DoD awards $157M contract for Predator Mission Aircrew Training System, with training to conclude in 2030

Contract Overview

Contract Amount: $156,913,549 ($156.9M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2013-06-18

End Date: 2030-09-30

Contract Duration: 6,313 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF PREDATOR MISSION AIRCREW TRAINING SYSTEM (PMATS) - INITIAL TRANSITION AND INTEGRATION COSTS

Place of Performance

Location: ARLINGTON, TARRANT County, TEXAS, 76011

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $156.9 million to CAE USA INC. for work described as: IGF::OT::IGF PREDATOR MISSION AIRCREW TRAINING SYSTEM (PMATS) - INITIAL TRANSITION AND INTEGRATION COSTS Key points: 1. The contract's value of $157 million represents a significant investment in aircrew readiness. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness in specialized training. 3. Performance risks may include ensuring the training system remains current with evolving aircraft technology. 4. This contract supports the ongoing operational needs of the Predator drone program. 5. The training system falls within the broader Defense sector, specifically focusing on aviation and simulation. 6. The firm-fixed-price structure aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $157 million for the Predator Mission Aircrew Training System (PMATS) appears reasonable given the specialized nature of the training and the long duration of the contract (through 2030). Benchmarking against similar complex simulation and training systems is challenging due to unique program requirements. However, the firm-fixed-price contract type suggests an effort to establish predictable costs. Further analysis would require comparing the per-unit training cost or simulator hours to industry standards for comparable advanced aviation training systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 5 bidders suggests a reasonably competitive environment for this specialized training system. A competitive process generally leads to better price discovery and potentially more innovative solutions, benefiting the government.

Taxpayer Impact: Taxpayers benefit from a competitive award process that aims to secure the best value for the significant investment in aircrew training, ensuring funds are used efficiently.

Public Impact

Aircrews operating Predator drones will receive essential training, enhancing their mission readiness and effectiveness. The training services delivered are critical for maintaining the operational capabilities of unmanned aerial systems. The contract is primarily focused on training activities, with the primary location of performance being Texas. This contract supports specialized jobs in simulation, training development, and aviation instruction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements evolve significantly beyond initial projections.
Ensuring the long-term sustainment and modernization of the training system to keep pace with aircraft upgrades.
Dependency on a single contractor for a critical training capability could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition with multiple bidders suggests a robust selection process.
Long contract duration allows for sustained training and potential for contractor investment in system improvements.

Sector Analysis

The Defense sector, particularly within aviation and simulation, is characterized by high technological complexity and significant government investment. Contracts for training systems like the PMATS are essential for maintaining pilot proficiency and operational readiness for advanced platforms. The market for such specialized training is often dominated by a few key players with the requisite expertise and security clearances. Comparable spending benchmarks would likely involve other large-scale simulation and training contracts for military aircraft.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the specialized nature and scale of the Predator Mission Aircrew Training System, it is likely that the prime contractor, CAE USA INC., will manage subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm-fixed-price nature of the contract provides a degree of accountability for cost control. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Unmanned Aerial Vehicle (UAV) Training Systems
Aircrew Simulation and Training
Defense Aviation Training Programs
Predator/Reaper Drone Operations Support

Risk Flags

Long contract duration increases risk of technological obsolescence.
Potential for evolving training requirements necessitates flexible contract management.
Dependency on a single contractor for critical training capability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $156.9 million to CAE USA INC.. IGF::OT::IGF PREDATOR MISSION AIRCREW TRAINING SYSTEM (PMATS) - INITIAL TRANSITION AND INTEGRATION COSTS

Who is the contractor on this award?

The obligated recipient is CAE USA INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $156.9 million.

What is the period of performance?

Start: 2013-06-18. End: 2030-09-30.

What is the historical spending trend for the Predator Mission Aircrew Training System?

Historical spending data for the specific Predator Mission Aircrew Training System (PMATS) contract is not detailed in the provided summary. However, the current award of $156,913,549.48, with an estimated completion date in 2030, indicates a significant and ongoing investment. To understand historical trends, one would need to examine previous contract awards, modifications, and task orders related to PMATS or its predecessors. This would involve searching federal procurement databases for prior periods of performance and associated expenditures. Without this historical data, it's difficult to ascertain if current spending represents an increase, decrease, or stable level of investment compared to past years for this specific training system.

How does the per-unit cost of training under this contract compare to industry benchmarks?

Determining the precise per-unit cost of training under this contract is challenging without more granular data on the number of aircrew trained, hours of simulation, or specific training modules delivered. The contract value of $157 million covers a broad scope of training services over several years. To perform a benchmark comparison, one would need to isolate specific training metrics (e.g., cost per flight hour equivalent, cost per trainee) and compare them to publicly available data for similar advanced aviation simulation and training programs, both within the Department of Defense and in the commercial sector. Given the specialized nature of Predator aircrew training, direct comparisons may be difficult, but general benchmarks for high-fidelity simulators and complex mission training could provide a reference point.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

The provided data does not specify the Key Performance Indicators (KPIs) for the Predator Mission Aircrew Training System (PMATS) contract. However, typical KPIs for such training contracts often include metrics related to training completion rates, trainee proficiency assessments, simulator availability and uptime, adherence to training schedules, and feedback from trainees and instructors. The Department of Defense and the Defense Contract Management Agency (DCMA) would establish these KPIs in the contract's Performance Work Statement (PWS). Regular performance reviews would assess CAE USA INC.'s adherence to these metrics, with potential implications for contract payments or future awards.

What is the track record of CAE USA INC. in delivering similar training systems to the DoD?

CAE USA INC. has a substantial track record in providing simulation and training solutions to the Department of Defense and other military organizations globally. They are a well-established leader in developing and manufacturing flight simulators, mission trainers, and integrated training systems for a wide range of aircraft platforms, including both manned and unmanned systems. Their experience often encompasses full-mission simulators, part-task trainers, and computer-based training. The company's history suggests a capability to deliver complex training systems, though specific performance on individual contracts can vary and would require detailed review of past contract performance reports.

What are the potential risks associated with the long duration of this contract (ending in 2030)?

The long duration of this contract, extending to September 2030, presents several potential risks. Firstly, technological obsolescence is a significant concern; aircraft systems and training methodologies evolve rapidly, and the training system may require substantial upgrades or modifications to remain relevant and effective throughout its lifecycle. Secondly, changes in military strategy, budget priorities, or operational requirements could lead to adjustments in the scope or demand for training, potentially impacting the contract's value or necessity. Thirdly, contractor performance over an extended period can be variable; maintaining consistent high performance and responsiveness from CAE USA INC. over more than a decade requires robust oversight and proactive contract management. Finally, economic fluctuations or unforeseen global events could impact the contractor's stability or ability to fulfill long-term commitments.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

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: $321,172,631

Exercised Options: $252,282,206

Current Obligation: $156,913,549

Actual Outlays: $373,879

Subaward Activity

Number of Subawards: 98

Total Subaward Amount: $36,548,576

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline