Army extends training support contract for third time
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By
Nick Wakeman
OST Inc. will now perform work through 2027 as the Army revises its acquisition strategy to meet the Trump administration's commercial contracting goals.
The Army has extended a small business contract covering acquisition support of training systems, simulators and related equipment for the third time.
Optimal Solutions and Technologies Inc. first won the $248 million contract in 2017. A $90 million extension was issued in February 2022 as the Army Program Executive Office for Simulation, Training and Instrumentation worked on the Systems Engineering and Technical Assistance III recompete.
In June 2023, Advanced Technology Leaders Inc. won SETA III at a $365 million ceiling. Mayvin, StraCon Services Corp. and TAPE LLC all took protests to the U.S. Court of Federal Claims.
As that unfolded, the Army had to issue a second extension to Optimal in October 2023 for another $97.4 million. That raised the value of the contract to $435.4 million and extended the ordering period through Feb. 14, 2026.
The Army tried to restart the contract in 2024 by canceling it, but the judge ruled in July 2025 that the Army was not following proper procedures.
That ruling led the Army to issue a new justification document on Wednesday that extends SETA II for a third time, adding another $90.3 million to the ceiling and 18 months to the life of the contract. SETA II now stretches to August 2027.
In a January 2026 letter to the court, the Army explained that it followed the court’s direction and provided a rationale basis for canceling the contract. The Army also said it consulted with the Small Business Administration.
The Army said requirements had changed and the labor categories described in the SETA III solicitation were no longer relevant. The Army had to make changes to comply with Trump administration executive orders that emphasized greater use of commercial contracts.
The letter also cites a restructuring at the Defense Department that created a Capabilities Program Executive to essentially replace PEO STRI, which has been reduced.
The Army added the new requirements to OST's contract extension.
“The information gained from the SETA II bridge effort will be used to solicit and award competitive Task Orders utilizing total small business set-asides to the maximum extent practicable,” the Army told the judge.
The Army needed to keep the contract with OST going because it did not want a negative impact on training for U.S. troops and allies.
The justification document does not provide a timeline for when a new solicitation will be issued.