DoD Awards $30.6M for Radio Production to Thales, Full Competition Used
Contract Overview
Contract Amount: $30,584,677 ($30.6M)
Contractor: Thales Defense & Security Inc
Awarding Agency: Department of Defense
Start Date: 2019-12-20
End Date: 2023-03-31
Contract Duration: 1,197 days
Daily Burn Rate: $25.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LEADER RADIO LOW RATE INITIAL PRODUCTION ORDER AWARD IN SUPPORT OF ACAT IC PEO-C3T/PM-TR/PDM-HMS
Place of Performance
Location: CLARKSBURG, MONTGOMERY County, MARYLAND, 20871
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $30.6 million to THALES DEFENSE & SECURITY INC for work described as: LEADER RADIO LOW RATE INITIAL PRODUCTION ORDER AWARD IN SUPPORT OF ACAT IC PEO-C3T/PM-TR/PDM-HMS Key points: 1. Awarded to Thales Defense & Security Inc. for radio production. 2. Utilized full and open competition, suggesting a competitive bidding process. 3. The contract is a delivery order under a larger IDIQ, indicating phased procurement. 4. Sector is Radio and Wireless Communications Equipment Manufacturing.
Value Assessment
Rating: good
The contract value of $30.6 million over nearly four years appears reasonable given the firm fixed price structure and the nature of radio production. Benchmarking against similar ACAT IC PEO-C3T programs would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. It allows multiple vendors to bid, driving down costs and ensuring the government receives competitive pricing.
Taxpayer Impact: The competitive nature of this award suggests taxpayers are likely receiving fair value for the funds expended on this radio production order.
Public Impact
Ensures continued availability of critical radio communication equipment for the Army. Supports technological advancements in military communication systems. Potential for follow-on orders based on production needs and performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if production complexities arise.
- Dependency on a single supplier for this specific order.
- Long-term obsolescence risk for radio technology.
Positive Signals
- Use of full and open competition.
- Firm fixed price contract type limits cost risk.
- Delivery order structure allows for phased funding and delivery.
Sector Analysis
The Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector is vital for defense communications. Spending in this area is often driven by technological upgrades and the need for secure, reliable communication systems.
Small Business Impact
The data indicates the prime contractor is Thales Defense & Security Inc., a large business. There is no explicit information on small business subcontracting participation in this specific award notice.
Oversight & Accountability
As a delivery order under an IDIQ, oversight is likely managed by the PEO-C3T program office. The firm fixed price contract provides some cost control, but performance monitoring is crucial.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep if requirements change.
- Dependency on Thales' supply chain.
- Technological obsolescence risk.
- Adequacy of competition for future orders under the IDIQ.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.6 million to THALES DEFENSE & SECURITY INC. LEADER RADIO LOW RATE INITIAL PRODUCTION ORDER AWARD IN SUPPORT OF ACAT IC PEO-C3T/PM-TR/PDM-HMS
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 Army).
What is the total obligated amount?
The obligated amount is $30.6 million.
What is the period of performance?
Start: 2019-12-20. End: 2023-03-31.
What is the total value of the IDIQ contract under which this delivery order was placed, and how does this order represent a portion of that total?
The provided data only details this specific delivery order's value ($30.6M). The total value of the underlying IDIQ contract is not specified here. Understanding the IDIQ's ceiling and remaining capacity is essential to assess the long-term commitment and potential for future orders.
How does the unit cost of these radios compare to similar commercially available or previously procured military-grade radios?
A precise per-unit cost benchmark is not available from the provided data. A detailed cost analysis comparing this award's implied unit price against market rates for comparable radio systems, considering military specifications and quantities, would be necessary to fully assess value.
What are the key performance metrics and testing protocols for this radio production order to ensure effectiveness and reliability?
Specific performance metrics and testing protocols are not detailed in this award notice. Effective oversight would require the Army to define and monitor adherence to stringent technical specifications, environmental testing, and operational performance standards to ensure the radios meet mission requirements.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,584,677
Exercised Options: $30,584,677
Current Obligation: $30,584,677
Actual Outlays: $7,238,775
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $1,332,837
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T15D0015
IDV Type: IDC
Timeline
Start Date: 2019-12-20
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 12:03:00
Last Modified: 2023-01-31
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