DoD awards $32.4M contract for JPATS modernization, with FlightSafety Defense Corporation as sole provider

Contract Overview

Contract Amount: $32,431,268 ($32.4M)

Contractor: Flightsafety Defense Corporation

Awarding Agency: Department of Defense

Start Date: 2016-12-19

End Date: 2021-12-31

Contract Duration: 1,838 days

Daily Burn Rate: $17.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: JPATS MODERNIZATION FOR THE AIR FORCE AND NAVY SYSTEMS.

Place of Performance

Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to FLIGHTSAFETY DEFENSE CORPORATION for work described as: JPATS MODERNIZATION FOR THE AIR FORCE AND NAVY SYSTEMS. Key points: 1. Contract awarded on a sole-source basis, raising questions about price competitiveness. 2. Significant duration of 1838 days suggests a long-term need for modernization. 3. The contract falls under the 'Other Commercial and Service Industry Machinery Manufacturing' NAICS code. 4. No small business set-aside was utilized, indicating potential missed opportunities for smaller firms. 5. The firm fixed-price contract type aims to control costs, but sole-source nature limits negotiation leverage.

Value Assessment

Rating: questionable

Benchmarking the value of this $32.4 million contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value or if taxpayers received the best possible deal. The lack of competition suggests potential for inflated costs compared to a scenario with multiple bidders vying for the contract. Further analysis would require access to cost breakdowns and comparisons with similar modernization efforts in the defense sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, FlightSafety Defense Corporation, was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple companies submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they inherently limit price discovery and can lead to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding environment. The government had limited leverage to negotiate the best possible price.

Public Impact

The primary beneficiaries are the U.S. Air Force and Navy, who will receive modernized JPATS systems. This contract supports the delivery of advanced training systems crucial for pilot proficiency. The geographic impact is primarily within the United States, where the contractor operates and training will be implemented. Workforce implications include potential job creation or retention at FlightSafety Defense Corporation and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of small business participation may exclude innovative smaller firms from contributing.
Long contract duration could lead to cost overruns if not managed effectively.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Modernization of JPATS systems is critical for national defense readiness.
Contract awarded to a known entity, potentially ensuring continuity and expertise.

Sector Analysis

The defense industry is characterized by high-value, complex contracts often awarded through specialized procurement processes. Modernization efforts for training systems like JPATS are critical for maintaining technological superiority and operational readiness. Comparable spending in this sector involves significant investments in simulation, training, and aviation technology, with major defense contractors often dominating the market.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for them based on the provided data. This means that opportunities for small businesses to participate in this significant defense contract were likely limited. The absence of a small business focus could mean that the government did not leverage the innovation and specialized capabilities that small businesses often bring to the market.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the firm fixed-price structure, which places cost risk on the contractor. Transparency is generally limited for sole-source awards, but contract modifications and performance reports would be subject to internal government review and potentially Inspector General oversight.

Related Government Programs

JPATS Training Systems
Air Force Training Programs
Navy Aviation Training
Defense Simulation and Training

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to FLIGHTSAFETY DEFENSE CORPORATION. JPATS MODERNIZATION FOR THE AIR FORCE AND NAVY SYSTEMS.

Who is the contractor on this award?

The obligated recipient is FLIGHTSAFETY DEFENSE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $32.4 million.

What is the period of performance?

Start: 2016-12-19. End: 2021-12-31.

What is the specific nature of the JPATS modernization being undertaken, and what are the expected performance improvements?

The Joint Primary Aircraft Training System (JPATS) modernization aims to update and enhance the training capabilities for pilots across the Air Force and Navy. While specific details of the modernization are not publicly available in this data, it generally involves upgrading simulation hardware and software, improving fidelity, and potentially integrating new training methodologies. Expected performance improvements typically include more realistic training scenarios, enhanced instructor capabilities, reduced training time, and ultimately, better-prepared aviators. The $32.4 million contract value suggests a substantial overhaul or significant upgrade to the existing systems.

Why was this contract awarded on a sole-source basis, and what are the implications for cost?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's needs. This could be due to proprietary technology, unique expertise, or a lack of viable alternatives. For this JPATS modernization contract, FlightSafety Defense Corporation may possess unique intellectual property or specialized knowledge essential for the upgrade. The implication for cost is significant: without competition, the government has less leverage to negotiate prices, potentially leading to higher expenditures than if multiple bids were solicited. This necessitates rigorous cost analysis and oversight by the contracting agency to ensure fair pricing.

What is FlightSafety Defense Corporation's track record with similar defense contracts, particularly in aviation training systems?

FlightSafety Defense Corporation, a subsidiary of FlightSafety International, has a well-established track record in providing aviation training solutions and simulation technologies to military and commercial clients. They are known for developing and maintaining advanced flight simulators and training devices. Their experience with various aircraft platforms and training systems suggests a strong capability to undertake the JPATS modernization. While specific contract performance details are not provided here, their long-standing presence in the defense training sector indicates a level of expertise and reliability that likely influenced the sole-source decision.

How does this $32.4 million contract compare to historical spending on JPATS modernization or similar training system upgrades?

Comparing this $32.4 million contract to historical spending requires access to detailed historical procurement data for JPATS and similar defense training systems. However, the figure represents a substantial investment, indicative of a significant modernization effort rather than routine maintenance. Defense training systems are complex and costly to develop and upgrade, often involving multi-year efforts. This contract's value suggests it is a major project, potentially representing a significant portion of the annual budget allocated for JPATS modernization or a one-time capital investment for a critical upgrade.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

Sole-source contracts of this magnitude ($32.4 million) and duration (1838 days, approximately 5 years) carry inherent risks. The primary risk is the lack of competitive pressure, which can lead to inflated costs and reduced incentive for the contractor to innovate or perform efficiently. There's also a risk of vendor lock-in, making it difficult to switch providers or adopt alternative solutions in the future. Furthermore, long-term contracts can be susceptible to scope creep, schedule delays, and cost overruns if not meticulously managed and overseen by the government. Ensuring robust contract management and performance monitoring is crucial to mitigate these risks.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W900KK16R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Berkshire Hathaway Inc. (UEI: 001024314)

Address: 6755 YAMPA ST, DENVER, CO, 80249

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,971,640

Exercised Options: $32,431,268

Current Obligation: $32,431,268

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline