Naval Air Warfare Center contract for Training Aids awarded at $236.8M, with a 9-year performance period

Contract Overview

Contract Amount: $236,812,846 ($236.8M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2006-03-31

End Date: 2014-07-31

Contract Duration: 3,044 days

Daily Burn Rate: $77.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200606!357391!1700!N61339!NAVAL AIR WARFARE CENTER !N6133903D5006 !A!N! !N!0005 ! !20060331!20090930!130788826!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!2200 ARLINGTON DOWNS ROAD !ARLINGTON !TX!76011!04012!439!48!ARLINGTON DOWNS !TARRANT !TEXAS !+000051958581!N!N!000000000000!6910!TRAINING AIDS !C9A!CONSTRUCTION EQUIPMENT !000 !NOT DISCERNABLE !611512!A!A!5!B!M! !A! !99990909!B! ! !A! !A!N!J!2!001!B! !A!N!D! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y!1700!N61339!0001! !

Place of Performance

Location: ARLINGTON, TARRANT County, TEXAS, 76011

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $236.8 million to CAE USA INC. for work described as: 200606!357391!1700!N61339!NAVAL AIR WARFARE CENTER !N6133903D5006 !A!N! !N!0005 ! !20060331!20090930!130788826!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!2200 ARLINGTON DOWNS ROAD !ARLINGTON !TX!76011!04012!439!48!ARLINGTON DOWNS !TARR… Key points: 1. Contract value of $236.8 million over 9 years suggests significant investment in training capabilities. 2. Full and open competition indicates a potentially competitive bidding process, which can drive better pricing. 3. The contract's duration of 9 years presents a long-term commitment, requiring sustained performance and oversight. 4. The primary service category is Training Aids, crucial for military readiness and personnel development. 5. The contract was awarded to CAE USA INC., a known entity in the aerospace and defense sector. 6. The contract's performance period spans from March 2006 to July 2014, indicating historical relevance.

Value Assessment

Rating: good

The total contract value of $236.8 million over 9 years averages approximately $26.3 million per year. Benchmarking this against similar large-scale training system contracts is difficult without more specific details on the scope of 'Training Aids'. However, the firm fixed-price nature suggests that the government has a clear understanding of costs and has negotiated a price that is expected to cover all contractor expenses and profit. The long duration implies a stable, albeit significant, investment in this capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. This typically leads to a more robust selection process and potentially better pricing for the government. The data does not specify the number of bidders, but the designation implies a competitive environment was sought.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a market where multiple companies vie for the contract, driving down costs and encouraging innovation.

Public Impact

Naval personnel and air warfare trainees benefit from advanced training aids. Services delivered include the provision and potential maintenance of training systems. The geographic impact is likely centered around naval air stations and training commands. Workforce implications may include specialized technical support and training development roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (9 years) could lead to complacency or reduced urgency if not actively managed.
The specific nature of 'Training Aids' is broad; performance metrics are critical to ensure effectiveness.
Reliance on a single contractor for an extended period might limit future technological adoption if not structured for upgrades.

Positive Signals

Full and open competition suggests a potentially well-vetted and cost-effective solution was selected.
Firm Fixed Price contract type provides cost certainty for the government.
The significant investment indicates a high priority placed on naval aviation training.

Sector Analysis

This contract falls within the broader Defense sector, specifically related to training and simulation technologies. The market for defense training systems is substantial, driven by the need for realistic and cost-effective preparation for complex military operations. Companies like CAE USA INC. are key players in this specialized industry, providing advanced solutions that range from flight simulators to virtual reality training environments. The spending benchmark for such contracts can vary widely based on complexity and scale, but a nearly $240 million award over nine years signifies a major program.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false) and does not explicitly mention subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management structure, likely involving the Defense Contract Management Agency (DCMA) given the agency listed. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified goods/services within budget. Transparency is generally maintained through contract award databases, though detailed performance reports may be less public.

