Draken International awarded $43.5M for Nellis Air Force Base flight training, highlighting a competitive procurement

Contract Overview

Contract Amount: $43,486,929 ($43.5M)

Contractor: Draken International, LLC

Awarding Agency: Department of Defense

Start Date: 2020-06-04

End Date: 2021-06-04

Contract Duration: 365 days

Daily Burn Rate: $119.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NELLIS ADAIR II PERIOD OF PERFORMANCE 5-JUNE-20 TO 4-JUNE-21

Place of Performance

Location: NELLIS AFB, CLARK County, NEVADA, 89191

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $43.5 million to DRAKEN INTERNATIONAL, LLC for work described as: NELLIS ADAIR II PERIOD OF PERFORMANCE 5-JUNE-20 TO 4-JUNE-21 Key points: 1. The contract value represents a significant investment in advanced aerial training capabilities. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness in specialized training. 3. Performance risk appears moderate given the established nature of flight training services. 4. This contract supports a critical mission requirement for the U.S. Air Force. 5. The sector for flight training is specialized, with a few key providers. 6. The firm-fixed-price structure aims to control costs and manage contractor risk.

Value Assessment

Rating: good

The contract value of approximately $43.5 million for a one-year period suggests a substantial but potentially reasonable cost for specialized flight training services. Benchmarking against similar contracts for adversary air support or advanced pilot training would be necessary for a definitive value assessment. However, the firm-fixed-price nature of the award indicates a degree of cost certainty for the government. Without specific per-unit data, it's challenging to provide a precise benchmark, but the overall award size aligns with the complexity and resources required for such operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were solicited and allowed to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive process. This approach is generally favored as it maximizes the pool of potential offerors and is expected to drive more competitive pricing and better value for the government.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of securing services at the most competitive market rates, preventing potential overspending and encouraging efficiency among contractors.

Public Impact

The primary beneficiaries are the U.S. Air Force pilots who receive advanced training. The services delivered include simulated adversary air support and tactical training scenarios. The geographic impact is centered at Nellis Air Force Base, Nevada, a key training hub. This contract supports specialized aviation jobs within the defense contractor workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite firm-fixed-price.
Dependence on a limited number of specialized training providers could impact future competition.
Ensuring consistent quality of training across all flight hours.
Maintaining pilot proficiency and safety standards in complex training environments.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type helps control government costs.
Draken International is an established provider of adversary air services.
Contract supports critical training needs for combat readiness.
Performance period is clearly defined, allowing for focused execution.

Sector Analysis

The market for adversary air (adversary simulation) services is a niche but critical segment within the broader aerospace and defense industry. It involves providing contracted aircraft and aircrews to simulate enemy forces during military training exercises. This sector is characterized by specialized aircraft, experienced personnel, and stringent regulatory requirements. Spending in this area has grown as the military increasingly relies on private contractors to supplement organic capabilities for realistic combat training. Comparable spending benchmarks would involve looking at other contracts for similar adversary air support or specialized training services across different military branches.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a full and open competition, it is unlikely that small businesses were exclusively targeted. However, Draken International, as the prime contractor, may engage small businesses as subcontractors for various support services, though this is not explicitly detailed in the award information. The impact on the small business ecosystem would depend on the extent of any subcontracting opportunities created.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring Draken International to deliver specified services within the agreed-upon price. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Adversary Air Services
Contracted Air Support
Pilot Training Services
Department of Defense Training Contracts
Air Combat Maneuvering Training

Risk Flags

Performance Risk
Safety Risk
Cost Management Risk
Personnel Availability Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.5 million to DRAKEN INTERNATIONAL, LLC. NELLIS ADAIR II PERIOD OF PERFORMANCE 5-JUNE-20 TO 4-JUNE-21

Who is the contractor on this award?

The obligated recipient is DRAKEN INTERNATIONAL, LLC.

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 $43.5 million.

What is the period of performance?

Start: 2020-06-04. End: 2021-06-04.

What is Draken International's track record with similar flight training contracts?

Draken International is a well-established provider of contracted adversary air (also known as 'red air') services to various branches of the U.S. military and allied nations. They specialize in providing simulated enemy aircraft and experienced pilots to train friendly forces in air-to-air combat scenarios. The company operates a fleet of former military aircraft, modified for training purposes. Their track record includes numerous contracts with the U.S. Air Force, Navy, and Marine Corps, often involving complex flight operations and demanding training requirements. While specific performance metrics for past contracts are not publicly detailed, their continued success in securing and performing on these types of high-value contracts suggests a generally positive operational history and capability in delivering required training services.

How does the cost per flight hour for this contract compare to industry benchmarks?

Determining the precise cost per flight hour for this specific contract is challenging without access to detailed pricing breakdowns, which are typically not public. However, industry estimates for contracted adversary air services can range significantly, often from $1,500 to over $5,000 per flight hour, depending on the aircraft type, complexity of the mission, required support, and the specific contractor. Draken International operates a diverse fleet, including L-159s, A-4s, and MiG-21s, each with different operating costs. Given the total award of approximately $43.5 million over a 365-day period, and assuming a substantial number of flight hours are contracted, the implied average cost per hour would need to be competitive within this range. Benchmarking would require comparing this implied rate against publicly available data for similar services awarded to competitors like Tactical Air Support (TacAir) or Top Aces.

What are the primary risks associated with this type of flight training contract?

The primary risks associated with this flight training contract include operational safety, as flying complex maneuvers in training environments carries inherent risks. Another significant risk is performance reliability; ensuring Draken consistently provides the required number of aircraft and flight hours without significant downtime is crucial. Cost management is also a consideration; while it's a firm-fixed-price contract, unforeseen operational issues or maintenance challenges could strain the contractor's profitability. Furthermore, there's a risk related to the availability of qualified pilots and maintenance personnel, as this is a specialized field. Finally, regulatory compliance and potential changes in airspace or training regulations could impact operations.

How effective is contracted adversary air support in enhancing pilot combat readiness?

Contracted adversary air support is widely considered highly effective in enhancing pilot combat readiness. It provides military aviators with realistic training against simulated enemy tactics, techniques, and procedures (TTPs) that might be difficult or costly to replicate with organic assets. This allows pilots to practice air-to-air combat maneuvers, electronic warfare scenarios, and integrated air defense system responses in a controlled yet challenging environment. The use of specialized aircraft and experienced instructors who understand potential adversary capabilities further increases the training's fidelity. Numerous studies and pilot debriefs suggest that exposure to diverse and challenging adversary simulations significantly improves decision-making, situational awareness, and overall combat effectiveness during actual engagements.

What has been the historical spending trend for adversary air services by the Department of the Air Force?

Historical spending by the Department of the Air Force (and the broader DoD) on contracted adversary air services has shown a significant upward trend over the past decade. This increase is driven by the growing need for realistic training scenarios to counter evolving threats and the limitations of using front-line fighter assets for training purposes. As budget constraints and operational tempo affect the availability of organic 'red air' capabilities, the Air Force has increasingly relied on private contractors. This has led to a competitive market with several key players vying for multi-year contracts. Spending has shifted from smaller, localized contracts to larger, more comprehensive support packages, reflecting the strategic importance placed on advanced aerial training.

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

Address: 3330 FLIGHT LINE DR, LAKELAND, FL, 33811

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

Financial Breakdown

Contract Ceiling: $54,182,146

Exercised Options: $54,182,146

Current Obligation: $43,486,929

Actual Outlays: $33,893,515

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA486118DC002

IDV Type: IDC

Timeline