DoD's $30M 5-Year Field Service Support Contract Lacked Competition, Raising Cost Concerns

Contract Overview

Contract Amount: $30,265,252 ($30.3M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2011-08-16

End Date: 2016-08-02

Contract Duration: 1,813 days

Daily Burn Rate: $16.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IN-KSA FIELD SERVICE SUPPORT FOR 5 YEARS AND TRAINING CLASSES

Plain-Language Summary

Department of Defense obligated $30.3 million to CANADIAN COMMERCIAL CORPORATION for work described as: IN-KSA FIELD SERVICE SUPPORT FOR 5 YEARS AND TRAINING CLASSES Key points: 1. The contract awarded to Canadian Commercial Corporation for field service support and training classes lacked competition. 2. The $30.27 million contract duration of 1813 days (approx. 5 years) suggests a significant, long-term need. 3. The 'NOT COMPETED' award type indicates a potential lack of market research and price discovery. 4. The sector is Professional, Scientific, and Technical Services, with a specific NAICS code of 541990.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type, combined with a lack of competition, makes it difficult to assess value. Without competitive bids, it's hard to benchmark pricing against similar services.

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 incentive for the contractor to offer the lowest possible price.

Taxpayer Impact: The lack of competition for a $30 million contract means taxpayers may have paid more than necessary for these services.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding for essential field support and training. The long-term nature of the contract raises questions about the government's ability to adapt to changing needs without re-evaluating options. Reliance on a single source for critical services can create vulnerabilities if the contractor fails to perform or faces issues.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Cost Plus Fixed Fee
Long Contract Duration

Positive Signals

Specific Service Need Identified
Contract Awarded

Sector Analysis

This contract falls under Professional, Scientific, and Technical Services, specifically NAICS 541990. Spending in this broad category can vary significantly, but competitive procurement is generally encouraged to ensure efficiency.

Small Business Impact

The contract was awarded to Canadian Commercial Corporation, a foreign entity, and there is no indication of small business involvement. This suggests missed opportunities for domestic small businesses.

Oversight & Accountability

The 'NOT COMPETED' status warrants further review to ensure proper justification and adherence to procurement regulations. Oversight should focus on whether alternative sources were adequately explored.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for overpayment
Limited price discovery
No indication of small business participation
Sole-source award justification unclear

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.3 million to CANADIAN COMMERCIAL CORPORATION. IN-KSA FIELD SERVICE SUPPORT FOR 5 YEARS AND TRAINING CLASSES

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 $30.3 million.

What is the period of performance?

Start: 2011-08-16. End: 2016-08-02.

Was a thorough market research effort conducted to justify the sole-source award and ensure fair and reasonable pricing?

The 'NOT COMPETED' designation strongly suggests that a comprehensive market research effort, which would typically identify multiple potential sources, was not performed or did not yield viable alternatives. This raises concerns about whether the government secured the best possible value and price for the services rendered over the five-year period.

What specific risks were identified or mitigated by awarding this contract on a sole-source basis instead of through competition?

Without competition, the primary risk is paying an inflated price. Other risks include potential complacency from the contractor regarding service quality or innovation. Mitigating factors, if any, would need to be documented in the contract's justification for sole-source award, such as unique capabilities or urgent needs.

How effective was the Canadian Commercial Corporation in delivering the field service support and training, and was the CPFF structure appropriate?

The effectiveness of the contractor's performance is not detailed in the provided data. However, the CPFF structure, while allowing for flexibility, can incentivize cost overruns if not closely monitored. Evaluating performance against contract requirements and the reasonableness of costs incurred would be crucial for assessing overall effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV11R0197

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 SUITE 1100, OTTAWA

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

Financial Breakdown

Contract Ceiling: $30,265,252

Exercised Options: $30,265,252

Current Obligation: $30,265,252

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline