GSA's $35.4M contract for PC-based simulation trainers awarded to Raydon Corporation shows fair value

Contract Overview

Contract Amount: $35,401,719 ($35.4M)

Contractor: Raydon Corporation

Awarding Agency: General Services Administration

Start Date: 2008-09-26

End Date: 2011-03-30

Contract Duration: 915 days

Daily Burn Rate: $38.7K/day

Number of Offers Received: 5

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Defense

Official Description: PC BASED SIMULATION TRAINERS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $35.4 million to RAYDON CORPORATION for work described as: PC BASED SIMULATION TRAINERS Key points: 1. The contract demonstrates a reasonable price point for simulation training equipment. 2. Competition was limited, potentially impacting price discovery and taxpayer value. 3. The duration of the contract suggests a sustained need for these simulation capabilities. 4. Performance context is derived from the nature of simulation training, crucial for skill development. 5. This contract falls within the professional equipment and supplies sector for the government.

Value Assessment

Rating: good

The contract's total value of $35.4 million over approximately three years suggests a moderate annual spend. Benchmarking against similar PC-based simulation trainer contracts is challenging without more specific technical details. However, the award to Raydon Corporation, a known entity in this space, indicates a potentially competitive bid process that resulted in a fair market price. The absence of significant cost overruns or modifications further supports a 'good' value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed, but the number of bidders is not explicitly stated, only that there were 5 proposals received. This suggests a degree of competition, but it was not a full and open competition. Limited competition can sometimes lead to higher prices than a broader solicitation, as fewer vendors are incentivized to offer their most aggressive pricing. However, the presence of multiple proposals indicates that Raydon Corporation was selected from a pool of qualified offerors.

Taxpayer Impact: Limited competition means taxpayers may not have received the absolute lowest possible price. However, the selection from multiple proposals suggests a balance between cost and capability was achieved.

Public Impact

Military personnel and trainees benefit from realistic PC-based simulation for skill enhancement. Services delivered include the provision of advanced simulation training systems. The geographic impact is likely nationwide, supporting various military installations. Workforce implications include the need for skilled personnel to operate and maintain the trainers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully open solicitation.
The contract duration of over two years could lead to vendor lock-in if not managed carefully.
Lack of detailed performance metrics makes it difficult to fully assess effectiveness.

Positive Signals

Award to a known contractor suggests a level of trust and established capability.
The contract was competed, indicating an effort to solicit multiple offers.
The nature of simulation trainers points to a critical need for effective training solutions.

Sector Analysis

This contract falls within the broader category of professional equipment and supplies, specifically focusing on simulation and training technology. The market for defense and training simulation is significant, driven by the need for cost-effective and safe training environments. Comparable spending benchmarks would typically involve other government contracts for similar simulation systems, which are often tailored to specific military branches or training requirements. Raydon Corporation operates in a niche but vital segment of the defense industrial base.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it provide information on subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless Raydon Corporation engaged small businesses as subcontractors. Without further details on subcontracting, it's difficult to assess the broader implications for small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. Accountability measures are inherent in the contract terms, including delivery schedules and performance specifications. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Training Simulators
Defense Procurement
Professional Equipment and Supplies
Simulation Technology Contracts

Risk Flags

Limited Competition
Potential for Technological Obsolescence
Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $35.4 million to RAYDON CORPORATION. PC BASED SIMULATION TRAINERS

Who is the contractor on this award?

The obligated recipient is RAYDON CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $35.4 million.

What is the period of performance?

Start: 2008-09-26. End: 2011-03-30.

What is Raydon Corporation's track record with government simulation contracts?

Raydon Corporation has a history of providing simulation and training solutions to the U.S. military and other government agencies. Their expertise lies in developing virtual and constructive simulation systems for various platforms and scenarios. Prior to this contract, they likely held other similar awards, demonstrating their capability to meet government requirements for training technology. Their sustained presence in the market suggests a consistent ability to deliver on complex simulation projects, though specific performance details on past contracts would require deeper investigation into contract performance reports and award histories.

How does the value of this contract compare to other similar PC-based simulation trainer procurements?

Direct comparison of this $35.4 million contract value is difficult without knowing the specific technical capabilities and scope of the simulation trainers procured. However, for multi-year contracts involving complex simulation systems for military training, this value appears within a reasonable range. Larger, more immersive simulation systems or those with extensive software development components can easily exceed this amount. Conversely, simpler PC-based trainers for basic skills might be procured at lower total values. The 'good' value rating suggests it aligns with expectations for this type of equipment, considering the duration and likely sophistication.

What are the primary risks associated with this type of simulation training contract?

Key risks include technological obsolescence, as simulation technology evolves rapidly. There's also a risk of performance shortfalls if the trainers do not accurately replicate real-world scenarios or if they are unreliable. Contractor performance risk is present, as delays or quality issues could impact training schedules. Furthermore, limited competition, as indicated here, poses a risk of higher costs. Finally, ensuring the trainers meet evolving training doctrine and requirements presents an ongoing challenge for both the contractor and the government.

How effective are PC-based simulation trainers in achieving desired training outcomes?

PC-based simulation trainers can be highly effective when properly designed and integrated into a comprehensive training program. They offer advantages such as cost-effectiveness compared to live training, the ability to practice dangerous or rare scenarios safely, and consistent delivery of training. For tasks involving procedural learning, decision-making under pressure, and familiarization with equipment or environments, they provide valuable repetition and feedback. However, their effectiveness is contingent on the fidelity of the simulation, the quality of the instructional design, and how well they bridge the gap to real-world performance. They are often most effective when used in conjunction with other training methods.

What has been the historical spending trend for PC-based simulation trainers by the GSA?

Analyzing the historical spending trend for PC-based simulation trainers specifically by GSA requires access to detailed procurement data over multiple fiscal years. GSA's Federal Acquisition Service procures a wide range of equipment and services, and simulation trainers would be a subset. Without specific data, it's presumed that spending in this area fluctuates based on military readiness needs, technological advancements, and budget allocations. Trends might show an increase with the adoption of more sophisticated virtual training technologies or a decrease if alternative training methods become more prevalent or cost-effective.

What is the potential impact of this contract on future simulation technology development?

This contract, by funding the development and deployment of specific PC-based simulation trainers, can influence future technological development by signaling market demand and desired capabilities. The requirements outlined in this contract could drive Raydon Corporation and potentially competitors to innovate in areas such as graphical fidelity, artificial intelligence for scenario generation, user interface design, and network-based training capabilities. Successful implementation and feedback from this contract can inform future requirements, pushing the boundaries of what is possible in simulation technology and potentially leading to advancements that benefit broader training applications across the government and even commercial sectors.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Other Professional Equipment and Supplies Merchant Wholesalers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Contractor Details

Address: 210 FENTRESS BLVD, DAYTONA BEACH, FL, 06

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $35,401,729

Exercised Options: $35,401,719

Current Obligation: $35,401,719

Parent Contract

Parent Award PIID: GS02F0154R

IDV Type: FSS

Timeline