DoD awards $29M for MX-Series EO/IR Turrets to Canadian Commercial Corp, impacting navigation systems

Contract Overview

Contract Amount: $29,012,738 ($29.0M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2021-12-29

End Date: 2024-09-15

Contract Duration: 991 days

Daily Burn Rate: $29.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MX-SERIES EXPORTABLE ELECTRO-OPTICAL/INFRARED TURRETS PART NUMBER 45000-49 - GERMANY

Plain-Language Summary

Department of Defense obligated $29.0 million to CANADIAN COMMERCIAL CORPORATION for work described as: MX-SERIES EXPORTABLE ELECTRO-OPTICAL/INFRARED TURRETS PART NUMBER 45000-49 - GERMANY Key points: 1. Spending on specialized electro-optical/infrared (EO/IR) turrets for military applications. 2. Sole-source award to Canadian Commercial Corporation suggests limited market alternatives or strategic partnerships. 3. Potential risk associated with single-source procurement and reliance on a foreign entity. 4. Sector focus on advanced defense manufacturing and navigation systems.

Value Assessment

Rating: fair

The award of $29 million for MX-Series EO/IR turrets appears to be within a reasonable range for specialized defense equipment, though direct comparisons are difficult without more detailed specifications and market data. The firm fixed price contract provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, indicating that competition was likely deemed impractical or not in the government's best interest. This limits price discovery and may result in higher costs compared to a competitive process.

Taxpayer Impact: Taxpayer funds are used for this procurement, and the lack of competition could lead to a less optimal price for the government.

Public Impact

Enhances critical navigation and targeting capabilities for naval operations. Supports international defense cooperation with Canada. Ensures availability of specialized equipment for military readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Reliance on foreign supplier
Limited competition

Positive Signals

Firm fixed price contract
Supports critical defense systems

Sector Analysis

This procurement falls within the defense manufacturing sector, specifically focusing on advanced navigation and guidance systems. Benchmarks for similar specialized EO/IR systems are highly variable and depend on specific technical requirements and quantities.

Small Business Impact

This award does not appear to directly benefit small businesses, as it is a sole-source contract with a large, established entity. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for this procurement. Oversight would typically involve contract management and performance monitoring to ensure delivery and quality standards are met.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition and price negotiation.
Potential for increased costs due to lack of competitive bidding.
Reliance on a foreign entity could pose supply chain risks.
Lack of transparency regarding the specific technical requirements driving the sole-source decision.
No clear benefit or inclusion of small businesses in this contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.0 million to CANADIAN COMMERCIAL CORPORATION. MX-SERIES EXPORTABLE ELECTRO-OPTICAL/INFRARED TURRETS PART NUMBER 45000-49 - GERMANY

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 $29.0 million.

What is the period of performance?

Start: 2021-12-29. End: 2024-09-15.

What is the justification for the sole-source award, and were alternative solutions considered?

The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or the lack of viable alternatives that meet specific military requirements. The Department of the Navy would have conducted an analysis to determine if other sources could fulfill the need, potentially finding that only Canadian Commercial Corporation or its associated manufacturers possessed the necessary expertise or technology for these specific MX-Series turrets.

What are the long-term risks associated with relying on a sole-source foreign supplier for critical defense components?

Long-term risks include potential supply chain disruptions due to geopolitical factors, increased costs over time without competitive pressure, and reduced leverage in negotiations. Dependence on a foreign supplier can also raise national security concerns regarding access to technology and maintenance, especially during times of international tension or conflict.

How does this procurement contribute to the overall effectiveness of the Department of the Navy's operational capabilities?

The MX-Series EO/IR turrets are crucial for enhancing situational awareness, target acquisition, and precision engagement in various operational environments. Their integration into naval platforms directly improves the effectiveness of reconnaissance, surveillance, and combat missions, ensuring that naval forces can operate with superior sensory and targeting capabilities.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Government of Canada

Address: 350 ALBERT ST SUITE 700, OTTAWA

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

Financial Breakdown

Contract Ceiling: $29,012,738

Exercised Options: $29,012,738

Current Obligation: $29,012,738

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6833518G0029

IDV Type: BOA

Timeline