Department of Defense awards $32.7M for wireless communications equipment, procured via sole-source contract

Contract Overview

Contract Amount: $32,741,712 ($32.7M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2020-09-16

End Date: 2022-08-14

Contract Duration: 697 days

Daily Burn Rate: $47.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRILOS: TO PROCURE HARDWARE ITEMS PEO C3T PDM NET MOD

Plain-Language Summary

Department of Defense obligated $32.7 million to CANADIAN COMMERCIAL CORPORATION for work described as: TRILOS: TO PROCURE HARDWARE ITEMS PEO C3T PDM NET MOD Key points: 1. Contract awarded to Canadian Commercial Corporation, raising questions about competition and potential for better pricing. 2. Significant portion of contract value allocated to hardware, suggesting a focus on equipment rather than services. 3. The contract duration of nearly two years indicates a substantial, ongoing need for these communications items. 4. Sole-source procurement limits transparency and potentially inflates costs compared to a competitive bidding process. 5. The specific NAICS code points to a specialized manufacturing sector, potentially limiting the pool of eligible contractors. 6. Lack of small business involvement noted, with no set-aside or subcontracting requirements specified.

Value Assessment

Rating: questionable

The contract value of $32.7 million for wireless communications equipment is difficult to benchmark without more specific details on the hardware procured. However, the sole-source nature of the award raises concerns about whether the government achieved the best possible value. Without competitive bids, it's challenging to assess if the pricing is aligned with market rates or if it reflects a premium due to limited competition. The Canadian Commercial Corporation's role as an intermediary also adds a layer of complexity to direct value assessment.

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 solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no opportunity for price discovery through market forces, potentially leading to higher costs for the government. The rationale for this sole-source award is not detailed in the provided data.

Taxpayer Impact: Sole-source awards limit taxpayer value by preventing the government from leveraging competition to secure the lowest possible prices. This can result in higher overall spending for the same goods or services.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential wireless communications hardware. This contract supports the operational readiness and communication capabilities of military units. The geographic impact is likely global, supporting deployed forces, though specific deployment locations are not detailed. The contract may indirectly support a Canadian manufacturing workforce involved in producing the specified equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value for taxpayers.
Lack of transparency in the procurement process due to single-bidder solicitation.
Potential for higher costs compared to a competitively bid contract.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Procurement of critical wireless communications hardware ensures operational capability.
Contract awarded to a government agency (Canadian Commercial Corporation) which may have established processes.
Fixed-price contract type helps manage cost certainty once awarded.

Sector Analysis

This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector (NAICS 334220). This industry is characterized by the production of a wide range of electronic equipment used for transmitting and receiving signals. The market size for such equipment is substantial, driven by both commercial and government demand for advanced communication technologies. This specific award represents a portion of the government's spending on specialized military-grade communication hardware, fitting within the broader defense procurement landscape.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor is there any information suggesting subcontracting opportunities for small businesses. This suggests that the procurement likely involved large-scale manufacturing capabilities, potentially beyond the scope of many small businesses in this sector. The absence of small business considerations in this sole-source award means there is no direct positive impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and procurement regulations. As a sole-source award, the justification and approval process would be subject to specific oversight rules to ensure it meets regulatory requirements. Transparency is limited due to the non-competitive nature. Accountability would be managed through contract performance monitoring and adherence to the firm fixed-price terms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Communications Equipment Procurement
Canadian Commercial Corporation Contracts
Wireless Communications Hardware Acquisition
Sole-Source Defense Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.7 million to CANADIAN COMMERCIAL CORPORATION. TRILOS: TO PROCURE HARDWARE ITEMS PEO C3T PDM NET MOD

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 $32.7 million.

What is the period of performance?

Start: 2020-09-16. End: 2022-08-14.

What specific types of wireless communication hardware were procured under this contract?

The provided data identifies the contract under NAICS code 334220 (Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing) and mentions 'HARDWARE ITEMS'. However, it does not specify the exact types of hardware. This could range from radios, transceivers, antennas, modems, or other specialized communication devices. Further details would be required from the contract's statement of work or award justification to understand the precise nature of the equipment procured and its intended application within PEO C3T (Program Executive Office Command, Control, Communications, and Computers).

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

The data explicitly states the contract type as 'NOT COMPETED', indicating a sole-source award. However, the specific justification for this sole-source procurement is not provided. Typically, sole-source awards are justified under circumstances such as urgency, unique capabilities of a single source, or when only one responsible source exists. Without the official justification document, it is impossible to determine the precise reasons why competitive bidding was deemed inappropriate or impossible for this $32.7 million award to the Canadian Commercial Corporation.

How does the contract value compare to similar procurements for wireless communication equipment by the Department of Defense?

Benchmarking this $32.7 million contract against similar procurements is challenging without more granular data on the specific hardware items. The Canadian Commercial Corporation's involvement as an intermediary also complicates direct comparison. Generally, sole-source awards tend to be higher than competitively sourced contracts for comparable items due to the lack of price competition. To perform a robust comparison, one would need to identify contracts for similar quantities and specifications of wireless communication equipment awarded through full and open competition around the same period.

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 Canadian exporters. Their track record involves facilitating trade and procurement for foreign governments, including the U.S. Department of Defense. While CCC itself is not a manufacturer, it has experience in managing complex international contracts. Assessing their performance on this specific contract would require reviewing delivery timelines, adherence to specifications, and overall satisfaction from the Department of the Army (the specific agency listed). Their role is primarily administrative and contractual, rather than direct manufacturing.

What are the potential risks associated with this sole-source contract for the Department of Defense?

The primary risk associated with this sole-source contract is the potential for overpayment due to the lack of competitive pricing. Without competing bids, the government may not be achieving the best possible value for its $32.7 million investment. Another risk is reduced transparency in the procurement process, making it harder to scrutinize costs and vendor performance. Furthermore, reliance on a single source, even through an intermediary like CCC, could pose supply chain risks if unforeseen issues arise with the ultimate manufacturer or delivery.

What is the historical spending pattern for wireless communication equipment by the Department of the Army under PEO C3T?

The provided data focuses on a single contract award. To understand historical spending patterns for wireless communication equipment by the Department of the Army under PEO C3T, a broader analysis of federal procurement databases (like USASpending.gov or FPDS) would be necessary. This would involve filtering contracts by the relevant agency (Department of the Army), program executive office (PEO C3T), product service code (PSC), and NAICS code (334220). Analyzing spending over several fiscal years would reveal trends, identify major contractors, and highlight the proportion of spending on sole-source versus competitive contracts.

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

Address: 350 ALBERT ST SUITE 700, OTTAWA

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

Financial Breakdown

Contract Ceiling: $32,741,712

Exercised Options: $32,741,712

Current Obligation: $32,741,712

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0219

IDV Type: IDC

Timeline