DoD's $13.5M Boeing 737 NG Flight Instructor Contract Awarded to CAE USA Inc

Contract Overview

Contract Amount: $13,575,000 ($13.6M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2006-11-01

End Date: 2007-09-30

Contract Duration: 333 days

Daily Burn Rate: $40.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Other

Official Description: FLIGHT INSTRUCTOR HOURS ON BOEING 737 NG

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to CAE USA INC. for work described as: FLIGHT INSTRUCTOR HOURS ON BOEING 737 NG Key points: 1. Contract value of $13.5M for flight instructor hours. 2. CAE USA Inc. secured the award. 3. Department of Defense (Navy) is the contracting agency. 4. The contract falls under Flight Training services.

Value Assessment

Rating: fair

The award amount of $13,575,000 appears to be a reasonable estimate for the specified flight instructor hours. However, without specific per-hour rates or comparison to similar training contracts, a precise valuation is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. Multiple bids were likely considered, which should have driven competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential flight training, ensuring pilot proficiency. The competitive nature of the award aims to maximize value for the investment.

Public Impact

Ensures continued training for pilots operating Boeing 737 NG aircraft. Supports the readiness and operational capabilities of the Navy. Provides specialized instruction crucial for aviation safety and effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for instructor hours.
Potential for scope creep if training requirements evolve.

Positive Signals

Awarded through full and open competition.
Clear service requirement for pilot training.

Sector Analysis

This contract falls within the professional services sector, specifically aviation training. Spending benchmarks for flight instruction can vary significantly based on aircraft type, instructor experience, and training duration.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Navy, implying oversight from this agency. Standard procurement regulations and contract management practices would apply.

Related Government Programs

Flight Training
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Limited transparency on per-unit cost.
Potential for cost overruns if not managed closely.
Dependence on a single contractor for specialized training.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to CAE USA INC.. FLIGHT INSTRUCTOR HOURS ON BOEING 737 NG

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 $13.6 million.

What is the period of performance?

Start: 2006-11-01. End: 2007-09-30.

What is the average cost per flight instructor hour under this contract?

The provided data does not explicitly state the cost per flight instructor hour. To calculate this, one would need to divide the total award amount ($13,575,000) by the total estimated instructor hours. Without the total hours, a precise per-unit cost cannot be determined, making direct comparison to industry benchmarks challenging.

What are the key performance indicators (KPIs) for evaluating the effectiveness of this flight training?

Key performance indicators for this contract would likely include pilot proficiency assessments, successful completion rates of training modules, adherence to safety protocols, and feedback from trainees and evaluators. The Department of the Navy would establish specific metrics to ensure the training meets operational readiness standards.

How does the pricing of this contract compare to similar flight training services for other aircraft types?

Direct comparison is difficult without knowing the specific training syllabus, instructor qualifications, and aircraft complexity. However, training for complex multi-engine jets like the Boeing 737 NG is generally more expensive than for simpler aircraft due to specialized equipment and higher instructor expertise required.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Flight Training

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 2200 ARLINGTON DOWNS ROAD, ARLINGTON, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,675,000

Exercised Options: $13,675,000

Current Obligation: $13,575,000

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001905D0012

IDV Type: IDC

Timeline