DoD's $38M Iraq Aircrew Training System Contract Awarded to CAE USA Inc
Contract Overview
Contract Amount: $37,957,234 ($38.0M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2012-11-20
End Date: 2023-12-31
Contract Duration: 4,058 days
Daily Burn Rate: $9.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IRAQ (IQAF) AIRCREW TRAINING SYSTEM
Place of Performance
Location: ARLINGTON, TARRANT County, TEXAS, 76011
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $38.0 million to CAE USA INC. for work described as: IRAQ (IQAF) AIRCREW TRAINING SYSTEM Key points: 1. Contract awarded to CAE USA Inc. for $37.96 million. 2. The contract is for an aircrew training system for the Iraq Air Force. 3. The contract was not available for competition. 4. This falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code.
Value Assessment
Rating: fair
The contract value of $37.96 million over 11 years suggests a moderate annual spend. Without comparable contracts for similar training systems, a precise pricing assessment is difficult, but the duration implies a potentially high overall cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited competition approach. This lack of broad competition may have limited price discovery and potentially led to a higher price than if multiple vendors had bid.
Taxpayer Impact: Taxpayer funds are being used for this contract. The lack of competition raises concerns about whether the best possible price was achieved, impacting the overall value for taxpayers.
Public Impact
Supports foreign military sales and training initiatives. Ensures operational readiness for partner nation air forces. Contributes to the defense industrial base through contract awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
Positive Signals
- Supports foreign military training
- Definitive contract award
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on training systems. Spending in this area is crucial for maintaining readiness and supporting international partnerships, but often involves specialized, high-cost equipment and services.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract is managed by the Department of the Air Force. Oversight would focus on ensuring the training system meets specifications and that funds are used appropriately, especially given the limited competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition raises cost concerns.
- Long contract duration may indicate potential for cost overruns.
- Lack of detailed performance metrics.
- No indication of small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.0 million to CAE USA INC.. IRAQ (IQAF) AIRCREW TRAINING SYSTEM
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 $38.0 million.
What is the period of performance?
Start: 2012-11-20. End: 2023-12-31.
What was the rationale for limiting competition on this critical training system?
The rationale for limiting competition is not provided in the data. Typically, sole-source or limited competition contracts are justified by factors such as unique capabilities, urgent needs, or the unavailability of other sources. Further investigation into the contract file would be necessary to understand the specific justification used in this instance.
How does the per-unit cost of this training system compare to similar systems procured by other allied nations?
A direct per-unit cost comparison is not possible with the provided data. The contract value is a total award amount over a long period, not broken down by unit. Benchmarking would require access to detailed cost breakdowns and data on similar training systems procured by other nations, which is not publicly available.
What is the long-term effectiveness and sustainment plan for this aircrew training system?
The provided data does not detail the long-term effectiveness or sustainment plan for the training system. While the contract runs until late 2023, information regarding training outcomes, system upgrades, maintenance, and future support is absent. This information is crucial for assessing the overall value and impact of the investment.
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
Parent Company: L3harris Technologies, Inc.
Address: 2200 ARLINGTON DOWNS RD, ARLINGTON, TX, 76011
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $41,454,826
Exercised Options: $37,957,234
Current Obligation: $37,957,234
Subaward Activity
Number of Subawards: 3342
Total Subaward Amount: $514,232,289
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-11-20
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2023-09-20
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