DoD Awards $68.6M for F-16 Training Simulators to CAE USA Inc

Contract Overview

Contract Amount: $68,577,397 ($68.6M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2023-01-26

End Date: 2028-01-31

Contract Duration: 1,831 days

Daily Burn Rate: $37.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F16 TAIWAN BLOCK 70 SIMULATORS

Place of Performance

Location: ARLINGTON, TARRANT County, TEXAS, 76011

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $68.6 million to CAE USA INC. for work described as: F16 TAIWAN BLOCK 70 SIMULATORS Key points: 1. Contract awarded for F-16 Block 70 simulators, crucial for pilot training. 2. Sole-source award to CAE USA Inc. raises questions about competition. 3. High value contract with a long performance period (5 years). 4. Aircraft Manufacturing sector, with potential for specialized technology.

Value Assessment

Rating: fair

The contract value of $68.6M for 1831 days of performance is difficult to benchmark without specific per-unit cost data. The firm fixed-price nature suggests cost certainty, but the lack of competitive bidding limits price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source award. This limits the government's ability to leverage market forces to achieve the best possible price and potentially overlooks other capable vendors.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these simulators compared to what might be achieved through a competitive process.

Public Impact

Enhances pilot readiness and training capabilities for the F-16 fleet. Supports advanced simulation technology for complex combat scenarios. Potential impact on future defense training system procurements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Long contract duration.
Lack of detailed cost breakdown.

Positive Signals

Provides critical training capability.
Firm fixed-price contract offers cost predictability.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically supporting advanced training systems. Benchmarks for simulator contracts can vary widely based on complexity and customization, but this appears to be a significant investment.

Small Business Impact

The data does not indicate any specific provisions or subcontracting goals for small businesses on this contract. Further investigation may be needed to determine small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government adequately justified the lack of competition and obtained fair value. Post-award oversight should focus on contract performance and delivery.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition.
Potential for overpricing due to sole-source award.
Long contract duration may not reflect evolving technology.
Limited transparency on cost justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $68.6 million to CAE USA INC.. F16 TAIWAN BLOCK 70 SIMULATORS

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 $68.6 million.

What is the period of performance?

Start: 2023-01-26. End: 2028-01-31.

What was the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of market research identifying other sources. Without specific documentation, it's presumed the Air Force determined CAE USA Inc. was the only viable source or that competition was not feasible. A thorough review of the justification is crucial to ensure taxpayer funds are used efficiently and that competition was not unnecessarily excluded.

How does the per-unit cost of these simulators compare to similar systems acquired competitively?

Direct comparison is challenging without specific per-unit cost data and details on the simulator's capabilities. However, sole-source contracts inherently lack the price discovery mechanism of competition. If comparable systems were procured competitively at a lower cost, this award might represent a higher price for taxpayers. Benchmarking against industry standards for similar fidelity simulators is recommended.

What is the long-term strategic value of investing in these specific F-16 simulators, and are they adaptable to future upgrades?

These simulators are vital for maintaining the operational readiness and combat effectiveness of the F-16 fleet, a cornerstone of many air forces. Their strategic value lies in providing realistic, cost-effective training environments that reduce flight hours and associated risks. Adaptability to future upgrades is a key consideration for long-term value; the contract should ideally allow for technology refreshes or integration of new capabilities.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft 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

Address: 2116 ARLINGTON DOWNS RD, ARLINGTON, TX, 76011

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $107,685,324

Exercised Options: $107,514,907

Current Obligation: $68,577,397

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $6,872,077

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline