CAE USA wins competitive recompete of U.S. Air Force KC-135 Training System contract

Rhea-AI Summary

CAE USA has been awarded a competitive recompete contract by the United States Air Force (USAF) to provide KC-135 training services, valued at over US$275 million over eight years. This includes classroom and simulator training for over 4,500 KC-135 crew members annually at 12 U.S. and international sites. The contract allows CAE to continue supporting KC-135 operations, including updates and upgrades to training equipment. This achievement reinforces CAE's longstanding relationship with the USAF since it became the prime contractor in 2010.

Positive

• Awarded a contract worth over US$275 million for KC-135 training services.
• Continues to support training for over 4,500 KC-135 crew members annually.
• Retains partnership with the USAF, enhancing long-term business stability.

Negative

• None.

• Expected program value, including options, of more than US$275 million over next eight years

Tampa, Fla., Jan. 11, 2021 /PRNewswire/ - (NYSE: CAE) (TSX: CAE) – CAE today announced that the United States Air Force (USAF) awarded CAE USA a contract to continue providing comprehensive KC-135 training services.

The eight-year contract, awarded as a one-year base contract with seven additional one-year option periods, is valued at a total of more than US$275 million.

CAE USA became the prime contractor on the USAF KC-135 Training System program in 2010 and has now won the competitive recompete to continue delivering classroom and simulator training for KC-135 pilots and boom operators.  CAE USA will also continue to provide updates and upgrades to KC-135 training devices, including KC-135 operational flight trainers and boom operator trainers.  In addition, the KC-135 Training System contract now includes training support for the Air National Guard's Boom Operator Simulator System (BOSS).  In total, CAE USA will support the training of more than 4,500 KC-135 crewmembers annually.

"CAE USA did an outstanding job supporting the U.S. Air Force on the KC-135 training program over the past decade, and we are extremely pleased to win the recompete competition and remain the KC-135 training partner," said Ray Duquette, President and General Manager, CAE USA. 

CAE USA will be supported on the KC-135 Training System program by a team of industry partners, including Delaware Resource Group (DRG), Cardinal Point, FAAC, and CymSTAR.

"The KC-135 Stratotanker plays a vital role in the U.S. Air Force's ability to deliver global reach, and we are honored to contribute to the training and readiness of the KC-135 aircrews who fly these essential tanker missions," said Dan Gelston, Group President, Defense & Security, CAE. 

KC-135 Training System Site Background

CAE USA will deliver KC-135 aircrew training to USAF active-duty, Air National Guard and reserve crewmembers at 12 sites in the United States and internationally:

• Altus Air Force Base (AFB) in Oklahoma, which is the site of the formal training unit;
• Fairchild AFB, Washington;
• March Air Reserve Base (ARB), California;
• Scott AFB, Illinois;
• Grissom ARB, Indiana;
• MacDill AFB, Florida;
• General Mitchell Air National Guard Base (ANGB), Wisconsin;
• Rickenbacker ANGB, Ohio;
• Pittsburgh ANGB, Pennsylvania;
• Joint Base Pearl Harbor-Hickam, Hawaii;
• Kadena Air Base, Japan;
• Royal Air Force Base Mildenhall, United Kingdom.

In addition, the new KC-135 Training System contract includes training support for the Air National Guard KC-135 BOSS, which will be delivered at an additional 12 sites in the United States:

• Sioux City ANGB, Iowa;
  
• Lincoln ANGB, Nebraska;
• Forbes Field, Kansas;
• Phoenix ANGB, Arizona;
• Ronald Wright ANGB, Utah;
• Eielson AFB, Alaska;
• Bangor ANGB, Maine;
• McGuire AFB, New Jersey;
• Sumpter Smith Joint National Guard Base, Alabama;
• Selfridge ANGB, Michigan;
• McGee Tyson ANGB, Tennessee;
• Key Field, Mississippi.
  

KC-135 BOSS training support will also be provided at Joint Base Pearl Harbor; Pittsburgh ANGB; General Mitchell ANGB; and Rickenbacker ANGB.

About CAE Defense & Security

CAE's Defense & Security business unit focuses on helping prepare our customers to develop and maintain the highest levels of mission readiness.  We are a world-class training and mission systems integrator offering a comprehensive portfolio of training and operational support solutions across the air, land, sea and public safety market segments.  We serve our global defense and security customers through regional operations in Canada; the United States/Latin America; Europe/Middle East; and Asia-Pacific, all of which leverage the full breadth of CAE's capabilities, technologies and solutions.

About CAE

CAE is a high technology company, at the leading edge of digital immersion, providing solutions to make the world a safer place. Backed by a record of more than 70 years of industry firsts, we continue to reimagine the customer experience and revolutionize training and operational support solutions in civil aviation, defense and security, and healthcare. We are the partner of choice to customers worldwide who operate in complex, high-stakes and largely regulated environments, where successful outcomes are critical. Testament to our customers' ongoing needs for our solutions, over 60 percent of CAE's revenue is recurring in nature. We have the broadest global presence in our industry, with approximately 10,000 employees, 160 sites and training locations in over 35 countries. www.cae.com

Follow us on Twitter @CAE_Inc and @CAE_Defence
Facebook: www.facebook.com/cae.inc
LinkedIn: www.linkedin.com/company/cae

CAE USA recently won the recompete of the U.S. Air Force KC-135 Aircrew Training System contract and will continue providing training to more than 4,500 KC-135 crewmembers annually. 

View original content to download multimedia:http://www.prnewswire.com/news-releases/cae-usa-wins-competitive-recompete-of-us-air-force-kc-135-training-system-contract-301203575.html

SOURCE CAE INC.

FAQ

What is the value of the KC-135 training services contract awarded to CAE?

The contract awarded to CAE is valued at over US$275 million.

How many KC-135 crew members will CAE train under the new contract?

CAE will provide training for over 4,500 KC-135 crew members annually.

When was the contract for KC-135 training services awarded to CAE?

The contract was announced on January 11, 2021.

How long is the KC-135 training services contract with CAE?

The contract spans eight years, consisting of a one-year base contract with seven additional one-year options.

What training locations will CAE support for the KC-135 program?

CAE will support training at 12 sites in the U.S. and internationally, including locations in Oklahoma, California, and Japan.