DoD's $107.6M C-17 Flight Training Contract Awarded to CAE USA Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $107,639,982 ($107.6M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2015-12-22

End Date: 2018-12-31

Contract Duration: 1,105 days

Daily Burn Rate: $97.4K/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 7 TASK ORDER

Place of Performance

Location: ARLINGTON, TARRANT County, TEXAS, 76011

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $107.6 million to CAE USA INC. for work described as: IGF::OT::IGF C-17 TS ACAT III - ORDERING PERIOD 7 TASK ORDER Key points: 1. The contract awarded to CAE USA Inc. for C-17 flight training represents a significant investment in air mobility capabilities. 2. Full and open competition was utilized, suggesting a robust price discovery process and potential for competitive pricing. 3. The firm-fixed-price contract structure shifts cost risk to the contractor, potentially benefiting the government. 4. The training services fall under the IT and Defense sectors, requiring specialized expertise.

Value Assessment

Rating: good

The contract's firm-fixed-price structure is generally favorable for the government, especially in a competitive environment. Benchmarking against similar flight training contracts would provide a clearer picture of value, but the competitive award suggests a reasonable price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery, as multiple bidders likely vied for the contract. This process generally leads to more competitive pricing compared to sole-source or limited competition awards.

Taxpayer Impact: The competitive nature of this award is expected to yield fair pricing, maximizing the value of taxpayer funds allocated for C-17 pilot training.

Public Impact

Ensures continued readiness and proficiency for C-17 aircrews, critical for global logistics and rapid response operations. Supports the Department of the Air Force's mission by providing essential training services. The contract's duration and value indicate a long-term commitment to maintaining specialized aircrew skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements evolve significantly.
Dependence on a single contractor for critical training services.

Positive Signals

Firm-fixed-price contract mitigates cost overrun risk for the government.
Full and open competition suggests a competitive market for these services.
Long-term contract provides stability for training operations.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on specialized flight training for the C-17 Globemaster III aircraft. Spending in this area is crucial for maintaining air superiority and logistical capabilities, with benchmarks often tied to the complexity of the aircraft and the required training hours.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting opportunities.

Oversight & Accountability

The Department of the Air Force awarded this contract, and standard oversight mechanisms for defense contracts would apply. The firm-fixed-price nature provides some inherent cost control, but ongoing monitoring of performance and adherence to the contract terms is essential.

Related Government Programs

Flight Training
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of specific performance metrics in the provided data.
No clear indication of small business subcontracting.
Absence of detailed cost-per-unit or cost-per-hour data for benchmarking.
Potential for contractor lock-in if competition is limited in future contract renewals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $107.6 million to CAE USA INC.. IGF::OT::IGF C-17 TS ACAT III - ORDERING PERIOD 7 TASK ORDER

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 $107.6 million.

What is the period of performance?

Start: 2015-12-22. End: 2018-12-31.

What is the cost per training hour or per student, and how does it compare to industry benchmarks for similar advanced military aircraft training?

The provided data does not include specific cost breakdowns per training hour or student. To assess value effectively, this contract's total cost should be divided by the total training hours or students anticipated over its duration. Comparing this calculated rate to publicly available benchmarks for comparable military flight training programs would reveal if the $107.6 million represents a competitive price point.

What are the specific performance metrics and quality assurance measures in place to ensure the effectiveness of the training provided by CAE USA Inc.?

The contract details do not specify performance metrics or quality assurance procedures. Effective oversight would require clearly defined metrics for pilot proficiency, instructor performance, and training system utilization. Regular performance reviews and audits by the Department of the Air Force are crucial to ensure the training meets operational readiness standards and justifies the investment.

Given the duration of the contract (2015-2018), what was the process for ensuring the training curriculum remained current with evolving C-17 capabilities and operational needs?

The contract period ended in 2018. Information on curriculum updates during that time is not provided. Typically, such contracts include provisions for periodic reviews and updates to training materials to align with aircraft modifications, new tactics, and operational requirements. The Air Force would have been responsible for overseeing these updates to maintain training relevance.

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: $107,639,982

Exercised Options: $107,639,982

Current Obligation: $107,639,982

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