Navy awards $23.9M contract for manned flight simulator operations and sustainment to J.F. Taylor, Inc

Contract Overview

Contract Amount: $23,938,799 ($23.9M)

Contractor: J.F. Taylor, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-04-04

End Date: 2013-02-17

Contract Duration: 319 days

Daily Burn Rate: $75.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SERVICES TO SUSTAIN AND OPERATE MANNED FLIGHT SIMULATOR

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to J.F. TAYLOR, INC. for work described as: SERVICES TO SUSTAIN AND OPERATE MANNED FLIGHT SIMULATOR Key points: 1. Contract value represents a significant investment in maintaining critical flight training infrastructure. 2. Sole-source award suggests potential limitations in market availability or specialized contractor capabilities. 3. Contract duration of less than a year may indicate a need for re-competition or a bridge contract. 4. Performance risk is moderate given the specialized nature of flight simulator operations. 5. This contract falls within the broader category of aviation support services for the Department of Defense. 6. The fixed fee component of the contract provides some cost control for the government.

Value Assessment

Rating: fair

The contract value of $23.9 million for approximately 10 months of service appears to be within a reasonable range for specialized flight simulator sustainment. Benchmarking against similar contracts for simulator operations is challenging due to the unique nature of manned flight simulators and specific system requirements. The Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement with a predetermined profit margin, which can incentivize efficiency but also carries some risk of cost overruns if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Department of the Navy identified J.F. Taylor, Inc. as the only responsible source capable of meeting the requirement. This could be due to proprietary technology, unique expertise, or the need to sustain an existing system where only one contractor possesses the necessary knowledge and parts. The lack of competition means that the government did not benefit from a price discovery process driven by multiple bids.

Taxpayer Impact: Sole-source awards can potentially lead to higher prices for taxpayers as the government does not have the leverage of competitive bidding to drive down costs.

Public Impact

Naval aviators and aircrew benefit from continued access to realistic training environments. Services delivered include sustainment and operation of manned flight simulators, crucial for mission readiness. The primary geographic impact is in Maryland, where the contract is being performed. Workforce implications include the retention of specialized technical personnel required for simulator maintenance and operation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Short contract duration may indicate a need for future, potentially more expensive, re-competition or extensions.
Cost-plus contract type requires diligent oversight to manage costs effectively and prevent overruns.

Positive Signals

Contract ensures continued availability of critical training assets for naval personnel.
J.F. Taylor, Inc. likely possesses specialized knowledge for this specific simulator system.
Fixed fee component provides a defined profit margin, offering some cost predictability.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on simulation and training. The market for manned flight simulators is highly specialized, often dominated by a few key players who develop, manufacture, and sustain these complex systems. Government spending in this area is driven by the need for realistic and cost-effective training solutions that replicate real-world operational environments without the risks and expenses of actual flight.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The focus is on a sole-source award to a prime contractor, suggesting that small business participation would likely be at the discretion of J.F. Taylor, Inc. Further analysis would be needed to determine if any subcontracting opportunities exist within the ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Navy. Given the Cost Plus Fixed Fee structure, rigorous financial oversight and auditing would be essential to ensure that costs are reasonable and allocable. Transparency is generally maintained through contract award databases, but detailed performance metrics and cost breakdowns may not always be publicly available.

Related Government Programs

Defense Training and Simulation
Aviation Support Services
Flight Simulators
Naval Aviation Training

Risk Flags

Sole-source award
Cost-plus contract type
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to J.F. TAYLOR, INC.. SERVICES TO SUSTAIN AND OPERATE MANNED FLIGHT SIMULATOR

Who is the contractor on this award?

The obligated recipient is J.F. TAYLOR, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $23.9 million.

What is the period of performance?

Start: 2012-04-04. End: 2013-02-17.

What is the track record of J.F. Taylor, Inc. in performing similar flight simulator sustainment contracts for the Department of Defense?

J.F. Taylor, Inc. has a history of providing simulation and training services to the Department of Defense. While specific details on past performance for this exact type of manned flight simulator sustainment are not fully detailed in the provided data, the company's general experience in the defense simulation sector suggests a foundational capability. Further investigation into their contract history, past performance reviews, and any reported issues on previous DoD contracts would be necessary for a comprehensive assessment of their track record. This would include examining the scope, duration, and value of prior similar contracts, as well as any awards or penalties received.

How does the pricing structure (Cost Plus Fixed Fee) compare to other government contracts for similar simulation services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for services where the scope of work may have some inherent uncertainties or where the contractor's expertise is critical. For simulation services, CPFF can be appropriate when the exact maintenance or operational needs are difficult to predict upfront. However, it requires robust government oversight to ensure costs are reasonable and the fixed fee (profit) is justified. Compared to fixed-price contracts, CPFF offers more flexibility but potentially higher overall costs if not managed tightly. Benchmarking requires comparing the fixed fee percentage and the total reimbursed costs against contracts with similar technical requirements and risk profiles.

What are the primary risks associated with this sole-source contract for manned flight simulator operations?

The primary risks associated with this sole-source contract include a lack of competitive pressure on pricing, potentially leading to higher costs for the government. There's also a risk of vendor lock-in, where the government becomes dependent on J.F. Taylor, Inc. for sustainment, making it difficult or costly to switch providers in the future. Furthermore, without competition, there's a reduced incentive for the contractor to innovate or significantly improve efficiency beyond what is necessary to meet the contract terms. The short duration also poses a risk of disruption if a new contract isn't awarded or extended promptly.

How effective is the current manned flight simulator in meeting the training needs of the Department of the Navy?

The effectiveness of the manned flight simulator in meeting the training needs of the Department of the Navy is not directly quantifiable from the provided contract data alone. This contract focuses on the sustainment and operation of the simulator, implying its continued necessity for training. Effectiveness would typically be measured through metrics such as pilot proficiency improvements, mission readiness rates, reduction in flight hours for training, and feedback from training commands. The fact that the Navy is investing nearly $24 million to sustain it suggests it is considered a vital training asset.

What has been the historical spending pattern for manned flight simulator operations and sustainment within the Department of the Navy?

The provided data represents a single contract award of $23.9 million for a period of less than a year (April 2012 - February 2013). To understand historical spending patterns, one would need to analyze spending data over multiple fiscal years for similar contracts, potentially including those awarded to J.F. Taylor, Inc. and other contractors. This would involve looking at the total annual expenditure on simulator sustainment, the number of contracts awarded, their durations, and their values. Analyzing trends would reveal whether spending has been consistent, increasing, or decreasing, and whether the Navy relies on a few key providers or a broader market.

What are the implications of the 'Other Support Activities for Air Transportation' Product Service Code (PSC) for this contract?

The Product Service Code (PSC) 'ND' (Other Support Activities for Air Transportation) indicates that this contract falls under a broad category of services supporting air operations, but not directly the procurement of aircraft or major aviation systems. This PSC encompasses a range of activities, including maintenance, repair, overhaul, and operational support for aviation-related equipment and facilities. For this specific contract, it signifies that the services provided by J.F. Taylor, Inc. are essential for the functioning and upkeep of the manned flight simulator, which is a critical component of air transportation training and readiness, rather than the acquisition of new assets.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042112R0056

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 21610 S ESSEX DR, LEXINGTON PARK, MD, 20653

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,309,313

Exercised Options: $24,309,313

Current Obligation: $23,938,799

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline