DoD's $26.7M Engineering Services Contract with Canadian Commercial Corporation Lacks Competition

Contract Overview

Contract Amount: $26,757,662 ($26.8M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2019-11-15

End Date: 2024-02-15

Contract Duration: 1,553 days

Daily Burn Rate: $17.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MMPV TYPE II STS/SSTS FOLLOW ON

Plain-Language Summary

Department of Defense obligated $26.8 million to CANADIAN COMMERCIAL CORPORATION for work described as: MMPV TYPE II STS/SSTS FOLLOW ON Key points: 1. Significant contract value of $26.7 million awarded. 2. Sole-source award to Canadian Commercial Corporation raises competition concerns. 3. Contract duration of over 4 years suggests long-term need. 4. Engineering Services sector is broad, requiring specific context for benchmarks.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bids, it's difficult to assess if the pricing is optimal compared to similar engineering services contracts.

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 market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for engineering services, impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The long-term nature of the contract could lock in potentially inflated costs. Lack of transparency in the sole-source award process can erode public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition

Positive Signals

Contract awarded to a foreign entity, potentially leveraging international partnerships.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330). Spending in this sector can vary widely based on project complexity and agency needs. Benchmarking is difficult without specific project details.

Small Business Impact

The data indicates no specific allocation or consideration for small businesses in this contract award. The sole-source nature further limits opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure fair pricing and effective service delivery. Accountability for cost management under a Cost Plus Fixed Fee contract is crucial.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Sole-source award
Cost-plus contract type
Potential for cost overruns
Lack of transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to CANADIAN COMMERCIAL CORPORATION. MMPV TYPE II STS/SSTS FOLLOW ON

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 $26.8 million.

What is the period of performance?

Start: 2019-11-15. End: 2024-02-15.

What specific engineering services are being procured, and why was a sole-source award deemed necessary?

The specific engineering services procured are not detailed in the provided data. A sole-source award is typically justified when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. However, without further documentation, the necessity for this specific sole-source award remains unclear and warrants further investigation into the justification provided by the Department of the Army.

What measures are in place to mitigate cost overruns in this Cost Plus Fixed Fee contract?

Given the Cost Plus Fixed Fee (CPFF) contract type, robust oversight is essential to control costs. The Department of the Army should implement stringent monitoring of incurred costs, regular audits, and performance reviews. Clear milestones and deliverables tied to the fixed fee can incentivize the contractor to manage expenses efficiently. Regular communication and negotiation with the Canadian Commercial Corporation are vital to ensure the fixed fee remains appropriate throughout the contract's duration.

How does the $26.7 million expenditure compare to typical spending for similar engineering services contracts within the Department of Defense?

Without specific details on the nature of the engineering services, a direct comparison is challenging. However, $26.7 million is a substantial amount for a single contract, especially one awarded sole-source. Typical spending for engineering services can range from thousands to hundreds of millions, depending on the scope. The lack of competition for this significant sum raises a red flag, suggesting potential overpayment compared to what might have been achieved through a competitive bidding process.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV19R0139

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Government of Canada

Address: 350 ALBERT ST SUITE 700, OTTAWA

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

Financial Breakdown

Contract Ceiling: $28,366,720

Exercised Options: $28,366,720

Current Obligation: $26,757,662

Actual Outlays: $437,787

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $18,396,485

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline