Navy awards $28.8M for RAST System DDG Kits, impacting Other Aircraft Parts Manufacturing

Contract Overview

Contract Amount: $28,856,450 ($28.9M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2021-12-28

End Date: 2027-02-26

Contract Duration: 1,886 days

Daily Burn Rate: $15.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RECOVERY ASSIST, SECURING AND TRAVERSING (RAST) SYSTEM DDG KITS

Plain-Language Summary

Department of Defense obligated $28.9 million to CANADIAN COMMERCIAL CORPORATION for work described as: RECOVERY ASSIST, SECURING AND TRAVERSING (RAST) SYSTEM DDG KITS Key points: 1. Contract awarded to Canadian Commercial Corporation for RAST System DDG Kits. 2. Significant spending of $28.8M over 1886 days. 3. No small business participation noted. 4. Contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.

Value Assessment

Rating: fair

The contract value of $28.8M for RAST System DDG Kits appears to be a significant investment. Benchmarking against similar contracts for specialized aircraft components is difficult without more specific data on the kits' complexity and quantity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition procurement. This method may limit price discovery and potentially lead to higher costs for taxpayers compared to a fully competitive process.

Taxpayer Impact: The lack of competition raises concerns about whether the government secured the best possible price for these essential DDG kits.

Public Impact

Ensures operational readiness for Navy vessels requiring the RAST system. Supports specialized manufacturing within the aerospace and defense supply chain. Potential for increased costs due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
No small business involvement

Positive Signals

Supports critical Navy systems
Long-term contract duration

Sector Analysis

This contract is within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is crucial for defense readiness. Spending benchmarks for highly specialized components like RAST DDG kits are not readily available, making direct comparison challenging.

Small Business Impact

The contract does not indicate any provisions or set-asides for small businesses. This represents a missed opportunity to support small business participation in the defense supply chain.

Oversight & Accountability

The award to the Canadian Commercial Corporation suggests a specific international procurement mechanism was utilized. Oversight would focus on ensuring adherence to the terms of the agreement and the justification for non-competitive award.

Related Government Programs

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

Risk Flags

Sole-source award may result in higher costs.
Lack of small business participation.
Limited transparency in price discovery.
Dependence on a single foreign entity (via CCC).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.9 million to CANADIAN COMMERCIAL CORPORATION. RECOVERY ASSIST, SECURING AND TRAVERSING (RAST) SYSTEM DDG KITS

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 $28.9 million.

What is the period of performance?

Start: 2021-12-28. End: 2027-02-26.

What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Department of Defense would need to document these reasons thoroughly. Fair pricing is often assessed through historical data, independent government cost estimates, or price analysis techniques, even in sole-source situations, to ensure the government is not overpaying.

What is the expected impact of these RAST System DDG Kits on the operational capabilities and readiness of the Navy's fleet?

The RAST (Recovery Assist, Securing and Traversing) system is critical for the safe and efficient recovery of aircraft on naval vessels, particularly in challenging sea conditions. DDG kits likely refer to specific components or upgrades for this system on Arleigh Burke-class destroyers. Ensuring these kits are functional and available directly supports flight operations, enhances crew safety, and maintains the overall combat readiness of the fleet.

Are there any alternative or future solutions being considered to foster competition or reduce costs for RAST system components?

Future strategies might involve breaking down the RAST system into more standardized components to allow for broader competition, or exploring alternative technologies that offer similar functionality. The Navy could also investigate opportunities for longer-term strategic sourcing or partnerships that encourage innovation and cost reduction from multiple vendors over time, potentially through performance-based contracts.

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

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: $28,856,450

Exercised Options: $28,856,450

Current Obligation: $28,856,450

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $28,856,450

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6833522D0005

IDV Type: IDC

Timeline