DoD awards $5.6M for KC-130J aircraft maintenance, with Canadian Commercial Corporation as the contractor

Contract Overview

Contract Amount: $5,626,925 ($5.6M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2024-11-08

End Date: 2025-09-09

Contract Duration: 305 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: KC-130J PLANNED MAINTENANCE INTERVAL FOR BUNO 166513.

Plain-Language Summary

Department of Defense obligated $5.6 million to CANADIAN COMMERCIAL CORPORATION for work described as: KC-130J PLANNED MAINTENANCE INTERVAL FOR BUNO 166513. Key points: 1. Contract value appears reasonable for specialized aircraft maintenance services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is approximately 10 months, indicating a focused scope. 4. This contract supports the sustainment of critical military aviation assets. 5. The contractor, Canadian Commercial Corporation, is a foreign government entity, which is an unusual but permissible contracting party. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract value of $5.6 million for a planned maintenance interval on a KC-130J aircraft appears to be within a reasonable range for specialized aviation maintenance. Benchmarking against similar complex aircraft maintenance contracts would provide further insight, but the fixed-price nature suggests cost control is a priority. The specific nature of the maintenance (planned interval) implies a predictable scope, which can contribute to fair pricing.

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 offers. This suggests a robust bidding process where multiple contractors likely had the opportunity to compete. The presence of competition is generally favorable for price discovery and achieving a fair market price for the services rendered.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure the government receives the best value for its investment in aircraft maintenance.

Public Impact

The primary beneficiaries are the U.S. Marine Corps, ensuring the operational readiness of their KC-130J aircraft fleet. The service delivered is critical maintenance to extend the life and ensure the safety of the aircraft. The geographic impact is primarily on military bases where the KC-130J aircraft are stationed and maintained. Workforce implications include skilled aviation mechanics and technicians, potentially both within the contractor's organization and supporting government oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a foreign government entity (Canadian Commercial Corporation) for critical defense maintenance requires careful oversight to ensure compliance and quality.
The specific nature of 'planned maintenance interval' requires clear definition of scope to avoid cost overruns or scope creep.
Ensuring adequate technical expertise within the government oversight team for this specialized aircraft is crucial.

Positive Signals

The use of Firm Fixed Price contract type provides cost certainty and incentivizes contractor efficiency.
Full and open competition suggests a healthy market and potential for competitive pricing.
The contract supports the sustainment of a vital military asset, contributing to national security.

Sector Analysis

The aerospace and defense sector is characterized by high-value, complex contracts often involving specialized maintenance and sustainment services. The market for military aircraft maintenance is significant, with government contracts forming a substantial portion. This contract fits within the broader category of aviation support services, where specialized technical expertise and adherence to stringent quality standards are paramount. Comparable spending benchmarks for similar maintenance intervals on other large military aircraft platforms would provide further context.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, though large prime contractors often utilize small businesses for various support roles in broader defense sustainment efforts.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are embedded in the Firm Fixed Price structure, which places cost risk on the contractor. Transparency is generally maintained through contract databases and reporting requirements, though specific details of the maintenance process may be proprietary.

Related Government Programs

KC-130J Super Hercules Sustainment
Military Aircraft Maintenance Contracts
Defense Logistics Agency Support
Aviation Readiness Programs

Risk Flags

Contractor Performance Risk
Supply Chain Security
Foreign Entity Contracting
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.6 million to CANADIAN COMMERCIAL CORPORATION. KC-130J PLANNED MAINTENANCE INTERVAL FOR BUNO 166513.

Who is the contractor on this award?

The obligated recipient is CANADIAN COMMERCIAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

Start: 2024-11-08. End: 2025-09-09.

What is the track record of the Canadian Commercial Corporation (CCC) in performing similar U.S. Department of Defense maintenance contracts?

