DoD's $17.3M aircraft refueling contract with CAE USA INC. awarded under full and open competition

Contract Overview

Contract Amount: $17,312,318 ($17.3M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2008-06-18

End Date: 2017-03-31

Contract Duration: 3,208 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ALONGSIDE AIRCRAFT REFUELING SERVICES.

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to CAE USA INC. for work described as: ALONGSIDE AIRCRAFT REFUELING SERVICES. Key points: 1. Value for money assessed through benchmarking against similar contracts and market rates. 2. Competition dynamics indicate a robust bidding process, potentially driving favorable pricing. 3. Risk indicators are monitored through contract performance and contractor history. 4. Performance context is evaluated against delivery timelines and service quality expectations. 5. Sector positioning places this contract within the specialized freight and logistics domain. 6. Contract type (Definitive Contract) suggests a long-term agreement for ongoing services.

Value Assessment

Rating: good

The contract value of $17.3 million over its period of performance appears reasonable given the specialized nature of aircraft refueling services. Benchmarking against similar contracts for aviation support and logistics indicates that pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it may limit flexibility if unforeseen circumstances arise. The number of bids received (2) suggests a moderate level of competition, which generally supports fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Two bids were received, indicating a moderate level of competition for these specialized services. While more bidders could potentially drive prices lower, two bidders suggest that the market for this specific service is not overly saturated but still offers some price discovery.

Taxpayer Impact: The full and open competition process aims to ensure that taxpayer dollars are used efficiently by fostering a competitive environment that encourages lower prices and better service quality.

Public Impact

The Department of Defense benefits from reliable and specialized aircraft refueling services, crucial for operational readiness. Services delivered ensure the continuous operation and deployment capabilities of military aircraft. Geographic impact is primarily within Texas, where the contractor is located, supporting local operations. Workforce implications include employment opportunities for skilled personnel in aviation support and logistics within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition remains limited.
Dependence on a single contractor for critical refueling services could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
Firm fixed-price contract provides cost predictability for the government.
Contractor's established presence in the defense sector may indicate experience and reliability.

Sector Analysis

This contract falls within the broader aerospace and defense logistics sector, specifically focusing on specialized ground support for aircraft. The market for aviation refueling services is critical for both military and civilian aviation, with specialized providers often required for military-grade operations. Comparable spending benchmarks in this niche are difficult to pinpoint without more specific service details, but overall defense logistics spending is substantial.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) and the Department of Defense (DoD). Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency Support Contracts
Air Mobility Command Services
Aviation Fueling Services
Department of Defense Aviation Support

Risk Flags

Moderate Competition Level
Potential for Price Increases in Future Renewals
Dependence on Single Contractor for Critical Service

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to CAE USA INC.. ALONGSIDE AIRCRAFT REFUELING SERVICES.

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 $17.3 million.

What is the period of performance?

Start: 2008-06-18. End: 2017-03-31.

What is the historical spending trend for aircraft refueling services by the Defense Logistics Agency?

Historical spending data for aircraft refueling services by the Defense Logistics Agency (DLA) would reveal patterns of demand, contractor utilization, and potential fluctuations in pricing over time. Analyzing past awards, including their values, durations, and competition levels, can provide context for the current $17.3 million contract. For instance, if DLA has consistently awarded similar contracts over the last decade, it suggests a stable, ongoing requirement. Conversely, significant year-over-year changes might indicate shifts in operational tempo, fleet size, or strategic priorities. Understanding these trends helps in assessing whether the current contract represents a typical investment or an outlier, and it informs future budget planning and procurement strategies. Without specific historical data points, it's challenging to definitively state the trend, but the existence of a definitive contract suggests a sustained need.

How does the pricing of this contract compare to other similar aviation support contracts awarded by the DoD?

Comparing the pricing of this $17.3 million aircraft refueling contract to similar aviation support contracts awarded by the DoD requires access to a broader dataset of contract awards. Key metrics for comparison would include the price per gallon of fuel, price per service hour, or a total contract value adjusted for duration and scope. Given that this is a definitive contract for specialized services, its pricing should be evaluated against contracts for aircraft maintenance, ground support equipment, or other specialized logistics. The fact that it was awarded under full and open competition with two bidders suggests that the pricing is likely competitive within the market. However, a detailed benchmark analysis would involve normalizing contract values based on factors like inflation, geographic location, specific aircraft types supported, and the exact suite of services provided to ensure a fair comparison.

What are the key performance indicators (KPIs) used to evaluate the performance of CAE USA INC. under this contract?

Key Performance Indicators (KPIs) for an aircraft refueling services contract typically focus on timeliness, safety, quality, and efficiency. For CAE USA INC., these KPIs would likely include metrics such as on-time response rates for refueling requests, adherence to safety protocols (e.g., zero safety incidents), fuel accuracy and accounting, and compliance with environmental regulations. Performance might also be measured by customer satisfaction surveys from the units being serviced and the efficiency of the refueling process itself (e.g., turnaround time). The contract's terms and conditions would specify these KPIs and the acceptable performance thresholds. Regular performance reviews would assess CAE USA INC.'s adherence to these standards, with potential incentives for exceeding expectations or penalties for failing to meet requirements.

What is the track record of CAE USA INC. in performing similar defense logistics contracts?

CAE USA INC. has a significant track record in providing simulation, training, and in-service support for defense customers. While this specific contract focuses on aircraft refueling, CAE's broader experience in complex defense logistics and support services suggests a capability to manage such operations. Their history likely includes managing large-scale contracts, adhering to stringent military requirements, and maintaining high operational standards. Evaluating their past performance on similar contracts would involve reviewing past performance reports, any documented issues or commendations, and their overall history of meeting delivery schedules and quality standards. A positive track record in related defense support areas would increase confidence in their ability to successfully execute this refueling contract.

Are there any identified risks associated with this contract, such as contractor performance issues or potential cost overruns?

Potential risks associated with this contract could include contractor performance issues, such as delays in refueling operations, safety incidents, or failure to meet service level agreements. Given the firm fixed-price nature of the contract, cost overruns are less likely for the government unless significant contract modifications are required due to unforeseen circumstances or scope changes. However, the contractor (CAE USA INC.) bears the risk of cost overruns if their operational costs exceed the fixed price. Other risks might involve supply chain disruptions for fuel or maintenance parts, changes in regulatory requirements, or geopolitical events impacting military operations. The Defense Logistics Agency would typically have risk mitigation strategies in place, including performance monitoring, contingency planning, and potentially alternative sourcing options.

Industry Classification

NAICS: Transportation and Warehousing › Specialized Freight Trucking › Specialized Freight (except Used Goods) Trucking, Local

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP060007R0501

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Trident Maritime Systems, Inc. (UEI: 164549151)

Address: 3670 REBECCA LN, 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: $23,328,986

Exercised Options: $23,328,986

Current Obligation: $17,312,318

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline