Navy begins recompete of $1 billion training contract

Original Article: Bloomberg

The U.S. Navy is finalizing acquisition plans for Training Systems Contract IV, an up-to-nine-year, $1 billion multiple-award contract for noncommercial training systems, services, and content.

TSC IV, the focus of this week’s Bloomberg Government top 20 contract opportunities, will be Naval Air Systems Command’s (NAVAIR) primary source of such systems — just as its three predecessor TSC contracts have been since fiscal 2000.

The Navy began TSC IV planning with an industry day announcement on Feb. 21. A draft request for proposal is planned by late June or early July, according to a June 2 amendment.

According to a March 15 industry day presentation, the contract’s scope will encompass three broad training groups:

  • Training systems, such as engineering, weapons, air crew, maintenance, and ship handling;
  • Training content, such as course ware, curriculum development, and requirements analysis; and
  • Training services, such as operation and maintenance or instructor services.

Spending on the incumbent contract vehicle, TSC III, has generated about $573 million for 24 companies since it was awarded in fiscal 2012, according to Bloomberg Government data. The top 10 companies, shown below, account for $535 million, or more than 90 percent, of that total.

Most TSC III money has gone to CAE Inc. ($181 million), Cubic Corp. ($88 million), and Aero Simulation Inc. ($65 million).

Six companies, Textron Inc.; Symvionics Inc.; Environmental Tectonics Corp.; Opinicus Corp.; Vencore Inc.; and Science Applications International Corp. haven’t generated more than the $2,500 contract minimum.

Some slots on TSC IV will be reserved for small business, according to the industry day presentation, and delivery orders could be set aside for small business if market research determines they will have more than two bidders. Small businesses, which won $127 million on TSC III, may keep their share on TSC IV.

What’s Ahead

Some contracting professionals may be wondering whether TSC IV program competition is necessary, since many of the services are already accessible on contract vehicles such as the Navy’s own Seaport- e, the Army’s Responsive Strategic Sourcing for Services (RS3), or the General Services Administration’s One Acquisition Solution for Integrated Services (OASIS) and OASIS Small Business.

The future of TSC IV will probably be secure, despite these alternative contracts, because the program has a longstanding history and all of the funding obligations are derived directly from NAVAIR.

Using BGOV Tools

Clients can use Bloomberg Government to prepare for an upcoming bid on TSC IV. Click here to analyze 78 TSC III delivery orders totaling $573 million, including 17 orders totaling $389 million, that are expiring after Jan. 1, 2018.

The high-value expiring work includes a $88 million order for the Littoral Combat Ship Mission Bay Trainer held by Cubic and expiring July 2019; a $53 million order for Marine Common Aircrew Trainers held by Kratos Defense &Security Solutions; and a $49 million order for the E-2D Advanced Hawkeye Integrated Training System, held by Rockwell Collins Inc. and expiring in November 2019.

 

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