Air Force awards $47.8M contract for advanced aircrew training, courseware development

Contract Overview

Contract Amount: $47,836,011 ($47.8M)

Contractor: KT Consulting, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-10-26

End Date: 2026-12-31

Contract Duration: 1,527 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACTOR SHALL FURNISH ALL PERSONNEL, EQUIPMENT, TOOLS, MATERIALS, SUPERVISION, REQUIRED TO PERFORM F-15E, F-16, F-22A CONTRACT AIRCREW TRAINING (CAT), COURSEWARE DEVELOPMENT (CWD) TO INCLUDE (IRC) INSTRUCTION, (DMO) AND (DMT).

Place of Performance

Location: GOLDSBORO, WAYNE County, NORTH CAROLINA, 27531

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $47.8 million to KT CONSULTING, INC. for work described as: CONTRACTOR SHALL FURNISH ALL PERSONNEL, EQUIPMENT, TOOLS, MATERIALS, SUPERVISION, REQUIRED TO PERFORM F-15E, F-16, F-22A CONTRACT AIRCREW TRAINING (CAT), COURSEWARE DEVELOPMENT (CWD) TO INCLUDE (IRC) INSTRUCTION, (DMO) AND (DMT). Key points: 1. Contract focuses on critical training for F-15E, F-16, and F-22A aircrews. 2. Includes development of courseware and instruction for mission-critical systems. 3. Awarded to KT Consulting, Inc., a single entity. 4. Contract duration extends through December 2026. 5. Represents a significant investment in maintaining air superiority. 6. Performance-based contract type suggests focus on measurable outcomes.

Value Assessment

Rating: good

The contract value of $47.8 million over approximately four years for specialized aircrew training and courseware development appears reasonable given the complexity and critical nature of the services. Benchmarking against similar advanced training contracts for fighter aircraft is challenging due to the specific platforms (F-15E, F-16, F-22A) and the inclusion of courseware development. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if managed effectively. The total award value is within expected ranges for such specialized defense training services.

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 initial solicitation may have had some restrictions, the final award was made after a competitive process. The presence of 6 bidders suggests a healthy level of competition for this specialized service. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive process with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from contractors.

Public Impact

Benefits elite U.S. Air Force aircrews operating advanced fighter jets. Delivers essential training and courseware for combat readiness. Enhances the operational capabilities of F-15E, F-16, and F-22A squadrons. Supports the technological edge of U.S. air power. Impacts the specialized workforce of aviation training and simulation professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements evolve significantly.
Dependence on contractor expertise for critical, high-stakes training.
Risk of obsolescence in courseware if not continuously updated.

Positive Signals

Focus on advanced platforms indicates a commitment to modernizing aircrew skills.
Firm fixed-price contract incentivizes cost control by the contractor.
Multiple bidders suggest a robust market for these specialized services.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on aerospace training and simulation services. The market for defense training is substantial, driven by the need to maintain proficiency on complex and expensive weapon systems. Companies like KT Consulting, Inc. operate in a niche requiring specialized technical knowledge and access to sophisticated training methodologies. Comparable spending benchmarks would likely be found in other contracts for pilot training, simulator maintenance, and advanced courseware development for military aviation.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the contractor, KT Consulting, Inc., is not explicitly identified as a small business in this context. There is no direct information on subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal unless KT Consulting, Inc. actively engages small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of the Air Force contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract type, requiring the contractor to deliver specified training and courseware. Transparency is generally maintained through contract awards databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircrew Training Services
Combat Systems Training
Defense Simulation and Training
Fighter Aircraft Maintenance Training
Aerospace Engineering Services

Risk Flags

Contract duration extends beyond typical annual appropriations cycles.
Firm Fixed Price contract type requires careful monitoring of performance metrics.
Specialized nature of training may limit contractor pool in future competitions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.8 million to KT CONSULTING, INC.. CONTRACTOR SHALL FURNISH ALL PERSONNEL, EQUIPMENT, TOOLS, MATERIALS, SUPERVISION, REQUIRED TO PERFORM F-15E, F-16, F-22A CONTRACT AIRCREW TRAINING (CAT), COURSEWARE DEVELOPMENT (CWD) TO INCLUDE (IRC) INSTRUCTION, (DMO) AND (DMT).

