DoD Awards $72.1M Delivery Order for Ammunition Production to Canadian Commercial Corporation

Contract Overview

Contract Amount: $72,108,395 ($72.1M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2025-09-04

End Date: 2030-06-30

Contract Duration: 1,760 days

Daily Burn Rate: $41.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AWARD OF DELIVERY ORDER FOR HE LAP PRODUCTION QUANTITIES.

Plain-Language Summary

Department of Defense obligated $72.1 million to CANADIAN COMMERCIAL CORPORATION for work described as: AWARD OF DELIVERY ORDER FOR HE LAP PRODUCTION QUANTITIES. Key points: 1. Significant award for ammunition manufacturing, indicating sustained demand. 2. Competition method is 'Full and Open', suggesting a competitive bidding process. 3. Contract type is 'Firm Fixed Price', providing cost certainty for the government. 4. The award is a Delivery Order, implying it's part of a larger contract vehicle.

Value Assessment

Rating: fair

The contract value of $72.1 million over approximately 4.8 years is substantial. Benchmarking against similar ammunition production contracts is difficult without more specific product details, but the duration suggests a significant production run.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'Full and Open Competition' method indicates that multiple bidders were likely considered, which is generally favorable for price discovery. However, the specific details of the bidding process and the number of bids received are not provided.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers. The firm fixed price contract provides budget predictability, mitigating the risk of cost overruns.

Public Impact

Ensures continued supply of essential ammunition for the Department of Defense. Supports industrial capacity for defense manufacturing. Potential impact on global ammunition markets due to the scale of the award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific product details for precise cost benchmarking.
Reliance on a foreign entity (Canadian Commercial Corporation) for critical defense supplies.
Limited information on the competitive landscape and number of bids received.

Positive Signals

Awarded under Full and Open Competition.
Firm Fixed Price contract type offers cost certainty.
Long-term delivery period (2025-2030) suggests stable supply.

Sector Analysis

This award falls within the Ammunition (except Small Arms) Manufacturing sector. Spending in this sector is critical for national defense readiness. Benchmarks are difficult without specific product data, but large-scale production contracts are common for military needs.

Small Business Impact

The data indicates the awardee is the Canadian Commercial Corporation, a government agency, and the contract was not set aside for small businesses. Therefore, there is no direct small business participation evident in this specific award.

Oversight & Accountability

The award is a Delivery Order, suggesting it is likely managed under an existing contract with established oversight mechanisms. Further details on the parent contract and specific oversight for this order would be needed for a full assessment.

Related Government Programs

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

Risk Flags

Award to a foreign entity for critical defense supplies.
Lack of specific product details for cost analysis.
Limited transparency on the competitive bidding process (number of bids).
Potential supply chain vulnerabilities related to international sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.1 million to CANADIAN COMMERCIAL CORPORATION. AWARD OF DELIVERY ORDER FOR HE LAP PRODUCTION QUANTITIES.

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 $72.1 million.

What is the period of performance?

Start: 2025-09-04. End: 2030-06-30.

What specific types of ammunition are being produced under this contract, and how does the unit cost compare to similar domestic production contracts?

The specific types of ammunition are not detailed in the provided data, making direct unit cost comparison challenging. However, the award value of $72.1 million over approximately 1760 days (roughly 4.8 years) suggests a significant volume. Without knowing the exact quantity and type, it's difficult to benchmark against domestic contracts, which may have different cost structures due to labor, materials, and regulatory environments.

What are the geopolitical risks associated with awarding a significant ammunition production contract to a Canadian entity, and what mitigation strategies are in place?

Awarding critical defense materiel to a foreign entity, even an ally like Canada, introduces geopolitical risks such as supply chain disruptions due to international relations, differing regulatory standards, or potential export controls. Mitigation strategies could include robust intergovernmental agreements, diversification of suppliers, and ensuring clear contractual terms regarding delivery assurances and contingency planning.

How effective is the 'Full and Open Competition' process in ensuring the best value for taxpayer dollars in the context of specialized defense manufacturing like ammunition?

Full and Open Competition is generally effective in promoting price discovery and ensuring value by allowing multiple qualified vendors to compete. For specialized defense manufacturing, its effectiveness depends on the number of capable domestic and international suppliers, the complexity of the product, and the clarity of the government's requirements. A well-executed competitive process should yield competitive pricing, but the specific market dynamics for ammunition are crucial.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $72,108,395

Exercised Options: $72,108,395

Current Obligation: $72,108,395

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J22D0032

IDV Type: IDC

Timeline