Navy Awards $42.5M for MX-20 Turret Systems, Limited Competition Expected

Contract Overview

Contract Amount: $42,469,059 ($42.5M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2024-06-27

End Date: 2026-09-30

Contract Duration: 825 days

Daily Burn Rate: $51.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MX-20 TURRET

Plain-Language Summary

Department of Defense obligated $42.5 million to CANADIAN COMMERCIAL CORPORATION for work described as: MX-20 TURRET Key points: 1. Significant contract value of $42.5 million for specialized turret systems. 2. Limited competition raises questions about price discovery and potential overspending. 3. Risk of higher costs due to lack of competitive bidding. 4. Sector focus on advanced navigation and guidance systems manufacturing.

Value Assessment

Rating: questionable

The contract value of $42.5 million for the MX-20 Turret is substantial. Without available benchmark data or details on the specific system's complexity, it's difficult to definitively assess its pricing against similar contracts. The 'NOT AVAILABLE FOR COMPETITION' status further complicates a direct value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited or sole-source procurement. This significantly restricts the opportunity for competitive bidding, which can lead to less favorable pricing for the government and taxpayers. The specific justification for this limitation is not provided.

Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competitive procurement process. Without a competitive environment, the government may not achieve the best possible price for these turret systems.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The Department of Defense is acquiring critical navigation and guidance system components. Potential for future sole-source awards if this procurement sets a precedent.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of pricing benchmark
Potential for cost overruns

Positive Signals

Firm Fixed Price contract type
Clear delivery timeline

Sector Analysis

This contract falls within the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector. Spending in this area is often characterized by high R&D costs and specialized manufacturing requirements, making competitive benchmarking challenging.

Small Business Impact

There is no indication in the provided data whether small businesses are involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The limited competition status warrants closer oversight to ensure the government is receiving fair value. Accountability would involve reviewing the justification for the limited competition and monitoring contract performance closely.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency on justification for sole-sourcing
Absence of small business participation data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.5 million to CANADIAN COMMERCIAL CORPORATION. MX-20 TURRET

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 $42.5 million.

What is the period of performance?

Start: 2024-06-27. End: 2026-09-30.

What is the specific justification for limiting competition on this contract?

The provided data does not include the specific justification for limiting competition. Typically, such limitations are based on factors like unique technical requirements, urgent needs, or the unavailability of alternative sources. A thorough review of the contract file and associated documentation would be necessary to ascertain the precise reason.

How does the $42.5 million award compare to similar turret system procurements?

Without access to a comprehensive database of similar contracts or specific details about the MX-20 Turret's capabilities and specifications, a direct comparison is not feasible. The 'NOT AVAILABLE FOR COMPETITION' status further hinders the ability to establish a competitive pricing benchmark against other market offerings.

What is the potential impact on future defense procurement strategies if limited competition becomes standard for such systems?

If limited competition becomes a standard practice for acquiring specialized systems like the MX-20 Turret, it could lead to sustained higher costs for the Department of Defense and taxpayers. It might also disincentivize new entrants into the market, reducing overall innovation and competition in the long run.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0016422RJQ87

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: $42,469,059

Exercised Options: $42,469,059

Current Obligation: $42,469,059

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0016424DJQ87

IDV Type: IDC

Timeline