Saudi Arabia MNG Contracts $60.3M for LAV Field Support Services, Sole-Source Awarded

Contract Overview

Contract Amount: $60,337,649 ($60.3M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2021-12-13

End Date: 2025-12-31

Contract Duration: 1,479 days

Daily Burn Rate: $40.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FOREIGN MILITARY SALES (FMS) REQUIREMENT FOR LIGHT ARMORED VEHICLE (LAV) FIELD SUPPORT TEAM (FST) SERVICES IN THE KINGDOM OF SAUDI ARABIA (KSA) FOR THE SAUDI ARABIA MINISTRY OF NATIONAL GUARD (MNG).

Plain-Language Summary

Department of Defense obligated $60.3 million to CANADIAN COMMERCIAL CORPORATION for work described as: FOREIGN MILITARY SALES (FMS) REQUIREMENT FOR LIGHT ARMORED VEHICLE (LAV) FIELD SUPPORT TEAM (FST) SERVICES IN THE KINGDOM OF SAUDI ARABIA (KSA) FOR THE SAUDI ARABIA MINISTRY OF NATIONAL GUARD (MNG). Key points: 1. Contract awarded to Canadian Commercial Corporation for Light Armored Vehicle (LAV) Field Support Team (FST) services. 2. The contract is a sole-source award, indicating limited competition. 3. Services are for the Saudi Arabia Ministry of National Guard (MNG) in the Kingdom of Saudi Arabia. 4. The contract duration is approximately 4 years, ending December 31, 2025.

Value Assessment

Rating: questionable

The contract value of $60.3M for 4 years of specialized support services appears high, especially given the sole-source nature. Benchmarking against similar international military support contracts is difficult without more detailed service descriptions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers. The justification for sole-sourcing is not provided.

Taxpayer Impact: The taxpayer impact is significant due to the lack of competition, potentially inflating the cost of essential military support services.

Public Impact

Ensures continued operational readiness of LAVs for a key U.S. ally. Supports U.S. foreign policy objectives by providing critical defense services abroad. Potential for cost overruns due to sole-source procurement. Lack of transparency in the procurement process raises concerns about value for money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
High contract value without clear justification for sole-sourcing.
Potential for cost overruns due to lack of competitive pressure.

Positive Signals

Provides essential support for critical military equipment.
Supports a key regional partner's defense capabilities.

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically related to defense support. Spending in this sector can vary widely based on geopolitical factors and specific equipment needs.

Small Business Impact

This contract does not appear to involve small business participation, as it is a sole-source award to a foreign commercial corporation (Canadian Commercial Corporation).

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the services provided are necessary and priced appropriately. Transparency regarding the justification for not competing the contract is crucial.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competition
High contract value
Limited transparency on justification
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.3 million to CANADIAN COMMERCIAL CORPORATION. FOREIGN MILITARY SALES (FMS) REQUIREMENT FOR LIGHT ARMORED VEHICLE (LAV) FIELD SUPPORT TEAM (FST) SERVICES IN THE KINGDOM OF SAUDI ARABIA (KSA) FOR THE SAUDI ARABIA MINISTRY OF NATIONAL GUARD (MNG).

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 $60.3 million.

What is the period of performance?

Start: 2021-12-13. End: 2025-12-31.

What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. Without this justification, it's difficult to assess if fair and reasonable pricing was achieved through competitive means or negotiation.

How does the per-unit cost of these LAV FST services compare to similar contracts or internal support costs for the U.S. military?

A direct per-unit cost benchmark is not available due to the 'N/A' designation and the specialized nature of foreign military sales support. Comparing this contract's value to similar international contracts is challenging without detailed service breakdowns and market data for comparable FMS agreements.

What is the long-term strategic value and potential risk associated with providing this level of support to the Saudi Arabian Ministry of National Guard?

The strategic value lies in strengthening a key regional ally's defense capabilities and maintaining interoperability. However, risks include potential over-reliance on U.S. support, geopolitical shifts affecting the relationship, and the financial commitment required for sustained foreign military assistance.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV21R0197

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 350 ALBERT ST SUITE 700, OTTAWA

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

Financial Breakdown

Contract Ceiling: $60,337,649

Exercised Options: $60,337,649

Current Obligation: $60,337,649

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline