DoD Awards $25.6M for Egypt C-130 Trainer to CAE USA Inc
Contract Overview
Contract Amount: $25,654,049 ($25.7M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2010-08-19
End Date: 2015-05-06
Contract Duration: 1,721 days
Daily Burn Rate: $14.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: EGYPT C-130 H WEAPON SYSTEMS TRAINER
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33634
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $25.7 million to CAE USA INC. for work described as: EGYPT C-130 H WEAPON SYSTEMS TRAINER Key points: 1. Contract awarded to a single vendor, CAE USA Inc., for a C-130 weapon systems trainer. 2. The contract value is $25.6 million, with a duration of 1721 days. 3. The procurement method was 'NOT AVAILABLE FOR COMPETITION', raising questions about price discovery. 4. The sector is primarily IT/Defense training systems, with potential for broader application in aviation simulation.
Value Assessment
Rating: fair
The contract value of $25.6 million for a weapon systems trainer appears within a reasonable range for specialized defense training equipment. However, without specific benchmarks for C-130 trainers, a precise comparison is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited competition scenario. This limits the opportunity for competitive bidding and potentially impacts price discovery, as there was no direct comparison of offers.
Taxpayer Impact: Taxpayer funds are used for this procurement. The lack of competition may lead to a higher price than if multiple vendors had bid.
Public Impact
Enhances pilot training for the Egyptian Air Force's C-130 fleet, improving operational readiness. Supports U.S. foreign military sales objectives by providing critical training capabilities. The contract contributes to the defense industrial base, specifically in simulation and training technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing due to sole-source award
Positive Signals
- Provides essential training for a key U.S. ally
- Supports advanced simulation technology
Sector Analysis
This contract falls within the Defense sector, specifically focusing on simulation and training systems for aircraft. Spending in this area is critical for maintaining military readiness and technological superiority, often involving specialized, high-value equipment.
Small Business Impact
The prime contractor, CAE USA Inc., is a large business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The contract type (Firm Fixed Price) suggests a defined scope, but the lack of competition warrants scrutiny to ensure fair pricing.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpricing
- Limited transparency in price justification
- Dependency on a single vendor for critical training
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.7 million to CAE USA INC.. EGYPT C-130 H WEAPON SYSTEMS TRAINER
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 $25.7 million.
What is the period of performance?
Start: 2010-08-19. End: 2015-05-06.
What is the justification for the 'NOT AVAILABLE FOR COMPETITION' status, and were alternative procurement methods considered?
The justification for 'NOT AVAILABLE FOR COMPETITION' is crucial for understanding why competitive bidding was not pursued. This could be due to unique capabilities, proprietary technology, or urgent requirements. A thorough review would assess if these reasons were valid and if any other approaches could have fostered competition or ensured better value.
How does the $25.6 million cost compare to similar C-130 trainer systems procured by other nations or the U.S. military?
Benchmarking this contract's cost against similar C-130 trainer systems is essential for assessing value for money. Without comparative data, it's difficult to determine if the $25.6 million represents a fair price. Further research into publicly available contract awards for comparable training systems would be needed.
What are the long-term implications of this sole-source award on future training system procurements for the C-130 platform?
A sole-source award can set a precedent, potentially limiting future competition if the contractor's technology becomes entrenched. It's important to consider if this award discourages other potential vendors from developing competing solutions or if it aligns with a long-term strategy for specialized training support.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4908 TAMPA WEST BOULEVARD NORTH BLDG, TAMPA, FL, 33634
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: $28,355,026
Exercised Options: $25,654,049
Current Obligation: $25,654,049
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-08-19
Current End Date: 2015-05-06
Potential End Date: 2015-05-06 00:00:00
Last Modified: 2017-01-24
More Contracts from CAE USA Inc.
- F-16 Training Simulators — $741.0M (Department of Defense)
- F-16 MTC Follow-On — $624.9M (Department of Defense)
- Other Aircraft Part and Auxiliary Equipment Manufacturing — $545.3M (Department of Defense)
- Federal Contract — $486.1M (Department of Defense)
- C-130H Aircrew Training System — $330.6M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)