Naval Air Warfare Center awards $85.3M contract for training aids, with CAE USA Inc. as prime

Contract Overview

Contract Amount: $85,292,981 ($85.3M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2006-07-19

End Date: 2015-02-27

Contract Duration: 3,145 days

Daily Burn Rate: $27.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200610!466276!1700!N61339!NAVAL AIR WARFARE CENTER !N6133903D5001 !A!N! !N!0003 ! !20060719!20090311!080022015!150893097!202131454!N!CAE USA INC !4908 TAMPA WEST BLVD !TAMPA !FL!33634!71000!057!12!TAMPA !HILLSBOROUGH !FLORIDA !+000039479259!N!N!000000000000!6910!TRAINING AIDS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !333319!A!A!5!B!M! !A! !99990909!B! ! !A! !A!Y!J!2!001!B! !A!N!D! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! !Y!1700!N61339!0001! !

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33634

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $85.3 million to CAE USA INC. for work described as: 200610!466276!1700!N61339!NAVAL AIR WARFARE CENTER !N6133903D5001 !A!N! !N!0003 ! !20060719!20090311!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 $85.3 million for training aids suggests a significant investment in simulation and training capabilities. 2. The contract was awarded using full and open competition, indicating a potentially competitive bidding process. 3. The duration of the contract, spanning from 2006 to 2015, points to a long-term need for these training solutions. 4. The primary contractor, CAE USA Inc., is a known entity in the aviation training and simulation sector. 5. The contract falls under the 'Training Aids' product service code, highlighting its specific purpose in military readiness. 6. The contract's performance period suggests a substantial commitment to updating or maintaining training infrastructure.

Value Assessment

Rating: good

The contract value of $85.3 million for training aids appears reasonable given the long performance period (2006-2015) and the specialized nature of aviation simulation and training equipment. Benchmarking against similar large-scale training system contracts would provide further context, but the scale suggests a substantial investment in maintaining naval aviation readiness. The firm fixed-price nature of the contract implies that the contractor assumed the risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not detailed in the provided data, but the competition type generally leads to better price discovery and potentially more innovative solutions. The government likely sought the best value, considering both technical capabilities and cost, from a range of qualified suppliers in the training and simulation market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down prices and encouraging efficiency among contractors. This process helps ensure that government funds are used effectively to procure necessary goods and services at the best possible market rates.

Public Impact

Naval aviators and aircrews benefit from enhanced training capabilities, improving operational readiness and safety. The contract delivers specialized training aids, likely including simulators, virtual reality systems, or other advanced training devices. The geographic impact is primarily focused on naval air stations and training commands where these aids will be deployed. Workforce implications may include specialized technical support and maintenance personnel required for the training systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential for cost creep if not managed effectively.
Reliance on a single prime contractor for a significant period may limit future flexibility.
The specific nature of training aids means that technological obsolescence could be a concern over the contract's lifespan.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract structure shifts cost risk to the contractor.
Long-term commitment suggests a sustained need and potential for stable training capabilities.

Sector Analysis

The defense training and simulation market is a significant segment within the broader aerospace and defense industry. Companies like CAE USA Inc. specialize in providing advanced simulation solutions, including flight simulators, virtual reality training environments, and maintenance training systems. This contract for training aids fits within the government's ongoing efforts to modernize military training, leveraging technology to improve pilot proficiency and reduce the costs associated with live training exercises. Spending in this sector is driven by the need for continuous readiness and the development of sophisticated capabilities for complex operational environments.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large contract awarded to a major defense contractor, it is unlikely to have directly benefited small businesses through set-asides. However, the prime contractor, CAE USA Inc., may engage small businesses as subcontractors for specialized components or services, contributing indirectly to the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Naval Air Systems Command (NAVAIR) and the Department of Defense's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to deliver specified training aids within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of performance and oversight activities may not always be publicly disclosed. Inspector General investigations could be initiated if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Aviation Training Systems
Simulation and Training Equipment
Defense Contractor Services
Military Readiness Programs
Aerospace Technology Procurement

Risk Flags

Potential for technological obsolescence over the contract's long duration.
Need for robust oversight to ensure consistent contractor performance and quality.
Risk of underutilization if training needs or technologies shift significantly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $85.3 million to CAE USA INC.. 200610!466276!1700!N61339!NAVAL AIR WARFARE CENTER !N6133903D5001 !A!N! !N!0003 ! !20060719!20090311!080022015!150893097!202131454!N!CAE USA INC !4908 TAMPA WEST BLVD !TAMPA !FL!33634!71000!057!12!TAMPA !HILLSBOROUGH !FLORIDA !+000039479259!N!N!000000000000!6910!TRAINING AIDS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $85.3 million.

