Navy Awards $246M Contract for Training Aids to Canadian Commercial Corp

Contract Overview

Contract Amount: $24,603,283 ($24.6M)

Contractor: Canadian Commercial Corp

Awarding Agency: Department of Defense

Start Date: 1998-06-17

End Date: 2008-10-31

Contract Duration: 3,789 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 199812!1700!C043!A8301!NAVAL AIR WARFARE CENTER !N6133998C0055 !A!*!* !19980617!20010616!999972573!207884594!241015486!N!98247!CANADIAN COMMERCIAL CORP !50 RUE O CONNOR ST !OTTAWA !CA!K1A0S!* !* !CA!* !* !CANADA !0001!+000016110000!Y!N!000000000000!6910!TRAINING AIDS !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !3699!3!*!*!*!B!N!Z!B !U!J!1!001!N!4A!Z!N!A!* !* !N!L!*!*!*!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!

Plain-Language Summary

Department of Defense obligated $24.6 million to CANADIAN COMMERCIAL CORP for work described as: 199812!1700!C043!A8301!NAVAL AIR WARFARE CENTER !N6133998C0055 !A!*!* !19980617!20010616!999972573!207884594!241015486!N!98247!CANADIAN COMMERCIAL CORP !50 RUE O CONNOR ST !OTTAWA !CA!K1A0S!* !* !CA!* !* … Key points: 1. The contract, valued at $246,032,830, was awarded to Canadian Commercial Corp. 2. The primary sector is 'Other Commercial and Service Industry Machinery Manufacturing', with a PSC code of 6910 (Training Aids). 3. Awarded under 'Full and Open Competition', suggesting a competitive bidding process. 4. The contract duration is 3789 days, indicating a long-term requirement. 5. The Naval Air Warfare Center is the contracting activity.

Value Assessment

Rating: fair

The contract value of $246M over approximately 10 years suggests a significant investment. Without specific unit cost data or benchmarks for similar training aids, a precise pricing assessment is difficult. However, the duration implies a need for sustained supply.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited. This method generally promotes price discovery and competitive pricing, though specific details of the bidding process are not provided.

Taxpayer Impact: Taxpayers are likely benefiting from competitive pricing due to the full and open competition, but the long duration and significant value warrant ongoing scrutiny for cost-effectiveness.

Public Impact

Supports military training readiness through specialized equipment. Potential for international collaboration and trade in defense procurement. Long-term contract may stabilize supply chain for critical training resources. Requires ongoing monitoring to ensure value for taxpayer investment over the contract's life.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 10 years) could lead to price escalation or obsolescence.
Lack of specific unit cost data makes direct value assessment challenging.
Reliance on a single foreign entity for critical training aids could pose supply chain risks.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Supports essential military training functions.
Contract provides a stable and predictable supply of training aids.

Sector Analysis

The contract falls within the 'Other Commercial and Service Industry Machinery Manufacturing' sector, specifically for training aids. The value of $246M over a decade is substantial for this niche, suggesting a significant requirement for advanced simulation or training equipment.

Small Business Impact

The data indicates the award went to 'CANADIAN COMMERCIAL CORP', a foreign entity. There is no explicit mention of small business participation in this specific award, suggesting it was not a primary focus or that the prime contractor is not a U.S. small business.

Oversight & Accountability

The contract was awarded by the Naval Air Warfare Center, implying oversight from the Department of the Navy. The long duration necessitates regular performance reviews and financial oversight to ensure continued value and compliance.

Related Government Programs

Other Commercial and Service Industry Machinery Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long contract duration
Foreign supplier
Lack of detailed cost breakdown
Potential for technology obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 million to CANADIAN COMMERCIAL CORP. 199812!1700!C043!A8301!NAVAL AIR WARFARE CENTER !N6133998C0055 !A!*!* !19980617!20010616!999972573!207884594!241015486!N!98247!CANADIAN COMMERCIAL CORP !50 RUE O CONNOR ST !OTTAWA !CA!K1A0S!* !* !CA!* !* !CANADA !0001!+000016110000!Y!N!000000000000!6910!TRAINING AIDS !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !3699!3!*!*!*!B!N!Z!B !U!J!1!0

Who is the contractor on this award?

The obligated recipient is CANADIAN COMMERCIAL CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

Start: 1998-06-17. End: 2008-10-31.

What specific types of training aids are being procured, and how do their costs compare to industry standards for similar items?

The contract specifies 'TRAINING AIDS' under PSC 6910. Without a detailed breakdown of the specific aids (e.g., simulators, mock-ups, virtual reality systems), a direct cost comparison is difficult. However, the total award of $246M over approximately 10 years suggests a significant investment in advanced or specialized training equipment, warranting a thorough review of unit costs against comparable systems in the defense or commercial sectors.

What are the potential risks associated with a sole foreign supplier for critical military training equipment over a 10-year period?

A sole foreign supplier over a decade presents several risks, including potential supply chain disruptions due to geopolitical events, trade disputes, or the supplier's own operational issues. There's also a risk of price increases over time, reduced leverage for the U.S. government if alternatives emerge, and potential national security concerns related to reliance on foreign technology for training.

How effectively does this contract support the Navy's evolving training needs, particularly with advancements in technology?

The effectiveness hinges on the contract's flexibility and the nature of the training aids. If the contract allows for adaptation to new technologies or includes provisions for upgrades, it could be highly effective. However, a fixed long-term contract for potentially static equipment might struggle to keep pace with rapid technological advancements in military training, potentially leading to obsolescence or underutilization.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 50 RUE O'CONNOR ST, OTTAWA

Business Categories: Category Business, Not Designated a Small Business

Timeline