DoD's $29.1M contract for S-70B helicopter components awarded to CAE USA INC

Contract Overview

Contract Amount: $29,121,540 ($29.1M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2018-02-08

End Date: 2025-10-16

Contract Duration: 2,807 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTAINERIZED S-70B BRAZIL TOFT

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33634

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $29.1 million to CAE USA INC. for work described as: CONTAINERIZED S-70B BRAZIL TOFT Key points: 1. Contract value of $29.1 million for specialized helicopter components. 2. Awarded to CAE USA INC. under full and open competition. 3. Performance period spans from February 2018 to October 2025. 4. The contract is for containerized S-70B Brazil TOFT. 5. Delivery order type indicates a specific task within a larger framework. 6. The contract is a firm-fixed-price type, managing cost risks. 7. The North American Industry Classification System (NAICS) code is 333319.

Value Assessment

Rating: good

The contract value of $29.1 million for specialized helicopter components appears reasonable given the duration and nature of the requirement. Benchmarking against similar complex aerospace component contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bidders suggests a moderate level of competition, which generally benefits price discovery and ensures a competitive award.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by encouraging multiple companies to bid and offer their best terms.

Public Impact

Benefits the Department of the Navy by ensuring the availability of critical helicopter components. Supports the operational readiness of S-70B 'Sea Hawk' helicopters. The contract is geographically located in Florida (ST/SN). Likely supports specialized manufacturing and technical workforce within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Reliance on a single contractor for specific component manufacturing could pose a risk.

Positive Signals

Firm-fixed-price contract helps manage cost overruns.
Awarded through full and open competition, suggesting competitive pricing.
Long performance period allows for stable supply and planning.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically related to helicopter components. The NAICS code 333319 covers 'Other Commercial and Service Industry Machinery Manufacturing,' which can encompass specialized parts for aircraft. Spending in this area is critical for maintaining military aviation capabilities.

Small Business Impact

The data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. Therefore, the direct impact on small businesses is not explicitly detailed, though the prime contractor may engage small businesses in its supply chain.

Oversight & Accountability

As a delivery order under a larger contract vehicle, oversight is likely managed through the Department of the Navy's contracting and program management offices. Transparency is generally maintained through contract award databases, and specific performance monitoring would be part of the contract administration.

Related Government Programs

Naval Air Systems Command (NAVAIR) contracts
Helicopter component procurement
Defense logistics and sustainment contracts

Risk Flags

Potential for supply chain vulnerabilities
Contractor performance risk
Long-term sustainment planning

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.1 million to CAE USA INC.. CONTAINERIZED S-70B BRAZIL TOFT

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 $29.1 million.

What is the period of performance?

Start: 2018-02-08. End: 2025-10-16.

What is the specific nature of the 'CONTAINERIZED S-70B BRAZIL TOFT' requirement?

The 'CONTAINERIZED S-70B BRAZIL TOFT' likely refers to a specific package or kit of components for the S-70B helicopter, possibly related to a particular mission configuration or upgrade, and designed for transport in a containerized format. The 'TOFT' acronym is not standard and may be program-specific. The S-70B is a maritime variant of the Black Hawk helicopter, often used for anti-submarine warfare and search and rescue. This contract ensures the supply of essential parts for these specialized aircraft, supporting their operational readiness and maintenance schedules.

How does the $29.1 million contract value compare to similar procurements for helicopter components?

Benchmarking the $29.1 million value requires detailed comparison with contracts for similar S-70B components or comparable helicopter parts from other manufacturers. Factors such as the specific components, quantity, complexity, and duration of the contract significantly influence pricing. Without access to proprietary pricing data or a comprehensive database of similar procurements, a precise comparison is difficult. However, for specialized aerospace components with a multi-year delivery schedule, this value appears within a plausible range, especially considering the firm-fixed-price nature which shifts cost risk to the contractor.

What are the primary risks associated with this contract for the Department of Defense?

Key risks include potential supply chain disruptions affecting the timely delivery of critical components, especially given the global nature of aerospace manufacturing. There's also a risk of contractor performance issues, such as quality control failures or delays, which could impact helicopter availability. Dependence on a single supplier for these specific components, even if competitively sourced initially, can create long-term vulnerabilities. Furthermore, unforeseen technological obsolescence or changes in operational requirements could render the components less relevant, though the firm-fixed-price structure mitigates financial risk from such changes.

What is CAE USA INC.'s track record with similar defense contracts?

CAE USA INC. is a well-established defense contractor with a significant history of providing training, simulation, and aviation support services to military organizations worldwide. They have extensive experience with various aircraft platforms, including helicopters. While specific details on their performance for S-70B components would require deeper investigation into past performance reviews and contract histories, their general profile suggests a capable supplier. Their involvement in complex defense procurements indicates a capacity to manage demanding requirements and adhere to stringent quality and delivery standards.

How has spending on S-70B helicopter components evolved over recent years?

Historical spending data on S-70B components would reveal trends in maintenance, upgrades, and new acquisitions. This specific contract, awarded in 2018 with an end date in 2025, represents a portion of the overall sustainment and readiness budget for the S-70B fleet. Analyzing broader spending patterns for this helicopter type, including other contracts for parts, maintenance, and upgrades, would provide context on the long-term investment in this platform and whether spending has been consistent, increasing, or decreasing.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6134011R0001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $29,361,705

Exercised Options: $29,121,540

Current Obligation: $29,121,540

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $10,344,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134012D5104

IDV Type: IDC

Timeline