DOT's FAA awards $17.5M for pilot training, with Allen Corp. securing the contract

Contract Overview

Contract Amount: $17,483,165 ($17.5M)

Contractor: Allen Corporation of America, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-12-23

End Date: 2026-07-01

Contract Duration: 555 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FLIGHT PROGRAM PARTICIPANT PILOT TRAINING SERVICES LOCATED AT ALLIANCE AIRPORT, FT WORTH TX.

Place of Performance

Location: FAIRFAX, FAIRFAX CITY County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $17.5 million to ALLEN CORPORATION OF AMERICA, INC. for work described as: FLIGHT PROGRAM PARTICIPANT PILOT TRAINING SERVICES LOCATED AT ALLIANCE AIRPORT, FT WORTH TX. Key points: 1. The contract value appears reasonable given the scope of pilot training services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This award supports the Federal Aviation Administration's mission to ensure aviation safety and efficiency. 5. The duration of the contract indicates a sustained need for these training services. 6. The contractor, Allen Corporation of America, Inc., has a history of providing similar services.

Value Assessment

Rating: good

The contract value of approximately $17.5 million for pilot training services over a period of roughly 2 years seems aligned with industry standards for comprehensive training programs. Benchmarking against similar contracts for specialized flight training would provide a more precise value-for-money assessment. However, the firm-fixed-price structure suggests that the government has negotiated a set price, which is generally favorable for predictable budgeting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters robust competition, leading to potentially better pricing and service offerings for the government.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it encourages multiple companies to bid, driving down costs and ensuring the government receives the best value for its investment in pilot training.

Public Impact

Pilots undergoing training at Alliance Airport in Fort Worth, TX, will benefit from these services. The contract ensures the availability of skilled pilots, crucial for the safe and efficient operation of the national airspace system. The geographic impact is localized to Fort Worth, TX, where the training will take place. This contract supports the aviation workforce by providing essential training opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if training requirements expand beyond initial scope.
Dependence on a single contractor for critical pilot training services.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a competitive market for these services.
Contract duration aligns with the sustained need for pilot proficiency.

Sector Analysis

The aviation services sector is a significant component of the broader transportation industry. This contract for flight training falls within the specialized services segment, which supports the operational readiness and skill development of aviation personnel. The market for flight training is competitive, with numerous providers offering various levels of instruction. Government contracts for such services are essential for maintaining the high standards required by agencies like the FAA.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, Allen Corporation of America, Inc., may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem. Further analysis would be needed to determine the extent of any subcontracting plan.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of financial oversight by establishing a ceiling cost. Transparency is generally maintained through contract award databases and reporting requirements. Specific Inspector General jurisdiction would depend on the FAA's internal policies and the nature of any potential issues arising from contract performance.

Related Government Programs

Federal Aviation Administration Pilot Training Programs
Department of Transportation Aviation Workforce Development
Air Traffic Controller Training Services
Commercial Pilot Certification Programs

Risk Flags

Contract performance risk
Contractor capability risk
Scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $17.5 million to ALLEN CORPORATION OF AMERICA, INC.. FLIGHT PROGRAM PARTICIPANT PILOT TRAINING SERVICES LOCATED AT ALLIANCE AIRPORT, FT WORTH TX.

Who is the contractor on this award?

The obligated recipient is ALLEN CORPORATION OF AMERICA, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $17.5 million.

What is the period of performance?

Start: 2024-12-23. End: 2026-07-01.

What is the track record of Allen Corporation of America, Inc. in providing flight training services to the federal government?

Allen Corporation of America, Inc. has a history of providing services to the federal government, including those related to aviation and training. While specific details on past flight training contracts are not immediately available in this data snippet, their selection for this significant contract suggests they possess the necessary qualifications and experience. A deeper dive into federal procurement databases like SAM.gov or FPDS would reveal the scope, value, and performance history of their previous government engagements. This would include examining past performance evaluations, any contract disputes, and the types of training they have delivered to other agencies. Understanding their prior success and challenges in similar roles is crucial for assessing their reliability in fulfilling the current FAA contract.

How does the per-hour cost of this pilot training compare to market rates for similar services?

Determining the precise per-hour cost for this contract requires dividing the total contract value ($17,483,165.38) by the total estimated training hours, which are not explicitly provided in the data. However, the contract duration of 555 days (approximately 1.5 years) and the nature of 'Flight Program Participant Pilot Training Services' suggest a substantial number of training hours. Market rates for professional pilot training can vary significantly based on aircraft type, instructor qualifications, and program complexity, ranging from a few hundred to over a thousand dollars per hour. Without the total hours, a direct comparison is difficult. The 'Full and Open Competition' aspect suggests the FAA likely sought competitive bids to achieve a favorable rate. Further analysis would involve obtaining the total estimated training hours from the contract details to calculate an effective hourly rate for benchmarking against industry averages.

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

The primary risks associated with this contract include potential performance issues, such as the quality or timeliness of training, and the possibility of cost increases if the scope expands beyond the initial agreement, although the firm-fixed-price structure mitigates this. Another risk could be the contractor's ability to retain qualified instructors. Mitigation strategies are embedded within the contract: the firm-fixed-price nature caps the government's financial exposure. The 'Full and Open Competition' process likely vetted multiple capable vendors, reducing the risk of selecting an underqualified contractor. Performance standards and delivery schedules within the contract terms provide clear expectations and a basis for monitoring. The FAA's oversight mechanisms, including contract management and potential inspections, further serve to ensure compliance and address any emerging issues promptly.

What is the historical spending pattern for flight training services by the Federal Aviation Administration?

Historical spending by the Federal Aviation Administration (FAA) on flight training services can be analyzed to understand trends and budget allocations. While this specific contract award is for $17.5 million, the FAA has consistently invested in pilot and air traffic controller training to maintain the safety and efficiency of the national airspace. Annual spending can fluctuate based on training needs, fleet modernization, and regulatory changes. Examining past contract awards for similar training services over the last 5-10 years would reveal the average contract values, the number of awards, and the primary contractors. This historical data helps contextualize the current award, indicating whether it represents a typical investment, an increase, or a decrease in spending for such services. It also highlights the sustained importance the FAA places on continuous professional development for its personnel and aviation professionals.

How does the geographic location of the training (Alliance Airport, Fort Worth, TX) impact the overall cost and accessibility of the services?

The geographic location of the training at Alliance Airport in Fort Worth, TX, can influence the overall cost and accessibility of the pilot training services. Fort Worth is a significant hub for aviation, potentially offering a competitive environment for training providers and access to skilled instructors and facilities. However, the cost of real estate, labor, and operational expenses in this region might be higher compared to less developed areas, which could be reflected in the contract price. Accessibility for participants is generally good, given the presence of a major airport. The FAA's choice of location likely considered factors such as the availability of suitable training infrastructure, proximity to other FAA facilities or operational needs, and potentially the cost-effectiveness of operating in that specific market. While the data doesn't provide a direct cost comparison based on location, regional economic factors are always a consideration in government contracting.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10400 EATON PL STE 330, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,483,165

Exercised Options: $17,483,165

Current Obligation: $17,483,165

Actual Outlays: $12,626,658

Contract Characteristics

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6973GH21D00004

IDV Type: IDC

Timeline