DoD Awards $92M Ammunition Contract to Canadian Commercial Corporation, Subcontracting General Dynamics

Contract Overview

Contract Amount: $91,990,661 ($92.0M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2019-09-23

End Date: 2029-09-30

Contract Duration: 3,660 days

Daily Burn Rate: $25.1K/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: BASE AWARD CONTRACT FOR THE 120MM HE/FRPC LAP CONTRACT TO CANADIAN COMMERCIAL COOPERATION WHOSE SUBCONTRACTOR IS GENERAL DYNAMICS, CANADA

Plain-Language Summary

Department of Defense obligated $92.0 million to CANADIAN COMMERCIAL CORPORATION for work described as: BASE AWARD CONTRACT FOR THE 120MM HE/FRPC LAP CONTRACT TO CANADIAN COMMERCIAL COOPERATION WHOSE SUBCONTRACTOR IS GENERAL DYNAMICS, CANADA Key points: 1. Contract awarded for 120mm HE/FRPC LAP ammunition. 2. General Dynamics (Canada) is the subcontractor. 3. Contract duration extends to September 2029. 4. This is a firm-fixed-price award.

Value Assessment

Rating: good

The award value of $91.99 million for ammunition manufacturing appears reasonable given the long contract duration and the specialized nature of the product. Benchmarking against similar large-scale ammunition procurements would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process but with specific limitations. This method may have impacted the final price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayers are funding the procurement of essential military ammunition, ensuring readiness. The competitive nature, even if limited, aims to secure a fair price for this specialized defense equipment.

Public Impact

Ensures supply of critical 120mm ammunition for military operations. Supports defense industrial base capabilities in Canada and the US. Long-term contract provides stability for manufacturers. Potential for follow-on orders based on performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the lowest possible price.
Reliance on a single prime contractor for a critical item.

Positive Signals

Long-term contract provides supply chain stability.
Award to a foreign entity may leverage specialized capabilities.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically ammunition production. Spending benchmarks for similar large-scale ammunition contracts can vary significantly based on quantity, type, and technological sophistication.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both the prime contractor (Canadian Commercial Corporation) and the subcontractor (General Dynamics) are large entities. There is no indication of small business participation in this specific award.

Oversight & Accountability

The Department of Defense's contracting process, including competitive bidding and source exclusion, is subject to oversight. The long duration of the contract necessitates ongoing monitoring of performance and adherence to terms.

Related Government Programs

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

Risk Flags

Potential for price increases over the contract's long duration.
Dependence on a foreign entity for critical defense supplies.
Limited competition may not represent best value.
Subcontractor performance risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.0 million to CANADIAN COMMERCIAL CORPORATION. BASE AWARD CONTRACT FOR THE 120MM HE/FRPC LAP CONTRACT TO CANADIAN COMMERCIAL COOPERATION WHOSE SUBCONTRACTOR IS GENERAL DYNAMICS, CANADA

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 $92.0 million.

What is the period of performance?

Start: 2019-09-23. End: 2029-09-30.

What was the rationale for excluding other sources in this 'Full and Open Competition After Exclusion of Sources' award?

The specific rationale for excluding other sources is not detailed in the provided data. Typically, such exclusions are based on factors like national security, unique capabilities, existing infrastructure, or prior successful performance with specific technologies. Further investigation into the solicitation documents would be required to understand the precise justification.

What are the potential risks associated with a long-term contract for ammunition manufacturing, especially with a foreign subcontractor?

Risks include potential supply chain disruptions due to geopolitical factors, currency fluctuations impacting cost, and challenges in ensuring consistent quality control over an extended period. There's also a risk of vendor lock-in, making it difficult to switch providers if issues arise. Ensuring robust oversight and contingency planning is crucial.

How does this contract contribute to the overall readiness and strategic goals of the Department of Defense?

This contract directly supports military readiness by ensuring a steady supply of critical 120mm ammunition, essential for armored vehicle operations. It contributes to strategic goals by maintaining a robust defense industrial base, potentially leveraging international partnerships for specialized manufacturing capabilities, and fulfilling operational requirements.

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

Solicitation ID: W15QKN19R0003

Offers Received: 3

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: $97,769,473

Exercised Options: $91,990,661

Current Obligation: $91,990,661

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $9,484,875

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline