Naval Air Warfare Center Training contract awarded to CAE USA INC for $84.5M, focusing on training aids

Contract Overview

Contract Amount: $84,522,060 ($84.5M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2004-06-10

End Date: 2019-08-31

Contract Duration: 5,560 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200409!000259!1700!A8305 !NAVAL AIR WARFARE CENTER TRAININ!N6133903D5001 !A!N! !N!0001 ! !20040610!20060910!080022015!150893097!202131454!N!CAE USA INC !4908 TAMPA WEST BLVD !TAMPA !FL!33634!71000!057!12!TAMPA !HILLSBOROUGH !FLORIDA !+000037984220!N!N!000000000000!6910!TRAINING AIDS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !333319!A!A!5!B!M! !A! !99990909!B! ! !A! !A!U!J!2!001!B! !A!N!F! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33634

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $84.5 million to CAE USA INC. for work described as: 200409!000259!1700!A8305 !NAVAL AIR WARFARE CENTER TRAININ!N6133903D5001 !A!N! !N!0001 ! !20040610!20060910!080022015!150893097!202131454!N!CAE USA INC !4908 TAMPA WEST BLVD !TAMPA !FL!33634!71000!057!12!TAMPA !HILL… Key points: 1. Contract value of $84.5 million indicates significant investment in training capabilities. 2. The award to CAE USA INC suggests a competitive landscape for advanced training solutions. 3. A long performance period of over 5 years implies a need for sustained and evolving training support. 4. The focus on training aids points to a critical role in preparing personnel for complex operations. 5. The contract's duration and value suggest potential for follow-on work and contractor growth. 6. The specific PSC code (6910) highlights a niche but vital area within defense logistics.

Value Assessment

Rating: good

The contract value of $84.5 million for training aids appears reasonable given the duration and scope. Benchmarking against similar large-scale training system contracts would provide further context. The firm fixed-price structure suggests that the government has a clear understanding of the requirements and associated costs, potentially leading to better cost control compared to cost-plus contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The number of bidders is not specified, but the competitive nature of the award suggests that the government sought the best value proposition. This process generally leads to more favorable pricing and innovative solutions for the government.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging a wider range of solutions.

Public Impact

Naval aviators and aircrews benefit from enhanced training capabilities, improving operational readiness. Services delivered include the provision and potential maintenance of advanced training aids. The geographic impact is primarily within naval aviation training commands, likely across multiple bases. Workforce implications may include specialized technical support roles for the training systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if training aids are proprietary and require ongoing specialized support.
Risk of obsolescence if training technology rapidly advances beyond the contracted system's capabilities.
Dependence on a single contractor for critical training infrastructure could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a competitive price and robust solution.
Firm fixed-price contract provides cost certainty for the government.
Long contract duration implies a stable and reliable training solution is being established.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on training and simulation technologies. The market for defense training systems is substantial, driven by the need for realistic and cost-effective preparation for complex military operations. Comparable spending benchmarks would involve analyzing other large contracts for flight simulators, virtual training environments, and other sophisticated training aids across different military branches.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem within the defense contracting sector.

Oversight & Accountability

Oversight for this contract would likely be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with terms and conditions. Accountability measures are embedded in the firm fixed-price structure, incentivizing the contractor to meet performance standards. Transparency is generally facilitated through contract award databases, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Naval Aviation Training Systems
Defense Simulation and Training
Aircrew Training Devices
Military Readiness Programs

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Dependence on a single contractor for critical training infrastructure.
Potential for cost increases if market conditions change significantly over the contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $84.5 million to CAE USA INC.. 200409!000259!1700!A8305 !NAVAL AIR WARFARE CENTER TRAININ!N6133903D5001 !A!N! !N!0001 ! !20040610!20060910!080022015!150893097!202131454!N!CAE USA INC !4908 TAMPA WEST BLVD !TAMPA !FL!33634!71000!057!12!TAMPA !HILLSBOROUGH !FLORIDA !+000037984220!N!N!000000000000!6910!TRAINING AIDS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !333319!A!A!5!B!M! !A! !999

Who is the contractor on this award?

