Naval Air Warfare Center awards $270M contract for training aids to Symvionics Inc

Contract Overview

Contract Amount: $27,027,154 ($27.0M)

Contractor: Symvionics, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-05-09

End Date: 2013-02-28

Contract Duration: 2,487 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200608!401468!1700!N61339!NAVAL AIR WARFARE CENTER !N6133903D5010 !A!N! !N!0004 ! !20060509!20080109!617054903!617054903!617054903!N!SYMVIONICS INC !488 E SANTA CLARA ST #201 !ARCADIA !CA!91006!02462!037!06!ARCADIA !LOS ANGELES !CALIFORNIA!+000010558335!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!K! !A!N!D! ! !N!A!N!N!D! ! ! !C!A!000!A!B!N! ! ! !Y!1700!N61339!0001! !

Place of Performance

Location: ARCADIA, LOS ANGELES County, CALIFORNIA, 91006

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to SYMVIONICS, INC. for work described as: 200608!401468!1700!N61339!NAVAL AIR WARFARE CENTER !N6133903D5010 !A!N! !N!0004 ! !20060509!20080109!617054903!617054903!617054903!N!SYMVIONICS INC !488 E SANTA CLARA ST #201 !ARCADIA !CA!91006!02462!037!06!ARCADIA !LOS … Key points: 1. Contract awarded for training aids, a critical component for military readiness. 2. The contract value of $270.27 million over its period of performance indicates a significant investment. 3. Symvionics Inc. secured this award, suggesting a strong competitive position or specialized capability. 4. The contract's duration of approximately 7 years (2487 days) points to a long-term need for these training solutions. 5. The procurement method, 'Full and Open Competition After Exclusion of Sources,' warrants further examination. 6. The primary service category is 'Training Aids,' essential for simulating real-world scenarios and enhancing pilot skills.

Value Assessment

Rating: fair

The contract value of $270.27 million for training aids over nearly seven years suggests a substantial investment. Benchmarking this against similar contracts for advanced training systems is difficult without more specific details on the technology and scope. However, the duration and cost indicate a significant commitment by the Navy. The fixed-price nature of the contract aims to control costs, but the overall value proposition depends heavily on the effectiveness and longevity of the training aids provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method implies that while the competition was intended to be open, certain sources may have been excluded for reasons not immediately apparent from the provided data. The number of bidders is not specified, making it difficult to assess the true level of competition. This approach can sometimes lead to less competitive pricing if the exclusion criteria are too restrictive or if only a few qualified vendors exist.

Taxpayer Impact: The 'exclusion of sources' aspect raises questions about whether taxpayers received the best possible price. If legitimate competition was limited due to these exclusions, it could mean higher costs than a truly open competition might have yielded.

Public Impact

Naval aviators and aircrews benefit from enhanced training capabilities, improving operational readiness. The contract delivers advanced training aids, crucial for simulating complex combat scenarios. The geographic impact is primarily within Naval Air Systems Command (NAVAIR) facilities, likely supporting various naval air stations. Workforce implications may include specialized technical support and maintenance personnel for the training systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' method requires scrutiny to ensure fair competition and optimal pricing.
Lack of specific details on the training aid technology makes it hard to assess true value for money.
The long contract duration could pose risks if technology becomes obsolete or if performance issues arise.

Positive Signals

The significant investment in training aids demonstrates a commitment to enhancing pilot proficiency and safety.
The firm fixed-price contract type provides cost certainty for the government.
Symvionics Inc.'s selection suggests they possess the necessary expertise for these specialized training solutions.

Sector Analysis

The defense sector, particularly within aviation, relies heavily on advanced training simulators and aids to prepare personnel for complex missions. This contract falls within the broader category of defense training and simulation systems, a market segment characterized by high technological requirements and significant government investment. Comparable spending benchmarks are difficult to establish without knowing the specific nature of the training aids, but contracts for flight simulators and virtual training environments can range from millions to hundreds of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and Symvionics Inc. is likely a large business. There is no information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though the prime contractor's subcontracting practices would need further investigation.

Oversight & Accountability

Oversight for this contract would typically fall under the Naval Air Systems Command (NAVAIR) and potentially the Department of Defense's Inspector General. Accountability measures are inherent in the firm fixed-price contract structure, which obligates the contractor to deliver specified goods or services. Transparency is facilitated through contract databases like FPDS, but detailed performance reports and specific oversight activities are often not publicly disclosed.

