Army Spends $42M on Light Armored Vehicle Variants Through Canadian Commercial Corporation

Contract Overview

Contract Amount: $42,051,019 ($42.1M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2011-07-29

End Date: 2013-12-31

Contract Duration: 886 days

Daily Burn Rate: $47.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LIGHT ARMORED VEHICLE VARIANTS LAV-L, LAV-CC, LAV-AT NEW VEHICLE PURCHASE

Plain-Language Summary

Department of Defense obligated $42.1 million to CANADIAN COMMERCIAL CORPORATION for work described as: LIGHT ARMORED VEHICLE VARIANTS LAV-L, LAV-CC, LAV-AT NEW VEHICLE PURCHASE Key points: 1. Significant investment in specialized military vehicles. 2. Sole-source procurement raises questions about price discovery. 3. Limited competition may lead to higher costs for taxpayers. 4. Focus on armored vehicle manufacturing sector.

Value Assessment

Rating: questionable

The total award of $42,051,018.75 for Light Armored Vehicle variants lacks specific per-unit cost data for direct comparison. Without competitive bidding, it's difficult to assess if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses competitive price discovery, potentially resulting in less favorable pricing for the government.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for these vehicles, as there was no market pressure to drive down costs.

Public Impact

Modernization of military ground vehicle fleet. Potential impact on domestic defense manufacturing capabilities. Ensuring operational readiness with specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competition
No clear price benchmark

Positive Signals

Acquisition of critical military assets
Support for allied defense capabilities (via CCC)

Sector Analysis

The Department of the Army's purchase falls within the broader defense manufacturing sector, specifically focusing on armored vehicles. Spending benchmarks for such specialized equipment can vary widely based on technological complexity and quantity.

Small Business Impact

There is no indication that small businesses were involved in this specific contract, as it was awarded through the Canadian Commercial Corporation and was not competed.

Oversight & Accountability

Oversight is primarily managed by the Department of the Army. The use of the Canadian Commercial Corporation as an intermediary warrants scrutiny regarding transparency and adherence to procurement best practices.

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
Limited transparency due to intermediary
No clear cost-benefit analysis available

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.1 million to CANADIAN COMMERCIAL CORPORATION. LIGHT ARMORED VEHICLE VARIANTS LAV-L, LAV-CC, LAV-AT NEW VEHICLE PURCHASE

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 $42.1 million.

What is the period of performance?

Start: 2011-07-29. End: 2013-12-31.

What was the justification for awarding this contract as sole-source?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or the unavailability of alternative sources. Without further documentation, it's unclear if these criteria were met, but sole-sourcing often limits price competition and can lead to higher costs for the government.

How does the cost of these LAV variants compare to similar vehicles procured competitively?

Direct comparison is challenging without specific per-unit cost data and details on the variants purchased. However, sole-source contracts generally lack the price pressure inherent in competitive bidding, suggesting this procurement might be at a higher cost than if it had been competed.

What is the long-term strategic value of these LAV variants for the Army?

Light Armored Vehicles provide crucial mobility, protection, and firepower for infantry units in various operational environments. Their acquisition supports the Army's mission readiness and modernization efforts, enabling troops to conduct operations effectively in contested areas.

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: W56HZV11R0227

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: $42,051,019

Exercised Options: $42,051,019

Current Obligation: $42,051,019

Contract Characteristics

Cost or Pricing Data: NO

Timeline