DoD Awards $625M F-16 MTC Follow-On Contract to CAE USA Inc
Contract Overview
Contract Amount: $624,897,510 ($624.9M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2008-12-29
End Date: 2024-06-17
Contract Duration: 5,649 days
Daily Burn Rate: $110.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F-16 MTC FOLLOW-ON
Place of Performance
Location: ARLINGTON, TARRANT County, TEXAS, 76011
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $624.9 million to CAE USA INC. for work described as: F-16 MTC FOLLOW-ON Key points: 1. Contract value of $624.9M for F-16 Maintenance Training Center (MTC) follow-on. 2. Awarded to CAE USA INC. under full and open competition. 3. Potential for significant taxpayer impact due to long duration and fixed-price nature. 4. Sector context: Defense, specifically aircraft parts and training equipment.
Value Assessment
Rating: good
The contract value of $624.9M over a long period suggests a substantial investment. Benchmarking against similar long-term training system contracts is necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to promote price discovery and potentially secure favorable pricing for the government.
Taxpayer Impact: The long-term nature and fixed-price structure of this contract mean that taxpayers will bear the cost over an extended period, with potential for cost savings through competition.
Public Impact
Ensures continued readiness and training for F-16 pilots and maintenance personnel. Supports advanced simulation and training capabilities for a critical defense asset. Potential economic impact through contract performance and associated jobs.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Long-term contract ensures sustained capability.
Sector Analysis
This contract falls within the Defense sector, specifically related to aircraft parts and training equipment. Spending in this area is critical for maintaining military readiness and technological superiority.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The contract is managed by the Department of the Air Force, a component of the Department of Defense. Oversight mechanisms should ensure performance, cost control, and adherence to contract terms.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration (over 15 years) increases risk of obsolescence or changing requirements.
- Firm Fixed Price contracts can lead to contractor claims if unforeseen issues arise.
- Lack of small business participation noted.
- Specific performance metrics and cost breakdown not readily available for detailed analysis.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $624.9 million to CAE USA INC.. F-16 MTC FOLLOW-ON
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 $624.9 million.
What is the period of performance?
Start: 2008-12-29. End: 2024-06-17.
What is the projected cost per training hour or per trainee under this contract, and how does it compare to industry benchmarks?
The provided data does not include specific metrics like cost per training hour or per trainee. A detailed cost analysis comparing this contract's unit costs to similar F-16 training programs or other advanced simulation contracts would be necessary to assess value for money and identify potential savings.
What are the key performance indicators (KPIs) for this contract, and what are the mechanisms for addressing underperformance or cost overruns?
The contract type is Firm Fixed Price, which generally places the cost risk on the contractor. However, specific KPIs and remedies for underperformance are not detailed here. The Department of the Air Force should have defined performance standards and contract clauses to address any deviations from expected outcomes.
How does the technology and training provided by this contract align with future F-16 modernization efforts and evolving air combat requirements?
The follow-on nature of this contract suggests it aims to sustain and potentially upgrade existing training capabilities. Alignment with future modernization depends on the specific scope of work and the contractor's ability to adapt to evolving technological requirements and air combat doctrines for the F-16 fleet.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CAE Inc
Address: 2200 ARLINGTON DOWNS RD, ARLINGTON, TX, 76011
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $631,513,486
Exercised Options: $631,513,486
Current Obligation: $624,897,510
Actual Outlays: $3,022,098
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-12-29
Current End Date: 2024-06-17
Potential End Date: 2024-06-17 00:00:00
Last Modified: 2024-07-02
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