DoD Awards $2.75M for RAAF Combat Training System Logistics, Sole-Source

Contract Overview

Contract Amount: $2,755,203 ($2.8M)

Contractor: Cubic Defense Applications, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-26

End Date: 2026-03-26

Contract Duration: 546 days

Daily Burn Rate: $5.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: P5 COMBAT TRAINING SYSTEM (P5 CTS) CONTRACTOR LOGISTIC SERVICES (CLS) FOR ROYAL AUSTRALIAN AIR FORCE (RAAF).

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92123

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $2.8 million to CUBIC DEFENSE APPLICATIONS, INC. for work described as: P5 COMBAT TRAINING SYSTEM (P5 CTS) CONTRACTOR LOGISTIC SERVICES (CLS) FOR ROYAL AUSTRALIAN AIR FORCE (RAAF). Key points: 1. Contract value of $2.75M for P5 CTS CLS. 2. Sole-source award to Cubic Defense Applications, Inc. 3. Risk of limited competition and potential overpricing. 4. Sector: Defense - IT/Training Systems.

Value Assessment

Rating: questionable

The contract value is $2.75M. Without competitive bids, it's difficult to assess if this price is optimal compared to similar logistics services for advanced training systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition raises concerns about the best use of taxpayer funds, as a more competitive process could have yielded a lower price.

Public Impact

Ensures operational readiness for the Royal Australian Air Force's P5 Combat Training System. Supports critical training infrastructure for allied forces. Potential for increased costs due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for inflated pricing

Positive Signals

Supports allied defense capabilities
Ensures training system availability

Sector Analysis

This contract falls within the Defense sector, specifically related to training systems and their ongoing maintenance. Benchmarks for similar sole-source logistics contracts are hard to establish without competitive data.

Small Business Impact

This contract does not appear to involve small businesses as prime contractors, as it is a sole-source award to Cubic Defense Applications, Inc.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the pricing remains fair and reasonable throughout the contract period.

Related Government Programs

Other Electronic and Precision Equipment Repair and Maintenance
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price escalation
Limited transparency in pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.8 million to CUBIC DEFENSE APPLICATIONS, INC.. P5 COMBAT TRAINING SYSTEM (P5 CTS) CONTRACTOR LOGISTIC SERVICES (CLS) FOR ROYAL AUSTRALIAN AIR FORCE (RAAF).

Who is the contractor on this award?

The obligated recipient is CUBIC DEFENSE APPLICATIONS, 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 $2.8 million.

What is the period of performance?

Start: 2024-09-26. End: 2026-03-26.

What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?

The justification for a sole-source award typically involves unique capabilities or proprietary technology. The government should have conducted a price analysis, comparing costs to similar services or historical data, to ensure the price is fair and reasonable, even without direct competition.

What are the risks associated with a sole-source contract for essential training system logistics?

The primary risks include inflated pricing due to the absence of competitive pressure, potential for vendor complacency, and limited flexibility if requirements change. Without competition, there's less incentive for the contractor to innovate or reduce costs.

How does this contract contribute to the overall effectiveness of the P5 Combat Training System for the RAAF?

This contract is crucial for maintaining the operational readiness and effectiveness of the P5 CTS. Reliable contractor logistic services ensure the system is available for training, directly impacting the RAAF's ability to conduct realistic combat simulations and maintain pilot proficiency.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cubic Defense Applications Inc.

Address: 9233 BALBOA AVE, SAN DIEGO, CA, 92123

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: $2,755,203

Exercised Options: $2,755,203

Current Obligation: $2,755,203

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $48,083

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA821020D0003

IDV Type: IDC

Timeline