Air Force awards $97.7M for MQ-1 Predator training, highlighting a significant investment in aircrew readiness
Contract Overview
Contract Amount: $97,659,993 ($97.7M)
Contractor: Crew Training International, Inc
Awarding Agency: Department of Defense
Start Date: 2008-07-30
End Date: 2013-09-30
Contract Duration: 1,888 days
Daily Burn Rate: $51.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MQ-1: PHASE-IN FOR CREECH AFB
Place of Performance
Location: INDIAN SPRINGS, CLARK County, NEVADA, 89018
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $97.7 million to CREW TRAINING INTERNATIONAL, INC for work described as: MQ-1: PHASE-IN FOR CREECH AFB Key points: 1. Value for money appears reasonable given the specialized nature of MQ-1 Predator training. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Contract duration of over 5 years indicates a long-term need for these training services. 4. The contract's performance period spans a critical era for drone operations. 5. This contract positions the Air Force to maintain a skilled MQ-1 operator workforce.
Value Assessment
Rating: good
Benchmarking the value for this specific MQ-1 Predator training contract is challenging due to its specialized nature and the limited availability of comparable public data. However, the firm-fixed-price structure generally favors cost control for the government. The award amount of $97.7 million over approximately five years suggests a substantial but potentially justified investment in maintaining critical aircrew skills for a key unmanned aerial system.
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,' indicating that while the competition was open, specific sources may have been excluded based on pre-defined criteria. The presence of 8 bidders suggests a reasonably competitive environment, which typically helps in achieving fair market pricing. The exclusion of certain sources warrants further examination to understand its impact on the breadth of competition.
Taxpayer Impact: The competitive nature of this award, despite source exclusions, likely resulted in a more favorable price for taxpayers than a sole-source or limited competition scenario would have.
Public Impact
Benefits aircrew personnel by providing essential training for operating the MQ-1 Predator. Ensures the continued operational readiness of Air Force units utilizing the MQ-1. The training services are likely delivered at Creech Air Force Base, Nevada, impacting the local workforce. Supports the broader mission of intelligence, surveillance, and reconnaissance (ISR) capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if excluded sources were critical for specialized training components.
- Risk of cost overruns if training requirements evolve significantly beyond the initial scope.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Multiple bidders indicate a healthy market for MQ-1 training services.
- Long contract duration allows for stable planning and execution of training programs.
Sector Analysis
This contract falls within the broader aerospace and defense training sector, specifically focusing on unmanned aerial systems (UAS). The market for UAS training is growing as these platforms become increasingly integral to military operations. Comparable spending benchmarks would typically involve other large-scale training contracts for advanced military platforms, which often run into tens or hundreds of millions of dollars.
Small Business Impact
The provided data does not indicate any specific small business set-asides for this contract. Given the specialized nature of MQ-1 training, it is possible that larger, more specialized defense contractors were the primary participants. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The contract is subject to standard Department of Defense oversight mechanisms. Accountability is managed through performance metrics outlined in the contract and the firm-fixed-price structure. Transparency is generally maintained through federal procurement databases, though specific details of the 'exclusion of sources' may not be publicly elaborated.
Related Government Programs
- MQ-1 Predator operations and maintenance
- Unmanned Aerial System (UAS) training programs
- Air Force flight training contracts
- Defense contractor training services
Risk Flags
- Competition level may be impacted by source exclusions.
- Long-term contract duration requires ongoing performance monitoring.
- Potential for evolving training needs due to technological advancements.
Tags
defense, department-of-defense, air-force, flight-training, unmanned-aerial-systems, mq-1-predator, firm-fixed-price, full-and-open-competition, nevada, crew-training-international-inc, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $97.7 million to CREW TRAINING INTERNATIONAL, INC. MQ-1: PHASE-IN FOR CREECH AFB
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 $97.7 million.
What is the period of performance?
Start: 2008-07-30. End: 2013-09-30.
What was the specific rationale for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?
The rationale for excluding specific sources in a 'Full and Open Competition After Exclusion of Sources' award typically relates to ensuring that only qualified and capable vendors participate. This could be due to requirements for highly specialized knowledge, proprietary technology, existing security clearances, or prior performance issues with certain entities. For MQ-1 Predator training, it's plausible that only contractors with demonstrated expertise in operating and training on this specific platform, or those holding necessary security accreditations, were deemed eligible. The exclusion aims to streamline the competition to the most viable candidates, potentially leading to a more efficient award process, but it also narrows the competitive pool, which could impact price discovery.
How does the $97.7 million contract value compare to other flight training contracts within the Department of Defense?
The $97.7 million contract value for MQ-1 Predator training is substantial, reflecting the complexity and criticality of operating advanced unmanned aerial systems. When compared to other flight training contracts within the Department of Defense, this figure is within the expected range for large-scale, long-term training initiatives. For instance, training programs for fighter pilots or bomber crews often involve similar or higher expenditures due to the advanced aircraft, extensive simulator hours, and instructor expertise required. While specific dollar amounts for comparable contracts vary widely based on platform, duration, and scope, this award indicates a significant and sustained investment in maintaining the proficiency of MQ-1 operators, aligning with the platform's ongoing role in military operations.
What are the primary risks associated with a long-term training contract like this, and how are they mitigated?
Primary risks associated with long-term training contracts include scope creep, technological obsolescence, and potential cost overruns if not managed effectively. For the MQ-1 Predator training, risks might involve changes in Air Force doctrine, the introduction of newer drone technologies that supersede the MQ-1, or unforeseen increases in operational costs for the contractor. Mitigation strategies often include robust contract management, clear performance metrics, and change control processes. The firm-fixed-price structure helps mitigate cost overrun risks for the government, as the contractor assumes more financial responsibility. Regular performance reviews and open communication channels between the Air Force and Crew Training International, Inc. are crucial for addressing evolving needs and potential issues proactively.
What is the historical spending pattern for MQ-1 Predator training services by the Department of Defense?
Historical spending on MQ-1 Predator training services by the Department of Defense has likely been consistent, reflecting the platform's extended operational life and its importance in ISR missions. While specific historical data for this exact contract is not provided, the award in 2008 for a period extending to 2013 suggests a continuous need for such training. The total value of $97.7 million over approximately five years indicates an average annual expenditure of roughly $19.5 million. This level of investment is typical for specialized military training programs that require dedicated instructors, simulators, and curriculum development. Spending patterns would likely correlate with the operational tempo and strategic importance of the MQ-1 during the contract period.
How does the performance of Crew Training International, Inc. on this contract inform future contracting decisions?
The performance of Crew Training International, Inc. on this $97.7 million MQ-1 Predator training contract would significantly inform future contracting decisions. Positive performance, characterized by meeting training objectives, adhering to schedules, maintaining high-quality instruction, and managing costs effectively, would position the company favorably for follow-on contracts or similar opportunities. Conversely, any performance deficiencies, such as missed training deadlines, subpar instruction, or cost issues, would be documented and could lead to reduced competitiveness in future bids. Agencies typically maintain contractor performance assessment reports (CPARs) that are crucial for source selection in subsequent procurements, ensuring that contracts are awarded to reliable and capable providers.
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: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9198 CRESTWYN HILLS DR, MEMPHIS, TN, 09
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $98,004,818
Exercised Options: $97,673,024
Current Obligation: $97,659,993
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-07-30
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2014-08-12
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