Navy awards $9.8M for Organic Reeling Cable Assembly (ORCA) System development

Contract Overview

Contract Amount: $9,836,620 ($9.8M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2006-12-18

End Date: 2013-10-31

Contract Duration: 2,509 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: DEVELOPMENT AND DEMONSTRATION OF AN ORGANIC REELING CABLE ASSEMBLY (ORCA) SYSTEM

Plain-Language Summary

Department of Defense obligated $9.8 million to CANADIAN COMMERCIAL CORPORATION for work described as: DEVELOPMENT AND DEMONSTRATION OF AN ORGANIC REELING CABLE ASSEMBLY (ORCA) SYSTEM Key points: 1. Contract awarded to Canadian Commercial Corporation for ORCA system development. 2. Full and open competition was utilized for this award. 3. The contract spans over 2500 days, indicating a long-term development effort. 4. The sector is primarily machinery manufacturing, with potential IT integration.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award value of $9.8M over a long duration requires close monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was used, suggesting a robust price discovery process. However, the long duration and specific nature of the ORCA system may limit the number of truly competitive bids.

Taxpayer Impact: Taxpayer funds are being used for the development of a specialized military system. The effectiveness of the competition and cost controls will determine the ultimate value for taxpayers.

Public Impact

Development of a new cable assembly system for potential defense applications. Long-term contract duration suggests significant R&D and potential for follow-on work. Award to a Canadian entity highlights international defense cooperation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Long contract duration increases risk of scope creep and cost escalation.
Limited information on specific performance metrics and success criteria.

Positive Signals

Full and open competition utilized.
Award to a foreign entity may foster international partnerships.
Development of a novel system could provide a technological advantage.

Sector Analysis

The contract falls under the 'All Other Miscellaneous General Purpose Machinery Manufacturing' sector. Spending in this sector can vary widely based on defense needs and technological advancements. Benchmarks are difficult without more specific product details.

Small Business Impact

The contract was awarded to the Canadian Commercial Corporation, a foreign entity. There is no indication of small business subcontracting in the provided data.

Oversight & Accountability

The long duration and cost-plus contract type necessitate robust oversight from the Department of the Navy to ensure cost control and adherence to development milestones.

Related Government Programs

All Other Miscellaneous General Purpose Machinery Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration (over 7 years).
Potential for cost overruns.
Lack of specific performance metrics in award data.
Award to a foreign entity may introduce logistical or security complexities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to CANADIAN COMMERCIAL CORPORATION. DEVELOPMENT AND DEMONSTRATION OF AN ORGANIC REELING CABLE ASSEMBLY (ORCA) SYSTEM

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 $9.8 million.

What is the period of performance?

Start: 2006-12-18. End: 2013-10-31.

What are the specific performance requirements and expected outcomes for the ORCA system, and how will success be measured?

The provided data lacks specific details on the ORCA system's performance requirements and success metrics. Further analysis would require access to the contract's statement of work and technical specifications. Understanding these elements is crucial for assessing the true value and effectiveness of the $9.8M investment.

What are the potential risks associated with a Cost Plus Fixed Fee contract for a novel system development over a 7-year period?

Cost Plus Fixed Fee contracts carry inherent risks of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. For a novel system developed over seven years, risks include scope creep, unforeseen technical challenges, and contractor inefficiency, all of which could inflate costs beyond initial projections without a strong oversight mechanism.

How does the development of the ORCA system align with current and future Department of the Navy technological needs and strategic objectives?

The alignment of the ORCA system with the Navy's strategic objectives is not explicitly detailed in the award data. Assessing this requires understanding the system's intended application, its potential impact on naval operations, and how it contributes to modernization efforts or addresses specific capability gaps identified by the Navy.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › All Other Miscellaneous General Purpose Machinery Manufacturing

Product/Service Code: MATERIALS HANDLING EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6133106R0052

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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

Financial Breakdown

Contract Ceiling: $9,836,620

Exercised Options: $9,836,620

Current Obligation: $9,836,620

Contract Characteristics

Cost or Pricing Data: NO

Timeline