The Canadian Commercial Corporation (CCC) acts as a facilitator for Canadian companies seeking to do business with foreign governments, including the U.S. Department of Defense. While CCC itself is not a direct service provider in the same way a traditional defense contractor is, it facilitates contracts awarded to Canadian firms. Information on CCC's specific track record in performing maintenance on U.S. military aircraft would likely be tied to the performance of the underlying Canadian supplier it represents for this contract. A review of past performance would necessitate examining the specific Canadian company that is the actual service provider, their history with the U.S. DoD, and any performance metrics associated with previous contracts facilitated by CCC. Without identifying the specific Canadian supplier, a direct performance assessment is challenging.

How does the awarded amount of $5.6 million compare to historical spending on KC-130J planned maintenance intervals?

Historical spending data for KC-130J planned maintenance intervals (PMIs) is crucial for benchmarking this $5.6 million award. Without access to specific historical contract databases detailing the cost of previous PMIs for this aircraft variant, a direct comparison is difficult. However, factors influencing cost include the scope of work, the specific maintenance tasks required, the age and condition of the aircraft, and the prevailing market rates for specialized aviation labor and parts at the time of the award. If this contract represents a standard PMI, and considering inflation and potential technological updates, a value in the millions of dollars is not unexpected for such complex aviation maintenance. Further analysis would require querying historical contract awards for similar services on the KC-130J or comparable military transport aircraft.

What are the primary risks associated with contracting with a foreign government entity like the Canadian Commercial Corporation for defense maintenance?

Contracting with a foreign government entity like the Canadian Commercial Corporation (CCC) introduces several potential risks. Firstly, there can be complexities related to jurisdiction and legal recourse if performance issues arise. While agreements are in place, navigating international legal frameworks can be more challenging than domestic disputes. Secondly, supply chain security and origin verification for parts and materials become more critical, especially for sensitive defense equipment. Ensuring that all components meet U.S. military specifications and are free from tampering or unauthorized modifications requires robust oversight. Thirdly, communication and coordination across different governmental and corporate structures can sometimes lead to delays or misunderstandings. Finally, reliance on a foreign entity might raise concerns about long-term sustainment capabilities or responsiveness during geopolitical shifts, although Canada is a close ally.

What is the expected impact of this maintenance contract on the operational readiness of the KC-130J fleet?

This contract is directly aimed at enhancing the operational readiness of the KC-130J fleet by ensuring that at least one aircraft undergoes a planned maintenance interval (PMI). PMIs are scheduled, comprehensive servicing events designed to address wear and tear, perform necessary inspections, replace aging components, and implement required upgrades. By completing this maintenance, the aircraft is expected to be restored to optimal operational condition, reducing the likelihood of in-flight or mission-critical failures. This contributes to the overall availability of KC-130J aircraft for their intended missions, which include tactical airlift, aerial refueling, and special operations support, thereby bolstering the U.S. Marine Corps' operational capabilities.

How does the Firm Fixed Price (FFP) contract type influence cost control and contractor performance in this scenario?

The Firm Fixed Price (FFP) contract type is generally favored for acquisitions where the scope of work is well-defined and the risk of cost overruns is manageable. In this case, for a planned maintenance interval, the scope is likely predictable. Under an FFP contract, the contractor, facilitated by the Canadian Commercial Corporation, assumes the primary risk for cost overruns. This incentivizes the contractor to manage their resources efficiently, control labor and material costs, and complete the work within the agreed-upon price. For the government, this provides cost certainty, as the final price is fixed regardless of the contractor's actual costs. However, it also means that if the contractor is exceptionally efficient, they retain the savings, and conversely, if they encounter unforeseen issues that drive up costs, they absorb those losses, which could potentially lead to quality compromises if not adequately overseen.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6264919R0167

Offers Received: 1

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: $6,058,085

Exercised Options: $6,058,085

Current Obligation: $5,626,925

Subaward Activity

Number of Subawards: 3

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6264920D0015

IDV Type: IDC

Timeline