DoD's C-130H Aircrew Training System contract awarded to CAE USA INC. for over $330M

Contract Overview

Contract Amount: $330,641,599 ($330.6M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2018-08-28

End Date: 2026-08-24

Contract Duration: 2,918 days

Daily Burn Rate: $113.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C-130H AIRCREW TRAINING SYSTEM

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33634

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $330.6 million to CAE USA INC. for work described as: C-130H AIRCREW TRAINING SYSTEM Key points: 1. Contract value exceeds $330 million, indicating a significant investment in aircrew readiness. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Performance period extends through August 2026, ensuring sustained training capabilities. 4. The primary contractor, CAE USA INC., is a major player in simulation and training solutions. 5. The contract is for an aircrew training system, crucial for maintaining pilot proficiency and safety. 6. The geographic location of performance is Florida, a key hub for military aviation training.

Value Assessment

Rating: good

The contract's value of over $330 million for an aircrew training system appears reasonable given the extensive duration and scope of training required for C-130H aircrews. Benchmarking against similar large-scale training systems for military aircraft suggests that this level of investment is typical for ensuring high-fidelity simulation and comprehensive curriculum development. The firm-fixed-price contract type helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of 4 bidders (as suggested by 'no': 4) suggests a healthy level of competition, which typically drives more competitive pricing and encourages innovation from the participating companies. This approach allows the government to select the best value solution from a broad range of qualified contractors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where prices are driven down through rivalry, ensuring the government receives the most cost-effective training solutions.

Public Impact

Benefits U.S. Air Force C-130H aircrews by providing advanced training to enhance operational readiness and safety. Delivers critical simulation and training services essential for maintaining proficiency in complex air transport missions. Geographic impact is primarily in Florida, supporting a significant military aviation training infrastructure. Workforce implications include employment for instructors, simulation technicians, and support staff within the contractor's organization and potentially at training facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the training system becomes highly specialized and difficult to transition.
Reliance on a single contractor for critical aircrew training could pose risks if performance falters.
Ensuring continuous technological updates to simulation hardware and software to match evolving aircraft capabilities.

Positive Signals

Awarded through full and open competition, indicating a competitive process that likely secured favorable terms.
Firm-fixed-price contract type provides cost predictability for the government over the contract period.
Long-term contract duration suggests a stable and reliable training solution for the Air Force.
Contractor's established expertise in simulation and training likely ensures high-quality service delivery.

Sector Analysis

The defense simulation and training market is a substantial segment within the aerospace and defense industry. This contract for the C-130H Aircrew Training System fits within the broader category of military readiness and personnel development. Spending in this sector is driven by the need for continuous pilot training, mission rehearsal, and the maintenance of complex aircraft systems. Comparable spending benchmarks often involve multi-year contracts for advanced simulators and training programs, reflecting the high cost of developing and maintaining such sophisticated capabilities.

Small Business Impact

This contract does not appear to have a specific small business set-aside. However, the prime contractor, CAE USA INC., may engage small businesses for subcontracting opportunities related to specialized components, support services, or logistics. The extent of small business participation will depend on the prime contractor's subcontracting plan and the specific requirements of the training system.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Air Force contracting and program management offices. Accountability measures would include performance metrics, delivery schedules, and quality standards outlined in the contract. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

C-130 Hercules Sustainment Programs
Air Mobility Command Training Initiatives
Military Flight Simulation Contracts
Aerospace Training Systems
Department of Defense Readiness Programs

Risk Flags

Contract Duration
Contract Value
Contract Type
Competition Level

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $330.6 million to CAE USA INC.. C-130H 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 $330.6 million.

What is the period of performance?

Start: 2018-08-28. End: 2026-08-24.

What is CAE USA INC.'s track record with similar large-scale military training contracts?

CAE USA INC. has a well-established and extensive track record in providing simulation and training solutions to various military branches globally, including the U.S. Air Force, Army, and Navy. They are known for developing and delivering high-fidelity flight simulators, virtual reality training environments, and comprehensive training programs for a wide range of aircraft platforms. Their experience often includes long-term sustainment and modernization of training systems. For instance, CAE has been a key provider of training for platforms like the F-15, F-16, and various helicopter types. This extensive history suggests a strong capability to manage and execute complex, high-value contracts like the C-130H Aircrew Training System, ensuring reliable performance and adherence to stringent military standards.

How does the value of this contract compare to other C-130 training systems or similar aircraft training programs?

The $330 million value for the C-130H Aircrew Training System is substantial, reflecting the complexity and duration of training required for a widely used transport aircraft. When compared to other large-scale military aviation training contracts, this figure is within a typical range for programs involving advanced simulators, courseware development, and ongoing sustainment over several years. For example, contracts for training systems for other major platforms like the C-17 or specialized fighter jets can also run into hundreds of millions of dollars. The firm-fixed-price nature of this contract suggests that the government has negotiated a defined cost for the services and equipment, which aids in budget predictability. The value is also influenced by the number of training devices, the sophistication of the simulation technology, and the length of the contract performance period (ending in 2026).

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential technological obsolescence of simulation equipment, contractor performance issues, and cost overruns if not managed tightly. Technological obsolescence is a risk because aviation technology evolves rapidly; however, the contract likely includes provisions for updates or modernization. Contractor performance is mitigated through the Air Force's oversight, performance metrics, and the firm-fixed-price structure which incentivizes the contractor to meet requirements efficiently. Cost overruns are less likely with a firm-fixed-price contract, but scope creep or unforeseen technical challenges could still pose risks. The government's mitigation strategy involves robust contract management, regular performance reviews, and potentially exercising options judiciously. The competitive award process also helps mitigate risks by selecting a capable contractor.

How effective is this training system likely to be in preparing C-130H aircrews for operational missions?

The effectiveness of the C-130H Aircrew Training System is expected to be high, given CAE USA INC.'s expertise and the typical capabilities of modern military flight simulators. These systems are designed to replicate real-world flight conditions, aircraft systems, and emergency scenarios with a high degree of fidelity. This allows aircrews to practice complex maneuvers, decision-making under stress, and crew coordination in a safe, controlled environment. The system likely includes various training modules covering initial qualification, recurrent training, and mission-specific scenarios. The long contract duration suggests a commitment to maintaining the system's relevance and effectiveness throughout the C-130H's operational life, ensuring aircrews are well-prepared for diverse operational demands.

What are the historical spending patterns for C-130 training systems by the Department of Defense?

Historical spending on C-130 training systems by the Department of Defense has been consistent and significant, reflecting the enduring importance of the C-130 platform across various military operations. Over the years, the DoD has invested heavily in simulators, training devices, and associated support services to ensure C-130 aircrews maintain proficiency. This spending has evolved from basic flight trainers to highly sophisticated full-mission simulators incorporating advanced visual systems and realistic environmental modeling. Contracts for C-130 training have often been long-term, involving multiple delivery orders or contract modifications to adapt to changing requirements and technologies. The total historical expenditure on C-130 training likely runs into billions of dollars across all variants and services, underscoring its continuous role in global logistics and support missions.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4908 TAMPA W BLVD, 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: $332,314,965

Exercised Options: $331,633,613

Current Obligation: $330,641,599

Actual Outlays: $6,166,744

Subaward Activity

Number of Subawards: 116

Total Subaward Amount: $58,909,072

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA862115D6267

IDV Type: IDC

Timeline