DoD's $20.08M Mortar Cartridge Contract Awarded to Canadian Commercial Corporation Amidst Full and Open Competition

Contract Overview

Contract Amount: $20,080,245 ($20.1M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2022-09-27

End Date: 2028-02-29

Contract Duration: 1,981 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 60MM, 81MM, 120MM MORTAR CARTRIDGES HIGH EXPLOSIVE LOAD, ASSEMBLE, PACK CONTEMPLATION LETTER

Plain-Language Summary

Department of Defense obligated $20.1 million to CANADIAN COMMERCIAL CORPORATION for work described as: 60MM, 81MM, 120MM MORTAR CARTRIDGES HIGH EXPLOSIVE LOAD, ASSEMBLE, PACK CONTEMPLATION LETTER Key points: 1. The contract, valued at $20.08 million, focuses on the assembly and packing of high-explosive mortar cartridges. 2. Awarded to Canadian Commercial Corporation, this contract highlights international collaboration in defense procurement. 3. The use of full and open competition suggests a robust market for these specialized ammunition components. 4. The contract duration extends to February 2028, indicating a long-term need for these supplies.

Value Assessment

Rating: good

The contract value of $20.08 million appears reasonable for the specified ammunition components, considering the specialized nature of assembly and packing. Benchmarking against similar contracts for high-explosive mortar cartridges would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. This competitive process is expected to drive favorable pricing and ensure the government receives the best value.

Taxpayer Impact: The competitive nature of this award is likely to result in efficient use of taxpayer funds by securing necessary defense supplies at a fair market price.

Public Impact

Ensures the supply of critical ammunition for military operations. Supports the Department of Defense's logistical capabilities. Potentially impacts readiness and operational effectiveness of forces relying on these mortar rounds. Highlights the role of international suppliers in meeting US defense needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single foreign entity for critical defense components.
Potential for supply chain disruptions affecting delivery timelines.
Limited visibility into the specific manufacturing and quality control processes of the awarded vendor.

Positive Signals

Awarded through full and open competition, suggesting market availability.
Contract duration provides supply chain stability for a defined period.
Focus on essential ammunition components for military operations.

Sector Analysis

The defense sector, particularly ammunition manufacturing, is characterized by high barriers to entry due to specialized technology, stringent quality control, and regulatory compliance. Spending in this area is driven by geopolitical factors and military readiness requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor is a foreign entity. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The Department of Defense's contracting processes are subject to oversight from various bodies, including the Government Accountability Office (GAO) and the Inspector General (IG). The use of full and open competition is a standard accountability measure.

Related Government Programs

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

Risk Flags

Potential for sole-source reliance on Canadian Commercial Corporation for future needs.
Geopolitical risks impacting supply chain stability.
Limited transparency into the specific manufacturing processes.
Dependence on foreign entities for critical defense materiel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to CANADIAN COMMERCIAL CORPORATION. 60MM, 81MM, 120MM MORTAR CARTRIDGES HIGH EXPLOSIVE LOAD, ASSEMBLE, PACK CONTEMPLATION LETTER

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 $20.1 million.

What is the period of performance?

Start: 2022-09-27. End: 2028-02-29.

What is the specific breakdown of costs associated with assembly versus packing for these mortar cartridges?

The provided data does not detail the cost breakdown between assembly and packing. A more granular analysis would require access to the contractor's bid proposal and the government's cost evaluation. Understanding this split could reveal efficiencies or areas of higher cost within the production process.

What are the specific quality assurance and testing protocols in place for these high-explosive mortar cartridges?

While the contract specifies high-explosive mortar cartridges, the exact quality assurance and testing protocols are not detailed in the provided summary. Typically, defense contracts include rigorous testing requirements to ensure safety and efficacy. Further review of the contract's statement of work and associated military standards would be necessary to ascertain these details.

How does the pricing of these mortar cartridges compare to domestically produced alternatives, if available?

The provided data does not include pricing for domestically produced alternatives, making a direct comparison impossible. The contract's full and open competition suggests competitive pricing was sought. A comprehensive analysis would involve benchmarking against similar domestic contracts, considering factors like production volume, material costs, and logistical expenses.

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: $20,080,245

Exercised Options: $20,080,245

Current Obligation: $20,080,245

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