Army Spends $27.1M on Wireless Comms Equipment in FY5, Awarded via Non-Competed Delivery Order

Contract Overview

Contract Amount: $27,122,918 ($27.1M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2024-02-28

End Date: 2025-07-01

Contract Duration: 489 days

Daily Burn Rate: $55.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORDERING YEAR 5

Plain-Language Summary

Department of Defense obligated $27.1 million to CANADIAN COMMERCIAL CORPORATION for work described as: ORDERING YEAR 5 Key points: 1. Significant spending on specialized wireless communications equipment. 2. Lack of competition raises questions about price discovery and value. 3. Potential for higher costs due to sole-source award. 4. Sector involves critical defense communications infrastructure.

Value Assessment

Rating: questionable

The contract value of $27.1M for a 489-day duration is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to similar wireless communications equipment procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, indicating no competition was sought. This method limits price discovery and may not yield the best value for the government.

Taxpayer Impact: The absence of competition could lead to taxpayers paying a premium for this equipment.

Public Impact

Ensures availability of critical wireless communication equipment for Army operations. Potential for delays or higher costs impacting readiness if equipment is essential. Highlights reliance on specific vendors for specialized defense technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Lack of clear justification for sole-sourcing.
Potential for inflated pricing.

Positive Signals

Procurement supports essential Army communications needs.
Firm fixed price contract provides cost certainty.

Sector Analysis

This procurement falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this area is critical for modern defense capabilities, but often involves specialized, high-cost components.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Defense received fair and reasonable pricing and that competition was appropriately considered.

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.
Lack of documented justification for sole-sourcing.
Potential for overpayment due to lack of competition.
Limited visibility into market alternatives.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.1 million to CANADIAN COMMERCIAL CORPORATION. ORDERING YEAR 5

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 $27.1 million.

What is the period of performance?

Start: 2024-02-28. End: 2025-07-01.

What is the justification for awarding this contract as sole-source, and what steps were taken to ensure fair and reasonable pricing?

The justification for this sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. Agencies must conduct market research and document the rationale, often involving unique technical requirements or critical operational needs, to justify bypassing full and open competition and ensure pricing is fair and reasonable through negotiation or cost analysis.

What are the risks associated with relying on a sole-source vendor for critical wireless communications equipment?

Sole-sourcing critical equipment carries risks such as potential price gouging, limited access to innovation from other vendors, and supply chain vulnerability if the sole vendor faces production issues or goes out of business. It can also hinder the development of a competitive market, leading to higher costs in future procurements and potentially impacting long-term technological advancement and system interoperability.

How does this spending align with the Army's overall strategy for wireless communications modernization and interoperability?

Without further context on the specific equipment and its role, it's difficult to definitively assess alignment. However, a $27.1M sole-source award suggests a specific, potentially unique need. Effective modernization requires balancing specialized requirements with opportunities for competitive sourcing to ensure cost-effectiveness and leverage broader technological advancements for interoperability across different platforms and services.

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

Address: 350 ALBERT ST SUITE 700, OTTAWA

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

Financial Breakdown

Contract Ceiling: $27,122,918

Exercised Options: $27,122,918

Current Obligation: $27,122,918

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0219

IDV Type: IDC

Timeline