equipment awarded to Canadian Commercial Corp

Contract Overview

Contract Amount: $433,272,385 ($433.3M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 1998-06-23

End Date: 2012-12-30

Contract Duration: 5,304 days

Daily Burn Rate: $81.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 199809!2100!2789!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0798CF505 !A!*!* !19980623!20080930!207884594!207884594!241015486!N!98247!CANADIAN COMMERCIAL CORPORATIO!50 O CONNOR ST STE 1100 !OTTAWA !CA!K1A 0!* !* !CA!* !* !CANADA !0001!+000013975495!N!N!000000000000!5820!RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !3663!3!*!*!*!B!A!*!A !N!J!2!003!B!* !Z!N!A!* !* !N!L!*!*!*!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!

Plain-Language Summary

Department of Defense obligated $433.3 million to CANADIAN COMMERCIAL CORPORATION for work described as: 199809!2100!2789!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0798CF505 !A!*!* !19980623!20080930!207884594!207884594!241015486!N!98247!CANADIAN COMMERCIAL CORPORATIO!50 O CONNOR ST STE 1100 !OTTAWA !CA!K1A 0!* !* !CA!* !* … Key points: 1. The contract value of $207.8 million was awarded to a foreign entity, raising potential national security considerations. 2. The procurement utilized full and open competition, suggesting a competitive bidding process. 3. The product service code (PSC) 5820 indicates a focus on communication equipment, a critical area for defense. 4. The contract duration of over 14 years (5304 days) is exceptionally long, potentially impacting cost-effectiveness and adaptability.

Value Assessment

Rating: questionable

The contract value of $207.8 million for radio and TV communication equipment is substantial. Benchmarking against similar contracts is difficult without more specific details on the equipment's capabilities and quantities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the long duration and the award to a foreign entity warrant further scrutiny regarding price discovery.

Taxpayer Impact: While competition was intended to ensure fair pricing, the extended duration and foreign award may have implications for long-term taxpayer value and domestic industry support.

Public Impact

Award to a foreign company for defense communication equipment could raise national security and data privacy concerns. The extended contract period may limit the adoption of newer, more advanced communication technologies. Long-term contracts can sometimes lead to cost overruns or reduced flexibility in adapting to evolving threats. The lack of small business participation is noted, potentially missing opportunities for domestic innovation and economic contribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Foreign award for critical defense equipment
Extended contract duration (over 14 years)
Lack of small business participation

Positive Signals

Full and open competition utilized
Clear product service code identified

Sector Analysis

The defense sector heavily relies on advanced communication equipment. Spending in this area is critical for operational effectiveness, with significant investment typically allocated to ensure technological superiority and interoperability.

Small Business Impact

This contract does not appear to have involved small businesses, as indicated by the 'sb' field being false. This represents a missed opportunity to leverage small business innovation and support domestic economic growth within the defense supply chain.

Oversight & Accountability

The extensive duration of this contract raises questions about ongoing oversight and whether periodic reviews were conducted to ensure continued value and relevance. Accountability for performance over such a long period is crucial.

Related Government Programs

Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential national security risks associated with foreign award
Risk of technological obsolescence due to long contract duration
Limited visibility into specific equipment capabilities and performance
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $433.3 million to CANADIAN COMMERCIAL CORPORATION. 199809!2100!2789!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0798CF505 !A!*!* !19980623!20080930!207884594!207884594!241015486!N!98247!CANADIAN COMMERCIAL CORPORATIO!50 O CONNOR ST STE 1100 !OTTAWA !CA!K1A 0!* !* !CA!* !* !CANADA !0001!+000013975495!N!N!000000000000!5820!RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !3663!3!*!*!*!B!A!*!A !N!J!2!0

Who is the contractor on this award?

The obligated recipient is CANADIAN COMMERCIAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $433.3 million.

What is the period of performance?

Start: 1998-06-23. End: 2012-12-30.

What specific communication equipment was procured under this contract, and how does it align with current and future defense needs?

The contract specifies 'RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE' under PSC 5820. While essential for communication, the exact nature of the equipment and its technological relevance over a 14+ year period is unclear. Future defense needs often evolve rapidly, making long-term procurement of specific hardware potentially obsolete or less effective than modular or adaptable systems.

What were the key factors that led to the selection of a foreign entity for this substantial defense contract, and were national security implications fully assessed?

The data indicates 'FULL AND OPEN COMPETITION' was used, suggesting the foreign entity offered the best value or met specific requirements. However, awarding a significant defense contract to a foreign corporation necessitates a thorough national security assessment, including data security, supply chain integrity, and potential reliance on foreign technology.

How was the pricing determined for a contract spanning over 14 years, and what mechanisms were in place to mitigate risks associated with long-term price fluctuations and technological obsolescence?

The contract type is 'FIRM FIXED PRICE', which aims to control costs. However, for a contract of this duration (5304 days), fixed pricing can become disadvantageous if market prices change significantly or if technology rapidly advances. The lack of specific details on price adjustment clauses or performance reviews makes it difficult to assess the long-term value and effectiveness of the pricing strategy.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Government of Canada (UEI: 241015486)

Address: 50 O'CONNOR ST SUITE 1100, OTTAWA

Business Categories: Category Business, Foreign Government, Not Designated a Small Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline