DoD awards $39.7M for MMPV Type II technical manuals and logistics support via sole-source contract

Contract Overview

Contract Amount: $39,722,271 ($39.7M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2014-08-26

End Date: 2018-12-03

Contract Duration: 1,560 days

Daily Burn Rate: $25.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACT W56HZV-14-C-0213 IS ISSUED: 1. TO ESTABLISH CLINS 0001AA 0036AG FOR THE PURCHASE OF TECHNICAL MANUALS AND LOGISTIC SUPPORT FOR CONDITIONAL MATERIAL RELEASE (CMR) FOR THE MEDIUM MINE PROTECTIVE VEHICLE (MMPV) TYPE II.

Plain-Language Summary

Department of Defense obligated $39.7 million to CANADIAN COMMERCIAL CORPORATION for work described as: CONTRACT W56HZV-14-C-0213 IS ISSUED: 1. TO ESTABLISH CLINS 0001AA 0036AG FOR THE PURCHASE OF TECHNICAL MANUALS AND LOGISTIC SUPPORT FOR CONDITIONAL MATERIAL RELEASE (CMR) FOR THE MEDIUM MINE PROTECTIVE VEHICLE (MMPV) TYPE II. Key points: 1. Contract awarded to Canadian Commercial Corporation for specialized technical documentation and support. 2. Sole-source award indicates limited availability of qualified providers or specific strategic reasons. 3. Contract duration of 1560 days suggests a long-term need for ongoing support. 4. Firm Fixed Price contract type aims to provide cost certainty for the government. 5. No small business set-aside was utilized, potentially limiting opportunities for smaller enterprises. 6. The contract value is substantial, reflecting the complexity and importance of the MMPV program.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specialized nature and sole-source award. The firm fixed price structure provides some cost control, but without competitive bids, it's difficult to ascertain if the pricing represents optimal value for money. The extensive duration suggests a significant scope of work, which could justify the overall expenditure if the deliverables meet the military's needs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when only one vendor possesses the necessary unique capabilities, intellectual property, or when there are urgent and compelling reasons to bypass full and open competition. The lack of competition limits price discovery and may result in higher costs compared to a competed procurement.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive pressure to drive down prices. The justification for sole-source procurement needs to be robust to ensure public funds are used efficiently.

Public Impact

The primary beneficiaries are the U.S. Army units operating the Medium Mine Protective Vehicle (MMPV) Type II, ensuring they have the necessary technical information and logistical support. Services delivered include the creation and provision of technical manuals and ongoing logistic support critical for vehicle maintenance and operational readiness. The geographic impact is primarily within military operational theaters where the MMPV Type II is deployed. Workforce implications include the need for specialized technical writers, logisticians, and support personnel to manage and deliver the contracted services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of transparency in the justification for sole-source procurement raises accountability concerns.
Contract duration is lengthy, requiring sustained oversight to ensure performance and value.
No small business participation noted, potentially missing opportunities to support smaller enterprises.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Award to Canadian Commercial Corporation may leverage international partnerships.
Focus on technical manuals and logistics is critical for vehicle operational effectiveness.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense systems. The market for specialized technical documentation and logistics support for complex military vehicles is niche, often dominated by a few experienced contractors. The value of this contract, while significant, represents a small fraction of the overall defense spending on vehicle acquisition and sustainment, but is crucial for the operational readiness of the MMPV Type II fleet.

Small Business Impact

This contract did not include a small business set-aside, nor is there any indication of subcontracting to small businesses. The nature of specialized technical documentation and logistics for advanced military vehicles often requires specific expertise and clearances that may be more readily available from larger, established firms. This procurement approach may limit opportunities for small businesses to participate in this segment of the defense industrial base.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded within the contract's performance standards and delivery schedules. Transparency is limited due to the sole-source nature, but contract modifications and performance reports would be subject to internal review and potentially Inspector General oversight if performance issues arise.

