DoD awards $20.6M for BPUP Kits without competition, raising cost concerns

Contract Overview

Contract Amount: $20,586,159 ($20.6M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2011-08-22

End Date: 2012-08-31

Contract Duration: 375 days

Daily Burn Rate: $54.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACT AWARD FOR FY 10 AND FY 11 BPUP KITS

Plain-Language Summary

Department of Defense obligated $20.6 million to CANADIAN COMMERCIAL CORPORATION for work described as: CONTRACT AWARD FOR FY 10 AND FY 11 BPUP KITS Key points: 1. High dollar value contract awarded without competition. 2. Limited transparency on pricing and justification for sole-source award. 3. Potential for inflated costs due to lack of competitive bidding. 4. Sector is military vehicle manufacturing, a critical but often high-cost area.

Value Assessment

Rating: questionable

The contract value of $20.6M is significant. Without competitive data, it's difficult to assess if this price is reasonable compared to similar armored vehicle components. The lack of competition suggests potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and negotiation leverage, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely results in a higher price than a competed contract, directly impacting taxpayer funds negatively.

Public Impact

Taxpayers may be paying more than necessary for essential military equipment. Lack of transparency hinders public trust in defense spending. Future procurements could be influenced by this non-competitive precedent.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Positive Signals

Essential military equipment procurement

Sector Analysis

This award falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this sector can be high due to specialized materials and complex engineering, but competition is crucial for cost control.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The non-competitive nature of this award warrants further oversight to ensure the price paid was justified and that future similar procurements are competed.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive pricing.
Potential for taxpayer overpayment.
Limited transparency on justification.
No small business participation evident.
High dollar value without competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to CANADIAN COMMERCIAL CORPORATION. CONTRACT AWARD FOR FY 10 AND FY 11 BPUP KITS

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 $20.6 million.

What is the period of performance?

Start: 2011-08-22. End: 2012-08-31.

What was the specific justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The provided data does not include the justification for the sole-source award. Typically, such justifications would cite reasons like urgency, unique capabilities, or lack of available sources. Without this information, it's impossible to assess the validity of bypassing competition.

How does the unit cost of these BPUP kits compare to similar components procured competitively by the DoD or other agencies?

A direct comparison of unit cost is not possible with the given data, as the contract was sole-sourced. Benchmarking would require access to pricing data from comparable, competed contracts for similar armored vehicle components. The lack of competition suggests this price may be higher than market rates.

What measures are in place to ensure the effectiveness and quality of the BPUP kits, given the lack of competitive pressure on the supplier?

While competition drives price and innovation, contract terms and quality assurance clauses are crucial for sole-source awards. The Department of the Army would typically have inspection and acceptance criteria, performance standards, and remedies for non-compliance built into the contract to ensure product quality.

Industry Classification

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

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV11R0040

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, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $42,408,115

Exercised Options: $20,586,159

Current Obligation: $20,586,159

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $20,586,159

Contract Characteristics

Cost or Pricing Data: NO

Timeline