DoD's $5.5M ESN Repair Contract Awarded to Canadian Commercial Corporation for Aircraft Engine Parts

Contract Overview

Contract Amount: $5,490,749 ($5.5M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2025-12-18

End Date: 2026-03-18

Contract Duration: 90 days

Daily Burn Rate: $61.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ESN REPAIR 412107 SHIP FROM: EZ4055 SHIP TO: FB6606 TAC: FK36

Plain-Language Summary

Department of Defense obligated $5.5 million to CANADIAN COMMERCIAL CORPORATION for work described as: ESN REPAIR 412107 SHIP FROM: EZ4055 SHIP TO: FB6606 TAC: FK36 Key points: 1. Contract focuses on essential repair services for aircraft engines, indicating a critical need for fleet readiness. 2. The award to a Canadian entity suggests potential reliance on international partners for specialized defense manufacturing capabilities. 3. Fixed-price contract type aims to control costs, but the specific repair scope needs scrutiny for value. 4. Limited duration of 90 days points to an urgent or short-term requirement rather than a long-term sustainment effort. 5. The absence of small business set-asides means opportunities for smaller domestic firms may be limited in this specific award. 6. Analysis of the contractor's past performance and pricing benchmarks is crucial for assessing overall value for money.

Value Assessment

Rating: fair

The contract value of $5.49 million for a 90-day delivery order appears substantial for repair services. Benchmarking this against similar engine repair contracts is difficult without more detailed scope information. The fixed-price nature provides cost certainty, but the value proposition hinges on the efficiency and quality of the repair work performed by the Canadian Commercial Corporation. Further analysis would require comparing the unit costs of specific repair tasks to industry standards or historical data for similar engine components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the specific number of bids received and the details of the bidding process are not provided. Full and open competition generally promotes a competitive environment, which should theoretically lead to better pricing and value for the government. The fact that a Canadian entity won suggests they offered a competitive proposal.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best possible price and service for the required aircraft engine repairs. This approach helps prevent overpayment and ensures that government funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of the Air Force, ensuring the operational readiness of its aircraft fleet. Services delivered include the repair of ESN (Engine Serial Number) components, critical for maintaining aircraft functionality. The geographic impact is primarily within the Department of Defense's operational theaters, supporting air mission capabilities. Workforce implications are likely concentrated within the specialized repair facilities of the Canadian Commercial Corporation and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for extended lead times due to international shipping and customs for engine parts.
Dependence on a foreign entity for critical defense equipment repair could pose long-term strategic risks.
Lack of transparency regarding the specific repair processes and quality control measures employed by the contractor.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing structure.
Fixed-price contract type provides cost certainty for this specific repair requirement.
The contractor, Canadian Commercial Corporation, likely possesses specialized expertise in aircraft engine repair.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on aircraft engine component repair. The market for defense MRO (Maintenance, Repair, and Overhaul) is substantial, with significant government spending allocated annually. This contract represents a small but critical component of the Air Force's sustainment strategy, ensuring the availability of key engine parts. Comparable spending benchmarks would involve analyzing other contracts for similar engine repair services across different military branches or allied nations.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to all eligible large and small businesses. While there's no explicit subcontracting plan detailed here, large prime contractors are often required to outline their plans for engaging small businesses. The absence of a set-aside means that direct opportunities for small businesses on this specific award are unlikely unless they are part of a larger subcontracting effort.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are embedded in the fixed-price contract terms, requiring delivery of specified repairs by a certain date. Transparency could be enhanced by making detailed performance reports and quality assurance findings publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Engine Repair Services
Defense Logistics Agency (DLA) Contracts
Air Force Sustainment Programs
Aerospace Component Manufacturing
International Defense Procurement

Risk Flags

International Procurement Risk
Supply Chain Security Concerns
Potential for Delivery Delays
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 million to CANADIAN COMMERCIAL CORPORATION. ESN REPAIR 412107 SHIP FROM: EZ4055 SHIP TO: FB6606 TAC: FK36

Who is the contractor on this award?

The obligated recipient is CANADIAN COMMERCIAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2025-12-18. End: 2026-03-18.

What is the track record of the Canadian Commercial Corporation in performing similar aircraft engine repair services for the U.S. Department of Defense?

The Canadian Commercial Corporation (CCC) acts as a government-to-government contracting entity for international procurement. While CCC itself may not directly perform the repairs, it facilitates contracts between foreign suppliers and the U.S. DoD. Assessing CCC's track record involves reviewing its history of successfully managing such international defense contracts. Specific performance data on past U.S. DoD contracts managed by CCC would need to be sourced from contract databases and performance reports. It's crucial to examine if previous contracts met cost, schedule, and quality requirements. The nature of this specific award, being a delivery order under a larger framework, suggests a pre-existing relationship or established capability is likely being leveraged.

How does the $5.49 million cost for a 90-day repair period compare to industry benchmarks for similar aircraft engine component repairs?

Directly comparing the $5.49 million cost for a 90-day period without knowing the specific ESN components being repaired and the scope of work is challenging. Aircraft engine repair costs vary significantly based on the complexity of the engine, the specific parts requiring attention, and the extent of the damage. For high-value, complex military aircraft engines, such costs can be justifiable if they involve extensive overhauls or specialized component replacements. To benchmark effectively, one would need to identify comparable contracts for the same or similar engine types, analyze the number of units repaired, and the nature of the repairs performed. Industry benchmarks for engine MRO (Maintenance, Repair, and Overhaul) often focus on cost per flight hour or cost per overhaul, which are not directly applicable here but provide a general sense of scale.

What are the primary risks associated with awarding this contract to a Canadian entity, and what mitigation strategies are in place?

Key risks include potential delays due to international shipping, customs, and differing regulatory environments. There's also a strategic risk associated with relying on a foreign entity for critical defense equipment repair, particularly concerning supply chain security and intellectual property protection. Mitigation strategies likely involve robust contract clauses addressing delivery timelines, quality assurance protocols, and data security. The U.S. government would also vet the Canadian Commercial Corporation and its subcontractors to ensure compliance with security standards. Furthermore, the fixed-price nature of the contract shifts some financial risk to the contractor. The relatively short duration might also limit the exposure to long-term geopolitical or supply chain disruptions.

What is the expected impact of this contract on the operational readiness of the U.S. Air Force's aircraft fleet?

This contract is expected to have a positive impact on the operational readiness of the U.S. Air Force's aircraft fleet by ensuring that critical ESN components are repaired and returned to service. Aircraft engines are vital to flight operations, and timely repairs prevent aircraft from being grounded due to maintenance issues. By addressing the repair needs for these components, the Air Force can maintain a higher percentage of its fleet available for missions. The 90-day completion window suggests an effort to quickly resolve a specific maintenance bottleneck or requirement, thereby directly contributing to sustained operational capability and mission accomplishment.

How does this contract fit into the broader U.S. Department of Defense strategy for aircraft sustainment and maintenance?

This contract aligns with the DoD's broader strategy of maintaining a ready and capable air fleet through effective sustainment and maintenance programs. It highlights the reliance on both domestic and international partners for specialized repair capabilities, particularly when specific expertise or capacity is needed. The use of full and open competition, even for international awards, reflects a commitment to leveraging global markets to achieve best value. The fixed-price nature and defined duration indicate a focus on efficient execution of specific repair tasks, contributing to the overall lifecycle management of aircraft engines and ensuring long-term operational availability.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 350 ALBERT ST SUITE 700, OTTAWA

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

Financial Breakdown

Contract Ceiling: $5,490,749

Exercised Options: $5,490,749

Current Obligation: $5,490,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA812420D0004

IDV Type: IDC

Timeline