DoD Awards $49.3M Contract for Extended Hardware Upgrades to CAE USA Inc
Contract Overview
Contract Amount: $49,281,637 ($49.3M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2022-06-14
End Date: 2027-04-19
Contract Duration: 1,770 days
Daily Burn Rate: $27.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: EXTENDED HW UPGRADES
Place of Performance
Location: ARLINGTON, TARRANT County, TEXAS, 76011
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $49.3 million to CAE USA INC. for work described as: EXTENDED HW UPGRADES Key points: 1. Significant investment in hardware upgrades for the Department of the Navy. 2. Sole-source award to CAE USA Inc. raises questions about competition. 3. Long contract duration (1770 days) may impact price competitiveness. 4. Spending in 'Other Commercial and Service Industry Machinery Manufacturing' sector needs context.
Value Assessment
Rating: questionable
The contract value of $49.3 million for extended hardware upgrades is substantial. Without specific details on the nature of the upgrades and the number of units, a direct per-unit cost comparison is difficult. However, the lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This significantly limits price discovery and may lead to higher costs for the government compared to a competitive bidding process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for these hardware upgrades.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The extended duration of the contract could lead to outdated technology by completion. Dependence on a single vendor for critical hardware upgrades poses a risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of detailed cost breakdown
Positive Signals
- Clear need for hardware upgrades identified
- Contract awarded to a known entity
Sector Analysis
The Department of the Navy's spending on 'Other Commercial and Service Industry Machinery Manufacturing' is part of a broader defense procurement landscape. Benchmarking this specific upgrade cost against similar, competitively bid contracts for hardware modernization would be crucial for assessing value.
Small Business Impact
This contract was awarded to CAE USA Inc., a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
Oversight of this sole-source contract will be critical to ensure that the Department of the Navy receives the necessary hardware upgrades at a fair and reasonable price throughout the contract's duration.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Risk of technology obsolescence
- Limited vendor options
Tags
other-commercial-and-service-industry-ma, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.3 million to CAE USA INC.. EXTENDED HW UPGRADES
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 $49.3 million.
What is the period of performance?
Start: 2022-06-14. End: 2027-04-19.
What specific hardware is being upgraded, and what is the justification for a sole-source award?
The specific hardware details are not provided in the data. A sole-source award typically requires a strong justification, such as unique capabilities, proprietary technology, or urgent need where only one vendor can fulfill the requirement. Without this justification, it's difficult to assess the necessity of bypassing competition.
How does the per-unit cost of these upgrades compare to similar systems or previous procurements?
A direct per-unit cost comparison is not possible with the provided data. The contract value is for extended upgrades over a long period. To assess value, a detailed breakdown of the costs associated with each upgrade component and quantity would be needed, ideally benchmarked against market rates or previous competitive awards.
What are the potential risks associated with a sole-source, long-term hardware upgrade contract?
The primary risks include inflated costs due to lack of competition, potential for vendor lock-in, and the possibility of technology obsolescence by the contract's end. There's also a risk if the sole-source vendor experiences financial difficulties or fails to deliver as promised, with limited alternative options.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6134021R0018
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CAE Inc
Address: 2200 ARLINGTON DOWNS RD, ARLINGTON, TX, 76011
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: $50,864,666
Exercised Options: $49,281,637
Current Obligation: $49,281,637
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $4,559,186
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-06-14
Current End Date: 2027-04-19
Potential End Date: 2027-04-19 00:00:00
Last Modified: 2025-09-24
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