DoD Awards $40.9M Firm Fixed Price Contract for Deployable Instrument Landing Systems to Thales USA
Contract Overview
Contract Amount: $40,913,818 ($40.9M)
Contractor: Thales USA, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-07-15
End Date: 2015-07-31
Contract Duration: 16 days
Daily Burn Rate: $2.6M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DEPLOYABLE INSTRUMENT LANDING SYSTEMS BASE CONTRACT - 2 PRODUCTION READY UNITS
Place of Performance
Location: EGG HARBOR TOWNSHIP, ATLANTIC County, NEW JERSEY, 08234
Plain-Language Summary
Department of Defense obligated $40.9 million to THALES USA, INC. for work described as: DEPLOYABLE INSTRUMENT LANDING SYSTEMS BASE CONTRACT - 2 PRODUCTION READY UNITS Key points: 1. Contract awarded to Thales USA for $40.9M. 2. The contract is for Deployable Instrument Landing Systems. 3. This is a definitive contract with a firm fixed price. 4. The contract was not competed, raising potential value concerns.
Value Assessment
Rating: questionable
The firm fixed price contract of $40.9M for 2 units lacks clear benchmarks for comparison. Without competition, it's difficult to assess if this price represents fair market value for the deployable instrument landing systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition scenario. This lack of competition may have limited price discovery and potentially led to a higher price than if multiple vendors had bid.
Taxpayer Impact: The absence of competition raises concerns about the optimal use of taxpayer funds, as a potentially higher price may have been paid.
Public Impact
Ensures critical navigation infrastructure for Air Force operations. Supports safe aircraft landings in various environments. Potential for increased costs due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential equipment for Air Force
- Firm Fixed Price contract type
Sector Analysis
The Department of Defense frequently procures complex systems for navigation and guidance. Spending in this sector, particularly for specialized equipment like instrument landing systems, can be substantial. Benchmarks are difficult without competitive data.
Small Business Impact
The data indicates this contract was not awarded to small businesses, and there is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to understand the justification for the lack of competition and ensure fair pricing was achieved.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency on price justification
- No small business participation indicated
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.9 million to THALES USA, INC.. DEPLOYABLE INSTRUMENT LANDING SYSTEMS BASE CONTRACT - 2 PRODUCTION READY UNITS
Who is the contractor on this award?
The obligated recipient is THALES USA, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $40.9 million.
What is the period of performance?
Start: 2015-07-15. End: 2015-07-31.
What was the justification for not competing this contract, and how was the price determined to be fair and reasonable?
The justification for not competing this contract is not provided in the data. Typically, sole-source procurements require a detailed justification, such as the existence of a unique capability or a critical need that only one source can fulfill. Price reasonableness is usually determined through methods like comparison to previous contracts, market research, or cost analysis, but without the specific justification, it's hard to assess the process.
What are the risks associated with awarding a $40.9M contract without competition?
The primary risk of awarding a large contract without competition is the potential for overpayment, as there is no market pressure to drive down prices. Other risks include a lack of innovation that competition might foster, and a reduced incentive for the contractor to perform efficiently if they are the sole provider. This can lead to suboptimal value for taxpayer money.
How effective is this contract in meeting the Air Force's needs for deployable instrument landing systems?
While the contract ensures the acquisition of necessary equipment, its effectiveness in meeting needs cannot be fully assessed without knowing the specific performance requirements and delivery timelines. The lack of competition, however, raises questions about the cost-effectiveness of meeting these needs, potentially impacting the overall value derived from the investment.
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
Offers Received: 1
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, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $77,051,063
Exercised Options: $40,913,818
Current Obligation: $40,913,818
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-07-15
Current End Date: 2015-07-31
Potential End Date: 2015-07-31 00:00:00
Last Modified: 2024-01-29
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