What is the period of performance?

Start: 2006-07-19. End: 2015-02-27.

What is the track record of CAE USA Inc. in delivering similar training aid contracts to the Department of Defense?

CAE USA Inc. has a well-established track record in providing simulation and training solutions to the Department of Defense and other military organizations globally. They are known for developing and manufacturing a wide range of training systems, including full-flight simulators, mission trainers, and virtual reality-based training environments for various aircraft platforms. Their experience spans decades, and they have consistently secured contracts for advanced training technologies. While this specific $85.3 million contract for training aids from 2006-2015 is a significant example, CAE's broader portfolio includes numerous other large-scale programs that demonstrate their capability and reliability in meeting complex military training requirements. Their performance on past contracts generally indicates a strong capacity to deliver sophisticated and effective training solutions.

How does the value of this contract compare to other similar training aid procurements by the Navy or other branches?

The $85.3 million value of this contract, awarded between 2006 and 2015, represents a substantial investment in training aids. During that period, major defense procurements for simulation and training systems often ranged from tens to hundreds of millions of dollars, depending on the scope and complexity. For instance, contracts for new simulator platforms for advanced aircraft, or comprehensive training system upgrades, could easily reach or exceed this figure. The Naval Air Warfare Center's award to CAE USA Inc. aligns with the typical scale of such procurements aimed at maintaining and enhancing naval aviation readiness through advanced technological solutions. Without specific comparative data for identical training aid categories from the same era, it's challenging to provide a precise benchmark, but the contract's value is consistent with significant defense training investments.

What are the primary risks associated with a long-term contract for training aids like this one?

A primary risk associated with long-term contracts for training aids is technological obsolescence. The rapid pace of technological advancement means that training systems procured at the beginning of a multi-year contract could be outdated by its end, potentially diminishing their effectiveness or requiring costly upgrades. Another significant risk is contractor performance; ensuring the contractor consistently meets quality standards and delivery schedules over an extended period requires diligent oversight. Cost overruns, although mitigated by a firm fixed-price structure, can still occur if unforeseen issues arise, impacting the overall value. Furthermore, changes in military requirements or budget priorities could lead to contract modifications or even termination, introducing uncertainty. Finally, maintaining and supporting complex training systems over many years can present logistical and sustainment challenges.

How effective are training aids procured under contracts like this in improving pilot proficiency and mission readiness?

Training aids, particularly advanced simulators and virtual training environments, are generally considered highly effective in improving pilot proficiency and mission readiness. They allow for the safe and repeatable practice of complex maneuvers, emergency procedures, and tactical scenarios that might be too dangerous or costly to replicate in actual aircraft. This contract's focus on training aids suggests an effort to provide naval aviators with realistic and immersive training experiences. The effectiveness hinges on the fidelity of the simulation, the quality of the training curriculum integrated with the aids, and the proficiency of the instructors utilizing them. When well-designed and implemented, these aids can significantly enhance skill acquisition, reduce training time, and ultimately contribute to a more capable and ready naval aviation force.

What were the historical spending patterns for training aids by the Department of the Navy around the time this contract was awarded?

Around the period this contract was awarded (2006-2015), the Department of the Navy, like other branches of the military, consistently allocated significant funding towards simulation and training systems. Historical spending patterns show a continuous investment in modernizing training capabilities to keep pace with evolving threats and aircraft technologies. This included procurements for flight simulators, tactical trainers, maintenance trainers, and other virtual or constructive simulation tools. The overall budget for training and simulation within the Navy often represented a substantial portion of its procurement and research, development, test, and evaluation (RDT&E) accounts. The $85.3 million awarded to CAE USA Inc. for training aids fits within this broader trend of sustained, high-value investment in advanced training solutions to ensure operational readiness.

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: NEGOTIATED PROPOSAL/QUOTE

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

Parent Contract

Parent Award PIID: N6133903D5001

IDV Type: IDC

Timeline