Dod Awards $111.6M for 'full System Arlington Tofts' to CAE USA Inc
Contract Overview
Contract Amount: $111,630,855 ($111.6M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2012-09-26
End Date: 2018-09-30
Contract Duration: 2,195 days
Daily Burn Rate: $50.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FULL SYSTEM ARLINGTON TOFTS 136/137
Place of Performance
Location: ARLINGTON, TARRANT County, TEXAS, 76011
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $111.6 million to CAE USA INC. for work described as: FULL SYSTEM ARLINGTON TOFTS 136/137 Key points: 1. Contract awarded to CAE USA INC. for a significant sum. 2. The contract falls under 'Other Commercial and Service Industry Machinery Manufacturing'. 3. No competition was involved in this award. 4. The contract duration is 2195 days, spanning over 6 years.
Value Assessment
Rating: questionable
The award amount of $111.6M for a 6-year contract requires further scrutiny to determine if it represents fair value. Benchmarking against similar 'FULL SYSTEM' procurements is difficult without more specific system details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. The lack of competition may have limited price discovery and potentially led to a higher price than if multiple vendors had bid.
Taxpayer Impact: The absence of competition raises concerns about taxpayer value, as a potentially lower price might have been achieved through a competitive bidding process.
Public Impact
Taxpayers may have paid more due to the lack of competitive bidding. The long duration of the contract suggests a critical, long-term need for the system. The specific nature of 'FULL SYSTEM ARLINGTON TOFTS' is unclear, limiting public understanding of the expenditure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Unclear system details
Positive Signals
- Awarded to a known entity (CAE USA INC.)
- Clear start and end dates
Sector Analysis
The 'Other Commercial and Service Industry Machinery Manufacturing' sector is broad. Without specific details on the 'FULL SYSTEM ARLINGTON TOFTS', it's hard to benchmark against typical spending in this machinery category.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to confirm.
Oversight & Accountability
The sole-source nature of this award warrants oversight to ensure the government received fair value and that the decision not to compete was justified.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may have inflated costs.
- Limited transparency regarding system details and justification for sole-source award.
- Potential for cost overruns due to absence of competitive pressure.
- Long contract duration increases exposure to changing technological needs or market conditions.
Tags
other-commercial-and-service-industry-ma, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $111.6 million to CAE USA INC.. FULL SYSTEM ARLINGTON TOFTS 136/137
Who is the contractor on this award?
The obligated recipient is CAE USA INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $111.6 million.
What is the period of performance?
Start: 2012-09-26. End: 2018-09-30.
What specific capabilities does the 'FULL SYSTEM ARLINGTON TOFTS' provide, and how does its cost align with similar complex system procurements?
The specific capabilities of the 'FULL SYSTEM ARLINGTON TOFTS' are not detailed in the provided data. To assess value, a comparison with the cost of similar complex systems, considering their functionality, lifecycle, and vendor support, would be necessary. Benchmarking requires understanding the system's technical specifications and operational role.
What were the justifications for awarding this contract on a sole-source basis, and what steps were taken to mitigate potential cost overruns?
The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or urgent needs. Without this information, it's difficult to assess risk. Mitigation strategies for cost overruns in sole-source contracts often include stringent performance metrics, phased payments tied to milestones, and independent government cost estimates.
How effectively has CAE USA INC. delivered on this contract, and what is the overall impact on the Department of the Navy's operational readiness?
The provided data does not include performance metrics or delivery outcomes for this contract. Assessing effectiveness would require reviewing contractor performance reports, user feedback, and the system's contribution to the Navy's mission objectives. The long duration suggests a significant role in operational readiness, but actual impact is unknown.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6134012R0043
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3 Technologies, Inc. (UEI: 008898884)
Address: 2200 ARLINGTON DOWNS RD, ARLINGTON, TX, 76011
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $112,399,434
Exercised Options: $111,630,855
Current Obligation: $111,630,855
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6134012G0001
IDV Type: BOA
Timeline
Start Date: 2012-09-26
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2017-11-30
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