DoD awards $81.7M contract for DOME, SONAR equipment to Thales Defense & Security Inc
Contract Overview
Contract Amount: $81,695,857 ($81.7M)
Contractor: Thales Defense & Security Inc
Awarding Agency: Department of Defense
Start Date: 2020-06-23
End Date: 2025-10-01
Contract Duration: 1,926 days
Daily Burn Rate: $42.4K/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 $81.7 million to THALES DEFENSE & SECURITY INC for work described as: DOME,SONAR Key points: 1. Contract awarded to a single, established vendor. 2. Significant contract value for specialized defense equipment. 3. Potential for limited competition due to specialized nature. 4. Spending concentrated within the Defense sector.
Value Assessment
Rating: fair
The contract value of $81.7M over approximately 5 years is substantial. Without specific unit data or comparable contract benchmarks, a precise value assessment is difficult. However, the firm fixed-price structure suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited source selection. This approach may be justified by specialized requirements or existing vendor relationships, but it limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The lack of competition may lead to higher prices than if multiple vendors were involved, impacting taxpayer value.
Public Impact
Ensures continued availability of critical DOME, SONAR systems for national defense. Supports a specific defense contractor and its supply chain. Potential for future contract modifications or extensions impacting overall cost.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns if requirements change
- Sole reliance on one vendor for critical equipment
Positive Signals
- Firm fixed-price contract aims to control costs
- Long-term contract provides stability for defense operations
Sector Analysis
This contract falls under the 'Other Communications Equipment Manufacturing' sector, specifically within defense. Spending in this niche can be high due to specialized technology and security requirements, often with limited vendor pools.
Small Business Impact
The data indicates this contract was not awarded to small businesses. The prime contractor is a large defense entity, suggesting the work is beyond the scope or capabilities of most small businesses in this specialized field.
Oversight & Accountability
The contract is managed by the Department of Defense via the Defense Contract Management Agency. Oversight will focus on delivery, quality, and adherence to the firm fixed-price terms to ensure accountability.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition
- Potential for sole-source price inflation
- Vendor lock-in
- Supply chain dependency
Tags
other-communications-equipment-manufactu, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $81.7 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 $81.7 million.
What is the period of performance?
Start: 2020-06-23. End: 2025-10-01.
What is the justification for not competing this contract, and what analysis was performed to ensure fair pricing?
The justification for not competing likely stems from the specialized nature of DOME, SONAR systems, potentially requiring unique technical expertise or existing integration with DoD platforms. A thorough market survey or sole-source justification process should have been conducted to validate the necessity of this approach and ensure the negotiated price was fair and reasonable, considering available cost data and profit margins.
What are the risks associated with a sole-source award for critical defense equipment like DOME, SONAR systems?
Sole-source awards carry inherent risks, including the potential for inflated pricing due to lack of competitive pressure, vendor lock-in, and reduced innovation. If Thales Defense & Security Inc. faces production issues or significant cost increases, the DoD has limited leverage. Furthermore, reliance on a single supplier can create vulnerabilities in the supply chain and national security if that supplier experiences disruptions.
How does this contract contribute to the overall effectiveness of DoD's DOME, SONAR capabilities?
This contract is crucial for maintaining and potentially upgrading the Department of Defense's DOME, SONAR capabilities, which are vital for intelligence gathering, surveillance, and reconnaissance. By securing a long-term supply of this equipment, the DoD ensures operational readiness and the ability to execute its missions effectively. The firm fixed-price nature suggests a commitment to predictable performance and cost management for these essential systems.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: SPRPA120RY118
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: $81,800,432
Exercised Options: $81,800,432
Current Obligation: $81,695,857
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $60,978,585
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-06-23
Current End Date: 2025-10-01
Potential End Date: 2025-10-01 00:00:00
Last Modified: 2024-05-14
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