DoD awards $117M C-17TS flight training contract to CAE USA Inc. under full and open competition

Contract Overview

Contract Amount: $116,956,659 ($117.0M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2013-01-31

End Date: 2016-12-31

Contract Duration: 1,430 days

Daily Burn Rate: $81.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: C-17TS ACAT III - ORDERING PERIOD 4 TASK ORDER USAF

Place of Performance

Location: ARLINGTON, TARRANT County, TEXAS, 76011

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $117.0 million to CAE USA INC. for work described as: C-17TS ACAT III - ORDERING PERIOD 4 TASK ORDER USAF Key points: 1. Contract value of $116.96M for C-17TS flight training. 2. Awarded to CAE USA Inc. through full and open competition. 3. Potential risk associated with long-term contract duration (1430 days). 4. Spending falls within the IT/Defense sector for flight simulation and training.

Value Assessment

Rating: good

The contract value of $116.96M appears reasonable for a multi-year flight training program. Benchmarking against similar large-scale simulation and training contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the flight training services.

Public Impact

Ensures continued readiness and proficiency for C-17 aircrews. Supports critical Air Force training requirements. Impacts personnel involved in C-17 operations and training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration could lead to potential cost overruns if not managed effectively.
Reliance on a single contractor for a critical training system.

Positive Signals

Full and open competition ensures best value.
Clear contract scope for flight training services.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on flight simulation and training, which is a critical component of military readiness. Spending benchmarks for similar training programs are often in the tens to hundreds of millions of dollars.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract is managed by the Department of the Air Force, a component of the Department of Defense. Standard oversight mechanisms for defense contracts would apply.

Related Government Programs

Flight Training
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long contract duration may increase risk of cost escalation.
Potential for vendor lock-in if alternatives are not considered.
Dependence on a single contractor for critical training.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $117.0 million to CAE USA INC.. C-17TS ACAT III - ORDERING PERIOD 4 TASK ORDER USAF

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 Air Force).

What is the total obligated amount?

The obligated amount is $117.0 million.

What is the period of performance?

Start: 2013-01-31. End: 2016-12-31.

What is the cost per training hour or per aircrew trained under this contract?

The provided data does not specify the cost per training hour or per aircrew. To determine this, one would need to divide the total contract value by the total number of training hours or aircrews planned over the contract period. This metric is crucial for assessing the efficiency and value for money of the training program.

What are the key performance indicators (KPIs) for this flight training contract, and how is contractor performance measured?

Key performance indicators for flight training contracts typically include metrics such as training completion rates, simulator availability, instructor proficiency, and adherence to training schedules. The contract likely outlines specific KPIs and a performance management plan to ensure CAE USA Inc. meets the Air Force's training objectives effectively.

Are there any contingency plans or alternative training solutions if CAE USA Inc. fails to meet its contractual obligations?

While the contract is awarded to a single entity, the Department of Defense usually has contingency plans for critical services. These might include mechanisms for contract termination, re-competition, or the utilization of alternative training facilities or providers if CAE USA Inc. experiences significant performance issues or becomes unable to fulfill the contract.

Industry Classification

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

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST NO FEE (S)

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: $116,956,659

Exercised Options: $116,956,659

Current Obligation: $116,956,659

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: FA862111D6261

IDV Type: IDC

Timeline