Army awards $22M for Ammunition Manufacturing to Canadian Commercial Corporation

Contract Overview

Contract Amount: $22,009,706 ($22.0M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2021-09-28

End Date: 2027-01-31

Contract Duration: 1,951 days

Daily Burn Rate: $11.3K/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: CL #7

Plain-Language Summary

Department of Defense obligated $22.0 million to CANADIAN COMMERCIAL CORPORATION for work described as: CL #7 Key points: 1. Contract awarded for ammunition manufacturing, a critical defense supply chain component. 2. Competition method indicates potential for price discovery, though exclusion of sources warrants scrutiny. 3. Long contract duration (2021-2027) suggests a sustained need for these services. 4. The firm fixed price contract type aims to control costs for the government.

Value Assessment

Rating: fair

The contract value of $22M over approximately 5 years is difficult to benchmark without specific per-unit cost data. The firm fixed price structure provides cost certainty, but the absence of detailed cost breakdowns limits a comprehensive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition was sought, specific circumstances led to excluding certain potential bidders. The impact on price discovery is uncertain; it could lead to higher prices if viable alternatives were excluded.

Taxpayer Impact: The $22M expenditure represents taxpayer investment in defense readiness. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.

Public Impact

Ensures supply of essential ammunition for military operations. Supports a foreign entity (Canadian Commercial Corporation) in fulfilling a US defense contract. Long-term commitment may impact budget allocation for future defense needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in competition
Foreign awardee for critical defense item
Long contract duration

Positive Signals

Firm fixed price contract
Clear delivery period

Sector Analysis

Ammunition manufacturing falls under the broader defense industrial base, crucial for national security. Spending benchmarks for such contracts vary widely based on quantity, type, and specific requirements.

Small Business Impact

This contract does not appear to involve small business participation based on the provided data. The prime contractor is a foreign government agency.

Oversight & Accountability

Oversight would focus on contract performance, delivery schedules, and adherence to the firm fixed price. The Department of Defense is responsible for ensuring the contractor meets all contractual obligations.

Related Government Programs

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

Risk Flags

Potential lack of best value due to source exclusion
Geopolitical risks associated with foreign supplier
Long-term commitment may not align with future needs
Limited transparency on specific cost components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to CANADIAN COMMERCIAL CORPORATION. CL #7

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 $22.0 million.

What is the period of performance?

Start: 2021-09-28. End: 2027-01-31.

What was the justification for excluding other sources during the competition phase, and did this exclusion result in a higher price than would have been achieved through full and open competition?

The justification for excluding sources is critical. If legitimate reasons existed, such as specialized capabilities or existing partnerships, the price might be justified. However, if the exclusion limited competition unnecessarily, taxpayers may have paid a premium. A thorough review of the procurement documentation is needed to assess the rationale and its impact on cost-effectiveness.

What are the specific risks associated with relying on a foreign entity for a critical defense supply like ammunition, particularly concerning supply chain disruptions or geopolitical shifts?

Relying on a foreign entity introduces risks related to geopolitical tensions, trade policy changes, and potential disruptions in the supply chain due to factors beyond US control. Ensuring robust contingency plans and maintaining alternative domestic capabilities are crucial to mitigate these risks and guarantee consistent supply during national emergencies or international conflicts.

How effectively does this contract meet the Army's long-term ammunition needs, considering potential technological advancements or changes in military strategy over its duration?

The effectiveness hinges on the contract's flexibility and the ammunition's relevance to evolving military needs. If the contract is for standard, enduring munitions, it's likely effective. However, if it locks the Army into specific types of ammunition that may become obsolete due to new technologies or strategic shifts, its long-term effectiveness could be compromised, necessitating costly modifications or early termination.

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: 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: $22,009,706

Exercised Options: $22,009,706

Current Obligation: $22,009,706

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J17D0004

IDV Type: IDC

Timeline