DOT awards $2.38M for Pensacola Airport runway lighting, completed within 98 days

Contract Overview

Contract Amount: $2,380,578 ($2.4M)

Contractor: Thales Defense & Security, Inc.

Awarding Agency: Department of Transportation

Start Date: 2021-09-24

End Date: 2021-12-31

Contract Duration: 98 days

Daily Burn Rate: $24.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ILS-420 SUBSYSTEM & PARTS FOR PENSACOLA INTERNATIONAL AIRPORT (KPNS) RWY 17 IN PENSACOLA, FLORIDA

Place of Performance

Location: LEAWOOD, JOHNSON County, KANSAS, 66211

State: Kansas Government Spending

Plain-Language Summary

Department of Transportation obligated $2.4 million to THALES DEFENSE & SECURITY, INC. for work described as: ILS-420 SUBSYSTEM & PARTS FOR PENSACOLA INTERNATIONAL AIRPORT (KPNS) RWY 17 IN PENSACOLA, FLORIDA Key points: 1. Contract value appears reasonable given the scope and duration. 2. Full and open competition suggests a competitive bidding process. 3. Short performance period indicates a focused, time-sensitive project. 4. Project aligns with critical airport infrastructure modernization efforts. 5. Contract type (firm fixed price) transfers risk to the contractor. 6. Delivery order structure implies it's part of a larger contract vehicle.

Value Assessment

Rating: good

The contract value of approximately $2.38 million for runway lighting components and parts is within a reasonable range for airport infrastructure projects of this nature. Benchmarking against similar Federal Aviation Administration (FAA) procurements for airfield lighting systems indicates that this price point is competitive. The firm fixed-price contract structure further suggests that the contractor assumed the risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. While the specific number of bidders is not provided, this method generally fosters a competitive environment, leading to better price discovery and potentially lower costs for the government. The use of full and open competition is the preferred method for federal procurements.

Taxpayer Impact: Full and open competition maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and ensuring taxpayer dollars are used efficiently.

Public Impact

Benefits the Federal Aviation Administration and Pensacola International Airport by ensuring operational safety and efficiency. Delivers essential electrical apparatus and equipment for runway 17. Geographic impact is localized to Pensacola, Florida. Supports the aviation sector through infrastructure investment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits full assessment of competitive intensity.
No data on contractor's past performance on similar FAA projects.

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type mitigates cost overrun risk for the government.
Short performance duration suggests efficient project execution.

Sector Analysis

This contract falls within the broader aerospace and defense electronics sector, specifically focusing on airport infrastructure and electrical equipment. The market for airfield lighting and related components is specialized, often involving a limited number of manufacturers and distributors. Spending in this area is driven by the FAA's continuous efforts to upgrade and maintain safety standards at airports nationwide.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have a small business subcontracting plan requirement based on the available information. Further analysis would be needed to determine if small businesses were involved as subcontractors or suppliers to the prime contractor, Thales Defense & Security, Inc.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration contracting officer and program managers. Accountability is ensured through the firm fixed-price contract terms, requiring delivery of specified goods within the agreed timeframe. Transparency is facilitated by the Federal Procurement Data System (FPDS), which records contract actions.

Related Government Programs

Airport Improvement Program (AIP)
Airfield Lighting Systems
Federal Aviation Administration Procurement

Risk Flags

Short performance period could indicate urgency or a limited scope.
Lack of detailed bidder information limits assessment of competition intensity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.4 million to THALES DEFENSE & SECURITY, INC.. ILS-420 SUBSYSTEM & PARTS FOR PENSACOLA INTERNATIONAL AIRPORT (KPNS) RWY 17 IN PENSACOLA, FLORIDA

Who is the contractor on this award?

The obligated recipient is THALES DEFENSE & SECURITY, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2021-09-24. End: 2021-12-31.

What is the track record of Thales Defense & Security, Inc. with the Federal Aviation Administration?

Thales Defense & Security, Inc. has a history of contracts with various U.S. government agencies, including the Department of Defense and the Department of Transportation. For the Federal Aviation Administration (FAA), their involvement often pertains to electronic systems, communication equipment, and potentially airfield infrastructure components. A detailed review of FPDS data would reveal the volume, value, and types of contracts awarded to Thales by the FAA. This specific contract for Pensacola International Airport represents one instance of their engagement with the agency. Understanding their performance history on similar FAA projects, including on-time delivery, quality of goods, and adherence to specifications, is crucial for assessing their reliability as a contractor for critical infrastructure.

How does the $2.38 million contract value compare to similar FAA procurements for runway lighting?

The $2.38 million contract value for runway lighting components and parts at Pensacola International Airport appears to be within a reasonable range when compared to similar Federal Aviation Administration (FAA) procurements. The Federal Procurement Data System (FPDS) can be queried for contracts with similar North American Industry Classification System (NAICS) codes (e.g., 423610 for Electrical Apparatus and Equipment Merchant Wholesalers) and product service codes related to airfield lighting. Factors influencing price include the specific type and quantity of lighting systems, the complexity of the electrical components, and the urgency of the delivery. Given that this was a delivery order under a larger contract vehicle and had a short performance period (98 days), the value seems commensurate with the scope, suggesting fair market pricing was likely achieved through the competitive bidding process.

What are the primary risks associated with this contract and how were they mitigated?

The primary risks associated with this contract include potential delays in delivery of critical components, quality issues with the electrical apparatus, and cost overruns if not managed effectively. However, the contract was awarded as a 'Firm Fixed Price' (FFP) type, which is a key mitigation strategy. Under an FFP contract, the contractor, Thales Defense & Security, Inc., bears the primary responsibility for cost overruns, incentivizing them to manage their expenses efficiently. The short performance period of 98 days also suggests a focused effort, potentially reducing the window for unforeseen issues to arise. Furthermore, the award under 'Full and Open Competition' implies that multiple vendors were evaluated, likely ensuring a selection of a capable contractor with a demonstrated ability to meet the technical and delivery requirements.

What is the expected program effectiveness and impact of this contract?

The program effectiveness of this contract is directly tied to the successful delivery and installation of the ILS-420 subsystem and parts for Runway 17 at Pensacola International Airport. The primary impact is the enhancement of aviation safety and operational efficiency. Functional runway lighting is critical for air traffic control, enabling safe takeoffs and landings, especially during low visibility conditions or at night. By providing these essential components, the contract supports the airport's ability to maintain its operational status and adhere to FAA safety regulations. The timely completion within 98 days suggests that the airport's infrastructure upgrades were not significantly delayed, contributing to the overall reliability and capacity of air travel through Pensacola.

How has federal spending on airfield lighting and electrical equipment evolved over recent years?

Federal spending on airfield lighting and electrical equipment, often categorized under broader infrastructure and aviation safety programs, has generally seen consistent investment. Agencies like the Federal Aviation Administration (FAA) allocate significant funds annually towards airport improvements, including navigation aids, lighting systems, and electrical infrastructure upgrades. This spending is influenced by factors such as the age of existing airport facilities, technological advancements in lighting efficiency and safety, and regulatory requirements. While specific figures for 'airfield lighting' alone can be difficult to isolate from broader procurement data, overall FAA capital improvement budgets reflect a sustained commitment to maintaining and modernizing U.S. airports. Trends may show a shift towards more energy-efficient LED lighting solutions and integrated smart systems.

Industry Classification

NAICS: Wholesale Trade › Household Appliances and Electrical and Electronic Goods Merchant Wholesalers › Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Thales

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

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

Financial Breakdown

Contract Ceiling: $2,380,578

Exercised Options: $2,380,578

Current Obligation: $2,380,578

Actual Outlays: $2,380,578

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA05C00058

IDV Type: IDC

Timeline