Navy awards $264M contract for F-22 Raptor operational training devices, with BAE Systems as prime

Contract Overview

Contract Amount: $26,420,721 ($26.4M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 1999-10-12

End Date: 2009-11-30

Contract Duration: 3,702 days

Daily Burn Rate: $7.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200001!1700!00A001!A8300 !NAVAL AIR WARFARE CENTER TRAININ!N6133900C0005 !A!*!* !19991012!20050412!080022015!217304393!210116406!N!50237!BAE SYSTEMS FLIGHT SIMULATION !4908 TAMPA WEST BLVD !TAMPA !FL!33634!71000!057!12!TAMPA !HILLSBOROUGH !FLORIDA !0001!+000019203782!N!N!000000000000!6930!OPERATIONAL TRAINING DEVICES !A1C!OTHER AIRCRAFT EQUIPMENT !3AFB!F-22 RAPTOR !3699!3!*!*!*!B!N!Z!D !N!J!1!001!N!1A!A!Y!F!* !* !N!C!*!Z!Z!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33634

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to CAE USA INC. for work described as: 200001!1700!00A001!A8300 !NAVAL AIR WARFARE CENTER TRAININ!N6133900C0005 !A!*!* !19991012!20050412!080022015!217304393!210116406!N!50237!BAE SYSTEMS FLIGHT SIMULATION !4908 TAMPA WEST BLVD !TAMPA !FL!33634!71000!057!12!TAMPA !HIL… Key points: 1. Contract awarded for critical operational training devices for the F-22 Raptor program. 2. BAE Systems, a major defense contractor, is the prime recipient of this award. 3. The contract duration spans over 10 years, indicating a long-term need for these training systems. 4. The award was not competed, raising questions about potential cost efficiencies and market competition. 5. The specific product service code (PSC) and North American Industry Classification System (NAICS) code point to specialized training equipment. 6. The contract value of $264 million represents a significant investment in maintaining F-22 pilot readiness.

Value Assessment

Rating: fair

The contract value of $264 million for operational training devices for the F-22 Raptor appears substantial, especially given the 10-year duration. Without specific benchmarks for similar F-22 training simulators or comparable aircraft training systems, it is difficult to definitively assess value for money. The lack of competition suggests that pricing may not have been subjected to market pressures, potentially leading to higher costs than if it had been competed. Further analysis would require comparison with industry standards for flight simulation technology and training device development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms. It also means that the government did not receive proposals from other potential suppliers who might have offered innovative solutions or cost savings.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of benefiting from competitive pricing. The government may have paid a premium due to the absence of competing bids, and oversight is crucial to ensure fair pricing.

Public Impact

The primary beneficiaries are the U.S. Air Force pilots who will utilize these advanced training devices to maintain proficiency in flying the F-22 Raptor. The contract delivers operational training devices, crucial for simulating combat scenarios and flight maneuvers in a safe and cost-effective environment. The geographic impact is primarily within the U.S. Air Force training commands and bases where F-22 pilots are stationed and trained. This contract supports specialized jobs in aerospace engineering, simulation technology, and manufacturing within BAE Systems and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Long contract duration (over 10 years) may not reflect current market pricing for technology.
Lack of transparency in the sole-source justification could hide inefficiencies.
Potential for cost overruns if not closely monitored due to lack of competitive pressure.

Positive Signals

Ensures availability of critical training systems for a high-value asset (F-22 Raptor).
BAE Systems is a known entity with established capabilities in defense simulation.
Contract provides long-term stability for a specialized defense capability.
Focus on operational training devices directly supports pilot readiness and national security.

Sector Analysis

The defense simulation and training market is a significant segment within the broader aerospace and defense industry. Companies like BAE Systems compete in providing sophisticated training solutions, including flight simulators, virtual reality environments, and maintenance trainers. This contract for F-22 operational training devices fits within the 'other aircraft equipment' category and represents a substantial investment in maintaining the readiness of a premier fighter aircraft. Comparable spending benchmarks would typically involve analyzing other major aircraft training system procurements across different military branches.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific sole-source award is not readily available in the provided data. Typically, for sole-source contracts, the prime contractor is responsible for identifying and engaging small businesses for subcontracting opportunities. The absence of a competitive bidding process makes it harder to assess the proactive inclusion of small businesses in the supply chain. Further investigation into BAE Systems' subcontracting practices for this contract would be necessary.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy and the Department of Defense's contracting and program management offices. Accountability measures would involve performance reviews, milestone tracking, and financial audits. Transparency is limited due to the sole-source nature of the award, but contract modifications, delivery schedules, and performance reports are typically managed internally. The Inspector General's office within the Department of Defense may conduct audits or investigations if specific concerns arise regarding waste, fraud, or abuse.

Related Government Programs

F-22 Raptor Sustainment Programs
Aircrew Training Systems
Defense Simulation and Training Contracts
BAE Systems Defense Contracts
Naval Air Warfare Center Training Systems Division Contracts

Risk Flags

Sole-source award
Long contract duration
Lack of competitive bidding
Potential for cost escalation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to CAE USA INC.. 200001!1700!00A001!A8300 !NAVAL AIR WARFARE CENTER TRAININ!N6133900C0005 !A!*!* !19991012!20050412!080022015!217304393!210116406!N!50237!BAE SYSTEMS FLIGHT SIMULATION !4908 TAMPA WEST BLVD !TAMPA !FL!33634!71000!057!12!TAMPA !HILLSBOROUGH !FLORIDA !0001!+000019203782!N!N!000000000000!6930!OPERATIONAL TRAINING DEVICES !A1C!OTHER AIRCRAFT EQUIPMENT !3AFB!F-22 RAPTOR !3699!3!*!*!*!B!N!Z!D !N!J!

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 Navy).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 1999-10-12. End: 2009-11-30.

What is the track record of BAE Systems in delivering similar operational training devices for advanced fighter aircraft?

BAE Systems has a well-established track record in the defense simulation and training sector, providing a wide range of solutions for various military platforms. They have been involved in developing and supplying flight simulators, virtual training environments, and other sophisticated training systems for numerous aircraft, including fighter jets, helicopters, and transport planes. Their experience often includes integrating complex avionics and flight control systems into realistic training simulators. While specific details on F-22 simulator delivery might require deeper research, BAE's general expertise in this domain suggests a capability to meet the technical requirements of such a contract. Their history includes numerous contracts with the U.S. military and international partners for advanced training solutions, indicating a capacity for large-scale, complex projects.

How does the $264 million contract value compare to similar training device contracts for other advanced fighter jets?

Benchmarking the $264 million contract value for F-22 operational training devices against similar contracts for other advanced fighter jets is challenging without access to detailed cost data and contract specifics for those comparable programs. However, the value appears substantial, reflecting the complexity and advanced technology required for training systems of modern fighter aircraft like the F-22. Factors influencing cost include the fidelity of simulation, the number of devices procured, the integration of specific weapon systems and sensor suites, and the duration of the support and sustainment period. Contracts for training systems for aircraft like the F-35, F-15, or F-16 could offer comparative insights, but differences in platform capabilities, technology generation, and procurement quantities would need careful consideration. The sole-source nature of this award also complicates direct price comparisons.

What are the primary risks associated with a sole-source award for critical training systems?

The primary risks associated with a sole-source award for critical training systems like those for the F-22 Raptor include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or optimize costs, and a lack of transparency in the procurement process. Taxpayers may not receive the best value for their investment if alternative solutions or more cost-effective approaches were available but not explored. Furthermore, reliance on a single source can create dependency and potential vulnerabilities if the contractor faces financial difficulties, operational issues, or strategic shifts. Ensuring robust oversight, detailed cost analysis, and clear performance metrics becomes even more critical in sole-source situations to mitigate these risks and ensure the government receives a fair deal and the required capabilities.

How effective are operational training devices in maintaining pilot proficiency for high-performance aircraft like the F-22?

Operational training devices, such as flight simulators, are highly effective and indispensable tools for maintaining pilot proficiency in high-performance aircraft like the F-22 Raptor. They allow pilots to practice complex maneuvers, emergency procedures, and combat scenarios in a safe, controlled, and cost-effective environment that would be impossible or prohibitively expensive to replicate in actual flight. These devices provide realistic simulation of flight dynamics, cockpit controls, avionics, and sensor systems, enabling pilots to develop and maintain critical skills. Regular use of advanced simulators significantly enhances pilot readiness, reduces the risk of accidents during training, and allows for training on tactics and systems that might be too risky or resource-intensive to practice in the air. They are a cornerstone of modern air force training programs.

What is the historical spending trend for F-22 Raptor training systems?

Historical spending on F-22 Raptor training systems has been substantial, reflecting the advanced nature of the aircraft and the critical need for pilot readiness. While specific year-over-year figures for training devices alone are not detailed in the provided data, the overall sustainment and modernization costs for the F-22 program are significant. This $264 million contract, awarded in 1999 and extending through 2009, represents a major investment during the operational life of the aircraft. Previous and subsequent contracts for training simulators, maintenance trainers, and associated software updates would contribute to the total lifecycle cost of training for the F-22 fleet. Analyzing broader F-22 program spending data would reveal trends in investment in training capabilities over time.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Flight Training

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 (UEI: 202131454)

Address: 4908 TAMPA WEST BLVD, TAMPA, FL, 90

Business Categories: Category Business, Not Designated a Small Business

Timeline