Army Spends $175.6M on RG-31 Vehicles via Sole Source Contract

Contract Overview

Contract Amount: $175,576,917 ($175.6M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2006-12-28

End Date: 2011-06-30

Contract Duration: 1,645 days

Daily Burn Rate: $106.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: RG-31 VEHICLES

Plain-Language Summary

Department of Defense obligated $175.6 million to CANADIAN COMMERCIAL CORPORATION for work described as: RG-31 VEHICLES Key points: 1. Significant spending on RG-31 vehicles by the Department of the Army. 2. Contract awarded through a sole-source method, raising questions about competition. 3. High dollar value suggests a critical need or potentially inflated costs. 4. Lack of small business participation noted.

Value Assessment

Rating: questionable

The total award of $175.6 million for RG-31 vehicles warrants scrutiny. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar armored vehicle procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The sole-source nature of this contract likely resulted in a higher cost to taxpayers than a competitively awarded contract would have.

Public Impact

Taxpayers funded a significant sole-source contract for military vehicles. Limited transparency due to the lack of competitive bidding. Potential for reduced innovation and higher costs without market competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
No small business participation
Lack of price competition

Positive Signals

Essential military equipment procured

Sector Analysis

Spending on military vehicles falls under the Defense sector. Benchmarks for armored vehicle procurement vary widely based on specific capabilities and quantities, but large sole-source contracts often indicate potential cost inefficiencies.

Small Business Impact

The contract data indicates no participation from small businesses. This suggests that the procurement strategy did not prioritize or include opportunities for small business contractors in the supply chain for these vehicles.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the justification for non-competition was sound and that the pricing was fair and reasonable.

Related Government Programs

Military Armored Vehicle, Tank, and Tank Component Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for overpricing
No small business involvement
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $175.6 million to CANADIAN COMMERCIAL CORPORATION. RG-31 VEHICLES

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 $175.6 million.

What is the period of performance?

Start: 2006-12-28. End: 2011-06-30.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of responsible sources. Without further documentation, it's unclear if alternatives were explored. A thorough review would examine the specific circumstances that led the Department of the Army to bypass competitive bidding for these RG-31 vehicles.

How does the per-unit cost of these RG-31 vehicles compare to similar armored vehicles procured competitively by other agencies or allies?

Benchmarking the per-unit cost is crucial for assessing value. Given this was a sole-source contract, direct comparison is challenging. However, analyzing the cost of comparable armored vehicles procured through competitive means by the DoD or allied nations would highlight potential cost deviations and inform future procurement strategies.

What is the long-term sustainment and maintenance cost associated with these RG-31 vehicles, and how was this factored into the overall value assessment?

The initial procurement cost is only part of the total lifecycle expense. Understanding the long-term sustainment and maintenance costs is vital for a complete value assessment. This includes parts, labor, and potential upgrades. Without this data, the true taxpayer impact of this acquisition remains incomplete.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $213,175,170

Exercised Options: $175,576,917

Current Obligation: $175,576,917

Contract Characteristics

Cost or Pricing Data: NO

Timeline