Related Government Programs

Naval Aviation Training Systems
Defense Simulation and Training
Aircrew Flight Equipment
Military Readiness Programs

Risk Flags

Limited competition due to source exclusion.
Potential for cost overruns or quality issues in long-term FFP contracts.
Risk of technological obsolescence for training aids over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to SYMVIONICS, INC.. 200608!401468!1700!N61339!NAVAL AIR WARFARE CENTER !N6133903D5010 !A!N! !N!0004 ! !20060509!20080109!617054903!617054903!617054903!N!SYMVIONICS INC !488 E SANTA CLARA ST #201 !ARCADIA !CA!91006!02462!037!06!ARCADIA !LOS ANGELES !CALIFORNIA!+000010558335!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 SYMVIONICS, 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 $27.0 million.

What is the period of performance?

Start: 2006-05-09. End: 2013-02-28.

What specific type of training aids were procured under this contract, and what capabilities do they offer?

The contract specifies 'Training Aids' under the Product Service Code (PSC) 6910. While the exact nature of these aids is not detailed in the provided data, PSC 6910 typically encompasses items such as simulators, mock-ups, training devices, and related equipment used for instructional purposes. Given the context of Naval Air Warfare, these aids likely involve sophisticated systems designed to replicate aircraft cockpits, flight dynamics, weapon systems, and tactical scenarios. They could range from desktop trainers to full-immersion virtual reality systems, aimed at enhancing pilot proficiency, tactical decision-making, and emergency procedure training without the risks and costs associated with live flight operations.

How does the contract value of $270.27 million compare to other similar training aid procurements by the Department of Defense?

Direct comparison of the $270.27 million contract value is challenging without knowing the specific technological sophistication and scope of the training aids. However, the duration of approximately seven years (from May 2006 to February 2013) suggests a substantial, long-term investment. Large-scale simulator and training system contracts within the DoD often reach these figures, especially for advanced platforms like fighter jets or complex naval aircraft. For instance, contracts for full-flight simulators for major aircraft can easily exceed $50 million each. The value here, spread over several years, indicates a significant program likely supporting a fleet or a critical training pipeline, placing it within the upper tier of training system procurements.

What are the potential risks associated with a firm fixed-price contract of this magnitude and duration?

A firm fixed-price (FFP) contract, while offering cost certainty, carries risks for both parties, especially over a long duration like this contract's ~7 years. For the government, the primary risk is that the contractor may cut corners on quality or performance to maximize profit if the initial price was set too high or if unforeseen cost increases occur. Conversely, if the contractor underestimated costs, they might face significant losses, potentially leading to performance issues or even contract termination. For Symvionics Inc., the risk lies in accurately estimating all costs over the extended period, including potential inflation, technological obsolescence, and unforeseen technical challenges in developing or maintaining the training aids. Changes in military requirements or technology could also render the procured aids less effective, creating a mismatch between cost and benefit.

What does the procurement method 'Full and Open Competition After Exclusion of Sources' imply about the competition level?

This procurement method, 'Full and Open Competition After Exclusion of Sources,' is somewhat contradictory. 'Full and Open Competition' typically means all responsible sources are permitted to submit offers. However, the 'After Exclusion of Sources' clause indicates that specific, pre-identified sources were excluded from the competition for reasons that must be documented and justified (e.g., national security, proprietary data, or specific technical requirements that only a limited number of vendors could meet). This suggests that while the competition wasn't a sole-source award, it was not as broad as a standard 'Full and Open Competition.' The number of bidders is not specified, but the exclusion clause inherently limits the pool of potential competitors, which could impact price discovery and potentially lead to higher costs compared to a scenario where all qualified vendors could participate.

What is Symvionics Inc.'s track record with the Department of Defense, particularly in training systems?

Symvionics Inc. has a history of contracting with the Department of Defense, primarily in areas related to aviation support, including training systems and avionics. While this specific $270 million contract is a significant award, the company has secured other contracts, often for specialized equipment, engineering services, and maintenance support for military aircraft and systems. Their involvement in training aids suggests a capability in developing or providing systems that enhance operational readiness. A deeper dive into their contract history would reveal the types and values of previous awards, their performance ratings on those contracts, and their specific expertise in the technologies relevant to this particular training aid procurement.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 488 E SANTA CLARA STREET, ARCADIA, CA, 28

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Parent Contract

Parent Award PIID: N6133903D5010

IDV Type: IDC

Timeline