Related Government Programs

Naval Aviation Training Programs
Defense Simulation and Training Contracts
Military Readiness and Personnel Development
Aerospace and Defense Technology Procurement

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Broad 'Training Aids' category requires clear performance metrics.
Potential for contractor performance issues over a 9-year period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $236.8 million to CAE USA INC.. 200606!357391!1700!N61339!NAVAL AIR WARFARE CENTER !N6133903D5006 !A!N! !N!0005 ! !20060331!20090930!130788826!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!2200 ARLINGTON DOWNS ROAD !ARLINGTON !TX!76011!04012!439!48!ARLINGTON DOWNS !TARRANT !TEXAS !+000051958581!N!N!000000000000!6910!TRAINING AIDS !C9A!CONSTRUCTION EQUIPMENT !000 !NOT DISCERNABLE !611512!A!A!5!B!M! !A! !999

Who is the contractor on this award?

The obligated recipient is CAE USA INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $236.8 million.

What is the period of performance?

Start: 2006-03-31. End: 2014-07-31.

What specific types of training aids were procured under this contract?

The contract data identifies the Product Service Code (PSC) as '6910 - TRAINING AIDS'. This broad category encompasses a wide range of equipment used for training purposes, potentially including flight simulators, virtual reality systems, computer-based training modules, maintenance trainers, and other instructional devices. Without more granular details specific to this delivery order (N6133903D5006), it is difficult to pinpoint the exact nature of the training aids. However, given the Naval Air Warfare Center as the issuing entity, the aids are likely tailored for aviation-related training, such as pilot training, flight crew procedures, or aircraft maintenance.

How does the $236.8 million contract value compare to other training aid procurements by the Navy?

The $236.8 million total contract value over a 9-year period represents a significant investment in training capabilities. On an annual basis, this averages roughly $26.3 million per year. Comparing this to other Navy training aid procurements requires access to historical spending data across similar contracts. However, large-scale, multi-year contracts for advanced simulation and training systems often reach into the hundreds of millions of dollars. This particular contract appears to be a substantial, long-term commitment, suggesting it addresses a critical or extensive training need within naval aviation.

What are the key performance indicators (KPIs) expected for this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for a contract focused on 'Training Aids' awarded under a firm fixed-price structure, typical KPIs would likely revolve around the reliability and availability of the training systems, the fidelity and realism of the training simulations, user satisfaction (e.g., trainee and instructor feedback), and adherence to delivery schedules for any new systems or upgrades. The Naval Air Warfare Center would have established specific performance metrics and acceptance criteria within the contract's statement of work to ensure the training aids effectively meet operational readiness requirements.

What is CAE USA INC.'s track record with similar large-scale defense training contracts?

CAE USA INC., a subsidiary of CAE Inc., has a well-established track record in providing simulation and training solutions for defense customers globally. They are known for developing and manufacturing advanced training systems, including flight simulators for various aircraft platforms, mission trainers, and virtual reality training environments. Their portfolio includes contracts with the U.S. Army, Navy, Air Force, and Marine Corps, as well as international allies. The company's extensive experience in delivering complex training solutions suggests they possess the technical expertise and program management capabilities necessary to execute a contract of this magnitude and duration.

Were there any significant risks identified during the bidding or performance phases of this contract?

The provided data does not explicitly detail identified risks for this specific contract (N6133903D5006). However, common risks associated with large, long-term defense contracts for training systems can include technological obsolescence, integration challenges with existing platforms, contractor performance issues, cost overruns (though mitigated by FFP), and changes in military requirements. The 'full and open competition' suggests an effort to mitigate risks by selecting from a pool of qualified bidders. Active contract management and oversight by the Naval Air Warfare Center and DCMA would be crucial to identify and mitigate any emerging risks throughout the contract's lifecycle.

How has spending on training aids evolved within the Department of Defense since this contract's award?

Since the award of this contract (2006-2014), spending on training aids within the Department of Defense has continued to be a significant area of investment, driven by evolving threats, technological advancements, and the need for cost-effective training solutions. There has been a notable trend towards increased use of simulation, virtual reality, augmented reality, and artificial intelligence in training. While specific figures fluctuate annually based on budget allocations and strategic priorities, the overall emphasis on sophisticated, technology-driven training solutions has likely grown. This contract represents a substantial portion of that investment during its performance period.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CAE Inc

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: $103,957,743

Exercised Options: $66,634,554

Current Obligation: $236,812,846

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6133903D5006

IDV Type: IDC

Timeline