DoD awards $37.2M for Search, Detection, Navigation Systems to Canadian Commercial Corporation

Contract Overview

Contract Amount: $37,238,420 ($37.2M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2018-04-19

End Date: 2020-12-31

Contract Duration: 987 days

Daily Burn Rate: $37.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: EOIR P-8A

Plain-Language Summary

Department of Defense obligated $37.2 million to CANADIAN COMMERCIAL CORPORATION for work described as: EOIR P-8A Key points: 1. Significant award to a foreign entity for critical defense systems. 2. Lack of competition raises questions about price discovery and value. 3. Long contract duration (987 days) may indicate complex requirements. 4. No small business participation noted, potentially missing economic opportunities.

Value Assessment

Rating: questionable

The award amount of $37.2M for a 987-day duration is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to similar systems or if it represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited source selection. This approach bypasses competitive bidding, potentially leading to higher costs and reduced innovation.

Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive pricing, which could result in a less efficient use of resources.

Public Impact

Impacts the Department of Defense's ability to acquire advanced navigation and detection systems. Raises concerns about reliance on foreign suppliers for critical defense technology. Potential missed opportunities for U.S. small businesses in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Foreign vendor award
No small business set-aside

Positive Signals

Contract awarded for essential defense systems
Firm fixed price contract can provide cost certainty

Sector Analysis

This contract falls within the IT and Defense sectors, specifically manufacturing instruments for search, detection, and navigation. Spending in this area is critical for national security, but competitive procurement is key to ensuring value.

Small Business Impact

The contract explicitly states no small business participation. This suggests that opportunities for small businesses in manufacturing these specialized systems were not pursued or available.

Oversight & Accountability

The 'NOT COMPETED' status warrants further review by oversight bodies to ensure the justification for sole-source or limited competition was sound and that taxpayer funds were used responsibly.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition may lead to inflated prices.
Reliance on a single foreign supplier could pose supply chain risks.
Potential for missed opportunities to foster domestic small business capabilities.
Limited transparency in the procurement process due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.2 million to CANADIAN COMMERCIAL CORPORATION. EOIR P-8A

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 $37.2 million.

What is the period of performance?

Start: 2018-04-19. End: 2020-12-31.

What was the justification for not competing this contract, and was it adequately documented?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review would be needed to ascertain the specific justification, such as urgency, unique capabilities, or existing partnerships. Adequate documentation is crucial for accountability and to ensure the government received the best possible value under the circumstances.

How does the unit cost of these systems compare to similar systems procured competitively?

Without competitive bids, a direct comparison of unit costs is challenging. Benchmarking against similar systems procured through competitive means by DoD or other agencies would be necessary. This analysis would help determine if the $37.2M award represents a fair price or if potential cost savings were forgone.

What is the long-term strategic impact of awarding such a significant contract to a foreign entity?

Awarding a substantial contract to a foreign entity like the Canadian Commercial Corporation for critical defense systems raises strategic questions about supply chain security, technological independence, and potential impacts on the domestic defense industrial base. It necessitates an evaluation of long-term risks versus immediate procurement needs.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6833517R0243

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Government of Canada (UEI: 241015486)

Address: 350 ALBERT ST SUITE 700, OTTAWA

Business Categories: Category Business, Foreign Government, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $37,238,420

Exercised Options: $37,238,420

Current Obligation: $37,238,420

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $37,365,492

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: N6833518D0025

IDV Type: IDC

Timeline