Army's $10.8M Huey Trainer Contract Awarded Sole-Source to Frasca International

Contract Overview

Contract Amount: $10,780,984 ($10.8M)

Contractor: Frasca International, Inc

Awarding Agency: Department of Defense

Start Date: 2007-06-29

End Date: 2011-01-31

Contract Duration: 1,312 days

Daily Burn Rate: $8.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UH-1H-II (HUEY) TRAINER

Place of Performance

Location: URBANA, CHAMPAIGN County, ILLINOIS, 61802

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $10.8 million to FRASCA INTERNATIONAL, INC for work described as: UH-1H-II (HUEY) TRAINER Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential price efficiencies. 2. The duration of the contract (1312 days) suggests a significant, ongoing training requirement. 3. The absence of competition may limit opportunities for innovative solutions or cost reductions. 4. The contractor, Frasca International, specializes in flight simulation, indicating relevant expertise. 5. The contract's value is moderate within the context of defense training systems. 6. The firm-fixed-price structure shifts cost risk to the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this sole-source contract is challenging without competitive data. The $10.8 million award over approximately 3.6 years represents a significant investment in training capabilities. While Frasca International is a known entity in flight simulation, the lack of competition means there's no direct comparison to assess if this price represents optimal value for money compared to alternative providers or competitive bids. Further analysis would require understanding the specific training hours and simulator capabilities provided.

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 typically occurs when only one vendor possesses the necessary capabilities, technology, or is the sole provider of a required item or service. The lack of competition limits the government's ability to leverage market forces to drive down prices and may result in a higher cost than if multiple bids were solicited.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the price reflects the lowest possible cost for the required training services.

Public Impact

The primary beneficiaries are U.S. Army pilots requiring training on the UH-1H-II (Huey) helicopter. The contract delivers essential flight simulation training services, enhancing pilot proficiency and safety. The geographic impact is likely concentrated at Army training bases where the simulators are deployed. The contract supports specialized technical roles within Frasca International related to simulator maintenance and operation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Lack of competition may reduce pressure on contractor for continuous innovation.
Contract duration without clear performance metrics could obscure efficiency gains.

Positive Signals

Contract awarded to a specialized provider (Frasca International) with expertise in flight simulation.
Firm-fixed-price contract shifts cost risk to the contractor.
Contract supports critical military training needs for helicopter pilots.

Sector Analysis

The defense training and simulation sector is a significant market within the broader aerospace and defense industry. Companies like Frasca International operate within this niche, providing specialized equipment and services to military branches. Spending in this area is driven by the need for realistic and cost-effective pilot training, especially for legacy aircraft or complex operational environments. Benchmarks for similar simulation contracts can vary widely based on complexity, duration, and technology.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Frasca International, Inc. is the prime contractor. There is no explicit information provided regarding subcontracting plans or opportunities for small businesses within this specific award. The focus is on the prime contractor's capabilities for delivering the training solution.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a sole-source award, scrutiny might focus on the justification for non-competition and the reasonableness of the price. Transparency is generally facilitated through contract databases like FPDS, though detailed performance metrics and internal oversight processes are not publicly disclosed.

Related Government Programs

Defense Training Systems
Aviation Simulation
Helicopter Pilot Training
UH-1 Huey Program

Risk Flags

Sole-source award lacks competitive justification.
Potential for uncompetitive pricing due to lack of bidders.
Limited transparency on performance metrics for sole-source contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.8 million to FRASCA INTERNATIONAL, INC. UH-1H-II (HUEY) TRAINER

Who is the contractor on this award?

The obligated recipient is FRASCA INTERNATIONAL, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 2007-06-29. End: 2011-01-31.

What is Frasca International's track record with the Department of Defense, particularly for flight simulation contracts?

Frasca International, Inc. has a history of providing flight simulation equipment and training devices to various branches of the U.S. military, including the Department of the Army. Their specialization in simulators for helicopters and fixed-wing aircraft makes them a recurring vendor for such needs. While this specific $10.8 million contract is for UH-1H-II trainers, their broader portfolio likely includes contracts for other aircraft types and simulation technologies. Analyzing past performance on similar sole-source or competed contracts would provide further insight into their reliability, pricing consistency, and ability to meet delivery schedules and technical specifications.

How does the $10.8 million value compare to similar sole-source flight simulator contracts awarded by the DoD?

Comparing the $10.8 million value of this sole-source UH-1H-II trainer contract requires context regarding the scope and duration. Sole-source awards inherently lack direct price competition, making external benchmarking difficult. However, within the defense simulation market, contracts for advanced flight training devices can range from a few million to tens of millions of dollars, depending on the aircraft complexity, fidelity of the simulator, and required support services. Given the contract's duration of over three years, the annual value is approximately $3 million, which is within a plausible range for specialized military training equipment. A more precise comparison would necessitate examining contracts for similar helicopter simulators or trainer types, considering factors like hours of use, maintenance requirements, and technology generation.

What are the primary risks associated with awarding a sole-source contract for flight training simulators?

The primary risk of a sole-source award for flight training simulators is the potential for inflated costs due to the absence of competitive pressure. Without multiple bids, the government may not achieve the best possible price. Another risk is a lack of innovation, as the contractor may have less incentive to introduce cost-saving efficiencies or technological advancements if they are the only option. Furthermore, reliance on a single provider can create vendor lock-in, making future procurements or transitions more complex and potentially expensive. Ensuring the sole-source justification is robust and that the contractor's proposed price is fair and reasonable through rigorous negotiation and cost analysis becomes critical.

How effective are UH-1H-II (Huey) simulators in meeting the Army's pilot training requirements?

UH-1H-II (Huey) simulators are designed to provide a safe, cost-effective, and repeatable environment for pilots to develop and maintain critical flight skills. They allow for training on various flight maneuvers, emergency procedures, and mission scenarios that might be too dangerous, costly, or impractical to practice in actual aircraft. The effectiveness hinges on the simulator's fidelity (how accurately it replicates the real aircraft's flight characteristics and cockpit environment), the quality of the training curriculum, and the proficiency of the instructors. For the Army, these simulators are crucial for ensuring pilots are proficient in operating the Huey, a versatile utility helicopter used in numerous roles, thereby enhancing overall operational readiness.

What has been the historical spending trend for UH-1H-II training systems by the Department of the Army?

Historical spending on UH-1H-II training systems by the Department of the Army would likely show periods of investment tied to fleet readiness and modernization efforts. As the UH-1H model has been in service for decades, training systems would have been procured and updated over time. Specific spending figures for UH-1H-II simulators prior to this $10.8 million contract would require a deep dive into historical contract databases (like FPDS). Spending trends could be influenced by factors such as the number of active Huey fleets, pilot training quotas, the lifecycle of existing simulators, and the introduction of newer aircraft types. A consistent, albeit potentially fluctuating, level of investment in simulator technology for legacy platforms like the Huey is typical to maintain pilot proficiency.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6133907R0063

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 906 AIRPORT RD, URBANA, IL, 13

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,780,984

Exercised Options: $10,780,984

Current Obligation: $10,780,984

Contract Characteristics

Cost or Pricing Data: NO

Timeline