DoD's $949M Contract for Crew Training Services Awarded to CREW TRAINING INTERNATIONAL, INC
Contract Overview
Contract Amount: $25,328,974 ($25.3M)
Contractor: Crew Training International, Inc
Awarding Agency: Department of Defense
Start Date: 2004-06-23
End Date: 2009-09-30
Contract Duration: 1,925 days
Daily Burn Rate: $13.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200409!000181!5700!AC42 !ACC CONS/CC !FA489004C0008 !A!N! !Y! ! !20040623!20040930!948992409!948992409!948992409!N!CREW TRAINING INTERNATIONAL, I!9198 CRESTWYN HILLS DRIVE !MEMPHIS !TN!38125!35875!153!31!OFFUTT AFB !SARPY !NEBRASKA !+000000298146!N!N!000000298146!U009!EDUCATION SERVICES !S1 !SERVICES !000 !* !611512!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!006!K! !C!N!Z! ! !Y!B!N!N! ! !A! !B!A!00 !A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $25.3 million to CREW TRAINING INTERNATIONAL, INC for work described as: 200409!000181!5700!AC42 !ACC CONS/CC !FA489004C0008 !A!N! !Y! ! !20040623!20040930!948992409!948992409!948992409!N!CREW TRAINING INTERNATIONAL, I!9198 CRESTWYN HILLS DRIVE !MEMPHIS !TN!38125!35875!153!31!OFFUTT AFB !SARP… Key points: 1. The contract value is substantial at $949 million, indicating a significant investment in crew training. 2. Competition was full and open after exclusion of sources, suggesting a deliberate but potentially limited bidding process. 3. The fixed-price contract type may shift some risk to the contractor, but the long duration could introduce cost escalation concerns. 4. The sector is primarily IT/Education Services, focusing on specialized flight training.
Value Assessment
Rating: good
The contract value of $949 million for flight training services appears to be within a reasonable range for large-scale, long-term government training programs. Benchmarking against similar large-scale training contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This method implies that while the competition was intended to be broad, specific criteria or exclusions were applied, potentially limiting the pool of eligible bidders and impacting price discovery.
Taxpayer Impact: The use of full and open competition, even with exclusions, aims to secure the best value for taxpayers. However, the specifics of the exclusion could warrant further review to ensure maximum competition was achieved.
Public Impact
Ensures readiness and proficiency for military aircrews through specialized training. Supports advanced aviation technology and operational effectiveness. Potential for job creation and economic impact in the Memphis, TN area where the contractor is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to long contract duration (over 5 years).
- Limited competition due to 'exclusion of sources' could impact final price.
- Dependence on a single contractor for critical training services.
Positive Signals
- Firm Fixed Price contract type provides cost certainty for the government.
- Long-term contract ensures continuity of essential training services.
- Award to a specific company suggests specialized capabilities.
Sector Analysis
This contract falls within the Education Services sector, specifically focusing on flight training for aircrews. Government spending in this area is crucial for maintaining military readiness and operational capabilities, often involving significant investments in specialized simulators and instruction.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The primary awardee is CREW TRAINING INTERNATIONAL, INC., and further analysis would be needed to determine their small business status or any subcontracting opportunities for small businesses.
Oversight & Accountability
The contract was awarded by the Department of Defense, specifically the Department of the Air Force. Oversight would typically involve program managers and contracting officers ensuring performance and compliance with contract terms. The long duration necessitates ongoing monitoring.
Related Government Programs
- Flight Training
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for limited competition due to source exclusion.
- Long contract duration increases risk of cost escalation or performance issues.
- Dependence on a single contractor for critical training.
- Lack of explicit small business set-aside information.
Tags
flight-training, department-of-defense, ne, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.3 million to CREW TRAINING INTERNATIONAL, INC. 200409!000181!5700!AC42 !ACC CONS/CC !FA489004C0008 !A!N! !Y! ! !20040623!20040930!948992409!948992409!948992409!N!CREW TRAINING INTERNATIONAL, I!9198 CRESTWYN HILLS DRIVE !MEMPHIS !TN!38125!35875!153!31!OFFUTT AFB !SARPY !NEBRASKA !+000000298146!N!N!000000298146!U009!EDUCATION SERVICES !S1 !SERVICES !000 !* !611512!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is CREW TRAINING INTERNATIONAL, 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: 2004-06-23. End: 2009-09-30.
What specific criteria led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' award, and how did this impact the final price?
The specific criteria for excluding sources are not detailed in the provided data. This exclusion method suggests that while the competition was intended to be open, only bidders meeting particular requirements were considered. This could potentially limit the number of competing firms, which might influence the final negotiated price. A deeper dive into the solicitation documents would be necessary to understand the exact exclusions and their pricing implications.
Given the 5-year duration, what mechanisms are in place to mitigate the risk of cost escalation or contractor performance degradation over time?
As a Firm Fixed Price contract, the primary mechanism to mitigate cost escalation is the contractor's assumption of risk. However, for long-term contracts, mechanisms like economic price adjustment clauses (if applicable and not explicitly excluded) or robust performance monitoring by the government are crucial. Regular performance reviews and clear deliverables are essential to ensure the contractor maintains quality and efficiency throughout the contract's life.
How does this $949 million investment in crew training align with current Air Force modernization efforts and projected future operational needs?
This significant investment likely supports the Air Force's need to train aircrews on existing and emerging platforms, ensuring they are proficient with advanced technologies and evolving mission requirements. The contract's focus on flight training suggests it's integral to maintaining operational readiness and adapting to the complexities of modern air warfare, potentially including training for new aircraft or advanced combat systems.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9198 CRESTWYN HILLS DRIVE, MEMPHIS, TN, 09
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-06-23
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2012-08-08
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