Department of Defense awards $14.7M contract for mobile radio equipment to Canadian Commercial Corporation

Contract Overview

Contract Amount: $14,727,926 ($14.7M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2008-09-18

End Date: 2012-07-31

Contract Duration: 1,412 days

Daily Burn Rate: $10.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MOBILE RADIO FOR JORDAN

Plain-Language Summary

Department of Defense obligated $14.7 million to CANADIAN COMMERCIAL CORPORATION for work described as: MOBILE RADIO FOR JORDAN Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings through competition. 2. The contract duration of over three years suggests a significant need for sustained communication capabilities. 3. The procurement falls under the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' NAICS code. 4. The firm fixed-price contract type aims to provide cost certainty for the government. 5. The absence of small business participation indicates a focus on specialized capabilities or large-scale procurement.

Value Assessment

Rating: questionable

Without competitive bids, it is difficult to benchmark the value for money on this $14.7 million contract. The Canadian Commercial Corporation, acting as an intermediary, may add overhead costs. A comparison to similar mobile radio procurements by the Department of Defense or other agencies would be necessary to assess if the pricing is fair. The firm fixed-price nature provides cost predictability, but the lack of competition prevents a true market-based valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The 'NOT AVAILABLE FOR COMPETITION' designation suggests specific circumstances, possibly related to international agreements, unique capabilities, or urgent requirements where only one source could fulfill the need. The lack of multiple bidders means there was no price negotiation driven by market forces.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible value.

Public Impact

The primary beneficiaries are likely military personnel in Jordan requiring reliable mobile communication systems. The contract delivers essential wireless communication equipment, crucial for operational effectiveness and safety. The geographic impact is focused on the deployment area of the U.S. military in Jordan. The contract supports the Department of Defense's global operational readiness and communication infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher price than if the contract were competed.
Sole-source awards can limit opportunities for other qualified vendors, including small businesses.
The long duration of the contract could lead to potential obsolescence of technology if not managed proactively.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a reputable entity like the Canadian Commercial Corporation suggests a degree of reliability.
The contract addresses a critical need for communication infrastructure in a specific operational theater.

Sector Analysis

This contract falls within the broader telecommunications equipment manufacturing sector. The market for specialized military communication systems is often characterized by high barriers to entry due to stringent technical requirements and security protocols. While the overall market for wireless communications is vast, niche segments like government-specific mobile radio solutions are typically served by a limited number of specialized contractors or government-facilitated procurement channels, such as intergovernmental agreements.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there an indication of significant subcontracting opportunities for small businesses. The award to the Canadian Commercial Corporation, an international entity, further suggests that the primary focus was not on domestic small business participation. This procurement likely leverages specialized capabilities or intergovernmental agreements that do not prioritize small business engagement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and financial management divisions. The Canadian Commercial Corporation, as the awardee, would be responsible for its own internal quality control and delivery. Transparency is limited due to the sole-source nature of the award. Specific Inspector General jurisdiction would depend on the nature of any potential issues or investigations arising from the contract's performance.

Related Government Programs

Department of Defense Communications Equipment Procurement
International Armaments Cooperation
Mobile Radio Systems
Wireless Communications Infrastructure

Risk Flags

Sole-source award
Lack of competition
Potential for higher cost
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.7 million to CANADIAN COMMERCIAL CORPORATION. MOBILE RADIO FOR JORDAN

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 Army).

What is the total obligated amount?

The obligated amount is $14.7 million.

What is the period of performance?

Start: 2008-09-18. End: 2012-07-31.

What is the track record of the Canadian Commercial Corporation in fulfilling similar defense contracts?

The Canadian Commercial Corporation (CCC) acts as a government-to-government contracting agency for Canada. They have a history of facilitating international sales of Canadian goods and services, including defense equipment. While CCC itself doesn't manufacture, it manages contracts with Canadian suppliers. Their track record involves successfully delivering a wide range of products and services to allied nations, often under complex international procurement frameworks. Specific details on their performance for U.S. Department of Defense contracts would require further investigation into individual contract histories and performance reviews, but their mandate is to provide reliable contracting services for Canadian exports.

How does the cost of this contract compare to similar mobile radio procurements by the U.S. military?

Direct cost comparison is challenging due to the sole-source nature of this $14.7 million contract and the specific context of international procurement through the Canadian Commercial Corporation. Typically, competitive procurements allow for price benchmarking against multiple bids and market rates. Without competitive data, it's difficult to ascertain if this price represents optimal value. A thorough analysis would involve identifying comparable contracts for similar mobile radio systems awarded competitively by the Department of Defense or other U.S. agencies around the same period, considering factors like quantity, technical specifications, and contract duration to establish a relevant benchmark.

What are the primary risks associated with a sole-source award for critical communication equipment?

The primary risks associated with a sole-source award for critical communication equipment include potential overpayment due to the absence of competitive pricing, reduced incentive for the contractor to innovate or offer cost efficiencies, and a lack of market validation for the chosen solution. Furthermore, reliance on a single source can create vulnerabilities if that source encounters production issues, financial instability, or geopolitical challenges. For taxpayers, the risk is primarily financial, potentially paying a premium for the equipment. There's also a strategic risk if the technology becomes outdated or unsupported, and no alternative sources were explored during the procurement phase.

What is the expected effectiveness of the mobile radio system in its intended operational environment in Jordan?

The effectiveness of the mobile radio system is presumed to be high, given that it is a Department of Defense procurement intended for use in Jordan. The contract specifies 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing,' suggesting it meets specific military-grade communication standards. The Canadian Commercial Corporation's role implies that the equipment is sourced from reputable Canadian manufacturers. However, actual effectiveness hinges on factors not detailed in this summary, such as the specific technical capabilities of the radios, the training provided to users, the maintenance and support infrastructure, and the environmental conditions in Jordan. The firm fixed-price nature suggests the government has defined clear deliverables.

How has historical spending on mobile radio equipment by the Department of Defense trended over the past five years?

Analyzing historical spending trends for mobile radio equipment by the Department of Defense (DoD) requires access to detailed procurement databases. Generally, the DoD invests significantly in communication systems to maintain operational readiness across various branches and global deployments. Spending in this category can fluctuate based on technological upgrades, geopolitical needs, and the lifecycle of existing equipment. While specific figures for 'mobile radio equipment' are not readily available without deep database queries, the overall trend for defense communications technology is one of continuous investment, driven by evolving threats and the need for secure, reliable, and interoperable systems. This particular contract, awarded in 2008, reflects spending patterns from that era.

What are the implications of awarding this contract to a foreign entity (Canadian Commercial Corporation) versus a U.S. domestic supplier?

Awarding this contract to the Canadian Commercial Corporation (CCC) has several implications. Firstly, it leverages an existing intergovernmental agreement, potentially streamlining the procurement process and ensuring compliance with international trade regulations. Secondly, it may provide access to specialized Canadian technology or manufacturing capabilities that are not readily available domestically or are more cost-effectively sourced through this channel. However, it also means that U.S. taxpayer funds are supporting a foreign entity and potentially foreign manufacturing jobs, rather than domestic industry. The rationale for choosing a foreign supplier often rests on factors like unique capabilities, established relationships, or specific national security agreements that prioritize access over domestic sourcing.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W15P7T08RD284

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Government of Canada (UEI: 241015486)

Address: 50 O'CONNOR ST SUITE 1100, OTTAWA

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

Financial Breakdown

Contract Ceiling: $14,727,926

Exercised Options: $14,727,926

Current Obligation: $14,727,926

Contract Characteristics

Cost or Pricing Data: NO

Timeline