HAF F-16V Aircrew Training Device Upgrade Contract Awarded to CAE USA for $30.8M
Contract Overview
Contract Amount: $30,804,751 ($30.8M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2020-01-03
End Date: 2028-02-11
Contract Duration: 2,961 days
Daily Burn Rate: $10.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HELLENIC AIR FORCE (HAF) F-16V AIRCREW TRAINING DEVICE (ATD) UPGRADE
Place of Performance
Location: ARLINGTON, TARRANT County, TEXAS, 76011
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $30.8 million to CAE USA INC. for work described as: HELLENIC AIR FORCE (HAF) F-16V AIRCREW TRAINING DEVICE (ATD) UPGRADE Key points: 1. The contract is for an upgrade to the Hellenic Air Force's F-16V Aircrew Training Device. 2. CAE USA Inc. is the sole contractor for this acquisition. 3. The contract is a firm fixed price type, indicating price certainty. 4. The upgrade aims to enhance pilot training capabilities for the F-16V aircraft.
Value Assessment
Rating: fair
The contract value of $30.8 million for an advanced aircrew training device upgrade appears within a reasonable range for specialized defense systems. However, without specific benchmarks for F-16V ATD upgrades, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process. The justification for sole-source is not provided.
Taxpayer Impact: Taxpayer funds are used for this sole-source contract, potentially at a higher cost due to the lack of competition.
Public Impact
Enhances pilot proficiency and safety for the Hellenic Air Force's F-16V fleet. Supports a key NATO ally's defense capabilities. Potential for technology transfer and modernization of training infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns without competition.
- Limited transparency on contract justification.
Positive Signals
- Supports critical aircrew training.
- Firm fixed price contract provides cost certainty.
- Long-term contract duration allows for phased implementation.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on simulation and training equipment. Spending in this area is often driven by modernization needs and maintaining operational readiness for advanced aircraft like the F-16V.
Small Business Impact
There is no indication of small business involvement in this sole-source contract award. The prime contractor, CAE USA Inc., is a large aerospace company.
Oversight & Accountability
Oversight is primarily the responsibility of the Department of the Air Force. The sole-source nature of the award warrants close scrutiny to ensure fair pricing and effective delivery of the training device upgrade.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited public information on justification
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 $30.8 million to CAE USA INC.. HELLENIC AIR FORCE (HAF) F-16V AIRCREW TRAINING DEVICE (ATD) UPGRADE
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 $30.8 million.
What is the period of performance?
Start: 2020-01-03. End: 2028-02-11.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The provided data does not include the justification for the sole-source award. Typically, such justifications would involve factors like unique capabilities, urgent needs, or lack of other sources. Without this information, it's impossible to assess the fairness of the pricing or the necessity of bypassing competition. Further investigation into the contract file is required.
How does the cost of this F-16V ATD upgrade compare to similar upgrades for other air forces or aircraft types?
Benchmarking the cost of this $30.8 million F-16V ATD upgrade against similar contracts is challenging without access to detailed pricing data for comparable systems. Factors like the specific capabilities included, the level of modernization, and the contractor's overhead can significantly influence costs. A comparative analysis would require access to a broader dataset of defense training system contracts.
What are the key performance metrics and expected outcomes for this aircrew training device upgrade, and how will their achievement be measured?
The expected outcomes likely revolve around improved pilot training effectiveness, enhanced simulation fidelity, and increased operational readiness for the Hellenic Air Force's F-16V fleet. Specific performance metrics might include simulation accuracy, system uptime, and the ability to replicate complex combat scenarios. The contract's success will be measured against the delivery of these capabilities and their impact on pilot proficiency.
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 COMPETED
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,688,618
Exercised Options: $30,804,751
Current Obligation: $30,804,751
Subaward Activity
Number of Subawards: 31
Total Subaward Amount: $4,305,861
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-01-03
Current End Date: 2028-02-11
Potential End Date: 2028-02-11 00:00:00
Last Modified: 2025-09-29
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