DoD awards $1.7M to Thales for Engineering Services, raising competition concerns

Contract Overview

Contract Amount: $16,960,785 ($17.0M)

Contractor: Thales Defense & Security Inc

Awarding Agency: Department of Defense

Start Date: 2010-12-01

End Date: 2012-12-05

Contract Duration: 735 days

Daily Burn Rate: $23.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ENGINEERING SERVICES

Place of Performance

Location: CLARKSBURG, MONTGOMERY County, MARYLAND, 20871

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to THALES DEFENSE & SECURITY INC for work described as: ENGINEERING SERVICES Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award limits competitive pricing and innovation. 3. Potential for higher costs due to lack of competition. 4. Sector context: Defense spending on specialized communication equipment.

Value Assessment

Rating: questionable

The contract value of $1.7M for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar specialized engineering contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these engineering services.

Public Impact

Taxpayers may be overpaying for specialized engineering due to a sole-source award. Lack of competition could stifle innovation in defense communication technology. Transparency in defense contracting is reduced when sole-source awards are prevalent.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of transparency in pricing
Potential for cost overruns

Positive Signals

Awarded to a known defense contractor
Specific need for specialized services

Sector Analysis

This contract falls within the defense sector, specifically related to engineering services for communications equipment. Benchmarks for similar sole-source engineering contracts are hard to establish without competitive data.

Small Business Impact

The data does not indicate if small businesses were involved in subcontracting opportunities for this sole-source award. Further investigation would be needed to determine potential small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny regarding the justification for not competing the contract. Oversight should ensure proper procedures were followed and the price is reasonable.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Defense Contracting
U.S. Special Operations Command Programs

Risk Flags

Lack of competition
Potential for inflated costs
Limited transparency
No clear small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to THALES DEFENSE & SECURITY INC. ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is THALES DEFENSE & SECURITY INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $17.0 million.

What is the period of performance?

Start: 2010-12-01. End: 2012-12-05.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's presumed that the Department of Defense had a compelling reason to bypass competition, though the exact rationale requires further examination of the contract file.

How can the government ensure fair pricing without competition?

When competition is not feasible, the government relies on various methods to ensure fair and reasonable pricing. This includes conducting thorough market research, obtaining cost and pricing data from the sole source, performing detailed cost analysis, and potentially using historical pricing data from similar, albeit not identical, contracts. Independent government cost estimates are also crucial.

What is the potential impact on future technological advancements?

Sole-source awards, especially for specialized engineering services, can limit the exposure of new technologies and innovative approaches that might emerge from a competitive bidding process. By not engaging multiple vendors, the government may miss out on potentially more efficient or advanced solutions that could arise from diverse industry players vying for the contract.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Thales (UEI: 275250553)

Address: 22605 GATEWAY CENTER DR, CLARKSBURG, MD, 06

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,960,785

Exercised Options: $16,960,785

Current Obligation: $16,960,785

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222207D0012

IDV Type: IDC

Timeline