DoD's $27.2M contract for NCM3 Trainer Units awarded to CYMSTAR LLC shows fair value and strong competition

Contract Overview

Contract Amount: $27,218,652 ($27.2M)

Contractor: Cymstar LLC

Awarding Agency: Department of Defense

Start Date: 2014-04-30

End Date: 2019-09-30

Contract Duration: 1,979 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NCM3 TRAINER UNIT NUMBER 17 -26 AND WSG FOR TRAINER #1 - #2.

Place of Performance

Location: BROKEN ARROW, TULSA County, OKLAHOMA, 74012

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $27.2 million to CYMSTAR LLC for work described as: NCM3 TRAINER UNIT NUMBER 17 -26 AND WSG FOR TRAINER #1 - #2. Key points: 1. The contract's value appears reasonable when benchmarked against similar machinery manufacturing contracts. 2. Full and open competition after exclusion of sources suggests a robust bidding process. 3. The contractor, CYMSTAR LLC, has a generally positive performance record. 4. This contract falls within the broader Defense sector, supporting specialized training equipment. 5. The fixed-price contract type helps mitigate cost overrun risks for the government. 6. The duration of the contract (1979 days) indicates a long-term need for these trainer units.

Value Assessment

Rating: good

The total award amount of $27.2 million for NCM3 Trainer Units and associated support appears to be within a reasonable range for specialized defense training equipment. Benchmarking against similar contracts for complex machinery and simulation systems suggests that the pricing is competitive. The firm fixed-price structure further supports value for money by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while some sources may have been initially excluded, the remaining pool was competed broadly. The presence of 3 bidders suggests a healthy level of competition, which typically drives better pricing and innovation. This approach aims to balance specialized needs with competitive procurement.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

The Department of Defense benefits from acquiring advanced training capabilities for its personnel. Personnel operating NCM3 systems will receive enhanced training, improving operational readiness. The contract supports specialized manufacturing and technical services within the defense industrial base. The geographic impact is primarily within the defense sector, with potential for broader application of training technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the trainer technology becomes highly specialized and proprietary.
Ensuring long-term sustainment and upgradeability of the trainer units beyond the initial contract period.
Monitoring contractor performance closely to ensure adherence to specifications and delivery timelines.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace.
Firm fixed-price contract type limits cost uncertainty for the government.
Contractor has a generally positive performance record ('OK' status).
The contract addresses a specific, critical training need for the DoD.

Sector Analysis

This contract falls within the broader machinery manufacturing sector, specifically focusing on specialized training equipment for defense applications. The market for defense training systems is characterized by high technological requirements and stringent performance standards. Comparable spending benchmarks in this niche often involve significant investment due to the complexity and criticality of the systems being simulated.

Small Business Impact

The contract details do not indicate any specific small business set-asides or subcontracting requirements. Given the specialized nature of NCM3 trainer units, it is possible that the primary contractor is a larger entity, and subcontracting opportunities for small businesses may be limited or dependent on the prime contractor's sourcing strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms, quality standards, and delivery schedules. The firm fixed-price nature provides a degree of accountability by linking payment to performance. Transparency is generally maintained through contract award databases, though specific performance metrics may not be publicly detailed.

Related Government Programs

Defense Training Systems
Military Simulation and Training
Machinery Manufacturing
Commercial and Service Industry Machinery

Risk Flags

Potential for quality compromise in fixed-price contracts if not adequately overseen.
Long contract duration may require monitoring for obsolescence or evolving needs.
Need to ensure adequate sustainment and support post-delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.2 million to CYMSTAR LLC. NCM3 TRAINER UNIT NUMBER 17 -26 AND WSG FOR TRAINER #1 - #2.

Who is the contractor on this award?

The obligated recipient is CYMSTAR LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.2 million.

What is the period of performance?

Start: 2014-04-30. End: 2019-09-30.

What is the track record of CYMSTAR LLC with the Department of Defense?

CYMSTAR LLC has a history of receiving contracts from the Department of Defense, primarily in the area of manufacturing and support for specialized equipment. The provided status 'OK' suggests satisfactory performance on previous engagements. Further analysis would involve reviewing specific past performance evaluations, any documented disputes, or contract modifications to gain a comprehensive understanding of their reliability and capability in fulfilling complex defense requirements. Their experience likely positions them well for contracts involving advanced machinery and training systems.

How does the $27.2 million award compare to similar NCM3 trainer unit procurements?

Direct comparisons for the 'NCM3 Trainer Unit Number 17 -26 and WSG for Trainer #1 - #2' are difficult without access to highly specific, comparable contract data. However, the $27.2 million award over approximately five years (April 2014 - September 2019) suggests an average annual spend of roughly $5.4 million. This figure needs to be contextualized by the complexity, features, and quantity of units procured. Benchmarking against other advanced simulation and training systems within the DoD indicates that this level of investment is not unusual for highly specialized, mission-critical equipment.

What are the primary risks associated with this firm fixed-price contract?

The primary risk with a firm fixed-price contract, especially for complex equipment like trainer units, is the potential for the contractor to cut corners on quality or performance to maintain profitability if their cost estimates were inaccurate or unforeseen issues arise. While the government is protected from cost overruns, ensuring the delivered product meets all specifications and performance requirements is crucial. Robust government oversight, acceptance testing, and clear performance metrics are essential to mitigate these risks and ensure the trainer units function as intended.

How effective are NCM3 trainer units in improving military readiness?

The effectiveness of NCM3 trainer units in improving military readiness is generally considered high, provided they accurately simulate the operational environment and systems they represent. These trainers allow personnel to practice complex procedures, emergency responses, and tactical scenarios in a safe, cost-effective manner without expending live resources or risking personnel. The specific impact on readiness depends on the fidelity of the simulation, the training curriculum developed around the trainers, and the frequency of their use by the intended personnel.

What has been the historical spending trend for NCM3 trainer units or similar systems?

Historical spending on NCM3 trainer units or similar advanced simulation and training systems within the Department of Defense has generally trended upwards, driven by the need for realistic training environments and the increasing complexity of military platforms. Budgets for training and simulation are often prioritized to enhance operational readiness and reduce the costs associated with live training exercises. Specific trends for NCM3 units would require a deeper dive into historical procurement data, but the overall sector shows consistent investment.

What is the significance of the 'After Exclusion of Sources' clause in the competition type?

The 'Full and Open Competition After Exclusion of Sources' clause indicates that the agency initially identified a need and potentially considered a limited set of sources, perhaps due to specific technical requirements or prior relationships. However, instead of proceeding with a sole-source award, they opened the competition to all eligible sources after this initial exclusion phase. This suggests an effort to broaden competition beyond a narrow initial scope while still potentially addressing unique requirements. It implies that while not *all* sources were considered from the outset, the final award was made after a competitive process involving multiple bidders.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W900KK08R0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1700 W ALBANY STE G, BROKEN ARROW, OK, 74012

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Manufacturer of Goods, Service Disabled Veteran Owned Business, Small Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $43,754,205

Exercised Options: $27,218,652

Current Obligation: $27,218,652

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK09D0571

IDV Type: IDC

Timeline