DoD awards $9.8M contract for UMFO Multi-Crew Simulator upgrades to CAE USA INC

Contract Overview

Contract Amount: $9,874,228 ($9.9M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-15

End Date: 2026-01-01

Contract Duration: 1,204 days

Daily Burn Rate: $8.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS EFFORT IS TO MODIFY AND UPGRADE THE UMFO MULTI-CREW SIMULATOR (MCS) 2B51 DEVICE BLOCK 2 VIA HARDWARE UPGRADES, SOFTWARE DEVELOPMENT/INTEGRATION AND THE DELIVERY OF ASSOCIATED TECHNICAL DOCUMENTATION AND SPARES TO NAS PENSACOLA, FL.

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $9.9 million to CAE USA INC. for work described as: THIS EFFORT IS TO MODIFY AND UPGRADE THE UMFO MULTI-CREW SIMULATOR (MCS) 2B51 DEVICE BLOCK 2 VIA HARDWARE UPGRADES, SOFTWARE DEVELOPMENT/INTEGRATION AND THE DELIVERY OF ASSOCIATED TECHNICAL DOCUMENTATION AND SPARES TO NAS PENSACOLA, FL. Key points: 1. Contract focuses on hardware, software, documentation, and spares for simulator upgrades. 2. CAE USA INC. is the sole awardee for this effort. 3. The contract is a Firm Fixed Price type, indicating defined costs. 4. This spending falls within the 'Other Commercial and Service Industry Machinery Manufacturing' sector.

Value Assessment

Rating: fair

The contract value of $9.8M for simulator upgrades appears reasonable given the scope of hardware, software, and documentation. Benchmarking against similar complex simulation system modifications would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. Without competition, there is a reduced opportunity for price discovery and potentially higher costs for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these simulator upgrades.

Public Impact

Enhances training capabilities for naval personnel through simulator modernization. Supports critical operational readiness by ensuring advanced training equipment. Investment in simulation technology can reduce real-world training costs and risks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
Potential for cost overruns in complex hardware/software integration.
Long contract duration (over 3 years) increases risk exposure.

Positive Signals

Upgrades critical training infrastructure.
Firm Fixed Price contract provides cost certainty if scope is well-defined.
Supports advanced simulation technology for naval aviation.

Sector Analysis

This contract falls under the 'Other Commercial and Service Industry Machinery Manufacturing' sector, specifically related to specialized training equipment. Spending benchmarks for complex simulator upgrades are highly variable and depend on specific technological requirements.

Small Business Impact

No information is available regarding small business participation in this contract. As a sole-source award, opportunities for subcontracting to small businesses may be limited.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The firm fixed price contract structure provides some accountability for cost, but the sole-source nature requires careful monitoring of performance and deliverables.

Related Government Programs

Other Commercial and Service Industry Machinery Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Potential for scope creep
Technical integration complexity
Long-term contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 million to CAE USA INC.. THIS EFFORT IS TO MODIFY AND UPGRADE THE UMFO MULTI-CREW SIMULATOR (MCS) 2B51 DEVICE BLOCK 2 VIA HARDWARE UPGRADES, SOFTWARE DEVELOPMENT/INTEGRATION AND THE DELIVERY OF ASSOCIATED TECHNICAL DOCUMENTATION AND SPARES TO NAS PENSACOLA, FL.

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 $9.9 million.

What is the period of performance?

Start: 2022-09-15. End: 2026-01-01.

What is the justification for the sole-source award, and how was the price determined to be fair and reasonable without competition?

The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. Without a competitive process, the government relies on detailed cost proposals, historical data, and independent government cost estimates to determine price reasonableness. Thorough negotiation and documentation are crucial to ensure taxpayer value.

What are the specific risks associated with the hardware and software integration for this simulator upgrade?

Risks in hardware and software integration include compatibility issues between new and existing systems, unforeseen technical challenges, potential delays in development, and the need for extensive testing and validation. The complexity of upgrading a multi-crew simulator suggests a high degree of technical interdependence, where failures in one component could impact the entire system's functionality and training effectiveness.

How will the effectiveness of the upgraded simulator be measured to ensure it meets training objectives?

Effectiveness will be measured through a combination of user feedback from trainees and instructors, performance metrics during simulated scenarios, and validation against established training objectives. Post-delivery testing, operational assessments, and potentially pilot programs will confirm the simulator's ability to accurately replicate real-world conditions and facilitate skill development crucial for mission success.

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

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: $10,110,191

Exercised Options: $9,874,228

Current Obligation: $9,874,228

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $291,050

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline