DoD Awards $57.1M for MH-60R Training Devices to CAE USA Inc
Contract Overview
Contract Amount: $57,125,186 ($57.1M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2024-07-26
End Date: 2028-08-29
Contract Duration: 1,495 days
Daily Burn Rate: $38.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF MH-60R INDIA TOFT AND AMWLT TRAINING DEVICES
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33605
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $57.1 million to CAE USA INC. for work described as: PROCUREMENT OF MH-60R INDIA TOFT AND AMWLT TRAINING DEVICES Key points: 1. Contract awarded to CAE USA Inc. for essential MH-60R helicopter training devices. 2. The $57.1 million contract is for a definitive, firm-fixed-price agreement. 3. Training devices are critical for pilot proficiency and mission readiness. 4. The procurement falls under Engineering Services (NAICS 541330).
Value Assessment
Rating: good
The contract value of $57.1 million appears reasonable for specialized aviation training equipment. Benchmarking against similar complex simulation contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source procurement. This method may impact price discovery and potentially lead to higher costs compared to a competitive process.
Taxpayer Impact: Taxpayer funds are being used for critical defense training infrastructure, ensuring pilot readiness.
Public Impact
Enhances pilot training for the MH-60R Seahawk helicopter, a key naval asset. Supports the readiness and operational effectiveness of naval aviation units. Invests in advanced simulation technology for realistic training scenarios.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may result in suboptimal pricing.
- Reliance on a single contractor for critical training systems.
Positive Signals
- Ensures availability of essential training devices.
- Supports advanced simulation technology development.
Sector Analysis
This procurement falls within the Engineering Services sector, specifically supporting defense aviation training. Spending in this area is crucial for maintaining military readiness and technological superiority.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had opportunities to participate in subcontracting.
Oversight & Accountability
The contract is a definitive agreement with a set duration, allowing for clear oversight. The Department of the Navy is responsible for monitoring performance and ensuring delivery of required training devices.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition
- Potential for higher costs
- Vendor lock-in risk
- Sole reliance on CAE USA Inc. for this specific training solution
Tags
engineering-services, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.1 million to CAE USA INC.. PROCUREMENT OF MH-60R INDIA TOFT AND AMWLT TRAINING DEVICES
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 $57.1 million.
What is the period of performance?
Start: 2024-07-26. End: 2028-08-29.
What is the specific capability gap this training device addresses for the MH-60R?
This training device likely addresses the need for advanced, cost-effective, and safe simulation of complex MH-60R operational scenarios. It allows pilots to practice mission profiles, emergency procedures, and tactical maneuvers without the risks and costs associated with live flight training, thereby enhancing overall mission readiness and reducing operational wear and tear on aircraft.
What are the risks associated with a limited competition procurement for specialized training equipment?
Limited competition can lead to higher prices due to the lack of competitive pressure. It also increases reliance on a single vendor, posing risks if the vendor faces financial difficulties, production issues, or fails to meet performance standards. Furthermore, it may stifle innovation by reducing the incentive for vendors to offer more advanced or cost-effective solutions.
How will the effectiveness of these training devices be measured to ensure value for taxpayer money?
Effectiveness will likely be measured through pilot performance metrics within the simulator, feedback from instructors and trainees, and correlation with real-world mission success rates. Key performance indicators may include the fidelity of the simulation, the ability to replicate critical scenarios, and the reduction in training time or cost compared to traditional methods. Regular reviews and user assessments will ensure the devices meet evolving training needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6134023R0093
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $57,125,186
Exercised Options: $57,125,186
Current Obligation: $57,125,186
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $19,988,295
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-07-26
Current End Date: 2028-08-29
Potential End Date: 2028-08-29 00:00:00
Last Modified: 2025-05-28
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