DoD awards $86M for MH-60S OFT #7, with 2 delivery orders issued
Contract Overview
Contract Amount: $86,163,826 ($86.2M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2007-07-31
End Date: 2014-08-31
Contract Duration: 2,588 days
Daily Burn Rate: $33.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LOT I MH-60S OFT #7
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33634
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $86.2 million to CAE USA INC. for work described as: LOT I MH-60S OFT #7 Key points: 1. Contract awarded to CAE USA INC. for MH-60S OFT #7. 2. Spending totals $86.16M over a 7-year period. 3. Full and open competition was utilized. 4. The contract falls under Other Commercial and Service Industry Machinery Manufacturing. 5. No small business participation was noted.
Value Assessment
Rating: fair
The total award amount of $86.16M for MH-60S OFT #7 appears reasonable given the 7-year duration and the nature of specialized aviation training equipment. Benchmarking against similar complex training systems would be necessary for a definitive assessment.
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. The use of firm-fixed-price contracts for delivery orders helps to control costs and transfer risk to the contractor.
Taxpayer Impact: Taxpayer funds are being utilized for critical military training equipment, with competition aiming to ensure value for money.
Public Impact
Ensures readiness of MH-60S helicopter crews through advanced training. Supports the Department of the Navy's aviation training capabilities. Contributes to the defense industrial base through contracts with CAE USA INC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration may indicate potential for cost overruns if not managed closely.
Positive Signals
- Full and open competition utilized.
- Firm-fixed-price contract type provides cost certainty.
Sector Analysis
This contract falls within the broader aerospace and defense manufacturing sector, specifically related to specialized training equipment. Spending benchmarks for similar complex training systems are highly variable, but $86M over 7 years for a critical platform like the MH-60S is within expected ranges for such specialized systems.
Small Business Impact
The data indicates no small business participation in this contract. Efforts to include small businesses in the supply chain for defense contracts should be explored to foster broader economic impact and innovation.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The use of delivery orders under a larger contract structure allows for phased execution and management of funds over the contract's life.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of small business involvement.
- Long-term contract duration.
- Potential for technological obsolescence.
- Complexity of specialized training systems.
Tags
other-commercial-and-service-industry-ma, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $86.2 million to CAE USA INC.. LOT I MH-60S OFT #7
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 $86.2 million.
What is the period of performance?
Start: 2007-07-31. End: 2014-08-31.
What specific training capabilities does OFT #7 provide for the MH-60S, and how does this contribute to pilot proficiency and mission readiness?
OFT #7 likely refers to Operational Flight Trainer #7, a sophisticated simulation system designed to replicate the MH-60S helicopter's cockpit and flight dynamics. These trainers are crucial for developing and maintaining pilot proficiency in various mission scenarios, emergency procedures, and tactical operations without the risks and costs associated with actual flight. This directly enhances crew readiness and reduces the likelihood of accidents during training and real-world missions.
Given the 7-year duration, what are the primary risks associated with cost escalation or technological obsolescence for this training system?
The primary risks include potential cost escalation due to inflation, unforeseen technical challenges during development or sustainment, and the risk of technological obsolescence if the MH-60S platform or its operational environment evolves significantly. Mitigation strategies could involve robust contract clauses for cost control, regular reviews of technological advancements, and incorporating flexibility for future upgrades or modifications to the trainer.
How effectively does this contract leverage competition to ensure the best value for taxpayer dollars in acquiring advanced aviation training systems?
The contract's use of 'full and open competition' is a positive indicator for achieving best value. This process theoretically allows any qualified vendor to bid, fostering a competitive environment that drives down prices and encourages innovation. However, the ultimate effectiveness depends on the clarity of the solicitation, the rigor of the evaluation process, and the specific market dynamics for such specialized training systems.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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
Financial Breakdown
Contract Ceiling: $98,724,041
Exercised Options: $86,163,826
Current Obligation: $86,163,826
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6133903D5001
IDV Type: IDC
Timeline
Start Date: 2007-07-31
Current End Date: 2014-08-31
Potential End Date: 2014-08-31 00:00:00
Last Modified: 2016-04-11
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