Navy awards $18.5M for Overhead Traveling Crane Systems under Full and Open Competition

Contract Overview

Contract Amount: $18,545,172 ($18.5M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2024-09-28

End Date: 2028-04-12

Contract Duration: 1,292 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Manufacturing

Official Description: HANDLING AND STOWAGE GROUP PROCUREMENT (OK410)

Plain-Language Summary

Department of Defense obligated $18.5 million to CANADIAN COMMERCIAL CORPORATION for work described as: HANDLING AND STOWAGE GROUP PROCUREMENT (OK410) Key points: 1. The Department of the Navy is procuring overhead traveling crane systems valued at $18.5 million. 2. The contract was awarded using full and open competition, indicating a competitive market. 3. The procurement is for handling and stowage group equipment, crucial for naval operations. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract value of $18.5 million for overhead traveling crane systems appears reasonable given the scope. Benchmarking against similar large-scale industrial equipment procurements suggests this falls within expected pricing ranges for specialized systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests that multiple vendors were able to bid, leading to a potentially competitive price discovery process. This method is generally preferred for maximizing value and innovation.

Taxpayer Impact: The competitive nature of this award is expected to yield fair pricing, ensuring taxpayer dollars are used efficiently for essential defense equipment.

Public Impact

Ensures operational readiness for naval vessels and shore facilities requiring specialized lifting equipment. Supports the defense industrial base by procuring complex manufacturing systems. The firm fixed price contract provides budget certainty for the Department of the Navy. Potential for technological advancements in crane and hoist systems through competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for delivery delays given the multi-year duration.
Reliance on a single delivery order for a significant value.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract mitigates cost overrun risk.
Procurement supports critical naval logistics and handling capabilities.

Sector Analysis

The procurement falls within the industrial equipment manufacturing sector, specifically for heavy machinery like overhead traveling cranes. Spending benchmarks in this sector vary widely based on customization and scale, but $18.5M for a significant system is substantial.

Small Business Impact

The data indicates this contract was not set aside for small businesses and does not specify small business participation. Larger, complex procurements like this often involve prime contractors who may then subcontract to smaller firms.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The firm fixed price nature and full and open competition suggest established procurement processes are being followed, but detailed oversight of performance and delivery remains crucial.

Related Government Programs

Overhead Traveling Crane, Hoist, and Monorail System Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Contract duration exceeds 3 years.
No specific mention of small business subcontracting.
Potential for technology obsolescence over the contract period.
Reliance on a single delivery order for a large sum.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to CANADIAN COMMERCIAL CORPORATION. HANDLING AND STOWAGE GROUP PROCUREMENT (OK410)

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 $18.5 million.

What is the period of performance?

Start: 2024-09-28. End: 2028-04-12.

What specific capabilities or technological advancements are expected from these overhead traveling crane systems?

The provided data does not detail specific technological advancements. However, procurements of this nature typically aim to enhance lifting capacity, improve operational efficiency, ensure safety compliance with modern standards, and potentially integrate advanced control systems for precision handling of sensitive or heavy cargo within naval logistics and maintenance facilities.

What are the primary risks associated with the long duration (over 3 years) of this contract?

The primary risks associated with the contract's duration include potential obsolescence of technology, fluctuations in material costs (though mitigated by FFP), contractor performance degradation over time, and the possibility of evolving operational requirements that the initial system may not fully address. Ensuring robust contract management and communication is key to mitigating these risks.

How does the firm fixed price contract impact the government's ability to ensure value for money beyond the initial bid?

A firm fixed price contract locks in the price, protecting the government from cost overruns. However, value for money beyond the initial bid is primarily ensured through the competitive bidding process itself and rigorous performance monitoring. The government must ensure the awarded system meets all specified requirements and quality standards throughout its lifecycle.

Industry Classification

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

Product/Service Code: MATERIALS HANDLING EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6660423RN300

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: $18,545,172

Exercised Options: $18,545,172

Current Obligation: $18,545,172

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6660424DQ400

IDV Type: IDC

Timeline