DoD's $791M R&D Contract with Applied Proficiency Technologies Awarded to CAE USA Inc
Contract Overview
Contract Amount: $7,912,051 ($7.9M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-21
End Date: 2026-12-21
Contract Duration: 1,552 days
Daily Burn Rate: $5.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: APPLIED PROFICIENCY TECHNOLOGIES
Place of Performance
Location: ARLINGTON, TARRANT County, TEXAS, 76011
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $7.9 million to CAE USA INC. for work described as: APPLIED PROFICIENCY TECHNOLOGIES Key points: 1. Significant R&D investment in physical, engineering, and life sciences. 2. Contract awarded via full and open competition, suggesting market availability. 3. Potential for high-value outcomes given the research and development focus. 4. Cost Plus Fixed Fee structure requires careful monitoring for efficiency.
Value Assessment
Rating: good
The contract value of $791.2 million over approximately 5 years is substantial for R&D. Benchmarking is difficult without specific deliverables, but the scale suggests a significant project.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating that multiple vendors could have bid. This method generally promotes competitive pricing and innovation.
Taxpayer Impact: Taxpayer funds are being invested in advanced research and development, with the expectation of future technological advancements and potential economic benefits.
Public Impact
Advancement of critical research and development capabilities for the Department of Defense. Potential for new technologies that could enhance national security and economic competitiveness. Job creation and economic activity in the Texas region where the contractor is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize higher costs if not managed closely.
- Long contract duration (over 5 years) requires sustained oversight.
- Specific R&D outcomes are not detailed, making performance assessment challenging.
Positive Signals
- Awarded through full and open competition, maximizing potential for best value.
- Significant investment in a critical R&D sector.
- Contract supports advanced technological development.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation and maintaining a technological edge, with significant government investment typically seen.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, CAE USA Inc., is a large business, suggesting limited direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The long duration and Cost Plus Fixed Fee structure necessitate robust oversight from the Department of the Air Force to ensure cost control, adherence to scope, and achievement of R&D objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost overrun potential in CPFF structure.
- Difficulty in defining and measuring R&D success.
- Long-term contract requires sustained oversight.
- Potential for scope creep in research projects.
Tags
research-and-development-in-the-physical, department-of-defense, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.9 million to CAE USA INC.. APPLIED PROFICIENCY TECHNOLOGIES
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 $7.9 million.
What is the period of performance?
Start: 2022-09-21. End: 2026-12-21.
What specific R&D objectives does this contract aim to achieve, and how will success be measured?
The contract aims to advance research and development in physical, engineering, and life sciences. Success will likely be measured through milestones, prototype development, technical reports, and the successful demonstration of new capabilities relevant to Department of Defense needs. Specific metrics would be detailed in the contract's SOW.
What are the primary risks associated with a Cost Plus Fixed Fee R&D contract of this magnitude?
Key risks include potential cost overruns if the fixed fee is insufficient for the scope, contractor incentive to increase costs to maximize profit on the 'cost plus' portion, and challenges in defining and measuring R&D success. Scope creep and evolving research needs also pose risks.
How does this investment align with broader DoD R&D priorities and potentially impact future technological capabilities?
This investment likely aligns with DoD priorities focused on maintaining technological superiority. The R&D outcomes could lead to breakthroughs in areas critical for defense, such as advanced materials, AI, or new sensor technologies, potentially shaping future military capabilities and strategic advantage.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: FA865021S6279
Pricing Type: COST PLUS FIXED FEE (U)
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: $8,093,180
Exercised Options: $8,093,180
Current Obligation: $7,912,051
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $105,310
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865022D6400
IDV Type: IDC
Timeline
Start Date: 2022-09-21
Current End Date: 2026-12-21
Potential End Date: 2026-12-21 00:00:00
Last Modified: 2025-12-17
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