DoD's $12.17M Boeing 737 NG Flight Instructor Contract Awarded to CAE USA Inc

Contract Overview

Contract Amount: $12,171,500 ($12.2M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2007-11-01

End Date: 2008-10-31

Contract Duration: 365 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

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 $12.2 million to CAE USA INC. for work described as: FLIGHT INSTRUCTOR HOURS ON BOEING 737 NG Key points: 1. Contract awarded to CAE USA Inc. for flight instructor hours on Boeing 737 NG. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 365 days, indicating a short-term training requirement. 4. The award amount is $12,171,500, representing a significant investment in pilot training.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty for the government. Benchmarking against similar flight training contracts would be necessary for a more precise value assessment, but the amount appears reasonable for specialized instructor hours.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests that multiple vendors had the opportunity to bid, likely leading to competitive pricing. The government's ability to secure a firm fixed price indicates successful price discovery through the competitive process.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for specialized flight training services, ensuring funds are used efficiently for military readiness.

Public Impact

Enhances pilot proficiency on a critical aircraft type, directly impacting military operational readiness. Supports the training pipeline for naval aviators, ensuring a skilled workforce. The investment contributes to maintaining the effectiveness of the Boeing 737 NG fleet within the Navy's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for instructor skill degradation if not continuously assessed.
Dependence on a single contractor for specialized training.

Positive Signals

Firm fixed price contract limits cost overruns.
Full and open competition promotes market efficiency.
Clear definition of service (flight instructor hours).

Sector Analysis

The defense sector heavily relies on specialized training services to maintain pilot proficiency and operational readiness. Spending benchmarks for flight instruction can vary widely based on aircraft type, duration, and instructor qualifications, but this contract appears to be a standard procurement for essential training.

Small Business Impact

The data indicates the contract was awarded to CAE USA Inc., a large business. There is no indication of small business participation or subcontracting in the provided information, suggesting limited direct impact on small businesses for this specific award.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard procurement regulations and contract management practices would apply to ensure performance and accountability. Further oversight details are not available in the provided data.

Related Government Programs

Flight Training
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for sole-source dependency if follow-on contracts are not competed.
Risk of instructor 'burnout' or skill decay without robust quality control.
Limited visibility into the specific training outcomes and their impact on pilot readiness.
No explicit mention of small business utilization, potentially missing opportunities for economic inclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 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 $12.2 million.

What is the period of performance?

Start: 2007-11-01. End: 2008-10-31.

What specific qualifications and experience do the instructors provided by CAE USA Inc. possess for the Boeing 737 NG?

The provided data does not specify the exact qualifications or experience levels of the instructors. However, for a contract of this nature, it is expected that instructors would possess extensive flight experience, relevant certifications, and a deep understanding of the Boeing 737 NG systems and operational procedures, likely meeting or exceeding government requirements outlined in the solicitation.

How does the cost per flight hour benchmark against industry standards for similar Boeing 737 NG instructor services?

Without specific per-unit cost data or access to industry benchmarks for Boeing 737 NG instructor services, a precise comparison is difficult. The total award of $12,171,500 over 365 days suggests a significant hourly rate, but the value is contingent on the intensity and specialization of the training provided. Further analysis would require detailed cost breakdowns and market research.

What mechanisms are in place to ensure the effectiveness and quality of the flight instruction provided under this contract?

Effectiveness and quality are typically ensured through contract performance standards, regular performance reviews, and potentially student feedback mechanisms. The firm fixed price nature incentivizes the contractor to deliver services efficiently. However, the provided data lacks specific details on the quality assurance surveillance plan (QASP) or performance metrics used by the Department of the Navy.

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: FIRM FIXED PRICE (J)

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: $12,171,500

Exercised Options: $12,171,500

Current Obligation: $12,171,500

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001905D0012

IDV Type: IDC

Timeline