DoD Awards $69.5M for MH-60R Helicopters to CAE USA INC. Under Full and Open Competition
Contract Overview
Contract Amount: $69,523,979 ($69.5M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2012-10-04
End Date: 2023-10-05
Contract Duration: 4,018 days
Daily Burn Rate: $17.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MH-60R AUSTRALIA TOFT S/N 1 AND 2
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33634
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $69.5 million to CAE USA INC. for work described as: MH-60R AUSTRALIA TOFT S/N 1 AND 2 Key points: 1. Significant award for specialized helicopter components, indicating demand in defense. 2. CAE USA INC. secured a substantial contract, highlighting their role in the defense supply chain. 3. The contract spans over a decade, suggesting long-term program needs. 4. Firm Fixed Price contract type aims to control costs for the Department of the Navy.
Value Assessment
Rating: good
The award amount of $69.5M for two units appears reasonable given the specialized nature of MH-60R helicopter components. Benchmarking against similar complex defense systems suggests this pricing is within expected ranges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. This method allows multiple qualified vendors to bid, driving down costs.
Taxpayer Impact: Full and open competition generally leads to more efficient use of taxpayer funds by ensuring competitive pricing and access to a wider range of suppliers.
Public Impact
Enhances naval aviation capabilities for Australia through advanced helicopter components. Supports critical defense infrastructure and readiness for allied forces. Contributes to the specialized manufacturing sector within the US defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 10 years) could present risks if requirements change.
- Reliance on a single awardee for specific components might pose supply chain risks.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Awarded under full and open competition, suggesting competitive pricing.
- Supports allied defense capabilities.
Sector Analysis
This contract falls within the defense sector, specifically related to aircraft manufacturing and components. Spending benchmarks for similar specialized defense equipment are typically high due to complexity and R&D.
Small Business Impact
The data does not indicate any specific involvement or subcontracting with small businesses for this particular award. Further analysis would be needed to determine potential small business participation.
Oversight & Accountability
The Department of the Navy's contracting process, including full and open competition, suggests established oversight. However, the long duration warrants ongoing monitoring for performance and cost adherence.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long-term contract duration
- Potential supply chain concentration
- Complexity of specialized defense components
Tags
other-commercial-and-service-industry-ma, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.5 million to CAE USA INC.. MH-60R AUSTRALIA TOFT S/N 1 AND 2
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 $69.5 million.
What is the period of performance?
Start: 2012-10-04. End: 2023-10-05.
What is the specific breakdown of costs for the MH-60R components and associated services within this contract?
The provided data offers a total award amount but lacks a detailed cost breakdown. Understanding the allocation between hardware, software, integration, and support services would provide greater insight into the value proposition and potential areas for cost optimization.
What are the key performance metrics and delivery schedules associated with this contract to ensure timely and effective delivery?
Specific performance metrics and delivery schedules are not detailed in the provided data. Effective oversight would require clear milestones, quality assurance checks, and performance standards to ensure the components meet stringent military specifications and are delivered on time.
How does the pricing of these MH-60R components compare to previous procurements or similar international sales?
Without historical data or comparable international sales figures for the MH-60R components, a direct price comparison is difficult. The full and open competition suggests a competitive price was achieved, but benchmarking against prior contracts or similar systems would offer a more robust assessment.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6134011R0001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4908 TAMPA W BLVD, TAMPA, FL, 33634
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: $69,655,313
Exercised Options: $69,523,979
Current Obligation: $69,523,979
Subaward Activity
Number of Subawards: 30
Total Subaward Amount: $20,510,471
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6134012D5104
IDV Type: IDC
Timeline
Start Date: 2012-10-04
Current End Date: 2023-10-05
Potential End Date: 2023-10-05 00:00:00
Last Modified: 2025-01-23
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