DoD Awards $29.1M for Helmet-Mounted Display Units to Thales Defense & Security Inc
Contract Overview
Contract Amount: $29,118,191 ($29.1M)
Contractor: Thales Defense & Security Inc
Awarding Agency: Department of Defense
Start Date: 2025-05-19
End Date: 2026-05-19
Contract Duration: 365 days
Daily Burn Rate: $79.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: VENTILATED MOUNTING, EQUIPPED HELMET,STD, PROCESSOR,HELMET, DISPLAY UNIT,HEAD-U
Place of Performance
Location: CLARKSBURG, MONTGOMERY County, MARYLAND, 20871
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $29.1 million to THALES DEFENSE & SECURITY INC for work described as: VENTILATED MOUNTING, EQUIPPED HELMET,STD, PROCESSOR,HELMET, DISPLAY UNIT,HEAD-U Key points: 1. Significant award for specialized helmet-mounted display units. 2. Sole-source award raises questions about price discovery and competition. 3. Potential risk associated with reliance on a single supplier. 4. Sector context: Defense procurement for advanced soldier systems.
Value Assessment
Rating: questionable
The award amount of $29.1M for 1 unit over 365 days appears high, especially given the 'NOT COMPETED' status. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar advanced helmet systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers compared to a competitively bid contract.
Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium due to the absence of competitive pressure to lower prices.
Public Impact
Enhances soldier capabilities with advanced helmet-mounted display technology. Potential for increased situational awareness and operational effectiveness for Navy personnel. Sole-source award limits transparency and competitive pricing benefits for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Advanced technology for defense personnel
- Specific operational need addressed
Sector Analysis
This award falls within the Defense sector, specifically for aircraft parts and auxiliary equipment manufacturing. Spending in this area often involves high-value, specialized components for military applications, with benchmarks varying widely based on technology and quantity.
Small Business Impact
The contract was awarded to Thales Defense & Security Inc., a large business. There is no indication that small businesses were involved in this specific sole-source award, limiting opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is justified and that future procurements explore competitive options where feasible to maximize value for taxpayer dollars.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price determination.
- Limited opportunity for small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.1 million to THALES DEFENSE & SECURITY INC. VENTILATED MOUNTING, EQUIPPED HELMET,STD, PROCESSOR,HELMET, DISPLAY UNIT,HEAD-U
Who is the contractor on this award?
The obligated recipient is THALES DEFENSE & SECURITY 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 $29.1 million.
What is the period of performance?
Start: 2025-05-19. End: 2026-05-19.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met through competition. Without further details, it's unclear if alternatives were explored. A thorough review would be needed to confirm the necessity of this approach and ensure it aligns with procurement regulations designed to achieve best value.
How does the per-unit cost compare to similar commercially available or previously procured helmet-mounted display systems?
Benchmarking the per-unit cost is challenging without access to detailed specifications and competitive pricing data. However, given the sole-source nature and the absence of a stated benchmark, there is a risk that the price may exceed what could be achieved through competitive bidding. Further analysis comparing features and costs of similar systems is recommended.
What is the long-term strategy for procuring these helmet systems to ensure cost-effectiveness and technological advancement?
The long-term strategy should involve exploring opportunities for future competition, potentially through market research or phased procurements, to drive down costs and encourage innovation. Relying solely on sole-source awards can lead to escalating prices and missed opportunities for technological upgrades. A plan to transition to competitive sourcing where possible is advisable.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
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: 22605 GATEWAY CENTER DR, CLARKSBURG, MD, 20871
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: $29,118,191
Exercised Options: $29,118,191
Current Obligation: $29,118,191
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $2,792,864
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038322GZK01
IDV Type: BOA
Timeline
Start Date: 2025-05-19
Current End Date: 2026-05-19
Potential End Date: 2026-05-19 00:00:00
Last Modified: 2026-03-04
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