DoD's Navy Awards $44.1M for Aircraft Parts to Canadian Commercial Corp, Lacking Competition

Contract Overview

Contract Amount: $44,143,318 ($44.1M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2013-12-19

End Date: 2018-08-08

Contract Duration: 1,693 days

Daily Burn Rate: $26.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: RAST DDG117-119

Plain-Language Summary

Department of Defense obligated $44.1 million to CANADIAN COMMERCIAL CORPORATION for work described as: RAST DDG117-119 Key points: 1. Significant contract value of over $44 million awarded. 2. Sole-source award to a foreign entity raises competition concerns. 3. Lack of competition may lead to suboptimal pricing and reduced value. 4. Contract spans nearly five years, impacting long-term resource allocation.

Value Assessment

Rating: questionable

The contract value of $44.1 million for aircraft parts is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for aircraft components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and potentially increases costs for taxpayers.

Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. Reliance on a single foreign supplier could pose supply chain risks. Limited transparency in the procurement process hinders public scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Foreign supplier
Lack of competition
Potential for overpayment

Positive Signals

Contract completed
Specific aircraft parts procured

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation readiness. Benchmarks are difficult without competitive data.

Small Business Impact

The contract data indicates no small business participation. This sole-source award to a foreign entity bypassed opportunities for domestic small businesses in the aerospace supply chain.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny regarding the justification for not seeking competitive bids. Oversight should ensure proper procedures were followed and value for money was pursued.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competition
Foreign supplier
Potential for inflated pricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.1 million to CANADIAN COMMERCIAL CORPORATION. RAST DDG117-119

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 $44.1 million.

What is the period of performance?

Start: 2013-12-19. End: 2018-08-08.

What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without specific documentation, it's impossible to determine the exact reason. However, the absence of competition raises concerns about whether all avenues were explored to secure the best value for the government and taxpayers.

What are the potential risks associated with awarding a large contract to a single foreign supplier without competition?

Awarding a large contract to a single foreign supplier without competition presents several risks. These include potential supply chain disruptions due to geopolitical factors or the supplier's internal issues, lack of leverage for price negotiation, and reduced opportunities for domestic industry development. It also limits the government's ability to benefit from innovation and cost savings that often arise from competitive markets.

How can the Department of the Navy ensure better value and competition in future procurements for aircraft parts?

The Department of the Navy can enhance future procurements by conducting thorough market research to identify potential sources, breaking down large requirements into smaller, more competitive packages, and actively encouraging small business participation. Implementing robust justification processes for sole-source awards and regularly reviewing procurement strategies will also promote greater competition and ensure better value for taxpayer dollars.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6833513R0243

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $148,425,965

Exercised Options: $44,143,318

Current Obligation: $44,143,318

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline