DoD's $108M C-17 Training Services contract awarded to CAE USA INC. for flight training

Contract Overview

Contract Amount: $108,081,107 ($108.1M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2015-01-28

End Date: 2018-12-24

Contract Duration: 1,426 days

Daily Burn Rate: $75.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF C-17 TS ACAT III - ORDERING PERIOD 6 TASK ORDER USAF

Place of Performance

Location: ARLINGTON, TARRANT County, TEXAS, 76011

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $108.1 million to CAE USA INC. for work described as: IGF::OT::IGF C-17 TS ACAT III - ORDERING PERIOD 6 TASK ORDER USAF Key points: 1. The contract represents a significant investment in maintaining the operational readiness of C-17 aircrews. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness in specialized training services. 3. Performance monitoring is key to verifying that training objectives are met and aircrew proficiency is maintained. 4. The duration of the contract suggests a long-term need for C-17 aircrew training support. 5. This contract falls within the broader defense training and simulation sector, a critical component of military readiness.

Value Assessment

Rating: good

The contract value of approximately $108 million over its period of performance appears reasonable for specialized C-17 flight training services. Benchmarking against similar large-scale defense training contracts is necessary for a definitive value assessment. However, given the complexity and criticality of C-17 operations, the investment is likely justified if it effectively enhances aircrew performance and safety.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive favorable pricing and ensure the selection of the most capable provider. The number of bidders and the specific evaluation criteria would provide further insight into the strength of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, maximizing the value of federal spending.

Public Impact

The primary beneficiaries are the U.S. Air Force C-17 aircrews who receive essential flight training. The services delivered include critical flight training to ensure proficiency in operating the C-17 Globemaster III aircraft. The contract's impact is primarily within the Department of Defense, supporting national security objectives. Workforce implications include support for specialized instructors and training personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements evolve significantly without contract adjustments.
Dependence on contractor performance for maintaining critical aircrew skills.
Risk of cost overruns if unforeseen technical or logistical challenges arise.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Long-term contract duration indicates a stable and predictable training solution.
Focus on a critical military asset (C-17) highlights its strategic importance.

Sector Analysis

The defense training and simulation sector is a substantial market driven by the need for advanced and realistic training solutions for military personnel. This contract for C-17 flight training fits within this sector, addressing the specific needs of air mobility command. Comparable spending benchmarks in this area often involve multi-year contracts for simulator maintenance, curriculum development, and instructor services, reflecting the high cost of maintaining specialized military aviation capabilities.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside component (ss: false, sb: false). While this specific contract may not directly involve small business set-asides, the prime contractor, CAE USA INC., may engage small businesses as subcontractors for various support services. The extent of subcontracting to small businesses would need further investigation to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures would include performance metrics, delivery schedules, and quality standards outlined in the contract. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

C-17 Globemaster III Sustainment
Air Mobility Command Training Programs
Defense Flight Simulation and Training
Aircrew Qualification and Readiness

Risk Flags

Contract duration
Performance metrics
Cost control

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $108.1 million to CAE USA INC.. IGF::OT::IGF C-17 TS ACAT III - ORDERING PERIOD 6 TASK ORDER USAF

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 Air Force).

What is the total obligated amount?

The obligated amount is $108.1 million.

What is the period of performance?

Start: 2015-01-28. End: 2018-12-24.

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

CAE USA INC. has a significant track record in providing simulation and training solutions for various defense platforms, including fixed-wing and rotary-wing aircraft. They are known for developing and operating sophisticated training systems. Their experience with large, complex contracts suggests a capability to manage programs of this scale. However, a detailed review of past performance on similar contracts, including any past performance issues or successes, would be necessary for a comprehensive assessment. This would involve examining contract close-out data, any disputes, and customer satisfaction feedback from previous government engagements.

How does the pricing of this contract compare to other C-17 training services or similar military aircraft training contracts?

Direct comparison of pricing for this specific C-17 training contract is challenging without access to detailed pricing structures and market intelligence on comparable services. However, the contract's award under full and open competition suggests that the pricing was deemed competitive at the time of award. Benchmarking against other large-scale military flight training contracts, considering factors like aircraft type, training complexity, and duration, would provide a broader context. The $108 million value over approximately four years indicates an average annual spend of around $27 million, which needs to be evaluated against the scope of services provided, such as simulator hours, instructor support, and curriculum updates.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance deficiencies by the contractor in delivering high-quality training, leading to reduced aircrew readiness. There's also a risk of cost overruns if the scope of work expands or if unforeseen operational challenges arise. Technological obsolescence of training systems could be another concern over the contract's life. Mitigation strategies likely involve robust performance monitoring, clear contract terms and conditions, regular reviews, and potentially incentive clauses. The government's oversight mechanisms and the contractor's quality assurance processes are critical for managing these risks.

How effective has this contract been in achieving its stated objectives of enhancing C-17 aircrew proficiency?

Assessing the effectiveness requires analyzing performance metrics and feedback from the end-users (Air Force C-17 crews and instructors). Key indicators would include training completion rates, proficiency assessments, simulator fidelity, and feedback on the realism and relevance of the training scenarios. Without access to these specific performance data and user evaluations, a definitive judgment on effectiveness cannot be made. However, the continuation or renewal of such contracts often implies a level of satisfaction with the services provided, assuming the program has met its core objectives.

What are the historical spending patterns for C-17 training services, and how does this contract fit within that trend?

Historical spending on C-17 training services would likely show a consistent need for such support throughout the aircraft's operational life. Initial training contracts might focus on initial qualification, while subsequent contracts, like this one, often address sustainment training, recurrent training, and potentially upgrades to training systems. The $108 million value over its period suggests a significant, but potentially stable, level of investment in maintaining C-17 aircrew readiness. Analyzing prior contract awards for C-17 training, their values, and durations would reveal trends and whether this contract represents an increase, decrease, or steady state in spending for these services.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Flight Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3 Technologies, Inc. (UEI: 008898884)

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: $108,081,107

Exercised Options: $108,081,107

Current Obligation: $108,081,107

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: FA862111D6261

IDV Type: IDC

Timeline