DoD's $41.8M CAE USA Flight Training Contract: A Deep Dive into Value and Competition

Contract Overview

Contract Amount: $41,779,603 ($41.8M)

Contractor: CAE USA, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-12-04

End Date: 2020-11-30

Contract Duration: 2,553 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF T-44C CACT TRAINING INSTRUCTION SERVICES

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $41.8 million to CAE USA, INC. for work described as: IGF::CT::IGF T-44C CACT TRAINING INSTRUCTION SERVICES Key points: 1. The contract awarded to CAE USA, Inc. for flight training services represents a significant investment by the Department of Defense. 2. Full and open competition was utilized, suggesting a robust process for selecting the most competitive offer. 3. The contract's duration and firm-fixed-price structure aim to provide cost certainty, but require careful monitoring for potential risks. 4. Analysis of this contract can offer insights into pricing benchmarks and competitive dynamics within the defense training sector.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides a degree of cost certainty. Benchmarking against similar flight training contracts would be necessary for a definitive value assessment, but the scale suggests a competitive bid process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple vendors had the opportunity to bid, fostering price discovery and potentially leading to a more favorable price for the government.

Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing taxpayer value for essential flight training services.

Public Impact

Ensures readiness of naval aviators through specialized flight training. Supports advanced simulation and training technologies. Contributes to the overall effectiveness of naval aviation operations. Potential for technology transfer and skill development within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration may lead to scope creep or evolving training needs.
Reliance on a single contractor for critical training could pose a risk.
Firm-fixed-price contracts can sometimes disincentivize contractor innovation if not managed well.

Positive Signals

Full and open competition ensures a competitive environment.
Firm-fixed-price contract provides budget predictability.
Long-term contract allows for sustained training capabilities.

Sector Analysis

This contract falls within the broader defense training and simulation sector, which is critical for maintaining military readiness. Spending in this area is often substantial due to the complexity and specialized nature of training requirements.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The Department of the Navy's oversight is crucial to ensure the contractor meets performance standards and delivers effective training. Regular performance reviews and audits are key accountability mechanisms.

Related Government Programs

Flight Training
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost escalation over the contract's duration.
Risk of training obsolescence if not regularly updated.
Dependence on a single provider for critical training.
Need for robust government oversight to ensure quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.8 million to CAE USA, INC.. IGF::CT::IGF T-44C CACT TRAINING INSTRUCTION SERVICES

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 $41.8 million.

What is the period of performance?

Start: 2013-12-04. End: 2020-11-30.

What is the specific value proposition of CAE USA's training services compared to potential alternatives?

The value proposition likely centers on CAE USA's specialized expertise, advanced simulation technology, and proven track record in military flight training. The firm-fixed-price structure suggests a commitment to delivering defined outcomes within a set budget, offering predictability for the Department of Defense. However, a detailed comparison with alternative training providers or methods would be needed to fully assess the value.

What are the primary risks associated with this long-term, firm-fixed-price training contract?

Key risks include potential cost overruns if the fixed price doesn't account for unforeseen inflation or technological obsolescence, and a possible lack of contractor incentive to innovate beyond the contract's minimum requirements. There's also a risk that the training curriculum may not keep pace with evolving threats or aircraft technology, requiring costly modifications or supplemental contracts.

How effectively does this contract contribute to the Department of the Navy's overall mission readiness?

The contract's effectiveness hinges on the quality and relevance of the flight training provided. If the training accurately simulates real-world scenarios and utilizes up-to-date procedures and technology, it significantly enhances pilot proficiency and contributes directly to mission readiness. Continuous evaluation of training outcomes and pilot performance metrics is essential to gauge this effectiveness.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6134013R0050

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CAE Inc (UEI: 202131454)

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,057,626

Exercised Options: $41,779,603

Current Obligation: $41,779,603

Actual Outlays: $1,094,988

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $10,381,213

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline