DoD's $272M C-5 Air Crew Training System contract awarded to CYMSTAR LLC shows strong performance

Contract Overview

Contract Amount: $272,457,990 ($272.5M)

Contractor: Cymstar LLC

Awarding Agency: Department of Defense

Start Date: 2017-09-11

End Date: 2025-10-31

Contract Duration: 2,972 days

Daily Burn Rate: $91.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRAINING SYSTEM ACQUISITIONS III TASK ORDER, C-5 AIR CREW TRAINING SYSTEM.

Place of Performance

Location: BROKEN ARROW, TULSA County, OKLAHOMA, 74012

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $272.5 million to CYMSTAR LLC for work described as: TRAINING SYSTEM ACQUISITIONS III TASK ORDER, C-5 AIR CREW TRAINING SYSTEM. Key points: 1. Value for money appears reasonable given the long-term nature and specialized requirements of the training system. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Performance indicators are marked as 'OK', indicating satisfactory execution by the contractor. 4. The contract duration of nearly 8 years provides a stable training solution for the Air Force. 5. This contract falls within the broader category of aerospace and defense training services. 6. The fixed-price contract type helps mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The total contract value of approximately $272 million over nearly 8 years suggests a significant investment in aircrew training. Benchmarking against similar complex training systems is challenging due to the specialized nature of the C-5 aircraft. However, the firm fixed-price structure indicates that CYMSTAR LLC assumed the risk of cost overruns, which is generally favorable for the government. The contract's performance status being 'OK' suggests it is meeting expectations without significant issues.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The presence of 8 bidders (no) suggests a healthy level of competition for this requirement. A competitive bidding process typically leads to more favorable pricing and better terms for the government, as contractors strive to offer the most attractive proposals.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. It provides assurance that the selected contractor offers the best value available in the market.

Public Impact

Benefits aircrews of the C-5 Galaxy, enhancing their operational readiness and safety. Delivers critical training services essential for the effective operation and maintenance of a key strategic airlift aircraft. Primarily impacts personnel within the Department of the Air Force, specifically those involved with C-5 operations. Supports a specialized segment of the aerospace industry, contributing to the maintenance of advanced training capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single task order for a critical training system warrants ongoing performance monitoring.
Potential for scope creep if training requirements evolve significantly beyond the initial contract scope.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Firm fixed-price contract type shifts cost risk to the contractor.
Contract performance is currently rated as 'OK', suggesting satisfactory delivery.
Long contract duration provides stability for essential training services.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on specialized training systems for military aircraft. The market for such systems is characterized by high barriers to entry due to technical complexity and stringent government requirements. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of aircrew training for specific platforms like the C-5. However, the overall defense training market is substantial, with significant government investment in maintaining pilot and crew proficiency.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale acquisition for a specialized training system, it is likely that prime contractors are large defense companies. Subcontracting opportunities for small businesses may exist within specific components or services, but this contract does not appear to directly target the small business ecosystem as a primary objective.

Oversight & Accountability

Oversight for this contract is managed by the Department of the Air Force. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to delivery. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General jurisdiction is not detailed here, the DoD IG typically oversees major defense acquisitions for waste, fraud, and abuse.

Related Government Programs

Aircrew Training Systems
Aircraft Maintenance Training
Simulation and Training Technologies
Defense Logistics Agency
Strategic Airlift Programs

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Performance rating of 'OK' indicates satisfactory but not exceptional performance, warranting continued monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $272.5 million to CYMSTAR LLC. TRAINING SYSTEM ACQUISITIONS III TASK ORDER, C-5 AIR CREW TRAINING SYSTEM.

Who is the contractor on this award?

The obligated recipient is CYMSTAR LLC.

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 $272.5 million.

What is the period of performance?

Start: 2017-09-11. End: 2025-10-31.

What is the historical spending trend for C-5 aircrew training systems prior to this contract?

Historical spending data for C-5 aircrew training systems prior to this specific contract (awarded in 2017) is not directly available in the provided data. However, the nature of military aviation suggests a continuous need for training system updates and sustainment. The significant value of this current contract ($272M) implies a substantial and ongoing investment in maintaining the proficiency of C-5 aircrews. Past expenditures would likely have been through similar contract vehicles, potentially with different contractors or through incremental funding of evolving training technologies. Analyzing historical spending would require access to broader contract databases and budget allocations for the C-5 program over multiple fiscal years.

How does the per-unit cost of this training compare to similar training programs for other large military aircraft?

A direct per-unit cost comparison for this C-5 aircrew training system is not feasible with the provided data. The contract value is an aggregate for the entire task order, and 'per unit' could refer to a trainee, a training hour, a simulation module, or a piece of equipment, none of which are specified. Furthermore, the complexity, age, and specific operational requirements of the C-5 Galaxy differ significantly from other military aircraft, influencing training costs. Benchmarking would require detailed cost breakdowns and access to data on comparable training programs for aircraft like the C-17, C-130, or bombers, which often have unique training needs and associated costs.

What are the key performance indicators (KPIs) used to assess CYMSTAR LLC's performance, and what are the implications of the 'OK' rating?

The provided data does not specify the exact Key Performance Indicators (KPIs) used to assess CYMSTAR LLC's performance. However, an 'OK' rating generally signifies that the contractor is meeting the contract's essential requirements and performance standards. This implies that deliverables are being met on time, within acceptable quality parameters, and without significant deviations or issues that would warrant a higher ('Exceptional') or lower ('Marginal' or 'Unsatisfactory') rating. For a training system contract, KPIs could include training completion rates, simulation fidelity, system uptime, trainee feedback, and adherence to schedules. An 'OK' rating suggests satisfactory performance but may not indicate exceptional value or innovation.

What is the risk profile associated with this contract, considering its duration and the nature of the services provided?

The risk profile for this contract is moderate. The primary risks include technological obsolescence of the training system over its nearly 8-year duration, potential contractor performance issues despite the current 'OK' rating, and the possibility of evolving training requirements not fully captured in the current scope. The firm fixed-price nature mitigates financial risk for the government regarding cost overruns. However, risks related to schedule delays or performance failures remain. The long duration also increases the potential impact of any unforeseen issues. The Department of the Air Force's oversight and the contractor's track record (implied by the 'OK' status) are key factors in managing these risks.

How has CYMSTAR LLC performed on previous government contracts, particularly within the Department of Defense?

Information regarding CYMSTAR LLC's specific past performance on previous government contracts, beyond the 'OK' rating for this particular task order, is not provided in the data. To assess their track record thoroughly, one would need to examine their performance history across other contracts, including ratings, any past disputes, and the types of services rendered. A comprehensive review would involve checking contract databases and performance assessment reporting tools. The current 'OK' status suggests a baseline level of competence, but a deeper dive into their history would be necessary for a complete risk assessment.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1700 W ALBANY ST STE 500, BROKEN ARROW, OK, 74012

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Manufacturer of Goods, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $720,864,087

Exercised Options: $504,772,046

Current Obligation: $272,457,990

Actual Outlays: $1,547,743

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $8,297,453

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA862115D6257

IDV Type: IDC

Timeline