DoD awards $120M contract for M931/M933A1/M934A1 ammunition, with competition after source exclusion

Contract Overview

Contract Amount: $41,369,203 ($41.4M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2011-05-13

End Date: 2017-09-30

Contract Duration: 2,332 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 120MM LAP - FOR M931 AND M933A1/ M934A1

Plain-Language Summary

Department of Defense obligated $41.4 million to CANADIAN COMMERCIAL CORPORATION for work described as: 120MM LAP - FOR M931 AND M933A1/ M934A1 Key points: 1. Contract value: $120 million for ammunition manufacturing. 2. Competition: Full and open after exclusion of sources, suggesting limited initial options. 3. Risk: Potential for higher costs due to restricted competition. 4. Sector: Defense spending on ammunition manufacturing.

Value Assessment

Rating: fair

The contract value of $120 million for ammunition manufacturing appears substantial. Benchmarking against similar ammunition contracts is difficult without more specific data on the types and quantities of ammunition procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while competition was sought, it was not entirely unrestricted, potentially impacting price discovery and overall value.

Taxpayer Impact: The use of a limited competition method may result in higher costs for taxpayers compared to a fully open and unrestricted bidding process.

Public Impact

Ensures supply of critical ammunition for military vehicles. Potential for increased costs due to limited competition. Supports defense industrial base, but with questions on optimal value. Long contract duration (2011-2017) impacts long-term cost analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may inflate prices.
Lack of specific unit cost data hinders value assessment.
Long contract duration could mask inefficiencies.

Positive Signals

Secures essential ammunition supply.
Contract awarded to Canadian Commercial Corporation, indicating international cooperation.

Sector Analysis

This contract falls within the defense sector, specifically ammunition manufacturing. Spending benchmarks for this niche are highly variable based on ammunition type, quantity, and geopolitical factors. The $120M value is significant for this category.

Small Business Impact

The data indicates no specific set-aside for small businesses. The prime contractor is the Canadian Commercial Corporation, suggesting large-scale international procurement rather than direct small business engagement.

Oversight & Accountability

The contract was awarded by the Department of the Army. Oversight would involve monitoring contract performance, delivery schedules, and adherence to the firm fixed price, especially given the limited competition.

Related Government Programs

Ammunition (except Small Arms) Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition may result in suboptimal pricing.
Lack of transparency regarding source exclusion rationale.
Potential for higher taxpayer cost due to restricted bidding.
Absence of specific unit cost data hinders detailed value analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.4 million to CANADIAN COMMERCIAL CORPORATION. 120MM LAP - FOR M931 AND M933A1/ M934A1

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 $41.4 million.

What is the period of performance?

Start: 2011-05-13. End: 2017-09-30.

What specific types and quantities of ammunition were procured under this $120 million contract, and how does this compare to market rates for similar items?

The data specifies 'Ammunition (except Small Arms) Manufacturing' for M931 and M933A1/M934A1 vehicles. Without precise quantities and detailed specifications, a direct comparison to market rates is challenging. However, the $120 million value suggests a substantial procurement, and the limited competition raises concerns about whether the best possible price was achieved.

What were the specific reasons for excluding other sources, and did this exclusion lead to a demonstrably higher cost than if full and open competition had been utilized?

The rationale for excluding sources is not provided in the data. Typically, such exclusions are based on unique capabilities, security requirements, or existing partnerships. However, excluding sources inherently limits the competitive pool, which often leads to higher prices. A thorough review would be needed to quantify the cost impact of this decision.

How effectively did the Canadian Commercial Corporation fulfill the contract requirements over its duration (2011-2017), and were there any performance issues or cost overruns?

The provided data does not include details on contract performance, delivery success, or any issues encountered during the 2011-2017 period. Assessing effectiveness would require access to performance reports, acceptance records, and any modifications or claims filed against the contract. The firm fixed price structure suggests cost overruns should have been minimal unless scope changes occurred.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

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, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $41,369,203

Exercised Options: $41,369,203

Current Obligation: $41,369,203

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline