DoD's $34.2M Specialized Freight Contract with CAE USA Inc. for Aircraft Refueling Support
Contract Overview
Contract Amount: $34,247,167 ($34.2M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2008-10-01
End Date: 2017-05-31
Contract Duration: 3,164 days
Daily Burn Rate: $10.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: ALONGSIDE AIRCRAFT REFUELING AT NAS PENSACOLA AND NAS WHITING FIELD.
Place of Performance
Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $34.2 million to CAE USA INC. for work described as: ALONGSIDE AIRCRAFT REFUELING AT NAS PENSACOLA AND NAS WHITING FIELD. Key points: 1. Contract awarded to CAE USA Inc. for specialized freight services, primarily supporting aircraft refueling operations. 2. The contract spanned nearly nine years, indicating a long-term need for these services. 3. Despite a large dollar value, the contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The absence of small business participation is noted, which may warrant further investigation into market accessibility.
Value Assessment
Rating: fair
The contract value of $34.2 million over 3164 days suggests a significant but potentially reasonable cost for specialized logistics. Benchmarking against similar specialized freight contracts for military support would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method likely fostered price discovery and ensured the government received competitive bids. The number of offers received (6) indicates a healthy level of interest from potential bidders.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely benefited from a fair market price for the specialized freight services.
Public Impact
Ensures critical refueling support for aircraft at naval air stations, maintaining operational readiness. Supports military aviation infrastructure by providing necessary logistical services. The long duration of the contract highlights a sustained requirement for these specialized transportation services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration may obscure current market pricing.
Positive Signals
- Awarded under full and open competition.
- Multiple offers received, indicating market interest.
Sector Analysis
This contract falls under specialized freight trucking, a niche within the broader transportation sector. Spending in this area is critical for military logistics and operational support, with benchmarks often tied to specific military equipment and operational tempo.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting. Further analysis could explore why small businesses were not involved or if opportunities were missed.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a standard procurement process. Oversight would focus on contract performance, delivery, and adherence to terms, particularly given the long duration.
Related Government Programs
- Specialized Freight (except Used Goods) Trucking, Local
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration may obscure current market value.
- No small business participation noted.
- Potential for price creep over the contract's extended period.
- Specificity of 'specialized freight' requires further definition for full understanding.
Tags
specialized-freight-except-used-goods-tr, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.2 million to CAE USA INC.. ALONGSIDE AIRCRAFT REFUELING AT NAS PENSACOLA AND NAS WHITING FIELD.
Who is the contractor on this award?
The obligated recipient is CAE USA INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $34.2 million.
What is the period of performance?
Start: 2008-10-01. End: 2017-05-31.
What was the specific nature of the 'specialized freight' and why was it critical for aircraft refueling operations?
The 'specialized freight' likely refers to the transportation of specific equipment, parts, or fluids essential for aircraft refueling systems and operations at naval air stations. This could include specialized fuel additives, maintenance parts for refueling trucks, or even temporary deployment of refueling assets. Its criticality stems from ensuring the continuous and safe operation of aircraft, which is fundamental to naval aviation readiness and mission accomplishment.
Given the contract's duration (2008-2017), how can its pricing be assessed against current market rates for similar services?
Assessing the 2008-2017 contract's pricing against current rates is challenging due to market evolution and inflation. A comparative analysis would require identifying contemporary contracts for similar specialized freight services, adjusting for inflation using appropriate indices, and considering changes in fuel costs, labor rates, and regulatory environments over the past decade. Direct comparison is difficult without access to detailed historical pricing data and current market intelligence.
What factors contributed to the lack of small business participation in this significant contract?
The lack of small business participation could stem from several factors. The specialized nature of the freight, requiring specific certifications, equipment, or security clearances, might favor larger, established companies. Additionally, the contract's substantial value and long duration could be barriers for smaller firms unable to commit resources or meet bonding requirements. The government may also have specific requirements that inadvertently exclude smaller entities, necessitating a review of set-aside opportunities or subcontracting goals.
Industry Classification
NAICS: Transportation and Warehousing › Specialized Freight Trucking › Specialized Freight (except Used Goods) Trucking, Local
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SP060006R0507
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Trident Maritime Systems, Inc. (UEI: 164549151)
Address: 3320 W CAREFREE CIRCLE, COLORADO SPRINGS, CO, 80917
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,247,167
Exercised Options: $34,247,167
Current Obligation: $34,247,167
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2008-10-01
Current End Date: 2017-05-31
Potential End Date: 2017-05-31 00:00:00
Last Modified: 2017-11-14
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