NASA awards $34.15M for Laser Vision & Camera Systems, sole-sourced to Canadian Commercial Corporation
Contract Overview
Contract Amount: $34,151,580 ($34.2M)
Contractor: Canadian Commercial Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2005-12-12
End Date: 2013-08-31
Contract Duration: 2,819 days
Daily Burn Rate: $12.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: ENGINEERING & OPERATIONS FOR LASER VISION SYSTEM & LASER CAMERA SYSTEM
Plain-Language Summary
National Aeronautics and Space Administration obligated $34.2 million to CANADIAN COMMERCIAL CORPORATION for work described as: ENGINEERING & OPERATIONS FOR LASER VISION SYSTEM & LASER CAMERA SYSTEM Key points: 1. Significant contract value of $34.15M for specialized engineering and operations. 2. Sole-sourced award to Canadian Commercial Corporation raises questions about competition. 3. Long contract duration (2005-2013) suggests a sustained need for these systems. 4. The sector is 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing', indicating a niche but critical area.
Value Assessment
Rating: questionable
The contract type is 'COST NO FEE', which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the $34.15M represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, awarded solely to Canadian Commercial Corporation. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these specialized engineering services.
Public Impact
Impacts NASA's ability to maintain and operate critical laser vision and camera systems. Potential for higher costs due to sole-source award affects overall program budgets. Highlights reliance on specific international contractors for specialized aerospace components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Essential systems for NASA operations
- Established contractor relationship
Sector Analysis
This contract falls under 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing'. Spending in this niche sector is often high due to the specialized nature and advanced technology required, with benchmarks varying significantly based on specific system complexity.
Small Business Impact
The contract was awarded to Canadian Commercial Corporation, and there is no indication of small business participation. This suggests the prime contractor handled all aspects of the work, potentially bypassing opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the Canadian Commercial Corporation is delivering services efficiently and at a reasonable cost, despite the lack of competitive pressure.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type carries inherent risk of cost overruns.
- Long contract duration (8 years) increases exposure to potential inefficiencies.
- Lack of small business participation noted.
Tags
other-guided-missile-and-space-vehicle-p, national-aeronautics-and-space-administr, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $34.2 million to CANADIAN COMMERCIAL CORPORATION. ENGINEERING & OPERATIONS FOR LASER VISION SYSTEM & LASER CAMERA SYSTEM
Who is the contractor on this award?
The obligated recipient is CANADIAN COMMERCIAL CORPORATION.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $34.2 million.
What is the period of performance?
Start: 2005-12-12. End: 2013-08-31.
What specific factors justified the sole-source award for these critical laser systems, and were alternatives explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For NASA's laser vision and camera systems, it's crucial to understand if these conditions were met. Exploring alternatives, even if ultimately deemed unsuitable, is a key aspect of responsible procurement to ensure the best value is obtained for taxpayer funds.
How was the 'COST NO FEE' structure managed to prevent cost overruns over the 8-year contract period?
A 'COST NO FEE' contract means the contractor is reimbursed for allowable costs but receives no profit. Managing this structure effectively over a long period requires rigorous oversight, detailed cost tracking, and performance metrics to ensure the contractor remains efficient and does not inflate costs. NASA would need robust auditing and program management to control expenditures and ensure the $34.15M remained within reasonable bounds for the services rendered.
What is the current status and ongoing need for the Laser Vision System & Laser Camera System post-2013?
Understanding the post-2013 status is vital for assessing the long-term value and effectiveness of this investment. If these systems are still in active use or have been superseded by newer technology, it informs future procurement strategies. Continued reliance on such specialized equipment suggests a persistent need within NASA's operations, potentially justifying the initial investment but also highlighting the need for ongoing evaluation of technological advancements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: NDG007651
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Government of Canada (UEI: 241015486)
Address: 50 O'CONNOR ST STE 1100, OTTAWA
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $35,283,791
Exercised Options: $35,283,791
Current Obligation: $34,151,580
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2005-12-12
Current End Date: 2013-08-31
Potential End Date: 2013-08-31 00:00:00
Last Modified: 2017-05-12
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