DoD's $11.5M Air Force contract for computer systems design services awarded to CAE USA INC

Contract Overview

Contract Amount: $11,479,796 ($11.5M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2025-07-01

End Date: 2025-12-31

Contract Duration: 183 days

Daily Burn Rate: $62.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO 44 - SCARS ANNUAL ORDER 2025

Place of Performance

Location: ARLINGTON, TARRANT County, TEXAS, 76011

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to CAE USA INC. for work described as: TO 44 - SCARS ANNUAL ORDER 2025 Key points: 1. Contract value represents a significant investment in IT infrastructure support for the Air Force. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictable spending. 4. The contract duration of 183 days indicates a focused, short-term requirement. 5. The geographic location of performance in Texas may have implications for local IT workforce. 6. This contract falls within the broader category of IT services supporting defense operations.

Value Assessment

Rating: good

The contract value of approximately $11.5 million for a 183-day period for computer systems design services appears reasonable given the nature of defense IT support. Benchmarking against similar contracts for specialized IT services within the Department of Defense is crucial for a definitive value assessment. The firm fixed-price structure suggests an expectation of cost control by the Air Force. Without specific details on the scope of services, a precise comparison is challenging, but the award to a single entity implies a defined set of deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was intended and likely occurred, which is positive for price discovery.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation from contractors.

Public Impact

The primary beneficiaries are the Department of the Air Force, which will receive computer systems design services. The services delivered are expected to enhance or maintain critical IT systems supporting Air Force operations. Performance is located in Texas, potentially impacting the local IT labor market and economy. The contract supports the Air Force's mission readiness and technological capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Dependence on a single contractor for critical IT systems design.
Risk of cost overruns if unforeseen technical challenges arise, despite fixed-price structure.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract type provides cost certainty.
Contractor has a track record, implying experience in delivering similar services.
Short duration may indicate a well-defined and manageable project.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with significant spending allocated to maintaining and upgrading complex defense systems. This contract represents a portion of the Air Force's broader IT procurement strategy, aiming to ensure operational effectiveness through robust system design and support. Comparable spending benchmarks would typically involve analyzing other contracts for similar IT design services awarded to various defense agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on securing the required services through the most competitive means available, which in this case, did not involve a small business set-aside.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract databases and reporting requirements, although specific oversight details are not provided in the summary data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force IT Modernization Programs
Department of Defense Cloud Computing Strategy
Cybersecurity Support Services
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Potential for vendor lock-in if services are highly specialized.
Dependence on contractor's cybersecurity practices.
Risk of insufficient competition if specialized skills are scarce.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to CAE USA INC.. TO 44 - SCARS ANNUAL ORDER 2025

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 $11.5 million.

What is the period of performance?

Start: 2025-07-01. End: 2025-12-31.

What is CAE USA INC.'s track record with the Department of Defense, particularly for computer systems design services?

CAE USA INC. has a history of contracts with the Department of Defense, including those related to simulation, training, and aviation systems. While this specific award is for computer systems design services, the company's broader experience within the defense sector suggests a familiarity with government contracting requirements and operational environments. Further analysis would involve reviewing their past performance evaluations and the types of IT services they have previously provided to the DoD to assess their suitability and reliability for this particular contract. Their existing relationship with defense agencies could indicate a level of trust and established processes, but also warrants scrutiny to ensure competitive pricing and innovation.

How does the $11.5 million contract value compare to similar computer systems design services contracts awarded by the Air Force or DoD?

The $11.5 million contract value for 183 days of computer systems design services needs to be benchmarked against similar procurements. The average cost per day is approximately $62,731 ($11,479,796.37 / 183 days). This figure should be compared to daily rates for comparable IT design services within the DoD. Factors such as the complexity of the systems, the required expertise, and the specific deliverables will influence this comparison. If this daily rate is significantly higher or lower than market averages for similar scope and complexity, it could indicate either exceptional value or potential overpricing. Without access to a detailed database of comparable contracts, a precise assessment is difficult, but the provided 'br' (benchmark rate) of 62731 suggests this is a benchmarked value.

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

Key risks include potential scope creep if requirements are not precisely defined, technical challenges leading to delays or cost overruns (despite the fixed-price nature), and contractor performance issues. Mitigation strategies likely involve robust contract management by the Air Force, clear statement of work, regular progress reviews, and performance metrics. The firm fixed-price contract itself is a risk mitigation tool for the government, shifting cost overrun risk to the contractor. However, the quality of the delivered services and the contractor's ability to meet technical specifications remain critical areas for oversight.

How effective is the 'full and open competition' strategy likely to be in ensuring value for money for this specific contract?

Full and open competition is generally considered the most effective strategy for ensuring value for money, as it maximizes the pool of potential bidders and encourages competitive pricing. For this contract, it suggests that multiple companies were able to bid, leading to a more robust price discovery process. The success in achieving value for money will depend on the number of bids received, the quality of the proposals, and the clarity of the requirements. If competition was indeed robust, it increases the likelihood that the awarded price reflects a fair market value for the services.

What is the historical spending pattern for computer systems design services by the Department of the Air Force?

Historical spending on computer systems design services by the Department of the Air Force is substantial, reflecting the continuous need to update, maintain, and develop complex IT infrastructures. Annual spending can fluctuate based on modernization initiatives, new system acquisitions, and cybersecurity requirements. Analyzing past years' spending data would reveal trends, identify major contractors, and highlight areas of significant investment. This specific $11.5 million order for 2025 should be viewed within the context of these broader historical expenditures to understand its relative scale and importance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $11,479,796

Exercised Options: $11,479,796

Current Obligation: $11,479,796

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA862120D0013

IDV Type: IDC

Timeline