DoD's $4.8M contract for aircraft parts awarded without competition, raising value concerns

Contract Overview

Contract Amount: $4,840,606 ($4.8M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2022-08-01

End Date: 2027-12-31

Contract Duration: 1,978 days

Daily Burn Rate: $2.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FFG62 DUAL TRACK CONFIGURATION

Plain-Language Summary

Department of Defense obligated $4.8 million to CANADIAN COMMERCIAL CORPORATION for work described as: FFG62 DUAL TRACK CONFIGURATION Key points: 1. The contract's value proposition is unclear due to the lack of competitive bidding. 2. Sole-source awards can limit price discovery and potentially lead to overpayment. 3. The duration of the contract (nearly 4 years) warrants scrutiny for ongoing value. 4. Performance context is limited as this is a delivery order, not a new award. 5. The contract falls within the 'Other Aircraft Parts' manufacturing sector. 6. The absence of small business set-asides is noted.

Value Assessment

Rating: questionable

Benchmarking the value of this $4.8 million contract is challenging without competitive data. As a sole-source award, there's no direct comparison to market rates or other bids. The firm-fixed-price structure provides some cost certainty, but the overall value for money is difficult to assess without understanding the necessity of a non-competitive award and the pricing justification.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The Canadian Commercial Corporation is listed as the contractor, suggesting a government-to-government procurement. The lack of competition means there were no other bidders, limiting the government's ability to solicit the best possible price and terms.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions typically achieved through competitive bidding, potentially leading to higher costs.

Public Impact

The Department of Defense is the primary beneficiary, receiving aircraft parts. The services delivered are the supply of 'FFG62 DUAL TRACK CONFIGURATION' parts. The geographic impact is likely limited to military operations supported by these parts. Workforce implications are minimal, as this is a supply contract, not a service requiring significant new labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about fair pricing and potential overspending.
The sole-source nature limits transparency in the procurement process.
The long contract duration (ending 2027) means potential value issues persist over time.

Positive Signals

Firm-fixed-price contract provides cost certainty for the awarded amount.
Awarded by the Department of the Navy, a major defense entity.
Contractor is the Canadian Commercial Corporation, suggesting a structured intergovernmental agreement.

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' industry, classified under NAICS code 336413. This sector is critical for maintaining military aviation readiness. Spending in this area can fluctuate based on fleet age, modernization programs, and operational tempo. Comparable spending benchmarks are difficult to establish without more specific part details and competitive data.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature and the contractor being the Canadian Commercial Corporation, subcontracting opportunities for U.S. small businesses are unlikely to be a primary consideration or requirement within this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's internal procurement regulations and the contracting officer's responsibilities. Transparency is limited due to the sole-source award. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Parts Procurement
Defense Logistics
Foreign Military Sales (potential indirect link)
Naval Aviation Support

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Long contract duration increases risk exposure.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.8 million to CANADIAN COMMERCIAL CORPORATION. FFG62 DUAL TRACK CONFIGURATION

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 $4.8 million.

What is the period of performance?

Start: 2022-08-01. End: 2027-12-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not specify the justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as the existence of only one responsible source, urgent and compelling needs, or specific international agreements. Without this information, it's impossible to fully assess the necessity and fairness of the procurement method.

How does the pricing of this contract compare to similar aircraft parts procured competitively?

Direct comparison is not possible as this contract was awarded sole-source. Competitive awards allow for price discovery through multiple bids, typically resulting in lower prices for the government. Without competitive benchmarks, it is difficult to determine if the $4.8 million price reflects fair market value or if taxpayers are overpaying due to the lack of competition.

What are the potential risks associated with a sole-source award for critical aircraft parts?

The primary risks include higher costs due to the absence of competitive pressure, potential for substandard quality if the sole source lacks robust quality control, and a lack of flexibility if requirements change. Furthermore, reliance on a single supplier can create supply chain vulnerabilities. The long duration of this contract exacerbates these risks.

What is the track record of the Canadian Commercial Corporation in supplying defense parts to the U.S. DoD?

The Canadian Commercial Corporation (CCC) acts as a government-to-government contracting agency for Canadian companies. While specific performance data for this exact contract is not available, CCC has a history of facilitating defense procurements for the U.S. DoD. Their role is to ensure Canadian suppliers meet U.S. government requirements, including quality and delivery standards, often under established international agreements.

What is the historical spending pattern for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of the Navy?

Historical spending data for NAICS code 336413 by the Department of the Navy would reveal trends in procurement for aircraft parts. Analyzing past contracts, including their value, competition levels, and duration, would provide context for the current $4.8 million award. Significant year-over-year increases or a pattern of sole-source awards in this category could indicate potential areas for further investigation into efficiency and cost-effectiveness.

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

Offers Received: 1

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: $4,840,606

Exercised Options: $4,840,606

Current Obligation: $4,840,606

Subaward Activity

Number of Subawards: 1

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6833520G3036

IDV Type: BOA

Timeline