Army awards $207.8M contract for 75-125mm ammunition to Canadian Commercial Corporation

Contract Overview

Contract Amount: $10,605,138 ($10.6M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2004-08-31

End Date: 2009-06-30

Contract Duration: 1,764 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200411!001798!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0084 !A!N! !N! ! !20040831!20051230!207884594!207884594!241015486!N!CANADIAN COMMERCIAL CORPORATIO!50 OCONNOR STREET !OTTAWA !CA!* !00000! !CA!* !* !CANADA !+000003348000!N!N!000000000000!1315!AMMUNITION, 75 MM THROUGH 125 MM !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !99990909!B! ! !A! !A!Y!J!2!002!N!3A!Z!Y!Z!B!CA!N!L!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $10.6 million to CANADIAN COMMERCIAL CORPORATION for work described as: 200411!001798!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0084 !A!N! !N! ! !20040831!20051230!207884594!207884594!241015486!N!CANADIAN COMMERCIAL CORPORATIO!50 OCONNOR STREET !OTTAWA !CA!* !00000! !CA!* !* … Key points: 1. The contract value of $207.8 million for ammunition is significant within the defense sector. 2. Competition was limited, with a 'full and open competition after exclusion of sources' method used. 3. The risk appears moderate, given the nature of ammunition procurement and a firm fixed price contract. 4. The sector is Defense, specifically focusing on ammunition manufacturing.

Value Assessment

Rating: good

The contract value of $207.8 million for ammunition appears reasonable given the duration and quantity. Benchmarking against similar large-scale ammunition procurements would provide a more precise assessment.

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 limited competition. This method may have impacted price discovery by restricting the pool of potential bidders.

Taxpayer Impact: The firm fixed price contract aims to control costs, but the limited competition could potentially lead to higher prices than a fully open process.

Public Impact

Taxpayers are impacted by the significant expenditure on defense materiel. The procurement ensures the U.S. Army maintains adequate ammunition stocks for its operations. The contract supports international defense industrial cooperation with Canada.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
Dependence on a single foreign supplier for critical defense materiel.
Potential for price escalation if not managed tightly under fixed price.

Positive Signals

Firm fixed price contract provides cost certainty.
Procurement supports allied defense capabilities.
Long-term contract ensures supply chain stability.

Sector Analysis

The defense sector, particularly ammunition procurement, is characterized by high costs and specialized manufacturing. This contract falls within the typical spending range for large-scale ammunition acquisitions.

Small Business Impact

This contract does not appear to involve small business participation, as it was awarded to a large foreign corporation. Analysis of subcontracting opportunities for small businesses is not available from the provided data.

Oversight & Accountability

The contract's duration and value suggest it would be subject to standard Department of Defense oversight mechanisms. Accountability for delivery and quality would be managed through contract administration.

Related Government Programs

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

Risk Flags

Limited competition
Foreign supplier reliance
Potential for price volatility
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.6 million to CANADIAN COMMERCIAL CORPORATION. 200411!001798!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0084 !A!N! !N! ! !20040831!20051230!207884594!207884594!241015486!N!CANADIAN COMMERCIAL CORPORATIO!50 OCONNOR STREET !OTTAWA !CA!* !00000! !CA!* !* !CANADA !+000003348000!N!N!000000000000!1315!AMMUNITION, 75 MM THROUGH 125 MM !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !999

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 $10.6 million.

What is the period of performance?

Start: 2004-08-31. End: 2009-06-30.

What is the specific type and quantity of ammunition being procured?

The contract specifies ammunition for 75 mm through 125 mm calibers. The exact quantity is not detailed in the provided data, but the contract value of $207,884,594 suggests a substantial volume of these medium-caliber rounds.

What are the risks associated with relying on a Canadian supplier for ammunition?

Risks include potential supply chain disruptions due to geopolitical factors, trade disputes, or differing regulatory environments. Ensuring consistent quality and timely delivery from a foreign supplier requires robust oversight and contingency planning.

How does the firm fixed price contract ensure value for money in this procurement?

A firm fixed price contract shifts the risk of cost overruns to the contractor, incentivizing efficient production. However, the effectiveness in ensuring value for money is contingent on the initial price negotiation and the level of competition.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Government of Canada (UEI: 241015486)

Address: 50 OCONNOR STREET, OTTAWA

Business Categories: Category Business, Not Designated a Small Business

Timeline