Related Government Programs

Medium Mine Protective Vehicle (MMPV) Program
Military Vehicle Logistics Support
Technical Documentation Services
Department of Defense Engineering Services

Risk Flags

Sole-source award lacks competitive transparency.
Potential for higher costs due to lack of competition.
Long contract duration requires sustained oversight.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.7 million to CANADIAN COMMERCIAL CORPORATION. CONTRACT W56HZV-14-C-0213 IS ISSUED: 1. TO ESTABLISH CLINS 0001AA 0036AG FOR THE PURCHASE OF TECHNICAL MANUALS AND LOGISTIC SUPPORT FOR CONDITIONAL MATERIAL RELEASE (CMR) FOR THE MEDIUM MINE PROTECTIVE VEHICLE (MMPV) TYPE II.

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 $39.7 million.

What is the period of performance?

Start: 2014-08-26. End: 2018-12-03.

What is the specific justification provided for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as the existence of only one responsible source, urgent and compelling needs, or when the contract is for a follow-on effort where only one source is deemed capable. Without the official justification document, it is impossible to definitively state the reasons. However, for specialized military equipment like the MMPV Type II, it is plausible that the original equipment manufacturer or a highly specialized technical support provider was the only entity with the requisite knowledge, technical data, and security clearances to produce the required technical manuals and logistics support.

How does the cost of this contract compare to similar technical support contracts for military vehicles?

Direct cost comparison is difficult without access to detailed pricing structures and the specific scope of work for comparable contracts. This contract is for technical manuals and logistics support for the MMPV Type II, a specialized vehicle. The $39.7 million award over approximately four years (1560 days) suggests a significant investment in ensuring the operational readiness of this platform. Factors influencing cost include the complexity of the vehicle, the required level of detail in the manuals, the scope of logistics support (e.g., spare parts management, field service representatives), and the contractor's overhead. A firm fixed-price contract aims to cap costs, but the absence of competition means there's no direct market benchmark to assess if this price is optimal.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The primary deliverables are technical manuals and logistic support for the Medium Mine Protective Vehicle (MMPV) Type II. Specific KPIs would be detailed within the contract's Statement of Work (SOW) and Performance Work Statement (PWS). These likely include the timely delivery of accurate and comprehensive technical manuals (e.g., operator, maintenance, repair manuals), adherence to specified formats and standards, and the effective provision of logistics support services. Logistics support might encompass inventory management of spare parts, supply chain coordination, and potentially field support or training. Performance would be measured against the quality, completeness, and timeliness of these deliverables, as well as adherence to the firm fixed price.

What is the track record of the Canadian Commercial Corporation (CCC) in providing similar services to the U.S. Department of Defense?

The Canadian Commercial Corporation (CCC) is a Canadian Crown corporation that facilitates government-to-government contracting for Canadian goods and services. While not a direct U.S. defense contractor in the traditional sense, CCC acts as an intermediary, leveraging its expertise in international procurement and contracting. CCC has a history of supporting U.S. government procurements, including defense-related items, by contracting with Canadian suppliers. Their track record involves ensuring compliance with U.S. requirements, managing contracts, and facilitating cross-border transactions. For this specific contract, CCC would have sourced a Canadian entity or entities capable of delivering the technical manuals and logistics support, ensuring they met the U.S. Army's specifications and standards.

How does this spending align with historical U.S. Army investments in vehicle support and technical documentation?

This contract represents a specific investment in the sustainment of the MMPV Type II platform. Historically, the U.S. Army invests heavily in the lifecycle support of its vehicle fleets, which includes not only acquisition but also maintenance, repair, and the provision of essential documentation. Spending on technical manuals and logistics support is a critical component of ensuring operational readiness and reducing long-term sustainment costs. The $39.7 million figure for this specific contract should be viewed within the broader context of the Army's overall budget for vehicle sustainment, which can run into billions of dollars annually across all its platforms. The focus on a relatively specialized vehicle like the MMPV Type II suggests a targeted investment to maintain a specific capability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV13R0411

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Government of Canada

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: $39,722,271

Exercised Options: $39,722,271

Current Obligation: $39,722,271

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $42,243,732

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline