DoD Awards $98.8M F-16 Training Center Contract to CAE USA, Raising Competition Concerns
Contract Overview
Contract Amount: $98,806,809 ($98.8M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2016-03-02
End Date: 2024-12-31
Contract Duration: 3,226 days
Daily Burn Rate: $30.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TAIWAN AIR FORCE (TAF) F-16 A/B BLOCK 20 MISSION TRAINING CENTER (MTC)
Place of Performance
Location: ARLINGTON, TARRANT County, TEXAS, 76011
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $98.8 million to CAE USA INC. for work described as: TAIWAN AIR FORCE (TAF) F-16 A/B BLOCK 20 MISSION TRAINING CENTER (MTC) Key points: 1. Contract awarded to CAE USA for Taiwan Air Force F-16 training. 2. Significant contract value of $98.8 million over 8 years. 3. Lack of competition raises questions about price discovery and value. 4. Spending falls under the 'Other Commercial and Service Industry Machinery Manufacturing' NAICS code.
Value Assessment
Rating: questionable
The contract value of $98.8 million for an F-16 Mission Training Center is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar training solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this significant contract may result in taxpayers paying more than necessary for the F-16 training services.
Public Impact
Ensures continued readiness and operational capability for Taiwan's F-16 fleet. Supports advanced pilot training through a dedicated Mission Training Center. Potential for cost overruns due to limited competition. Impacts the defense industrial base by awarding a large contract to a single provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Supports critical allied air power
- Utilizes specialized training technology
Sector Analysis
This contract falls under the broader defense sector, specifically focusing on specialized training equipment and services. Benchmarks for similar mission training centers are difficult to establish without competitive data.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to assess small business participation.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants scrutiny to ensure the justification for limited competition was robust and that appropriate oversight was applied to the contract negotiation.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in pricing
- Long-term contract duration without re-competition
Tags
other-commercial-and-service-industry-ma, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $98.8 million to CAE USA INC.. TAIWAN AIR FORCE (TAF) F-16 A/B BLOCK 20 MISSION TRAINING CENTER (MTC)
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 $98.8 million.
What is the period of performance?
Start: 2016-03-02. End: 2024-12-31.
What was the specific justification for awarding this contract on a limited competition basis, and what steps were taken to ensure fair pricing?
The justification for limited competition is not provided in the data. Typically, such justifications are based on factors like unique capabilities, urgent needs, or the unavailability of other sources. Without this information, it's impossible to assess the fairness of the pricing or the rigor of the oversight applied during the negotiation process.
How does the cost of this F-16 MTC compare to publicly available benchmarks for similar training systems, considering the lack of competitive bidding?
Direct comparison is challenging due to the 'NOT AVAILABLE FOR COMPETITION' status. Publicly available benchmarks for highly specialized systems like this are scarce. However, the absence of competition inherently raises concerns that the price may not be as competitive as it would be in a fully open bidding process, potentially leading to higher costs.
What are the long-term implications for allied air force training capabilities and cost-effectiveness given this sole-source award?
A sole-source award can ensure the immediate availability of critical training capabilities, which is vital for allied readiness. However, it may also disincentivize future cost-saving innovations from competitors and could lead to sustained higher costs over the contract's life if not managed with stringent oversight and performance metrics.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery 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: CAE 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: $106,403,966
Exercised Options: $98,806,809
Current Obligation: $98,806,809
Subaward Activity
Number of Subawards: 1144
Total Subaward Amount: $385,385,415
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-03-02
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-07-07
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)