DoD Awards $13.9M Contract for CJD Exciter Replacements, Boosting Motor Manufacturing

Contract Overview

Contract Amount: $13,969,399 ($14.0M)

Contractor: Canadian Commercial Corporation

Awarding Agency: Department of Defense

Start Date: 2024-10-14

End Date: 2028-03-21

Contract Duration: 1,254 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CJD EXCITERS: REPLACEMENT OF 1- 16 UNITS AT CJD: DISASSEMBLE, REMOVE, AND DISPOSE

Place of Performance

Location: BRIDGEPORT, DOUGLAS County, WASHINGTON, 98813

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to CANADIAN COMMERCIAL CORPORATION for work described as: CJD EXCITERS: REPLACEMENT OF 1- 16 UNITS AT CJD: DISASSEMBLE, REMOVE, AND DISPOSE Key points: 1. Contract value of $13.9M supports motor and generator manufacturing. 2. Full and open competition was utilized, indicating a competitive bidding process. 3. Potential risks include contract duration and the need for specialized equipment. 4. Spending aligns with the Defense sector's need for critical equipment.

Value Assessment

Rating: good

The contract value of $13.9M for 1-16 units appears reasonable given the specialized nature of CJD exciters and the firm fixed price structure. Benchmarking against similar complex equipment replacement contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified vendors to bid, driving competitive pricing and potentially leading to better value for the government.

Taxpayer Impact: The competitive nature of this award is expected to yield a fair price, minimizing unnecessary taxpayer expenditure on essential defense equipment.

Public Impact

Ensures operational readiness of critical CJD systems within the Department of Defense. Supports domestic manufacturing capabilities in the motor and generator sector. Provides long-term sustainment for vital military equipment through 2028.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1254 days) may introduce cost escalation risks.
Reliance on a single definitive contract type could limit flexibility.
Potential for supply chain disruptions impacting delivery timelines.

Positive Signals

Full and open competition promotes fair pricing.
Firm fixed price contract provides cost certainty.
Supports critical defense infrastructure.

Sector Analysis

This contract falls within the Defense sector, specifically supporting the maintenance and upgrade of specialized equipment. Spending benchmarks for similar complex machinery replacements in the defense industry are typically high due to technical requirements and limited suppliers.

Small Business Impact

While the contract was awarded through full and open competition, there is no explicit indication of specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had a meaningful opportunity to participate.

Oversight & Accountability

The contract is managed by the Canadian Commercial Corporation on behalf of the Department of Defense, suggesting established oversight mechanisms. Monitoring performance and adherence to the firm fixed price will be key accountability measures.

Related Government Programs

Motor and Generator Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration
Potential for cost escalation
Supply chain vulnerability
Dependence on specialized manufacturing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to CANADIAN COMMERCIAL CORPORATION. CJD EXCITERS: REPLACEMENT OF 1- 16 UNITS AT CJD: DISASSEMBLE, REMOVE, AND DISPOSE

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 $14.0 million.

What is the period of performance?

Start: 2024-10-14. End: 2028-03-21.

What is the specific technical complexity of CJD exciters that justifies the contract value and duration?

The technical complexity of CJD exciters likely stems from their specialized function within critical defense systems, requiring precise engineering, high-reliability components, and potentially unique manufacturing processes. This complexity necessitates rigorous testing and quality control, contributing to the overall contract value and extended duration to ensure operational readiness and longevity.

What are the primary risks associated with the long contract duration and the firm fixed price structure?

The primary risks with a long duration and firm fixed price include potential cost overruns for the contractor if material or labor costs escalate unexpectedly, leading to potential quality compromises or contractor default. For the government, the risk is paying a premium if market prices decrease significantly during the contract term, or facing delays if the contractor struggles to maintain profitability.

How effectively does the full and open competition ensure optimal value and technological relevance for these exciter replacements?

Full and open competition is designed to ensure optimal value by fostering a competitive environment that drives down prices. It also allows for the incorporation of the latest technological advancements from various vendors. However, effectiveness depends on the clarity of the solicitation's technical requirements and the government's ability to evaluate proposals comprehensively to select the best combination of price, performance, and innovation.

Industry Classification

NAICS: Manufacturing › Electrical Equipment Manufacturing › Motor and Generator Manufacturing

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DW24R0001

Offers Received: 2

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: $13,969,399

Exercised Options: $13,969,399

Current Obligation: $13,969,399

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline