DoD Spends $57.6M on BPUP Armor Hardware via Canadian Commercial Corp, Lacking Competition

Contract Overview

Contract Amount: $57,570,422 ($57.6M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2010-03-31

End Date: 2012-12-07

Contract Duration: 982 days

Daily Burn Rate: $58.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE OF BPUP ARMOR HARDWARE THROUGH THE CCC FOR THE FOLAV. THIS IS A PART NUMBER ACQUISITION.

Plain-Language Summary

Department of Defense obligated $57.6 million to CANADIAN COMMERCIAL CORPORATION for work described as: PURCHASE OF BPUP ARMOR HARDWARE THROUGH THE CCC FOR THE FOLAV. THIS IS A PART NUMBER ACQUISITION. Key points: 1. Significant spending of $57.6M on specialized armor hardware. 2. Acquisition routed through the Canadian Commercial Corporation (CCC), raising questions about direct competition. 3. Part number acquisition suggests a specific, potentially sole-source need. 4. Lack of competition is a key risk factor for price discovery and value for money.

Value Assessment

Rating: questionable

The contract value of $57.6M is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value for the BPUP armor hardware. Benchmarking against similar military hardware acquisitions would be necessary.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed and was awarded through the Canadian Commercial Corporation. This limits direct competition and potentially impacts price discovery, as the government did not solicit bids from multiple domestic or international suppliers.

Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible price for this critical defense hardware.

Public Impact

Ensures the availability of specialized armor for military vehicles. Supports the operational readiness of the Department of the Army. Potential for higher costs due to non-competitive procurement. Reliance on a foreign commercial corporation for acquisition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Sole-Source Justification Unclear
Potential for Overpricing
Limited Small Business Participation

Positive Signals

Acquisition of critical defense hardware
Utilizes established intergovernmental procurement channel (CCC)

Sector Analysis

This acquisition falls under the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sector. Spending in this specialized defense manufacturing area can be high, but typically benefits from competitive bidding to ensure cost-effectiveness for taxpayers.

Small Business Impact

The data indicates that small business participation was not a factor in this contract (ss: false, sb: false). The acquisition was conducted through the Canadian Commercial Corporation, which typically does not prioritize small business subcontracting opportunities.

Oversight & Accountability

The use of the Canadian Commercial Corporation as an intermediary for this acquisition warrants oversight to ensure transparency and accountability in the procurement process. The lack of competition also necessitates scrutiny to confirm the necessity and pricing of the hardware.

Related Government Programs

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

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Supply chain risk due to single source
Limited transparency via intermediary
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.6 million to CANADIAN COMMERCIAL CORPORATION. PURCHASE OF BPUP ARMOR HARDWARE THROUGH THE CCC FOR THE FOLAV. THIS IS A PART NUMBER ACQUISITION.

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 $57.6 million.

What is the period of performance?

Start: 2010-03-31. End: 2012-12-07.

What was the justification for procuring this armor hardware through the Canadian Commercial Corporation instead of a competitive bid process?

The justification for using the Canadian Commercial Corporation (CCC) and not competing the contract is not detailed in the provided data. Typically, such sole-source or limited-source procurements are justified by factors like urgent need, unique capabilities, or specific international agreements. Further investigation into the contract file would be required to ascertain the precise rationale.

How does the unit cost of this BPUP armor hardware compare to similar components acquired through competitive means?

Without competitive benchmarks, it is impossible to definitively assess the unit cost. The $57.6 million contract value for an unspecified quantity of 'BPUP Armor Hardware' makes direct comparison difficult. A thorough analysis would require identifying the specific part number, its technical specifications, and then searching for comparable items procured competitively by the DoD or allied nations.

What is the potential risk to operational effectiveness if this specific part number is no longer available or if future acquisitions are similarly non-competitive?

The risk to operational effectiveness is significant. Relying on a single, non-competitively procured part number creates a supply chain vulnerability. If this specific BPUP armor hardware is critical for vehicle protection, future non-competitive acquisitions could lead to inflated prices, extended lead times, or even unavailability, potentially impacting the Army's ability to maintain and deploy its armored fleet.

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

Solicitation ID: W56HZV10R0155

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 SUITE 1100, OTTAWA

Business Categories: Category Business, Foreign Government, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $57,570,422

Exercised Options: $57,570,422

Current Obligation: $57,570,422

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline