DoD's $25.3M Flight Training Contract with C2 Technologies Raises Questions on Value and Competition

Contract Overview

Contract Amount: $25,314,798 ($25.3M)

Contractor: C2 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-07-30

End Date: 2008-09-30

Contract Duration: 1,523 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85707

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $25.3 million to C2 TECHNOLOGIES, INC. for work described as: Key points: 1. The contract awarded to C2 Technologies, Inc. for Flight Training represents a significant investment. 2. The procurement method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggests potential limitations in the competitive landscape. 3. The duration of the contract (over 4 years) and its value warrant scrutiny regarding long-term cost-effectiveness. 4. The absence of small business participation is noted. 5. The sector is primarily focused on specialized training services within the Department of the Air Force.

Value Assessment

Rating: questionable

The contract's total value of $25.3 million over approximately 4 years for flight training services needs further benchmarking against similar DoD training programs. Without specific per-unit cost data or comparison to industry standards, assessing its value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while competition was sought, certain sources were excluded, potentially limiting the number of bidders and impacting price discovery. The rationale for exclusion needs to be understood.

Taxpayer Impact: The significant expenditure of taxpayer funds on this contract necessitates a thorough review to ensure it represents the best possible value and that competition, even if limited, was robust enough to secure fair pricing.

Public Impact

Taxpayers may be impacted by potentially higher costs due to limited competition. The effectiveness of the flight training provided is crucial for Air Force readiness. The exclusion of certain sources raises concerns about fairness and optimal resource allocation. The long-term implications for the flight training market within the DoD are unclear.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of small business participation
Potential for inflated pricing due to source exclusion

Positive Signals

Contract awarded to a specific company for a defined service
Clear start and end dates for the contract period

Sector Analysis

This contract falls within the specialized training services sector, specifically flight training for the Department of the Air Force. Benchmarking against other DoD training contracts is essential to understand if the pricing and terms are competitive within this niche.

Small Business Impact

The data indicates that small businesses did not participate in this contract (ss=false, sb=false). This suggests that the contract may have been structured in a way that favored larger entities or that opportunities for small businesses in this specific training area were not pursued.

Oversight & Accountability

Oversight is crucial to ensure that the Department of the Air Force is receiving effective flight training services at a fair price, especially given the limited competition. Regular performance reviews and cost audits would be appropriate.

Related Government Programs

Flight Training
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Limited competition
Lack of small business participation
Potential for non-competitive pricing
Long contract duration may obscure current market value
Justification for source exclusion requires scrutiny

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.3 million to C2 TECHNOLOGIES, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is C2 TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $25.3 million.

What is the period of performance?

Start: 2004-07-30. End: 2008-09-30.

What was the specific justification for excluding certain sources from this full and open competition, and how did this exclusion impact the final contract price?

The justification for excluding sources is critical for understanding the competitive landscape. If exclusions were based on specific capabilities or security requirements, it might be warranted. However, if arbitrary, it could lead to reduced competition and potentially higher prices, diminishing the value for taxpayers. A thorough review of the exclusion rationale is needed to ensure fairness and cost-effectiveness.

How does the per-unit cost of this flight training compare to similar contracts awarded by the DoD or other government agencies, considering the specific training requirements?

Benchmarking the per-unit cost against comparable flight training contracts is essential for assessing value. Differences in training complexity, aircraft used, instructor qualifications, and duration can influence costs. Without this comparative analysis, it's difficult to determine if the $25.3 million expenditure represents a fair market price or if potential cost savings were missed due to the procurement method.

What are the key performance indicators (KPIs) for this flight training contract, and how has C2 Technologies, Inc. performed against them to ensure effectiveness and justify the investment?

Effective oversight requires clear KPIs to measure the success of the flight training. These might include student pass rates, instructor proficiency, aircraft availability, and adherence to training schedules. Regular performance reviews against these KPIs are vital to ensure the DoD is receiving the intended benefits and that the $25.3 million investment is yielding effective results for pilot readiness.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Flight Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 1921 GALLOWS RD STE 840, VIENNA, VA, 11

Business Categories: Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline