DoD's $2.16M virtual aviation simulation contract awarded to Pendaran Inc. raises value questions
Contract Overview
Contract Amount: $2,162,750 ($2.2M)
Contractor: Pendaran Inc
Awarding Agency: Department of Defense
Start Date: 2025-01-08
End Date: 2027-01-07
Contract Duration: 729 days
Daily Burn Rate: $3.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: VIRTUAL WORKPLACE AVIATION SIMULATION
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32212
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $2.2 million to PENDARAN INC for work described as: VIRTUAL WORKPLACE AVIATION SIMULATION Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. The firm fixed-price contract type shifts risk to the contractor, but the lack of competition obscures true value. 3. Performance period of approximately two years suggests a need for ongoing services. 4. The contract falls under professional and management development training, a broad category. 5. Geographic location of performance is Florida. 6. No small business set-aside was applied to this procurement.
Value Assessment
Rating: questionable
Without competitive bids, it is difficult to benchmark the value for money for this $2.16 million contract. The firm fixed-price structure is standard, but the absence of competition means the government may not have secured the best possible pricing. Comparing this to similar virtual simulation training contracts would be necessary to assess if the pricing is aligned with market rates. The lack of transparency in the bidding process makes a definitive value assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services. The lack of competition means that potential cost savings that could arise from a competitive bidding process were not realized. This limits the government's ability to leverage market forces to drive down prices.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The government did not have the opportunity to solicit and evaluate multiple offers, which is a key mechanism for ensuring fair and reasonable pricing.
Public Impact
The Department of the Navy will benefit from enhanced aviation simulation capabilities. This contract supports professional and management development training for military personnel. Services are expected to be delivered in Florida. The contract may impact the workforce by providing advanced training tools for aviators and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated pricing.
- Sole-source award limits transparency and accountability in pricing.
- Potential for vendor lock-in if alternatives are not explored.
Positive Signals
- Firm fixed-price contract shifts cost risk to the contractor.
- Contract duration of two years provides stability for service delivery.
Sector Analysis
The professional and management development training sector is diverse, encompassing a wide range of services. Within this sector, specialized training like aviation simulation represents a niche market. The total federal spending on professional training is substantial, but specific benchmarks for virtual aviation simulation are not readily available without deeper analysis. This contract fits within the broader category of defense-related training services.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Pendaran Inc. suggests it is capable of handling this contract size, but the lack of a small business focus means opportunities for smaller firms in this specialized area may have been missed.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the justification for the sole-source award and the pricing structure would be key areas for oversight. Inspector General involvement would be contingent on any reported issues or audits.
Related Government Programs
- Defense Training Services
- Professional Development Programs
- Aviation Training Systems
- Virtual Simulation Technology
Risk Flags
- Lack of Competition
- Potential for Overpricing
- Limited Transparency
Tags
defense, department-of-defense, department-of-the-navy, definitive-contract, firm-fixed-price, sole-source, professional-training, aviation-simulation, florida, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.2 million to PENDARAN INC. VIRTUAL WORKPLACE AVIATION SIMULATION
Who is the contractor on this award?
The obligated recipient is PENDARAN 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 $2.2 million.
What is the period of performance?
Start: 2025-01-08. End: 2027-01-07.
What is Pendaran Inc.'s track record with federal contracts, particularly in simulation or training?
Pendaran Inc. has been awarded federal contracts, though specific details on their track record in aviation simulation or training are not provided in the summary data. A deeper dive into their contract history, past performance reviews, and any prior work in similar technological domains would be necessary to fully assess their capabilities and reliability for this specific requirement. Understanding their experience with government clients and their success in delivering complex training solutions is crucial for evaluating the risk associated with this award.
How does the $2.16 million value compare to similar virtual aviation simulation contracts?
Benchmarking this $2.16 million contract against similar virtual aviation simulation contracts is challenging without access to a broader dataset of comparable procurements. Factors such as the scope of training, the technology employed, the duration of the contract, and the specific aviation platforms simulated all influence cost. Given this contract was sole-sourced, direct comparison is difficult as competitive pressures that typically align pricing with market rates were absent. Further research into publicly available contract awards for similar simulation services, considering these variables, would be needed for a robust comparison.
What are the primary risks associated with a sole-source award for aviation simulation?
The primary risks associated with a sole-source award for aviation simulation include potential overpayment due to a lack of competitive pricing, limited innovation if the chosen vendor is not pushed by market competition, and vendor lock-in. There's also a risk that the government may not be aware of superior or more cost-effective solutions available from other providers. Ensuring robust contract management and performance monitoring becomes even more critical to mitigate these risks and ensure the government receives adequate value for its investment.
What is the expected effectiveness of the virtual workplace aviation simulation for the Department of the Navy?
The expected effectiveness of the virtual workplace aviation simulation hinges on the specific design and implementation of the training program by Pendaran Inc. Virtual simulation offers benefits such as cost savings on live training, enhanced safety by practicing in a risk-free environment, and the ability to replicate complex or rare scenarios. For the Department of the Navy, this could translate to improved pilot proficiency, reduced training accidents, and more efficient use of resources. The actual effectiveness will depend on the fidelity of the simulation, the curriculum, and how well it aligns with the Navy's operational requirements and training objectives.
What are historical spending patterns for aviation simulation training within the Department of Defense?
Historical spending patterns for aviation simulation training within the Department of Defense are substantial, reflecting the critical role of simulation in pilot training and mission rehearsal across various branches. The DoD consistently invests billions in training and simulation technologies to maintain readiness and enhance operational capabilities. Specific figures for aviation simulation vary year to year based on modernization efforts, new platform acquisitions, and evolving training doctrines. Analyzing past DoD budgets and contract awards for simulation systems and services would reveal trends in investment, technology adoption, and the types of training solutions procured.
Industry Classification
NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6852025R0003
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2790 PARKRIDGE DR, ANN ARBOR, MI, 48103
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,829,541
Exercised Options: $2,162,750
Current Obligation: $2,162,750
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-01-08
Current End Date: 2027-01-07
Potential End Date: 2030-01-07 00:00:00
Last Modified: 2026-01-07
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