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: ManufacturingAerospace Product and Parts ManufacturingOther 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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