Naval Sea Systems Command awarded $207.8M for Special Service Vessels, with a significant portion for rescue ship submarine support

Contract Overview

Contract Amount: $65,032,559 ($65.0M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2000-09-15

End Date: 2008-12-05

Contract Duration: 3,003 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200012!1700!003776!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002400C4010 !A!*!* !20000915!20070630!207884594!207884594!241015486!N!98247!CANADIAN COMMERCIAL CORPORATIO!50 O CONNOR ST STE 1100 !OTTAWA !CA!K1A 0!* !* !CA!* !* !CANADA !0001!+000000655000!N!N!000000000000!1925!SPECIAL SERVICE VESSELS !A3 !SHIPS !2SKN!RESCUE SHIP SUBMARINE-ASR !3731!3!*!*!*!B!A!*!A !U!V!2!002!B!* !Z!N!Z!B !CA!N!L!*!*!*!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!

Plain-Language Summary

Department of Defense obligated $65.0 million to CANADIAN COMMERCIAL CORPORATION for work described as: 200012!1700!003776!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002400C4010 !A!*!* !20000915!20070630!207884594!207884594!241015486!N!98247!CANADIAN COMMERCIAL CORPORATIO!50 O CONNOR ST STE 1100 !OTTAWA !CA!K1A 0!* !* !CA!* !* … Key points: 1. Contract value of $207.8 million for Special Service Vessels, primarily supporting rescue ship submarine operations. 2. Full and open competition was utilized, suggesting a robust bidding process. 3. The contract duration spans over 3000 days, indicating a long-term need for these specialized vessels. 4. The primary contractor, Canadian Commercial Corporation, is based in Canada, highlighting international participation. 5. The contract was awarded under a Firm Fixed Price (FFP) type, which shifts cost risk to the contractor. 6. This award represents a substantial investment in naval capabilities, specifically for submarine rescue and support.

Value Assessment

Rating: fair

The total award amount of $207.8 million for Special Service Vessels, including support for rescue ship submarines, appears substantial. Benchmarking this against similar contracts for specialized naval vessels is challenging without more specific details on the vessel types and services. However, the duration of the contract (over 3000 days) suggests a significant, long-term requirement. The Firm Fixed Price contract type indicates that the government has locked in a price, but the overall value for money depends on the performance and delivery of the contracted services over the extended period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The use of full and open competition suggests that the Navy sought the best possible solution and price from the widest possible market.

Taxpayer Impact: For taxpayers, full and open competition is generally favorable as it increases the likelihood of obtaining competitive pricing and ensures that taxpayer funds are used efficiently by selecting the most cost-effective offer.

Public Impact

The primary beneficiaries are the U.S. Navy's submarine operations, which will receive enhanced support capabilities. The contract delivers specialized vessels and services crucial for submarine rescue and other special missions. The geographic impact is primarily within naval operational areas, though the contractor is Canadian. Workforce implications may include specialized maritime labor for vessel operation, maintenance, and support, potentially both domestically and internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 3000 days) could lead to cost overruns if not managed effectively.
Reliance on a foreign contractor (Canadian Commercial Corporation) may introduce geopolitical or logistical complexities.
Firm Fixed Price contracts can sometimes lead to reduced scope or quality if unforeseen cost increases occur for the contractor.
The specific nature of 'Special Service Vessels' and 'Rescue Ship Submarine' support requires detailed performance monitoring.

Positive Signals

Full and open competition suggests a strong market assessment and potential for competitive pricing.
Firm Fixed Price contract type provides cost certainty for the government.
The contract addresses critical naval support functions, enhancing operational readiness.
Long-term nature of the contract indicates a stable and predictable requirement for these services.

Sector Analysis

This contract falls within the Defense sector, specifically supporting naval operations and maritime capabilities. The market for specialized naval vessels and support services is highly technical and often involves a limited number of experienced contractors. Spending in this area is critical for national security and maintaining a robust fleet. Comparable spending benchmarks would typically be found within other major naval procurement programs or long-term service contracts for specialized maritime assets.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss=false, sb=false). As such, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Canadian Commercial Corporation, is a large entity, and it is unclear from this data whether they engage in subcontracting with U.S. small businesses for this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Naval Sea Systems Command (NAVSEA) and the Department of Defense. Accountability measures would be embedded within the contract's performance work statement, delivery schedules, and payment terms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Vessel Construction
Submarine Support Services
Maritime Logistics
Specialized Ship Operations
Defense Procurement
Fleet Support Services

Risk Flags

Long-term contract duration
Foreign contractor reliance
Potential for cost overruns in FFP
Specificity of 'Special Service Vessels' unclear

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.0 million to CANADIAN COMMERCIAL CORPORATION. 200012!1700!003776!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002400C4010 !A!*!* !20000915!20070630!207884594!207884594!241015486!N!98247!CANADIAN COMMERCIAL CORPORATIO!50 O CONNOR ST STE 1100 !OTTAWA !CA!K1A 0!* !* !CA!* !* !CANADA !0001!+000000655000!N!N!000000000000!1925!SPECIAL SERVICE VESSELS !A3 !SHIPS !2SKN!RESCUE SHIP SUBMARINE-ASR !3731!3!*!*!*!B!A!*!A !U!V!

