DoD's $38.2M contract for specialized training shows fair value, but limited competition raises concerns
Contract Overview
Contract Amount: $38,230,201 ($38.2M)
Contractor: Airborne Systems North America of NJ Inc.
Awarding Agency: Department of Defense
Start Date: 2022-07-22
End Date: 2026-09-30
Contract Duration: 1,531 days
Daily Burn Rate: $25.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: COURSE # 001 (24 STUDENTS)
Place of Performance
Location: ELOY, PINAL County, ARIZONA, 85131
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $38.2 million to AIRBORNE SYSTEMS NORTH AMERICA OF NJ INC. for work described as: COURSE # 001 (24 STUDENTS) Key points: 1. Value for money appears reasonable given the specialized nature of the training. 2. Competition was limited, with only three bidders, potentially impacting price discovery. 3. Risk indicators are moderate, with a long contract duration and fixed-price structure. 4. Performance context is for specialized technical training for a specific number of students. 5. Sector positioning is within defense education and training services.
Value Assessment
Rating: good
The contract's value of $38.2 million for 24 students over approximately four years suggests a per-student cost of roughly $1.6 million. This is a significant investment, but specialized technical training, especially for defense applications, often carries high per-unit costs due to the complexity of the subject matter, instructor expertise required, and specialized facilities or equipment. Benchmarking against similar highly specialized defense training programs would be necessary for a definitive assessment, but the price does not appear immediately excessive given the likely niche nature of the training.
Cost Per Unit: Approximately $1.6 million per student.
Competition Analysis
Competition Level: limited
The contract was awarded under full and open competition, but only three bids were received. This suggests that while the opportunity was broadly advertised, the pool of qualified contractors capable of providing this specific, highly specialized training may be limited. A low number of bidders can sometimes lead to less aggressive pricing as contractors face less pressure to undercut competitors. However, the fixed-price nature of the contract provides some cost certainty for the government.
Taxpayer Impact: With only three bidders, taxpayers may not have benefited from the most competitive pricing possible. The government secured a contract, but the potential for further cost savings through broader competition was likely constrained.
Public Impact
The primary beneficiaries are the 24 students receiving specialized technical training, likely military personnel. The services delivered are advanced instruction and skill development in a specific technical area. The geographic impact is concentrated in Arizona, where the training is presumably conducted. Workforce implications include enhancing the technical capabilities of a specialized group within the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition could lead to higher costs for taxpayers.
- Long contract duration (over 4 years) increases exposure to potential cost overruns or scope creep if not managed tightly.
- Fixed-price contract may incentivize contractor to cut corners on quality if not monitored rigorously.
Positive Signals
- Awarded under full and open competition, indicating an attempt to solicit broad interest.
- Fixed-price contract type provides cost certainty for the government.
- Clear definition of services (training for 24 students) aids in performance monitoring.
Sector Analysis
The defense education and training sector is a significant market within the broader professional services industry. This contract falls under specialized technical instruction, often characterized by high barriers to entry due to the need for expert instructors, proprietary knowledge, and specialized equipment. Comparable spending benchmarks are difficult to establish without knowing the exact nature of the training, but large defense contracts for technical training can range from millions to billions of dollars depending on scale and complexity.
Small Business Impact
The contract data does not indicate any small business set-aside provisions, nor is the primary contractor listed as a small business. Given the specialized nature and high dollar value, it is unlikely that small businesses would be primary awardees unless they were part of a joint venture or subcontracting effort. Further analysis would be needed to determine subcontracting opportunities for small businesses.
Oversight & Accountability
Oversight will primarily be managed by the Department of the Navy, a component of the Department of Defense. Accountability measures will be tied to the contract's performance work statement and delivery milestones. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Department of Defense Training and Education Programs
- Specialized Technical Skill Development Contracts
- Federal Education Services Contracts
- Defense Contractor Training Services
Risk Flags
- Limited Competition
- High Per-Student Cost
- Long Contract Duration
Tags
defense, department-of-defense, department-of-the-navy, training, education, specialized-services, firm-fixed-price, definitive-contract, full-and-open-competition, limited-bidders, arizona, naics-611699
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.2 million to AIRBORNE SYSTEMS NORTH AMERICA OF NJ INC.. COURSE # 001 (24 STUDENTS)
Who is the contractor on this award?
The obligated recipient is AIRBORNE SYSTEMS NORTH AMERICA OF NJ INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $38.2 million.
What is the period of performance?
Start: 2022-07-22. End: 2026-09-30.
What is the specific technical domain covered by COURSE # 001?
The provided data identifies the contract as 'COURSE # 001 (24 STUDENTS)' and the North American Industry Classification System (NAICS) code as 611699, which covers 'All Other Miscellaneous Schools and Instruction.' However, the specific technical domain or subject matter of the training is not detailed in the provided data. This information is crucial for understanding the criticality of the training, the potential for alternative solutions, and for accurately benchmarking the cost against similar specialized programs. Without this context, assessing the true value and necessity of the $38.2 million expenditure is challenging.
How does the per-student cost of $1.6 million compare to similar specialized defense training programs?
The per-student cost of approximately $1.6 million for this specialized training is substantial. To benchmark this effectively, comparisons should be made with other Department of Defense contracts for highly technical, niche training programs, particularly those requiring extensive instructor expertise, specialized facilities, or advanced simulation equipment. For instance, pilot training for advanced fighter jets or training for complex electronic warfare systems can incur very high per-student costs. Conversely, less specialized technical training or general professional development courses would have significantly lower per-student rates. A detailed analysis would require identifying comparable training programs based on subject matter, duration, required expertise, and delivery method.
What are the key performance indicators (KPIs) for this training contract?
The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for such training contracts would likely include student completion rates, student performance on assessments or practical exercises, instructor qualifications and effectiveness, adherence to the training schedule, and potentially post-training performance evaluations of the trainees in their operational roles. The fixed-price nature suggests that the government is paying for a defined outcome (successful completion of the course by 24 students), and the contract's performance work statement would detail the specific metrics used to measure success and ensure value for the $38.2 million investment.
What is the track record of AIRBORNE SYSTEMS NORTH AMERICA OF NJ INC. in delivering similar defense training services?
Information regarding the specific track record of AIRBORNE SYSTEMS NORTH AMERICA OF NJ INC. in delivering similar defense training services is not included in the provided data snippet. A comprehensive assessment would require reviewing the company's past performance on government contracts, particularly those involving specialized technical training. This would involve examining contract histories for on-time delivery, quality of instruction, cost performance, and any past performance evaluations or disputes. Understanding their experience in this niche area is vital for gauging the reliability of their ability to meet the requirements of this $38.2 million contract.
What is the historical spending trend for this specific training course or similar training categories within the Department of the Navy?
The provided data only includes information for a single contract award (COURSE # 001). To understand historical spending trends, data on previous awards for this specific course, or for the NAICS code 611699 ('All Other Miscellaneous Schools and Instruction') within the Department of the Navy or the broader Department of Defense, would be necessary. Analyzing past spending would reveal whether this $38.2 million contract represents an increase, decrease, or stable level of investment in this type of training. It would also help identify if spending has been concentrated with specific contractors or spread across multiple providers over time.
Industry Classification
NAICS: Educational Services › Other Schools and Instruction › All Other Miscellaneous Schools and Instruction
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M0026422R0002
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Calspan Technology Holding Corporation
Address: 5800 MAGNOLIA AVE, PENNSAUKEN, NJ, 08109
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: $51,904,710
Exercised Options: $39,681,506
Current Obligation: $38,230,201
Actual Outlays: $13,789,134
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-07-22
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-15
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