GSA awards $4.18M contract for navigation systems to Thales USA, Inc., with no competition

Contract Overview

Contract Amount: $4,180,294 ($4.2M)

Contractor: Thales USA, Inc.

Awarding Agency: General Services Administration

Start Date: 2022-09-30

End Date: 2026-05-30

Contract Duration: 1,338 days

Daily Burn Rate: $3.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DTACAN

Place of Performance

Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152

State: South Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $4.2 million to THALES USA, INC. for work described as: DTACAN Key points: 1. The contract value of $4.18 million for navigation systems represents a significant investment in critical infrastructure. 2. The absence of competition raises questions about potential overpricing and the availability of alternative solutions. 3. The contract duration of 1338 days suggests a long-term need for these specialized systems. 4. The fixed-price contract type aims to control costs, but the lack of competition limits price discovery. 5. The award to a single, established contractor may indicate a reliance on specialized expertise. 6. The contract's focus on navigation systems aligns with broader government investments in transportation and defense.

Value Assessment

Rating: questionable

Benchmarking the value of this $4.18 million contract is challenging due to the lack of competitive bids. Without comparison to other offers or market rates for similar navigation systems, it's difficult to definitively assess if the price represents good value for money. The fixed-price nature of the contract provides some cost certainty, but the absence of competition means taxpayers may not be benefiting from the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, THALES USA, INC., was solicited. This approach is typically used when a unique product or service is required, or in cases of urgent need where competition is not feasible. The lack of multiple bidders means there was no opportunity for price negotiation or comparison among different providers, potentially leading to a higher cost than if the contract had been competed.

Taxpayer Impact: The absence of competition means taxpayers may not have received the best possible price for these navigation systems. Without a competitive bidding process, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are likely government agencies requiring advanced navigation and guidance systems for operational purposes. The services delivered include the provision and potential maintenance of specialized navigation, detection, and guidance instruments. The geographic impact is not specified but likely relates to operational areas where these systems are deployed, potentially nationwide or at specific federal facilities. Workforce implications could include specialized technical roles for installation, maintenance, and operation of the navigation systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit innovation by excluding potential new entrants.
Dependence on a single contractor could create supply chain risks.
The specific technical requirements might be highly specialized, making competition difficult.

Positive Signals

The contract is for specialized navigation systems, indicating a need for specific technical expertise.
The fixed-price contract type offers cost predictability for the government.
The award is to an established company, THALES USA, INC., which may have a proven track record in this domain.

Sector Analysis

The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, which is a niche but critical area supporting defense, transportation, and aviation industries. Spending in this sector is often driven by technological advancements and national security requirements. Comparable spending benchmarks are difficult to establish without more specific details on the systems procured, but investments in advanced sensor and navigation technology are generally substantial.

Small Business Impact

The contract details indicate that small business participation was not a primary consideration, as the award was made to a large corporation and there is no indication of small business set-asides or subcontracting requirements. This suggests that the specialized nature of the navigation systems may necessitate large-scale manufacturing capabilities or proprietary technology typically held by larger firms, potentially limiting opportunities for small businesses in this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. The contract's fixed-price nature provides some level of financial oversight. Transparency is limited by the sole-source nature of the award. Further oversight could be provided by agency program managers and potentially the GSA's Office of Inspector General if performance or cost issues arise.

Related Government Programs

Defense Advanced GPS Receivers
Aviation Navigation Systems
Maritime Navigation Equipment
Search and Detection Systems
Guidance System Manufacturing

Risk Flags

Sole-source award lacks competition
Potential for overpricing due to lack of competition
Limited transparency in procurement process

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4.2 million to THALES USA, INC.. DTACAN

Who is the contractor on this award?

The obligated recipient is THALES USA, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-05-30.

What is the specific type of navigation system being procured under this contract, and what are its primary applications?

The contract is for 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' (NAICS 334511). While the specific system is not detailed, it pertains to instruments used for navigation and guidance in aeronautical and nautical contexts, as well as broader search and detection capabilities. These systems are critical for platforms such as aircraft, ships, and potentially ground vehicles, ensuring accurate positioning, course plotting, and situational awareness. Their applications span military operations, air traffic control, maritime safety, and potentially civilian aviation infrastructure.

Why was this contract awarded on a sole-source basis, and what alternatives were considered?

The provided data indicates the contract was awarded as 'NOT COMPETED' (CT: NOT COMPETED), which typically signifies a sole-source or limited competition scenario. Without further documentation, the specific justification for this sole-source award is not available. Common reasons include the proprietary nature of the technology, the existence of only one capable source, urgent and compelling needs, or specific national security requirements that preclude open competition. The GSA would have a justification on file, likely related to Thales USA, Inc. being the only entity capable of providing the specific, advanced navigation systems required.

How does the $4.18 million contract value compare to historical spending on similar navigation systems by the GSA or other agencies?

Direct comparison of the $4.18 million contract value to historical spending on similar navigation systems is challenging without more granular data on the specific systems procured and their functionalities. However, the value suggests a significant procurement, likely for advanced or specialized equipment. Historical spending on navigation and guidance systems across federal agencies can range from hundreds of thousands to tens of millions of dollars, depending on the scale, complexity, and technological sophistication of the systems. The sole-source nature of this award means this figure cannot be directly benchmarked against competitive bids, making a value-for-money assessment difficult without further context on market pricing for comparable sole-source procurements.

What is Thales USA, Inc.'s track record with federal contracts, particularly in the navigation systems sector?

Thales USA, Inc. is a subsidiary of the global Thales Group, a major player in aerospace, defense, security, and transportation markets. The company has a significant history of contracting with the U.S. federal government, particularly within the defense and aerospace sectors. Their expertise often lies in complex systems, including radar, avionics, communication, and navigation technologies. While specific contract details beyond this award are not provided, Thales's established presence and broad capabilities in related fields suggest they possess the technical proficiency and manufacturing capacity to fulfill this type of specialized navigation system contract.

What are the potential risks associated with a sole-source contract for critical navigation systems?

The primary risk of a sole-source contract for critical navigation systems is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may pay a premium. Another risk is vendor lock-in, where the government becomes dependent on a single supplier, potentially limiting future flexibility and innovation. There's also a risk if the sole-source provider experiences financial difficulties or supply chain disruptions, as there are no immediate alternative sources. Finally, the absence of a competitive process can reduce transparency and make it harder to ensure the best possible technology and value are being obtained.

What performance metrics or oversight mechanisms are in place to ensure the effectiveness and value of this contract?

The contract is a Firm Fixed Price (FFP) type, which inherently places the cost risk on the contractor, THALES USA, INC. Performance metrics are not detailed in the provided data but would typically be outlined in the contract's statement of work (SOW). These metrics would likely focus on system specifications, delivery timelines, and operational performance standards. Oversight would be managed by the contracting officer and potentially technical representatives within the GSA or the end-user agency. Regular progress reviews and acceptance testing of the delivered systems would be standard oversight mechanisms to ensure the contract meets its objectives and delivers the expected value.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFWA22Q0010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10950 EL MONTE ST STE 110, OVERLAND PARK, KS, 66211

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $4,180,294

Exercised Options: $4,180,294

Current Obligation: $4,180,294

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline