DoD Awards $26M for Flight Training Center Facility to CAE USA Inc. Under Sole-Source Contract
Contract Overview
Contract Amount: $26,019,860 ($26.0M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2013-03-12
End Date: 2022-03-09
Contract Duration: 3,284 days
Daily Burn Rate: $7.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF 2-BAY FLIGHT TRAINING CENTER FACILITY
Plain-Language Summary
Department of Defense obligated $26.0 million to CAE USA INC. for work described as: IGF::OT::IGF 2-BAY FLIGHT TRAINING CENTER FACILITY Key points: 1. Significant investment in specialized training infrastructure. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (9 years) suggests a substantial, ongoing need. 4. Construction sector spending benchmark is relevant for assessing value.
Value Assessment
Rating: questionable
The contract value of $26 million over 9 years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar construction projects for training facilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition for a $26 million contract could lead to suboptimal pricing, impacting taxpayer value.
Public Impact
Pilots and aircrew will receive advanced training, enhancing military readiness. The facility supports the development and maintenance of critical aviation skills. Local economy may benefit from construction and operational activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Potential for cost overruns
Positive Signals
- Supports critical military training needs
- Long-term facility development
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project scope and location; benchmarking against similar military training facility constructions is key.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract award, as the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities were available.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure the contractor is delivering on requirements and that costs remain justified throughout the contract's duration.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Long contract duration increases risk exposure
- Limited transparency on cost justification
- No small business participation noted
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.0 million to CAE USA INC.. IGF::OT::IGF 2-BAY FLIGHT TRAINING CENTER FACILITY
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 Army).
What is the total obligated amount?
The obligated amount is $26.0 million.
What is the period of performance?
Start: 2013-03-12. End: 2022-03-09.
What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without specific documentation, it's presumed the Army determined that only CAE USA Inc. could meet the specialized requirements for this flight training center facility, potentially due to proprietary technology or existing infrastructure integration.
How does the cost per square foot or per training hour compare to industry benchmarks for similar facilities, given the sole-source nature?
Assessing the cost-effectiveness is challenging due to the sole-source award. A thorough review would involve comparing the contract's unit costs (if discernible) against industry benchmarks for similar military training facilities, factoring in specialized equipment and construction complexity. The lack of competition makes it difficult to ascertain if the price achieved represents optimal value.
What measures are in place to ensure the effectiveness and efficiency of the training provided under this long-term contract?
Effectiveness is likely measured through pilot proficiency metrics and mission-readiness rates. Efficiency would be monitored via performance reviews and adherence to the contract's scope and schedule. Given the long duration, periodic reviews and potential contract modifications would be crucial to ensure the training remains relevant and cost-effective.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912ER12R0051
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CAE Inc
Address: 4908 TAMPA W BLVD, TAMPA, FL, 33634
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: $26,019,860
Exercised Options: $26,019,860
Current Obligation: $26,019,860
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $17,088,709
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-03-12
Current End Date: 2022-03-09
Potential End Date: 2022-03-09 00:00:00
Last Modified: 2022-05-05
More Contracts from CAE USA Inc.
- F-16 Training Simulators — $741.0M (Department of Defense)
- F-16 MTC Follow-On — $624.9M (Department of Defense)
- Other Aircraft Part and Auxiliary Equipment Manufacturing — $545.3M (Department of Defense)
- Federal Contract — $486.1M (Department of Defense)
- C-130H Aircrew Training System — $330.6M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)