DoD Awards $62.8M for Radio Program Production, Supporting ACAT IC PEO-C3T
Contract Overview
Contract Amount: $62,813,212 ($62.8M)
Contractor: Thales Defense & Security Inc
Awarding Agency: Department of Defense
Start Date: 2020-11-12
End Date: 2025-11-08
Contract Duration: 1,822 days
Daily Burn Rate: $34.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LEADER RADIO PROGRAM LOW RATE INITIAL PRODUCTION 3 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 $62.8 million to THALES DEFENSE & SECURITY INC for work described as: LEADER RADIO PROGRAM LOW RATE INITIAL PRODUCTION 3 ORDER AWARD IN SUPPORT OF ACAT IC PEO-C3T/PM-TR/PDM-HMS Key points: 1. Significant award for initial production of radio program equipment. 2. Competition method is 'Full and Open', suggesting broad market engagement. 3. Risk is moderate, given the 'Initial Production' phase and firm-fixed-price contract. 4. Sector is dominated by Defense, with specific application in communications.
Value Assessment
Rating: good
The award value of $62.8M for 2 delivery orders appears reasonable for initial production of specialized radio equipment. Benchmarking against similar ACAT IC programs would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure competitive pricing and avoid overpayment for goods and services.
Public Impact
Enhances military communication capabilities through new radio program technology. Supports advanced defense systems development and deployment. Potential for follow-on production orders based on initial success.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Initial production phase carries inherent risks of technical challenges and cost overruns.
- Dependence on a single awardee for this specific production run.
- Firm Fixed Price contract may limit flexibility if unforeseen issues arise.
Positive Signals
- Full and open competition promotes market efficiency.
- Clear contract duration and delivery order structure.
- Supports critical defense communication modernization efforts.
Sector Analysis
This award falls within the Defense sector, specifically related to electronic equipment manufacturing for military communications. Spending in this area is driven by national security needs and technological advancements in battlefield C3T 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 participation in this specific award, which warrants further investigation.
Oversight & Accountability
The award is managed by the Department of the Army, under PEO-C3T/PM-TR/PDM-HMS, indicating established oversight for ACAT IC programs. Monitoring delivery orders and performance will be key accountability measures.
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 cost growth if LRIP issues are not managed effectively.
- Limited visibility into small business subcontracting.
- Dependence on a single awardee for critical production.
- Contract duration extends into 2025, requiring ongoing monitoring.
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 $62.8 million to THALES DEFENSE & SECURITY INC. LEADER RADIO PROGRAM LOW RATE INITIAL PRODUCTION 3 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 $62.8 million.
What is the period of performance?
Start: 2020-11-12. End: 2025-11-08.
What is the projected total lifecycle cost for this radio program, and how does this initial production award fit into that budget?
The provided data focuses solely on the initial production award value of $62.8M. To assess the total lifecycle cost, information on future production phases, sustainment, upgrades, and potential R&D investments would be necessary. Understanding the program's overall budget and how this award contributes to it is crucial for long-term financial planning and value assessment.
What are the specific technical risks associated with the 'Low Rate Initial Production' phase for this radio program, and what mitigation strategies are in place?
LRIP phases often encounter risks related to manufacturing process refinement, component integration, and meeting initial performance specifications. Mitigation strategies typically include rigorous testing, quality control, supplier management, and phased production ramp-ups. Specific details on Thales's mitigation plans for this program would be needed for a comprehensive risk assessment.
How effectively does the firm-fixed-price contract structure balance cost control with the need for flexibility during initial production of new radio technology?
A firm-fixed-price contract aims to provide cost certainty for the government. However, during LRIP of novel technology, unforeseen technical challenges can arise, potentially leading to change orders or contractor claims if the scope is not precisely defined. The effectiveness hinges on the thoroughness of the initial requirements and the contractor's ability to manage production within the agreed price.
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: $62,813,212
Exercised Options: $62,813,212
Current Obligation: $62,813,212
Subaward Activity
Number of Subawards: 94
Total Subaward Amount: $20,907,853
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: 2020-11-12
Current End Date: 2025-11-08
Potential End Date: 2025-11-08 12:11:00
Last Modified: 2024-12-30
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