DoD Awards $22.2M Contract to Thales USA for Navigation Systems, Undisclosed Competition
Contract Overview
Contract Amount: $22,222,565 ($22.2M)
Contractor: Thales USA, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-06-17
End Date: 2027-04-30
Contract Duration: 1,047 days
Daily Burn Rate: $21.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRODUCTION CONTRACT FOR AN/URN-32 BEACON KIT, RCSU, AN/URN-33 BEACON KIT, TACAN ANTENNA SYSTEM, HPAS, LPAS AND RMMCS.
Place of Performance
Location: WEST VALLEY CITY, SALT LAKE County, UTAH, 84119
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $22.2 million to THALES USA, INC. for work described as: PRODUCTION CONTRACT FOR AN/URN-32 BEACON KIT, RCSU, AN/URN-33 BEACON KIT, TACAN ANTENNA SYSTEM, HPAS, LPAS AND RMMCS. Key points: 1. Contract value of $22.2 million for critical navigation and communication systems. 2. Sole awarded contractor, Thales USA, Inc., raises questions about competition. 3. Risk of inflated pricing due to lack of competitive bidding. 4. Sector focus on advanced aeronautical and nautical instrument manufacturing.
Value Assessment
Rating: questionable
The contract value of $22.2 million for specialized navigation equipment needs further scrutiny. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems from other manufacturers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Thales USA, Inc. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these essential navigation and communication systems.
Public Impact
Ensures continued operational capability for critical Department of the Navy search, detection, and navigation systems. Supports advanced aviation and maritime operations with essential beacon kits and antenna systems. Potential for increased costs to taxpayers due to sole-source procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential equipment for national defense
- Long-term contract duration
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this specialized area is crucial for defense readiness, but often involves limited competition due to high technical barriers.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to compete for this specialized requirement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is justified and that future procurements in this category are competed whenever possible to maximize value.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost overruns due to lack of competitive pressure.
- Dependency on a single supplier for critical components.
- Lack of transparency regarding procurement justification.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ut, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.2 million to THALES USA, INC.. PRODUCTION CONTRACT FOR AN/URN-32 BEACON KIT, RCSU, AN/URN-33 BEACON KIT, TACAN ANTENNA SYSTEM, HPAS, LPAS AND RMMCS.
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 Navy).
What is the total obligated amount?
The obligated amount is $22.2 million.
What is the period of performance?
Start: 2024-06-17. End: 2027-04-30.
What is the justification for the sole-source award, and were alternative competitive strategies explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of qualified alternative sources. Without specific documentation, it's unclear if alternative competitive strategies were thoroughly explored. This lack of transparency can obscure potential cost savings and limit market engagement.
How does the unit cost of these beacon kits and antenna systems compare to industry benchmarks for similar non-governmental procurements?
Benchmarking the unit cost against similar non-governmental procurements is challenging without specific itemized pricing and detailed specifications. However, given the sole-source nature, there's a heightened risk that the price may exceed typical market rates. Independent cost analysis would be beneficial.
What is the long-term strategy for ensuring competitive pricing for these critical navigation systems beyond this contract's duration?
The long-term strategy should focus on fostering competition by identifying and qualifying additional suppliers, encouraging technological advancements that could enable broader market participation, and conducting thorough market research for future contract actions. This proactive approach is key to mitigating sustained sole-source risks.
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: N0001923R0019
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10950 EL MONTE ST, 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: $41,874,174
Exercised Options: $22,222,565
Current Obligation: $22,222,565
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-06-17
Current End Date: 2027-04-30
Potential End Date: 2028-04-30 00:00:00
Last Modified: 2025-09-08
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