DoD Awards $30M for Trilos Radio Systems, Sole-Sourced to Canadian Commercial Corporation

Contract Overview

Contract Amount: $30,038,976 ($30.0M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2019-12-13

End Date: 2021-01-30

Contract Duration: 414 days

Daily Burn Rate: $72.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO PROCURE TRILOS RADIO SYSTEMS, SPARES, AND CDRLS.

Plain-Language Summary

Department of Defense obligated $30.0 million to CANADIAN COMMERCIAL CORPORATION for work described as: TO PROCURE TRILOS RADIO SYSTEMS, SPARES, AND CDRLS. Key points: 1. Significant award of $30M for specialized radio systems. 2. Sole-source procurement raises questions about competition and potential cost savings. 3. Contract duration of 414 days suggests a focused, short-term need. 4. Focus on radio and wireless communications equipment manufacturing.

Value Assessment

Rating: questionable

The contract value of $30M is substantial. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar radio systems procured through competitive means.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may lead to higher costs for taxpayers as there is no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition in this $30M award means taxpayers may not have received the best possible price for these radio systems.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Potential for future sole-source awards if this is not challenged.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competition
Potential for inflated pricing

Positive Signals

Award to a foreign commercial entity (Canada)
Specific equipment for DoD needs

Sector Analysis

The procurement falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector can vary widely based on technological advancements and defense needs, but competitive bidding is crucial for cost-effectiveness.

Small Business Impact

The contract was awarded to the Canadian Commercial Corporation, a foreign entity, and there is no indication of small business participation. This award bypasses opportunities for U.S. small businesses in the wireless communications equipment manufacturing sector.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further investigation into the justification for not competing the contract and the price negotiation process is recommended to ensure accountability.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks transparency.
Potential for overpayment due to no competition.
Limited opportunity for U.S. small businesses.
Foreign awardee may not align with domestic industrial base goals.
Need for justification of non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to CANADIAN COMMERCIAL CORPORATION. TO PROCURE TRILOS RADIO SYSTEMS, SPARES, AND CDRLS.

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 $30.0 million.

What is the period of performance?

Start: 2019-12-13. End: 2021-01-30.

What was the specific justification for awarding this contract on a sole-source basis, and was a market research analysis conducted to confirm no other viable sources existed?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to ascertain the specific justification, such as urgency, unique capabilities, or lack of market availability. Without this documentation, it's impossible to definitively state the rationale or confirm if adequate market research was performed.

How does the awarded price of $30M compare to industry benchmarks for similar Trilos radio systems or comparable technologies procured competitively?

Benchmarking this $30M award against industry standards is challenging without detailed specifications of the Trilos radio systems and their required capabilities. A direct comparison would necessitate analyzing pricing data from similar, competitively awarded contracts for comparable communication equipment, considering factors like quantity, features, and support.

What is the long-term strategic value of these Trilos radio systems to the Department of the Army, and are there plans for future procurements that could benefit from competition?

The long-term strategic value depends on the specific operational requirements these radio systems fulfill for the Department of the Army. If these systems are critical and unique, a sole-source award might be justifiable. However, for future procurements, exploring competitive strategies, even for specialized equipment, could yield better value and foster innovation.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Government of Canada (UEI: 241015486)

Address: 350 ALBERT ST SUITE 700, OTTAWA

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

Financial Breakdown

Contract Ceiling: $30,038,976

Exercised Options: $30,038,976

Current Obligation: $30,038,976

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0219

IDV Type: IDC

Timeline