DoD Awards $72.6M Firm Fixed Price Contract to CAE USA for T-44 Aircraft Crew Training

Contract Overview

Contract Amount: $72,554,080 ($72.6M)

Contractor: CAE USA, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-12-01

End Date: 2026-10-31

Contract Duration: 2,160 days

Daily Burn Rate: $33.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: T-44 AIRCRAFT CREW ACADEMIC AND SIMULATOR TRAINING

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $72.6 million to CAE USA, INC. for work described as: T-44 AIRCRAFT CREW ACADEMIC AND SIMULATOR TRAINING Key points: 1. Contract awarded to a single vendor, CAE USA, Inc., for specialized flight training. 2. The contract value is substantial at $72.6 million over approximately 6 years. 3. Lack of competition raises questions about potential overpricing and value for taxpayer money. 4. The sector is focused on specialized defense training, a critical but potentially high-cost area.

Value Assessment

Rating: questionable

The contract's firm fixed price structure provides cost certainty for the government. However, without competitive bidding, it's difficult to assess if the $72.6 million price represents fair market value compared to potential alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to CAE USA, Inc. This limits price discovery and may result in higher costs for the government as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a significant contract value raises concerns about the efficient use of taxpayer funds, potentially leading to higher overall spending than a competed contract.

Public Impact

Ensures continued readiness for Navy T-44 aircraft crews through essential academic and simulator training. Supports specialized training capabilities, maintaining critical skills for military aviation personnel. Potential for higher costs due to sole-source award impacts overall defense budget allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
High contract value without competitive benchmarking.
Potential for inflated costs due to lack of market pressure.

Positive Signals

Provides essential, specialized training for military readiness.
Firm fixed price offers cost certainty once awarded.
Long-term contract ensures consistent training availability.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on specialized flight training services. Benchmarking spending in this niche area is challenging without competitive data, but large sole-source contracts warrant scrutiny for value.

Small Business Impact

The data indicates no specific set-aside for small businesses, and the prime contractor is CAE USA, Inc., which is not typically considered a small business. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The sole-source nature of this award suggests limited initial oversight on price competition. Ongoing oversight should focus on performance metrics and ensuring the contractor delivers the contracted training services effectively and efficiently.

Related Government Programs

Flight Training
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award.
Lack of competitive benchmarking.
High contract value.
Potential for cost overruns.
Limited transparency on pricing justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.6 million to CAE USA, INC.. T-44 AIRCRAFT CREW ACADEMIC AND SIMULATOR TRAINING

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 $72.6 million.

What is the period of performance?

Start: 2020-12-01. End: 2026-10-31.

What is the justification for the sole-source award, and what steps were taken to ensure fair pricing without competition?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirement. Without detailed justification documents, it's impossible to confirm the specific reasons. However, agencies are expected to conduct market research and negotiate pricing rigorously even in sole-source situations to achieve fair and reasonable costs for the government.

How does the per-unit cost of this training compare to similar training programs, either government-provided or commercially available?

Direct comparison of per-unit costs is difficult without access to detailed cost breakdowns and specific training hour metrics. However, the absence of competition for this $72.6 million contract suggests a potential risk of higher per-unit costs compared to what might be achieved through a competitive bidding process. Benchmarking against other DoD training contracts or commercial equivalents would be necessary for a thorough assessment.

What are the key performance indicators (KPIs) for this contract, and how is the effectiveness of the training being measured?

Effectiveness is typically measured through pilot performance metrics, simulator proficiency scores, and academic test results. The contract likely includes specific KPIs related to training completion rates, skill acquisition, and readiness levels. Robust oversight would involve regular reviews of these KPIs to ensure CAE USA, Inc. is meeting the stringent standards required for military aviation training.

Industry Classification

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

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6134020R0031

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $89,814,984

Exercised Options: $83,173,351

Current Obligation: $72,554,080

Actual Outlays: $27,983,393

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline