Defense Logistics Agency awards $16.5M contract for Nuclear Overshoes, citing no competition

Contract Overview

Contract Amount: $16,534,800 ($16.5M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2025-09-10

End Date: 2026-10-23

Contract Duration: 408 days

Daily Burn Rate: $40.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8511630619!OVERSHOES,NUCLEAR,B

Plain-Language Summary

Department of Defense obligated $16.5 million to CANADIAN COMMERCIAL CORPORATION for work described as: 8511630619!OVERSHOES,NUCLEAR,B Key points: 1. High-value contract for specialized footwear. 2. Sole-source award raises questions about competition. 3. Potential risk of inflated pricing due to lack of competition. 4. Sector: Defense, specifically footwear manufacturing.

Value Assessment

Rating: questionable

The contract value of $16.5M for nuclear overshoes is significant. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar specialized protective gear contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no competition was sought. This significantly limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this specialized item could result in taxpayers paying more than necessary for essential defense equipment.

Public Impact

Specialized nuclear protective gear ensures soldier safety in hazardous environments. Sole-source procurement may limit innovation and availability of alternative solutions. Taxpayers bear the cost of this essential, but non-competitively procured, equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Essential protective equipment for defense personnel
Clear delivery timeline

Sector Analysis

This contract falls within the Defense sector, specifically for specialized footwear manufacturing. Spending benchmarks for such niche items are hard to establish without competitive data, but high unit costs are common for specialized protective gear.

Small Business Impact

The data indicates no specific set-aside for small businesses. The sole-source nature of this award further suggests that small businesses were unlikely to have had an opportunity to compete.

Oversight & Accountability

The sole-source justification for this contract requires careful review by oversight bodies to ensure it was truly necessary and that fair market value was obtained.

Related Government Programs

Footwear Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award lacks competition.
Potential for price gouging.
Limited transparency in pricing.
No small business participation indicated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to CANADIAN COMMERCIAL CORPORATION. 8511630619!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 $16.5 million.

What is the period of performance?

Start: 2025-09-10. End: 2026-10-23.

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

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. For specialized items like nuclear overshoes, the government might argue that only one or a limited number of manufacturers possess the necessary expertise and certifications to produce them to the required standards, thus precluding full and open competition.

What are the risks associated with a sole-source procurement of specialized defense equipment?

Sole-source procurements carry inherent risks, including the potential for inflated pricing due to the absence of competitive pressure, reduced innovation as suppliers face no incentive to improve their offerings, and a lack of transparency in the acquisition process. This can lead to taxpayers paying more for goods and services than they would in a competitive environment.

How does this contract contribute to the overall effectiveness of defense operations?

Nuclear overshoes are critical personal protective equipment designed to safeguard military personnel operating in or potentially exposed to radiological or nuclear environments. Ensuring a reliable supply of such specialized gear is vital for maintaining operational readiness and the safety of forces in specific mission contexts, even if procured through non-competitive means.

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: $16,534,800

Exercised Options: $16,534,800

Current Obligation: $16,534,800

Subaward Activity

Number of Subawards: 2

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE1C125D0023

IDV Type: IDC

Timeline