The obligated recipient is CAE USA INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $84.5 million.

What is the period of performance?

Start: 2004-06-10. End: 2019-08-31.

What is the historical spending pattern for training aids by the Naval Air Warfare Center Training?

Analyzing historical spending data for the Naval Air Warfare Center Training (NAWCT) on training aids (PSC 6910) would reveal trends in investment in this area. This includes examining the total annual spend, the number and value of contracts awarded, and the primary contractors receiving these awards over the past 5-10 years. Such analysis can identify periods of increased or decreased investment, potential shifts in technology focus (e.g., from physical mock-ups to virtual reality), and the stability of the contractor base. For instance, a consistent upward trend might indicate growing reliance on advanced training aids, while significant fluctuations could suggest budget constraints or evolving training doctrines. Understanding this pattern provides context for the current $84.5 million award, indicating whether it represents a typical investment, a significant increase, or a consolidation of previous spending.

How does the per-unit cost of the training aids in this contract compare to similar systems procured by other military branches?

To assess the value for money, a comparison of per-unit costs for the training aids under this contract against similar systems procured by other military branches (e.g., Army, Air Force) is crucial. This requires identifying the specific types of training aids (e.g., flight simulators, virtual maintenance trainers) and their functionalities. If detailed specifications are available, a direct comparison can be made. If not, benchmarking against broader categories of simulation and training equipment can provide an indicative range. For example, if this contract's per-unit cost for a specific type of simulator is significantly higher than comparable systems acquired by the Air Force, it might raise questions about pricing efficiency or unique technical requirements. Conversely, if it aligns with or is lower than benchmarks, it suggests competitive pricing and good value.

What is CAE USA INC's track record with similar large-scale defense training contracts?

CAE USA INC has a well-established track record in providing simulation and training solutions for defense applications globally. They are known for developing and manufacturing a wide range of training systems, including flight simulators for various aircraft platforms, mission trainers, and virtual reality-based training environments. Examining their past performance on contracts of similar size and scope, particularly with the Department of Defense and other allied nations, is essential. This includes reviewing contract history for on-time delivery, adherence to budget, system performance, and customer satisfaction. A history of successful delivery on complex training programs would indicate a lower performance risk for this Naval Air Warfare Center contract. Conversely, any significant past performance issues, such as cost overruns or technical deficiencies on prior large contracts, would warrant closer scrutiny.

What are the potential risks associated with the long duration (over 5 years) of this contract?

The extended duration of this contract, spanning over five years from the initial award date to the final delivery order completion, presents several potential risks. Firstly, technological obsolescence is a significant concern; training aid technology can evolve rapidly, and a system procured today might be outdated before the contract concludes. Secondly, there's a risk of contractor performance degradation over such a long period; initial high performance might wane, or the contractor could face financial instability. Thirdly, the firm fixed-price nature, while offering cost certainty, could become disadvantageous if unforeseen cost increases occur for the contractor due to market fluctuations in materials or labor, potentially leading to pressure for contract modifications or reduced quality. Lastly, the government might miss opportunities to adopt newer, more effective training solutions if locked into this contract for an extended period.

How does this contract align with broader trends in military training modernization?

This contract aligns with the broader trend in military training modernization, which emphasizes the use of advanced simulation, virtual reality, and data analytics to create more immersive, cost-effective, and adaptable training environments. The focus on 'training aids' suggests a move away from solely relying on live training, which is expensive and logistically complex. By investing in sophisticated aids, the Navy aims to enhance pilot proficiency, reduce wear and tear on actual aircraft, and provide training scenarios that might be too dangerous or impractical to replicate in real-world exercises. This aligns with the Department of Defense's push towards 'train as you fight' and leveraging technology to maintain a competitive edge. The specific nature of the aids procured will indicate how closely it mirrors cutting-edge simulation technologies being adopted across the defense sector.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CAE Inc (UEI: 202131454)

Address: 4908 TAMPA WEST BLVD, TAMPA, FL, 33634

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6133903D5001

IDV Type: IDC

Timeline