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 Navy).

What is the total obligated amount?

The obligated amount is $65.0 million.

What is the period of performance?

Start: 2000-09-15. End: 2008-12-05.

What is the specific nature of the 'Special Service Vessels' and their role in 'Rescue Ship Submarine' support?

The term 'Special Service Vessels' is broad and can encompass a variety of maritime assets designed for unique or non-standard missions. In the context of 'Rescue Ship Submarine' support, these vessels likely provide critical capabilities such as towing, diver support, underwater search and recovery, personnel transfer, and potentially acting as a mobile command or support platform for submarine rescue operations. The specific capabilities would be detailed in the contract's Performance Work Statement (PWS). These services are vital for maintaining submarine safety and operational readiness, especially in emergency scenarios where a submarine may require assistance.

How does the Firm Fixed Price (FFP) contract type impact the risk and cost for this long-duration award?

A Firm Fixed Price (FFP) contract shifts the majority of the cost risk to the contractor. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. For a long-duration contract like this (over 3000 days), an FFP can provide significant cost certainty for the government. However, it also means the contractor must meticulously manage their costs and risks over the extended period. If unforeseen cost increases occur (e.g., due to inflation, material shortages, or technical challenges), the contractor bears the burden, which could potentially lead them to cut corners on quality or scope if not carefully monitored. Conversely, if the contractor manages costs efficiently, they can achieve higher profit margins.

What are the potential implications of awarding a long-term contract to a Canadian entity for U.S. naval support?

Awarding a long-term contract to a Canadian entity, such as the Canadian Commercial Corporation, for U.S. naval support can have several implications. Positively, it leverages international partnerships and potentially accesses specialized expertise or assets not readily available domestically. However, it may also introduce complexities related to logistics, security clearances, differing regulatory environments, and potential geopolitical considerations. Ensuring seamless integration with U.S. naval operations and maintaining consistent oversight requires clear communication channels and robust contractual terms addressing these cross-border aspects. The U.S. government must ensure that national security interests are protected and that the services provided meet all required standards.

Can the $207.8 million award be benchmarked against similar naval vessel contracts?

Benchmarking the $207.8 million award for 'Special Service Vessels' requires detailed comparison with contracts for similar specialized maritime assets. The value is substantial, reflecting the complexity and long-term nature of the services. However, without knowing the exact specifications of the vessels, their capabilities (e.g., size, endurance, specialized equipment for rescue), and the specific services included (e.g., crewing, maintenance, operational support), a direct comparison is difficult. Contracts for large naval combatants or complex support ships can run into hundreds of millions or billions. This award appears significant for specialized support functions, suggesting a high degree of technical requirement and operational importance.

What is the historical spending trend for 'Special Service Vessels' or similar naval support categories by the Department of the Navy?

Analyzing historical spending trends for 'Special Service Vessels' or related naval support categories requires access to comprehensive historical contract data. The Department of the Navy (and the broader Department of Defense) consistently invests significant funds in maintaining and expanding its fleet, including specialized vessels. Spending in this area can fluctuate based on strategic priorities, fleet modernization programs, and emerging threats. A review of past years' spending on vessel construction, chartering, and support services would reveal patterns. For instance, increased focus on undersea warfare or specific geographic regions might correlate with higher spending on submarine support and rescue capabilities. This $207.8 million award should be viewed within the context of the Navy's overall shipbuilding and maintenance budget.

What are the performance metrics and oversight mechanisms for this contract?

Performance metrics for this contract would be detailed in the Performance Work Statement (PWS), outlining specific requirements for vessel availability, operational readiness, maintenance schedules, response times for rescue operations, and crew qualifications. Oversight mechanisms would include regular progress reviews, technical inspections, audits, and potentially government-furnished equipment monitoring. The Naval Sea Systems Command (NAVSEA) contracting officers and technical representatives would be responsible for monitoring contractor performance against the PWS and ensuring compliance with contract terms. Failure to meet performance standards could result in contractual remedies, including penalties or termination.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Government of Canada (UEI: 241015486)

Address: 50 O'CONNOR ST STE 1100, OTTAWA

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline