DoD's $355M Flight Training Contract Awarded to FlightSafety International Faces Scrutiny

Contract Overview

Contract Amount: $355,864,277 ($355.9M)

Contractor: Flightsafety International Inc

Awarding Agency: Department of Defense

Start Date: 2004-02-01

End Date: 2017-03-09

Contract Duration: 4,785 days

Daily Burn Rate: $74.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200505!500470!2100!W9124G!ACA, FORT RUCKER !W9124G04C0037 !A!N! !N! !P00008!20050201!20050930!046173175!046173175!001024314!N!FLIGHTSAFETY INTERNATIONAL, IN!MARINE AIR TERMINAL, LA GU!FLUSHING !NY!11371!27640!031!01!FORT RUCKER !COFFEE !ALABAMA !-000000958050!N!N!000000000000!U099!OTHER EDUCATION & TRAINING SERVICES !S1 !SERVICES !000 !* !611512!E! !3! ! !D! ! !20200930!B! ! !A! !A!N!J!2!001!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: FORT RUCKER, DALE County, ALABAMA, 36362

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $355.9 million to FLIGHTSAFETY INTERNATIONAL INC for work described as: 200505!500470!2100!W9124G!ACA, FORT RUCKER !W9124G04C0037 !A!N! !N! !P00008!20050201!20050930!046173175!046173175!001024314!N!FLIGHTSAFETY INTERNATIONAL, IN!MARINE AIR TERMINAL, LA GU!FLUSHING !NY!11371!27640!031!01!FORT RUCKER !COFF… Key points: 1. The contract awarded to FlightSafety International for flight training services is substantial, totaling over $355 million. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The long duration of the contract (over 13 years) and its significant value raise questions about ongoing value and potential for cost overruns. 4. The sector is 'Other Education & Training Services', specifically flight training, which is critical for military readiness.

Value Assessment

Rating: questionable

The contract's final value of $355,864,276.62 is significantly higher than the initial award amount, indicating potential scope creep or price adjustments over its long duration. Benchmarking against similar flight training contracts is difficult without more granular data on services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically promotes competitive pricing. However, the extended period and potential for modifications could have impacted price discovery over time.

Taxpayer Impact: The significant taxpayer investment of over $355 million for flight training services warrants close monitoring to ensure value for money and prevent unnecessary expenditure.

Public Impact

Military readiness and pilot proficiency are directly impacted by the quality and cost of flight training. Taxpayers are funding a substantial contract that has evolved significantly since its initial award. The long-term nature of the contract raises questions about adaptability to future training needs and technological advancements.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Extended contract duration
Significant increase in final award value compared to initial
Potential for scope creep over time

Positive Signals

Awarded under full and open competition
Clear service category (Flight Training)

Sector Analysis

The 'Other Education & Training Services' sector, particularly flight training, is crucial for maintaining military pilot skills. Spending benchmarks in this niche area can vary widely based on aircraft type, training complexity, and duration.

Small Business Impact

There is no indication in the provided data whether small businesses were involved as subcontractors or prime contractors in this large definitive contract.

Oversight & Accountability

The long duration and significant value of this contract suggest a need for robust oversight to ensure performance, manage costs, and verify continued necessity of services.

Related Government Programs

Flight Training
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Contract duration exceeds 13 years.
Final award value significantly higher than initial.
Lack of detail on specific services and evolution of scope.
Potential for cost overruns due to long-term nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $355.9 million to FLIGHTSAFETY INTERNATIONAL INC. 200505!500470!2100!W9124G!ACA, FORT RUCKER !W9124G04C0037 !A!N! !N! !P00008!20050201!20050930!046173175!046173175!001024314!N!FLIGHTSAFETY INTERNATIONAL, IN!MARINE AIR TERMINAL, LA GU!FLUSHING !NY!11371!27640!031!01!FORT RUCKER !COFFEE !ALABAMA !-000000958050!N!N!000000000000!U099!OTHER EDUCATION & TRAINING SERVICES !S1 !SERVICES !000 !* !611512!E! !3! ! !D! ! !202

Who is the contractor on this award?

The obligated recipient is FLIGHTSAFETY INTERNATIONAL INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $355.9 million.

What is the period of performance?

Start: 2004-02-01. End: 2017-03-09.

What specific flight training services were provided under this contract, and how did the scope evolve from the initial award to the final value?

The contract was for flight training services. The significant increase from an initial award to a final value of over $355 million suggests that the scope likely expanded or that contract modifications led to increased costs over its extended duration. Detailed service descriptions and modification justifications would be needed for a precise understanding.

Given the contract's duration and value, what were the key performance indicators and how were they measured to ensure effectiveness?

Key performance indicators (KPIs) for flight training contracts typically include pilot proficiency rates, training completion rates, adherence to safety standards, and instructor qualifications. The effectiveness would be measured against these metrics, ensuring pilots meet required operational standards. The long duration necessitates periodic reviews of these KPIs.

How does the per-unit cost of this flight training compare to industry benchmarks, considering the specific aircraft and training scenarios involved?

A direct per-unit cost comparison is challenging without detailed breakdowns of training hours, aircraft utilization, and specific training modules. However, the substantial total value suggests a significant investment. Benchmarking would require comparing costs for similar training on comparable aircraft types and complexity levels within the defense or civilian aviation training sectors.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Berkshire Hathaway Inc. (UEI: 001024314)

Address: LA GUARDIA AIRPORT, FLUSHING, NY, 11371

Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $492,591,572

Exercised Options: $260,456,854

Current Obligation: $355,864,277

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline