DoD Awards $167.8M for MH-60 Tech Refresh and Simulators, Competition Held
Contract Overview
Contract Amount: $167,832,496 ($167.8M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2015-09-28
End Date: 2025-04-30
Contract Duration: 3,502 days
Daily Burn Rate: $47.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MH-60 TECHNOLOGY REFRESH AND PROCUREMENT OF SIMULATORS
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33634
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $167.8 million to CAE USA INC. for work described as: MH-60 TECHNOLOGY REFRESH AND PROCUREMENT OF SIMULATORS Key points: 1. Significant investment in critical aviation training and modernization. 2. CAE USA Inc. secured the contract, indicating a competitive award. 3. Potential for long-term fleet readiness and pilot proficiency. 4. Focus on simulator technology suggests a move towards cost-effective training solutions.
Value Assessment
Rating: good
The award amount of $167.8 million for technology refresh and simulators appears reasonable given the scope. Benchmarking against similar complex training system procurements would provide further validation.
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. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing taxpayer value for essential defense training assets.
Public Impact
Enhances pilot training for the MH-60 helicopter fleet, crucial for naval operations. Procurement of advanced simulators can reduce operational costs and increase training frequency. Supports the modernization of aging aircraft systems, extending their service life.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns during technology refresh.
- Dependence on a single contractor for simulator maintenance and upgrades.
Positive Signals
- Investment in advanced training technology.
- Competitive award process.
- Long-term contract duration ensures sustained support.
Sector Analysis
This procurement falls within the aerospace and defense sector, specifically focusing on aviation training systems. Spending benchmarks for similar simulator and technology refresh contracts are typically in the tens to hundreds of millions.
Small Business Impact
While the prime contractor is CAE USA Inc., the contract details do not specify subcontracting opportunities for small businesses. Further analysis would be needed to determine SMB participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The contract's long duration and delivery order structure suggest ongoing monitoring will be necessary to ensure performance and cost control.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Technology obsolescence risk
- Integration complexity
- Contractor performance risk
- Potential for scope creep
Tags
other-commercial-and-service-industry-ma, department-of-defense, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $167.8 million to CAE USA INC.. MH-60 TECHNOLOGY REFRESH AND PROCUREMENT OF SIMULATORS
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 $167.8 million.
What is the period of performance?
Start: 2015-09-28. End: 2025-04-30.
What is the projected return on investment for the MH-60 technology refresh and simulator procurement?
The return on investment is expected to be realized through improved pilot proficiency, reduced operational flight hours for training, and extended service life of the MH-60 fleet. Quantifying this precisely requires detailed analysis of training effectiveness metrics and projected savings from reduced flight time and maintenance costs.
What are the primary risks associated with the technology refresh component of this contract?
Key risks include potential integration challenges with existing MH-60 systems, the possibility of unforeseen technical issues arising during the refresh process, and the risk of the chosen technology becoming obsolete before the end of the contract. Effective project management and contingency planning are crucial to mitigate these risks.
How will the effectiveness of the new simulators be measured and validated?
Effectiveness will likely be measured through pilot performance metrics in simulated scenarios, correlation of simulator training outcomes with real-world mission success rates, and feedback from instructors and pilots. Regular reviews and potential adjustments to simulator fidelity and training scenarios will ensure ongoing validation.
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
Solicitation ID: N6134011R0001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4908 TAMPA W BLVD, TAMPA, FL, 33634
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: $169,555,478
Exercised Options: $168,514,840
Current Obligation: $167,832,496
Subaward Activity
Number of Subawards: 152
Total Subaward Amount: $96,387,484
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6134012D5104
IDV Type: IDC
Timeline
Start Date: 2015-09-28
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-01-28
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