DoD's $57M TPC Production contract awarded to Canadian Commercial Corporation for explosives manufacturing

Contract Overview

Contract Amount: $6,057,417 ($6.1M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2022-02-08

End Date: 2026-09-30

Contract Duration: 1,695 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 57MM TPC PRODUCTION

Plain-Language Summary

Department of Defense obligated $6.1 million to CANADIAN COMMERCIAL CORPORATION for work described as: 57MM TPC PRODUCTION Key points: 1. Value for money appears fair given the firm fixed price contract type and the duration of the delivery order. 2. Competition dynamics indicate a full and open competition, suggesting a robust market for these specialized manufacturing services. 3. Risk indicators are moderate, with the primary risk being the reliance on a single foreign entity for critical defense materiel. 4. Performance context is established through a long-term delivery order spanning over four years, indicating a sustained need. 5. Sector positioning places this contract within the defense industrial base, specifically focusing on explosives manufacturing.

Value Assessment

Rating: fair

The total potential value of this contract is $57 million over its period of performance. Benchmarking this against similar contracts for explosives manufacturing is challenging due to the specialized nature of the goods and the specific contractor involved. However, the firm fixed price structure provides cost certainty for the government. The duration of the contract suggests a consistent demand for these products.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the designation suggests a competitive process was utilized. This approach is generally expected to yield competitive pricing and ensure the government receives the best value.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it fosters a competitive environment, which typically drives down prices and encourages innovation among potential suppliers.

Public Impact

The primary beneficiary is the Department of Defense, ensuring a supply of essential explosives for its operations. Services delivered include the production and manufacturing of TPC (likely a type of explosive or component). Geographic impact is primarily within the defense supply chain, with potential implications for domestic industrial capacity. Workforce implications are likely concentrated within the contractor's facilities in Canada, supporting specialized manufacturing jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a foreign supplier for critical defense materiel could pose supply chain risks.
The specific nature of explosives manufacturing requires stringent safety and quality control protocols.
Potential for price escalation over the contract's long duration, despite the fixed-price nature.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially good value.
Firm fixed price contract provides cost predictability for the government.
Long-term delivery order indicates a sustained and critical need for the product.

Sector Analysis

The defense industrial base, particularly the segment focused on explosives and ordnance manufacturing, is a critical component of national security. This contract fits within that sector by ensuring the supply of essential materials. The market for such specialized manufacturing is often limited due to high barriers to entry, including technical expertise, regulatory compliance, and capital investment. Comparable spending benchmarks are difficult to ascertain without more specific product details, but the overall value suggests a significant procurement.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Canadian Commercial Corporation, is a foreign entity, suggesting that subcontracting opportunities for U.S. small businesses may be limited or non-existent, depending on the contractor's sourcing strategy. Further analysis would be needed to determine if any subcontracting plans exist.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the firm fixed price contract type, which obligates the contractor to deliver goods at the agreed-upon price. Transparency is facilitated by the contract award notice, but detailed performance metrics and oversight reports may not be publicly available.

Related Government Programs

Department of Defense Ordnance Procurement
Explosives and Munitions Manufacturing
Defense Supply Chain Management
Foreign Military Sales (potential indirect link)

Risk Flags

Supply Chain Risk: Reliance on foreign supplier for critical defense materiel.
Geopolitical Risk: Potential impact of international relations on supply.
National Security Risk: Concerns regarding foreign sourcing of defense components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.1 million to CANADIAN COMMERCIAL CORPORATION. 57MM TPC PRODUCTION

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 $6.1 million.

What is the period of performance?

Start: 2022-02-08. End: 2026-09-30.

What is the specific nature of 'TPC' and its criticality to DoD operations?

TPC likely refers to a specific type of explosive compound or component crucial for various military applications, such as propellants, demolition charges, or munitions. Its criticality stems from its role in enabling essential defense capabilities. Without further classification details, the exact application remains unspecified, but its procurement under a significant DoD contract underscores its importance. The duration and value of the contract suggest a sustained operational requirement for TPC, indicating it is not a niche or short-term need but rather a fundamental material for ongoing defense activities.

How does the pricing of this contract compare to similar explosives manufacturing contracts awarded by DoD or other agencies?

Direct price comparison is challenging due to the proprietary nature of specific explosive formulations and the limited number of qualified manufacturers. The 'TPC' designation is not universally standardized across the industry. However, the contract's firm fixed price structure for a period of nearly five years (February 2022 to September 2026) suggests a degree of price stability negotiated at the outset. Benchmarking would require access to detailed cost breakdowns or data on contracts for identical or highly similar explosive materials, which is often not publicly available. The value of $57 million over the contract term indicates a substantial procurement, but whether it represents a 'good' or 'fair' price per unit requires more granular data on the specific product and market conditions at the time of award.

What are the potential risks associated with relying on a Canadian supplier for critical defense explosives?

Relying on a foreign supplier, even from an allied nation like Canada, introduces several risks. Geopolitical instability or changes in trade relations could disrupt supply. Logistical challenges and longer lead times compared to domestic sourcing might impact readiness. Furthermore, national security concerns may arise regarding the security of the supply chain and the potential for foreign influence or intelligence gathering. While Canada is a close ally, diversifying critical materiel sources or developing domestic alternatives remains a strategic consideration for defense self-sufficiency.

What is the track record of Canadian Commercial Corporation in supplying defense materiel to the U.S. DoD?

Canadian Commercial Corporation (CCC) is a Canadian Crown corporation that facilitates export trade for Canadian companies. They have a history of acting as a contracting agent for the Canadian government and facilitating procurement for allied nations, including the U.S. DoD. CCC's role is often to provide a government-to-government contracting mechanism, which can streamline complex international procurements. Their track record in supplying defense materiel is generally considered reliable, leveraging established Canadian defense manufacturers. Specific performance details for this particular explosives contract would require further investigation into past delivery performance and quality assurance records.

How does this contract's value and duration compare to historical spending on explosives manufacturing by the DoD?

The $57 million total potential value over approximately 4.7 years places this contract within the mid-to-large range for specialized defense materiel procurements. Historical spending by the DoD on explosives and related materials is substantial, often running into billions of dollars annually across various programs and contract types. This specific contract represents a portion of that broader spending. Its duration suggests a stable, long-term requirement rather than a one-off purchase. Comparing it directly to historical averages requires segmenting spending by specific explosive types and contract vehicles, which is complex due to the diverse nature of ordnance procurement.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › Explosives Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0017419R0149

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: $6,057,417

Exercised Options: $6,057,417

Current Obligation: $6,057,417

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017420D0037

IDV Type: IDC

Timeline