DoD's $207.8M Engineering Services Contract with Canadian Commercial Corp. Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $27,725,226 ($27.7M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2005-07-14

End Date: 2012-02-03

Contract Duration: 2,395 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200510!001386!2100!W56HZV!TACOM - WARREN !W56HZV04C0068 !A!N! !N! ! !20050714!20051230!207884594!207884594!241015486!N!CANADIAN COMMERCIAL CORPORATIO!50 O CONNOR ST STE 1100 !OTTAWA !CA!* !00000! !CA!* !* !CANADA !+000000051914!Y!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !811198!E! !3! ! ! ! ! !20200930!B! ! !B! !D!N!U!1!001!N!1G!Z!W!Z!B!CA!N!L!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $27.7 million to CANADIAN COMMERCIAL CORPORATION for work described as: 200510!001386!2100!W56HZV!TACOM - WARREN !W56HZV04C0068 !A!N! !N! ! !20050714!20051230!207884594!207884594!241015486!N!CANADIAN COMMERCIAL CORPORATIO!50 O CONNOR ST STE 1100 !OTTAWA !CA!* !00000! !CA!* !* … Key points: 1. The contract awarded to Canadian Commercial Corporation for engineering technical services represents a significant expenditure. 2. Lack of competition is a major concern, with the award being 'NOT COMPETED'. 3. The contract type is 'COST PLUS FIXED FEE', which can lead to cost overruns if not managed tightly. 4. The sector is primarily IT and professional services, with a specific NAICS code of 811198. 5. The duration of the contract is substantial, spanning from 2005 to 2012.

Value Assessment

Rating: questionable

The total award amount is $207,884,594. Without comparable contracts or detailed cost breakdowns, assessing the value for money is difficult. The cost-plus-fixed-fee structure necessitates close oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was explicitly marked as 'NOT COMPETED', indicating a limited competition approach. This raises questions about whether alternative solutions or better pricing were explored through a competitive process.

Taxpayer Impact: The lack of competition may have resulted in higher costs for taxpayers than a fully competed contract might have achieved.

Public Impact

Taxpayers may have paid more due to the absence of competitive bidding. The long duration of the contract raises questions about ongoing need and potential for market changes. The reliance on a single source for critical engineering services could pose a risk if performance issues arise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Cost-Plus-Fixed-Fee Contract Type
Limited Transparency on Value

Positive Signals

Awarded to a specific entity for specialized services
Contract was definitive, suggesting a clear scope

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically automotive repair and maintenance engineering. Benchmarks for similar large-scale engineering services contracts are difficult to ascertain without more specific details on the services rendered.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made to a large foreign corporation.

Oversight & Accountability

The 'NOT COMPETED' status and 'COST PLUS FIXED FEE' structure necessitate robust oversight to ensure the contractor is delivering services efficiently and that costs are reasonable. Details on specific oversight mechanisms are not provided.

Related Government Programs

All Other Automotive Repair and Maintenance
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of Competition
Cost-Plus-Fixed-Fee Contract Type
Potential for Overpricing
Limited Small Business Participation
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to CANADIAN COMMERCIAL CORPORATION. 200510!001386!2100!W56HZV!TACOM - WARREN !W56HZV04C0068 !A!N! !N! ! !20050714!20051230!207884594!207884594!241015486!N!CANADIAN COMMERCIAL CORPORATIO!50 O CONNOR ST STE 1100 !OTTAWA !CA!* !00000! !CA!* !* !CANADA !+000000051914!Y!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !811198!E! !3! ! ! ! ! !202

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 $27.7 million.

What is the period of performance?

Start: 2005-07-14. End: 2012-02-03.

What specific engineering technical services were provided under this contract, and how did they align with the Department of the Army's needs?

The contract was for 'ENGINEERING TECHNICAL SERVICES' under NAICS code 811198 (All Other Automotive Repair and Maintenance). While the specific tasks are not detailed, it implies support for automotive systems, potentially including design, testing, or maintenance engineering. The alignment with Army needs would depend on the specific operational requirements for their vehicle and equipment fleets.

What justification was provided for not competing this contract, and were there any sole-source justifications documented?

The data explicitly states 'NOT COMPETED' but does not provide the specific justification. Typically, sole-source awards require detailed documentation explaining why only one source can meet the requirement, such as unique capabilities, urgent needs, or specific government-unique property. Without this justification, the decision to limit competition remains unclear.

How was the fixed fee determined, and what mechanisms were in place to control costs and ensure efficiency under the Cost Plus Fixed Fee structure?

The determination of the fixed fee is not detailed in the provided data. For Cost Plus Fixed Fee contracts, the fee is negotiated upfront and represents the contractor's profit. Cost controls and efficiency measures would typically involve detailed audits, performance metrics, and regular reviews by the contracting officer to ensure the government is not overpaying for services rendered.

Industry Classification

NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › All Other Automotive Repair and Maintenance

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Government of Canada (UEI: 241015486)

Address: 50 O'CONNOR ST STE 1100, OTTAWA

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $4,378,689

Exercised Options: $4,378,689

Current Obligation: $27,725,226

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline