DoD's $273M Nuclear Overshoes Contract: Sole-Source Award Raises Cost Concerns

Contract Overview

Contract Amount: $27,374,280 ($27.4M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2025-03-06

End Date: 2026-01-30

Contract Duration: 330 days

Daily Burn Rate: $83.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8511231325!OVERSHOES,NUCLEAR,B

Plain-Language Summary

Department of Defense obligated $27.4 million to CANADIAN COMMERCIAL CORPORATION for work described as: 8511231325!OVERSHOES,NUCLEAR,B Key points: 1. High contract value ($273M) for specialized footwear. 2. Sole-source award limits competitive pricing and innovation. 3. Potential risk of overpayment due to lack of competition. 4. Footwear manufacturing sector context is crucial for benchmarking.

Value Assessment

Rating: questionable

The contract value of $273M for nuclear overshoes is substantial. Without competitive bidding, it's difficult to assess if this price is reasonable compared to similar specialized protective gear or if it reflects a premium due to the sole-source nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.

Taxpayer Impact: The sole-source award for a high-value contract like this presents a significant risk of taxpayer funds being used inefficiently due to the lack of competitive pressure on pricing.

Public Impact

Taxpayers may be paying a premium for essential military equipment due to a lack of competition. The specialized nature of 'nuclear overshoes' suggests a critical need, but the procurement method warrants scrutiny. Future contracts for similar specialized gear should explore competitive strategies to ensure value for money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value
Lack of competition
Potential for inflated pricing

Positive Signals

Essential military equipment
Defined delivery timeline

Sector Analysis

The contract falls under Footwear Manufacturing, a niche sector. While specific benchmarks for 'nuclear overshoes' are unavailable, general defense procurement often faces scrutiny for cost-effectiveness, especially in sole-source situations.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were excluded or if the nature of the product precluded their participation.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight from the Defense Logistics Agency and the Department of Defense to ensure the contractor is meeting all requirements and that pricing remains justifiable throughout the contract term.

Related Government Programs

Footwear Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award limits competition and price discovery.
High contract value increases financial risk.
Potential for overpayment due to lack of competitive bidding.
Lack of transparency regarding justification for sole-sourcing.
Absence of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to CANADIAN COMMERCIAL CORPORATION. 8511231325!OVERSHOES,NUCLEAR,B

Who is the contractor on this award?

The obligated recipient is CANADIAN COMMERCIAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $27.4 million.

What is the period of performance?

Start: 2025-03-06. End: 2026-01-30.

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

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further documentation, it's unclear if the Defense Logistics Agency thoroughly explored competitive options or if specific circumstances mandated this approach. This lack of transparency can obscure potential cost savings.

How does the unit cost of these nuclear overshoes compare to similar protective footwear in the market?

Benchmarking the unit cost is challenging without specific product details and market data for 'nuclear overshoes.' However, the $273M total value suggests a significant per-unit cost. A lack of competition inherently makes it difficult to ascertain if the price reflects fair market value or includes a premium.

What measures are in place to ensure the effectiveness and quality of these specialized overshoes under a sole-source contract?

Under a sole-source contract, stringent quality assurance and performance monitoring are critical. The Department of Defense and DLA must implement rigorous inspection protocols, testing procedures, and performance metrics to ensure the nuclear overshoes meet all safety and operational requirements, compensating for the absence of market-driven quality improvements.

Industry Classification

NAICS: Manufacturing › Footwear Manufacturing › Footwear Manufacturing

Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY

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 STE 1100, OTTAWA

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

Financial Breakdown

Contract Ceiling: $27,374,280

Exercised Options: $27,374,280

Current Obligation: $27,374,280

Subaward Activity

Number of Subawards: 1

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE1C125D0023

IDV Type: IDC

Timeline