Navy awards $14.7M for handling and stowage gear, with delivery expected by late 2026

Contract Overview

Contract Amount: $14,718,136 ($14.7M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2023-04-25

End Date: 2026-09-19

Contract Duration: 1,243 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OK-410 HANDLING & STOWAGE GEAR SYSTEM (H&SG) AND OVERBOARDING FAIRLEAD ASSEMBLY

Plain-Language Summary

Department of Defense obligated $14.7 million to CANADIAN COMMERCIAL CORPORATION for work described as: OK-410 HANDLING & STOWAGE GEAR SYSTEM (H&SG) AND OVERBOARDING FAIRLEAD ASSEMBLY Key points: 1. The contract value represents a significant investment in specialized maritime equipment. 2. Competition dynamics for this type of niche manufacturing are crucial for ensuring fair pricing. 3. Performance risk appears moderate, given the fixed-price nature and established contractor. 4. This contract supports the Navy's operational readiness and logistical capabilities. 5. The procurement falls within the broader category of naval ship and boat building equipment. 6. The Canadian Commercial Corporation's involvement suggests potential international collaboration or sourcing.

Value Assessment

Rating: good

The contract value of $14.7 million for handling and stowage gear appears reasonable for specialized naval equipment. Benchmarking against similar contracts for crane and hoist systems is challenging without more specific technical details. However, the firm fixed-price structure suggests the government has locked in costs, which is generally favorable. The Canadian Commercial Corporation, as the awardee, often acts as a contracting agent, which can influence pricing dynamics.

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 were likely solicited. The specific number of bidders is not provided, but the open competition suggests a healthy market for this type of equipment. This process is designed to encourage competitive pricing and innovation by allowing any qualified vendor to participate.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value available.

Public Impact

The primary beneficiaries are the U.S. Navy, which will receive critical handling and stowage gear for its vessels. The contract will deliver specialized equipment essential for ship operations, maintenance, and cargo management. The geographic impact is primarily on naval bases and shipyards where the equipment will be installed and utilized. Workforce implications may include employment opportunities in manufacturing, engineering, and logistics, potentially both in the U.S. and Canada.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the Canadian Commercial Corporation faces manufacturing or export challenges.
Ensuring adherence to U.S. military specifications and quality standards throughout the manufacturing process.
Long-term maintenance and spare parts availability for specialized handling gear can sometimes be a concern.

Positive Signals

Award to a known entity (Canadian Commercial Corporation) suggests a degree of established capability.
Firm fixed-price contract provides cost certainty for the government.
Full and open competition indicates a robust market and potential for competitive pricing.

Sector Analysis

The procurement of handling and stowage gear falls under the broader defense industrial base, specifically within the manufacturing sector for naval equipment. This includes specialized machinery like cranes, hoists, and related systems. The market for such equipment is often characterized by a limited number of highly specialized manufacturers capable of meeting stringent military requirements. Spending in this area is critical for maintaining naval fleet readiness and operational efficiency.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Canadian Commercial Corporation, may engage small businesses as subcontractors for components or services, which would indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. The firm fixed-price nature of the contract provides a degree of accountability by locking in costs. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Ship and Boat Building
Shipboard Equipment Manufacturing
Cargo Handling Systems
Defense Logistics Support
Maritime Crane and Hoist Systems

Risk Flags

Potential for supply chain delays
Ensuring adherence to strict military specifications
Long-term spare parts availability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.7 million to CANADIAN COMMERCIAL CORPORATION. OK-410 HANDLING & STOWAGE GEAR SYSTEM (H&SG) AND OVERBOARDING FAIRLEAD ASSEMBLY

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 $14.7 million.

What is the period of performance?

Start: 2023-04-25. End: 2026-09-19.

What is the historical spending pattern for similar handling and stowage gear systems by the Department of the Navy?

Analyzing historical spending for similar handling and stowage gear systems by the Department of the Navy requires access to detailed contract databases. Typically, the Navy procures such equipment through various contract types, including full and open competition, sole-source awards, and delivery orders against existing indefinite-delivery/indefinite-quantity (IDIQ) contracts. Spending can fluctuate based on fleet modernization programs, new ship construction, and maintenance cycles. Factors influencing cost include the complexity of the system, required load capacities, environmental resilience (e.g., for harsh maritime conditions), and integration with existing ship systems. Without specific historical data points for comparable systems, it's difficult to provide precise figures, but consistent investment in these areas is expected to support operational readiness.

How does the awarded price compare to industry benchmarks for overhead traveling crane and hoist systems?

Benchmarking the $14.7 million award for the OK-410 HANDLING & STOWAGE GEAR SYSTEM (H&SG) AND OVERBOARDING FAIRLEAD ASSEMBLY against industry standards for overhead traveling cranes and hoist systems is complex without granular cost breakdowns. The price is influenced by the specific technical requirements, such as load capacity, operational environment (e.g., marine-grade construction), automation features, and integration needs. The Canadian Commercial Corporation's role as an intermediary might also affect the final price. Generally, specialized, heavy-duty industrial cranes and hoists designed for demanding applications, especially those meeting military specifications, command premium pricing due to robust engineering, materials, and quality assurance processes. A comprehensive benchmark would require comparing the system's specifications, including its unique components like the overboard fairlead assembly, against publicly available pricing for similar custom-engineered solutions or aggregated data from multiple competitive bids.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this delivery order?

Key performance indicators (KPIs) for this delivery order would likely focus on ensuring the timely delivery of compliant equipment. Specific KPIs could include adherence to the production schedule, meeting all technical specifications outlined in the contract (e.g., load capacity, operational parameters, material quality), successful completion of factory acceptance testing (FAT), and ensuring proper documentation and certification are provided. For a firm fixed-price contract, meeting delivery dates and quality standards are paramount. The Navy's quality assurance representatives (QARs) would likely conduct inspections at the contractor's facility and potentially during installation. Performance metrics might also encompass the contractor's responsiveness to queries, defect resolution timeliness, and overall project management effectiveness throughout the contract duration.

What is the track record of the Canadian Commercial Corporation in delivering similar defense equipment to the U.S. Navy?

The Canadian Commercial Corporation (CCC) has a history of facilitating defense procurement for the U.S. government, often acting as a government-to-government contracting agent. Their track record involves leveraging Canada's defense industrial base to supply goods and services. While specific details on their performance for identical 'handling and stowage gear systems' might be proprietary or embedded within broader contracts, CCC's general role is to ensure reliable sourcing and delivery. They typically work with Canadian manufacturers who meet U.S. military standards. Past engagements suggest CCC is capable of managing complex international procurements, navigating export controls, and ensuring compliance with contractual obligations. Their involvement often streamlines the process for the U.S. military when sourcing from Canadian suppliers.

Are there any identified risks associated with the long-term maintenance and support of this specific handling and stowage gear system?

Potential long-term risks for this system could include the availability and cost of spare parts, especially if the specific components are manufactured by a limited number of suppliers or if the original manufacturer ceases production. The complexity of the H&SG system and the overboard fairlead assembly might necessitate specialized maintenance expertise, potentially leading to higher support costs or longer repair times. Ensuring that the contractor provides adequate technical manuals, training, and potentially a long-term support agreement is crucial to mitigate these risks. The Navy's maintenance planning and logistics commands would assess these factors during the procurement and operational phases to ensure sustained readiness and minimize lifecycle costs.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Overhead Traveling Crane, Hoist, and Monorail System Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6660417R0064

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: $14,718,136

Exercised Options: $14,718,136

Current Obligation: $14,718,136

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6660418DB800

IDV Type: IDC

Timeline