Who is the contractor on this award?

The obligated recipient is KT CONSULTING, 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 $47.8 million.

What is the period of performance?

Start: 2022-10-26. End: 2026-12-31.

What is KT Consulting, Inc.'s track record with similar Department of Defense training contracts?

While specific details on KT Consulting, Inc.'s past performance are not provided in this data snippet, their selection for this significant contract suggests a positive track record with the Department of Defense or relevant agencies. Typically, agencies evaluate past performance, including successful completion of similar training programs, adherence to schedules and budgets, and overall customer satisfaction, before awarding contracts of this magnitude. Further investigation into federal procurement databases like SAM.gov or FPDS would likely reveal prior contracts awarded to KT Consulting, Inc., their values, and performance ratings, providing a clearer picture of their experience in areas like aircrew training and courseware development for advanced fighter platforms.

How does the $47.8 million contract value compare to similar aircrew training programs for advanced fighter jets?

The $47.8 million contract value for training F-15E, F-16, and F-22A aircrews, including courseware development, is substantial but likely falls within the expected range for specialized, high-fidelity training programs for advanced military aircraft. Contracts for similar services can vary widely based on the specific aircraft, the duration of training, the level of simulation technology employed, and the inclusion of courseware development. For instance, training programs for newer platforms or those requiring extensive simulator hours and complex scenario development can easily reach tens of millions of dollars over several years. Without direct comparative data on contracts for the exact same platforms and service scope, it's difficult to provide a precise benchmark, but the awarded amount reflects the high cost associated with maintaining proficiency on these critical assets.

What are the primary risks associated with this contract for the Department of the Air Force?

The primary risks associated with this contract include potential cost overruns if the firm fixed-price structure is not managed effectively by the contractor, leading to potential budget challenges. There's also a risk of the training curriculum or courseware becoming outdated due to rapid technological advancements in aviation or evolving combat tactics, requiring costly updates. Performance risk exists if KT Consulting, Inc. fails to deliver the required training quality or meet performance metrics, potentially impacting aircrew readiness. Furthermore, a sole-source or limited competition scenario (though this was full and open) could pose risks, but with 6 bidders, the primary risks are more centered on execution, technological relevance, and contractor performance.

How effective is this contract likely to be in enhancing the combat readiness of aircrews?

This contract is likely to be highly effective in enhancing combat readiness, given its focus on critical training for advanced platforms like the F-15E, F-16, and F-22A. The inclusion of courseware development (CWD) alongside Contract Aircrew Training (CAT) suggests a comprehensive approach that ensures training materials are up-to-date and aligned with mission requirements. By providing specialized instruction (IRC), data mission operations (DMO), and data mission training (DMT), the contract addresses multiple facets of aircrew proficiency. The firm fixed-price nature, coupled with a competitive award, incentivizes the contractor to deliver high-quality, efficient training. Ultimately, the effectiveness will depend on the contractor's execution and the Air Force's ability to monitor performance and adapt training as needed.

What are the historical spending patterns for aircrew training and courseware development within the Department of Defense?

Historical spending patterns for aircrew training and courseware development within the Department of Defense are substantial and consistently high, reflecting the ongoing need to maintain proficiency on a vast array of aircraft and weapon systems. The DoD allocates billions annually across various branches for training, simulation, and education. Spending on fighter aircraft training, in particular, represents a significant portion due to the complexity and operational tempo of these platforms. Contracts for courseware development are often bundled with training delivery, as seen in this award, or procured separately. Over the past decade, there has been a trend towards increased use of advanced simulation technologies and virtual training environments to improve effectiveness and reduce costs compared to live-flight training, driving consistent investment in this area.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4435 E CHANDLER BLVD STE 130, PHOENIX, AZ, 85048

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $63,130,869

Exercised Options: $50,135,981

Current Obligation: $47,836,011

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS322

IDV Type: IDC

Timeline