DoD awards $29M for KC-130J trainer to CAE USA, citing no competition

Contract Overview

Contract Amount: $28,982,923 ($29.0M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-04

End Date: 2016-12-30

Contract Duration: 1,578 days

Daily Burn Rate: $18.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: KUWAIT AIR FORCE KC-130J WEAPON SYSTEMS TRAINER

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33634

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $29.0 million to CAE USA INC. for work described as: KUWAIT AIR FORCE KC-130J WEAPON SYSTEMS TRAINER Key points: 1. Contract awarded to CAE USA Inc. for $28.98 million. 2. No competition was cited for this award. 3. The contract is for a KC-130J Weapon Systems Trainer. 4. This falls under Engineering Services (NAICS 541330). 5. The contract was awarded by the Department of the Navy.

Value Assessment

Rating: fair

The contract price of $28.98 million for a KC-130J trainer is difficult to assess without comparable contracts. However, given the specialized nature of military training systems, the price may be reasonable if it reflects advanced technology and comprehensive training capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a limited competition, with 'NOT AVAILABLE FOR COMPETITION' indicated. This suggests potential sole-source justification or a limited pool of qualified bidders, which can impact price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayer impact is moderate, as the $28.98 million expenditure is for a specialized military training system. The lack of robust competition raises concerns about achieving the best possible value for taxpayer funds.

Public Impact

Enhances pilot training for the Kuwait Air Force's KC-130J aircraft. Supports critical military readiness and operational capabilities. Represents a significant investment in specialized defense training technology. Potential for cost overruns due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for price inflation
Limited transparency in pricing

Positive Signals

Supports allied military training
Addresses specific training needs for advanced aircraft
Long-term contract duration

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to defense systems. Spending in this area is often driven by modernization efforts and the need for specialized training solutions for complex military platforms like the KC-130J.

Small Business Impact

The contract was awarded to CAE USA Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, limiting opportunities for small business participation.

Oversight & Accountability

The Department of the Navy awarded this contract. Oversight would typically involve monitoring contract performance, adherence to specifications, and financial accountability to ensure the training system meets requirements and taxpayer funds are used appropriately.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in cost justification
Risk of vendor lock-in for future support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.0 million to CAE USA INC.. KUWAIT AIR FORCE KC-130J WEAPON SYSTEMS TRAINER

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 $29.0 million.

What is the period of performance?

Start: 2012-09-04. End: 2016-12-30.

What specific factors led to the 'NOT AVAILABLE FOR COMPETITION' determination, and were all avenues for broader competition explored?

The 'NOT AVAILABLE FOR COMPETITION' designation suggests that only one source was deemed capable of fulfilling the requirement, possibly due to unique technical expertise, proprietary technology, or urgent needs. A thorough review would confirm if alternative sources were considered and why they were excluded, ensuring the justification for limited competition is robust and serves the government's best interest.

How does the pricing of this KC-130J trainer compare to similar systems or previous procurements, considering the limited competition?

Benchmarking the price against similar KC-130J trainers or other advanced flight simulators is crucial. Given the limited competition, there's a heightened risk of the price being higher than if multiple vendors had competed. A detailed cost analysis by the Department of the Navy, comparing labor rates, material costs, and profit margins to industry standards, would be necessary to validate the fairness of the price.

What are the long-term implications for training effectiveness and cost if this trainer system requires significant future modifications or support?

If the trainer requires substantial future modifications or ongoing support, the initial limited competition could lead to higher costs for these subsequent actions, especially if CAE USA Inc. remains the sole provider. Ensuring the contract includes provisions for future modifications and support at competitive prices, or establishing a plan for future competitive procurements, is vital for long-term cost-effectiveness and sustained training capability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6134011R0081

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CHU DE Quebec - Universite Laval (UEI: 209087188)

Address: 4908 TAMPA W BLVD, TAMPA, FL, 33634

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: $29,081,605

Exercised Options: $28,982,923

Current Obligation: $28,982,923

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $298,235

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline