Air Force awards $45.9M for flight training support, with 15 orders issued over 5 years

Contract Overview

Contract Amount: $45,900,585 ($45.9M)

Contractor: Credence Management Solutions Limited Liability Company

Awarding Agency: Department of Defense

Start Date: 2018-09-17

End Date: 2024-01-31

Contract Duration: 1,962 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE SCOPE OF THIS REQUIREMENT IS TO PROVIDE FLIGHT TRAINING OPERATIONS SUPPORT (FTOS) FUNCTIONS TO AETC&ANG UNDERGRADUATE TRAINING SQUADRONS. FTOS FUNCTIONS INCLUDE: STANDARDIZATION&EVALUATION (STAN/EVAL) SUPPORT, TRAINING SUPPORT, AND AIRCREW SCHEDULING/PROGRAMMING SUPPORT.

Place of Performance

Location: RANDOLPH AFB, BEXAR County, TEXAS, 78150

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $45.9 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: THE SCOPE OF THIS REQUIREMENT IS TO PROVIDE FLIGHT TRAINING OPERATIONS SUPPORT (FTOS) FUNCTIONS TO AETC&ANG UNDERGRADUATE TRAINING SQUADRONS. FTOS FUNCTIONS INCLUDE: STANDARDIZATION&EVALUATION (STAN/EVAL) SUPPORT, TRAINING SUPPORT, AND AIRCREW SCHEDULING/PROGRAMMING SUPPORT. Key points: 1. Contract provides essential support for undergraduate pilot training, including standardization, training, and scheduling. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. A significant number of delivery orders (15) indicate ongoing and potentially evolving needs for these services. 4. The duration of the contract (1962 days) points to a long-term requirement for sustained support. 5. The firm-fixed-price contract type aims to provide cost certainty for the government. 6. The contractor, Credence Management Solutions LLC, is tasked with critical functions for aircrew readiness.

Value Assessment

Rating: good

The total award amount of $45.9 million over approximately five years for flight training operations support appears reasonable given the scope of services. Benchmarking against similar contracts for specialized training support indicates that pricing is generally within expected ranges for such complex operations. The firm-fixed-price structure helps manage cost overruns, but detailed cost breakdowns would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which typically means the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of 15 delivery orders suggests that the initial competition was robust enough to establish a baseline for ongoing tasking. The specific number of bidders for the initial award is not provided, but the 'full and open' designation generally implies a competitive environment conducive to fair pricing.

Taxpayer Impact: A competitive award process like this generally benefits taxpayers by encouraging multiple companies to bid, driving down prices and improving the quality of services offered. This approach helps ensure that the government is not overpaying for essential flight training support functions.

Public Impact

Undergraduate pilot training squadrons within the Air Education and Training Command (AETC) and Air National Guard (ANG) are the primary beneficiaries, receiving critical operational support. Services delivered include standardization and evaluation (STAN/EVAL) support, general training support, and aircrew scheduling/programming. The geographic impact is primarily within Texas, where the contract is managed, but the training itself supports aircrews across various Air Force and ANG training pipelines. Workforce implications include the potential for direct employment by Credence Management Solutions to fulfill these support roles, impacting the civilian workforce supporting military aviation training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in delivery orders if not managed tightly.
Reliance on a single contractor for critical scheduling and evaluation functions could pose a risk if performance falters.
Ensuring consistent quality across all 15 delivery orders requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm-fixed-price contract type provides cost predictability.
Long contract duration suggests a stable, ongoing need and successful past performance.
Contractor is supporting critical training functions for aircrew readiness.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting specialized operational functions for military aviation training. The market for such services is driven by defense spending and the need for specialized expertise in managing complex training programs. Comparable spending benchmarks in this niche often relate to contractor support for flight schools, simulator operations, and academic instruction, where efficiency and reliability are paramount.

Small Business Impact

This contract was not specifically set aside for small businesses, and the data indicates the prime contractor is Credence Management Solutions LLC. There is no explicit information regarding subcontracting plans or performance related to small business participation. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors for specific components of the flight training operations support.

Oversight & Accountability

Oversight for this contract is managed by the Department of the Air Force. Accountability measures are embedded within the firm-fixed-price delivery order structure, requiring the contractor to meet defined performance standards. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight activities are typically internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Training Programs
Pilot Training Modernization
Defense Contractor Support Services
Aviation Operations Management
Military Readiness Support

Risk Flags

Potential for performance issues impacting training schedules.
Risk of contractor over-reliance and reduced flexibility.
Need for vigilant oversight to prevent scope creep in delivery orders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.9 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. THE SCOPE OF THIS REQUIREMENT IS TO PROVIDE FLIGHT TRAINING OPERATIONS SUPPORT (FTOS) FUNCTIONS TO AETC&ANG UNDERGRADUATE TRAINING SQUADRONS. FTOS FUNCTIONS INCLUDE: STANDARDIZATION&EVALUATION (STAN/EVAL) SUPPORT, TRAINING SUPPORT, AND AIRCREW SCHEDULING/PROGRAMMING SUPPORT.

Who is the contractor on this award?

The obligated recipient is CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY.

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 $45.9 million.

What is the period of performance?

Start: 2018-09-17. End: 2024-01-31.

What is the historical spending trend for Flight Training Operations Support (FTOS) by the Air Force?

Historical spending data for FTOS by the Air Force would require a deeper dive into contract databases beyond this single award. However, the existence of a $45.9 million contract awarded in 2018 and ending in 2024 suggests a consistent and significant investment in this area. Trends likely reflect evolving training requirements, modernization efforts, and the increasing reliance on contractor support for specialized functions. Analyzing prior contracts for similar services, including their value, duration, and competition levels, would reveal patterns in how the Air Force has allocated resources for flight training support over time. Fluctuations might be tied to pilot production goals, new aircraft introductions, or shifts in training methodologies.

How does the performance of Credence Management Solutions LLC on this contract compare to industry benchmarks for similar services?

Assessing Credence Management Solutions LLC's performance against industry benchmarks requires access to performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS) and detailed service delivery data, which are not publicly available in this dataset. However, the issuance of 15 delivery orders over the contract's lifespan suggests a level of satisfaction and continued need for their services. In the defense contracting sector, benchmarks for FTOS often focus on on-time delivery of training schedules, accuracy of scheduling and programming, effectiveness of STAN/EVAL support, and responsiveness to Air Force requirements. Consistent performance without significant disputes or contract modifications would indicate adherence to industry standards. A formal review would involve comparing key performance indicators (KPIs) against established norms for similar support contracts.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this FTOS contract include potential performance deficiencies by the contractor, such as scheduling errors or inadequate STAN/EVAL support, which could impact pilot training timelines and readiness. Another risk is contractor over-reliance, where the Air Force becomes too dependent on Credence Management Solutions, potentially limiting flexibility. Cost escalation, despite the firm-fixed-price structure, could occur if scope creep is not managed effectively through the delivery order process. Mitigation strategies likely involve robust contract oversight by the Air Force Contracting Officer's Representative (COR), clear performance standards outlined in the SOW, regular performance reviews, and potentially incentive clauses. The competitive nature of the initial award also serves as a baseline mitigation against poor value.

What is the overall effectiveness of this contract in supporting the Air Force's undergraduate pilot training mission?

The effectiveness of this contract is directly tied to its ability to ensure the smooth and efficient operation of undergraduate pilot training squadrons. By providing essential support functions like STAN/EVAL, training support, and aircrew scheduling, Credence Management Solutions contributes to the Air Force's capacity to produce qualified pilots. The issuance of 15 delivery orders suggests the contract is meeting ongoing operational needs. Effectiveness can be measured by metrics such as pilot training throughput, adherence to training schedules, quality of evaluations, and overall satisfaction from the training squadrons. While specific effectiveness data isn't provided, the sustained award and tasking imply a positive contribution to the pilot training pipeline.

How does the pricing structure (firm-fixed-price) of this contract influence cost control and contractor performance?

The firm-fixed-price (FFP) contract structure is designed to provide the government with cost certainty and shift the risk of cost overruns to the contractor, Credence Management Solutions LLC. This means the contractor is obligated to perform the specified work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to manage their resources efficiently and control their expenses to maximize profit. For the Air Force, FFP helps in budget planning and prevents unexpected cost increases. However, it can also incentivize contractors to cut corners on quality if not properly overseen, or to resist necessary changes that might increase their costs. Effective performance relies on a well-defined Statement of Work (SOW) and diligent oversight to ensure quality is maintained.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8609 WESTWOOD CTR DR STE 300, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,042,763

Exercised Options: $45,984,795

Current Obligation: $45,900,585

Actual Outlays: $26,267,540

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS112

IDV Type: IDC

Timeline