DoD awards $41.1M for DOME, SONAR to Thales Defense & Security Inc
Contract Overview
Contract Amount: $41,126,036 ($41.1M)
Contractor: Thales Defense & Security Inc
Awarding Agency: Department of Defense
Start Date: 2019-09-27
End Date: 2022-11-28
Contract Duration: 1,158 days
Daily Burn Rate: $35.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DOME,SONAR
Place of Performance
Location: CLARKSBURG, MONTGOMERY County, MARYLAND, 20871
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $41.1 million to THALES DEFENSE & SECURITY INC for work described as: DOME,SONAR Key points: 1. Significant contract value of $41.1 million awarded. 2. Sole-source procurement raises questions about competition and price discovery. 3. Contract duration of 1158 days suggests a substantial project. 4. The 'All Other Miscellaneous General Purpose Machinery Manufacturing' NAICS code is broad and may obscure specific product details.
Value Assessment
Rating: questionable
Without competitive bids, it's difficult to assess if the $41.1 million price is optimal. Benchmarking against similar sole-source contracts for specialized sonar and dome systems would be necessary to determine fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these specialized systems.
Public Impact
Defense spending on specialized equipment like sonar and domes impacts national security capabilities. Sole-source contracts can limit innovation by not engaging a wider range of potential suppliers. Transparency in sole-source justifications is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Broad NAICS code
Positive Signals
- Firm fixed price contract type
- Long-term contract duration
Sector Analysis
This contract falls under the defense sector, specifically machinery manufacturing. Defense spending on specialized equipment is common, but the value and sole-source nature warrant scrutiny against industry benchmarks for similar systems.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this contract. Further investigation would be needed to determine if subcontracting opportunities were made available.
Oversight & Accountability
The Department of Defense awarded this contract. Oversight would typically involve contract management by the Defense Contract Management Agency to ensure delivery and adherence to terms, especially given the sole-source nature.
Related Government Programs
- All Other Miscellaneous General Purpose Machinery Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Broad NAICS code may obscure specific product details and value.
- No indication of small business participation.
Tags
all-other-miscellaneous-general-purpose-, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.1 million to THALES DEFENSE & SECURITY INC. DOME,SONAR
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $41.1 million.
What is the period of performance?
Start: 2019-09-27. End: 2022-11-28.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically cite reasons such as unique capabilities, urgent needs, or lack of viable alternatives. Without this justification, it's impossible to assess if the government received the best value and if taxpayer funds were used efficiently. Further review of procurement documentation is needed.
How does the $41.1 million price compare to similar sonar and dome systems procured through competitive means?
Benchmarking this $41.1 million contract against similar systems acquired competitively is essential for value assessment. If comparable systems were procured at significantly lower costs, it suggests potential overpayment due to the sole-source award. Analyzing market research and historical data for similar defense electronics would provide a clearer picture of cost-effectiveness.
What specific capabilities or technologies does the DOME, SONAR system provide, and how critical are they to the Department of Defense's mission?
Understanding the specific functionalities and strategic importance of the DOME, SONAR system is key to evaluating its effectiveness and justifying the expenditure. If these systems provide unique, mission-critical capabilities that cannot be met by other vendors, it might lend credence to the sole-source decision. Detailed technical specifications and operational requirements would clarify their role.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › All Other Miscellaneous General Purpose Machinery 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 (UEI: 275250553)
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: $41,126,036
Exercised Options: $41,126,036
Current Obligation: $41,126,036
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-09-27
Current End Date: 2022-11-28
Potential End Date: 2022-11-28 00:00:00
Last Modified: 2021-11-10
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