Thales USA awarded $104.5M for Deployable Instrument Landing Systems, with no competition

Contract Overview

Contract Amount: $104,451,136 ($104.5M)

Contractor: Thales USA, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-07-16

End Date: 2025-06-30

Contract Duration: 2,541 days

Daily Burn Rate: $41.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DEPLOYABLE INSTRUMENT LANDING SYSTEM

Place of Performance

Location: LEAWOOD, JOHNSON County, KANSAS, 66211

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $104.5 million to THALES USA, INC. for work described as: DEPLOYABLE INSTRUMENT LANDING SYSTEM Key points: 1. The contract's value of $104.5 million over its duration raises questions about potential cost efficiencies. 2. The sole-source nature of this award limits opportunities for competitive pricing and innovation. 3. The lack of competition presents a potential risk for overpayment and reduced value for taxpayer dollars. 4. Performance context is limited due to the absence of comparative bids or market benchmarks. 5. This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. 6. The contract's duration of over 6 years suggests a long-term need for these systems.

Value Assessment

Rating: questionable

Without competitive bids, it is difficult to definitively assess the value for money. The $104.5 million award for Deployable Instrument Landing Systems (DILS) over approximately 6.75 years (July 2018 - June 2025) averages to roughly $15.5 million annually. Benchmarking this against similar systems or previous procurements is challenging without more data on system capabilities and market prices. The firm-fixed-price structure provides some cost certainty, but the absence of competition means the government may not be achieving 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. The justification for this approach is not provided in the data, but sole-source awards typically occur when a unique capability is required, or there are insufficient responsible sources. The lack of competition means that the government did not benefit from a bidding process that could drive down prices and encourage innovation from multiple suppliers.

Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for these Deployable Instrument Landing Systems, as there was no market pressure to ensure the most cost-effective solution was selected.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially other branches of the Department of Defense requiring advanced landing systems. The contract delivers Deployable Instrument Landing Systems (DILS), crucial for ensuring safe and accurate aircraft landings in various operational environments. The geographic impact is likely focused on military airfields where these systems are deployed, potentially including domestic and international locations. Workforce implications may include specialized technicians for installation, maintenance, and operation of the DILS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about price fairness and potential for inflated costs.
Sole-source awards can limit technological advancement by not fostering a competitive environment for innovation.
The long contract duration without re-competition could lead to complacency or reduced incentive for cost optimization.
Absence of performance metrics or comparative data makes it hard to gauge true value for money.

Positive Signals

The firm-fixed-price contract type offers cost predictability for the government.
The award to Thales USA, Inc. suggests a reliance on established expertise for critical aviation infrastructure.
The contract supports essential national defense capabilities related to aviation safety and operations.

Sector Analysis

This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' industry. This sector is critical for defense and aviation, involving specialized technology for navigation and landing. The market for such systems is often characterized by high barriers to entry due to technological complexity and stringent certification requirements. Spending in this area is driven by military modernization efforts and the need for reliable infrastructure at airfields.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific information regarding subcontracting plans for small businesses (sb: false). This suggests that the primary awardee, Thales USA, Inc., is likely a large business, and the contract's execution may not significantly involve the small business ecosystem unless Thales voluntarily engages them for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight structures. Specific accountability measures would be detailed in the contract itself, including performance standards and reporting requirements. Transparency is limited by the sole-source nature and the lack of publicly available detailed justifications. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Instrument Landing Systems (ILS)
Airfield Navigation Aids
Aviation Systems Manufacturing
Defense Navigation and Guidance Equipment
Tactical Air Navigation Systems

Risk Flags

Sole-source award lacks competitive justification.
Potential for uncompetitive pricing due to lack of competition.
Limited transparency on performance metrics and value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $104.5 million to THALES USA, INC.. DEPLOYABLE INSTRUMENT LANDING SYSTEM

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 $104.5 million.

What is the period of performance?

Start: 2018-07-16. End: 2025-06-30.

What is the specific justification for awarding this contract on a sole-source basis to Thales USA, Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the government's needs. This could be due to unique technological requirements, proprietary information, or a lack of competition within the relevant market. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the precise reasons. However, such justifications are usually required to be publicly posted, and their absence in this dataset suggests a need for further investigation into the contract's procurement history.

How does the $104.5 million total contract value compare to similar Deployable Instrument Landing System procurements by the DoD or other agencies?

Direct comparison of the $104.5 million total contract value for Thales USA, Inc.'s Deployable Instrument Landing System (DILS) is challenging without access to specific benchmark data for similar systems. The value is spread over approximately 6.75 years, indicating an average annual expenditure of roughly $15.5 million. Factors influencing cost include the system's technical specifications, required quantities, installation, training, and maintenance. Given the sole-source nature, it's difficult to ascertain if this represents a competitive market price. Further analysis would require identifying comparable sole-source or competed contracts for DILS or equivalent systems, considering their scope, duration, and technological capabilities.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, such details are outlined within the contract's statement of work (SOW) or performance work statement (PWS). For a system like the Deployable Instrument Landing System (DILS), KPIs might include reliability rates, uptime percentages, accuracy of guidance signals, response times for maintenance, and successful operational deployment within specified timeframes. The absence of this information in the summary data makes it difficult to assess the contractor's performance and the overall effectiveness of the delivered service.

What is Thales USA, Inc.'s track record with similar defense contracts, particularly in navigation and landing systems?

Thales USA, Inc., as part of the global Thales Group, has a significant track record in defense and aerospace, including expertise in navigation, surveillance, and air traffic management systems. While specific details on their past performance related to Deployable Instrument Landing Systems (DILS) are not in this dataset, the company is known for providing advanced technological solutions to military and civilian aviation sectors worldwide. Their broader portfolio includes radar systems, communication equipment, and avionics. A comprehensive assessment of their track record for this specific contract would involve reviewing past performance evaluations, contract awards, and any reported issues or successes on similar projects within the Department of Defense or allied nations.

What is the historical spending trend for Deployable Instrument Landing Systems (DILS) by the Department of the Air Force?

The provided data only details a single contract award of $104.5 million to Thales USA, Inc. for Deployable Instrument Landing Systems (DILS). It does not offer historical spending trends for DILS by the Department of the Air Force. To establish a trend, one would need to analyze procurement data over multiple fiscal years, identifying all contracts related to DILS or similar systems, including their values, durations, and award types (competed vs. sole-source). This would reveal whether spending on DILS has been consistent, increasing, or decreasing, and how the current award fits into that broader spending pattern.

Are there any known risks or concerns associated with the reliability or effectiveness of the Thales Deployable Instrument Landing System?

The provided data does not contain specific information regarding known risks or concerns about the reliability or effectiveness of the Thales Deployable Instrument Landing System (DILS). However, any complex electronic system deployed in critical operational environments carries inherent risks related to hardware failure, software glitches, environmental factors, and maintenance challenges. Given the sole-source nature of this award, a thorough risk assessment by the procuring agency would have been crucial. Without access to the contract's performance history, technical reviews, or independent assessments, it is difficult to definitively state the level of risk associated with this particular system's reliability and effectiveness.

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

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: $156,962,775

Exercised Options: $104,903,641

Current Obligation: $104,451,136

Actual Outlays: $205,833

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline