DoD awards $107M for Leader Radio Program FRP-2 to Thales Defense & Security Inc
Contract Overview
Contract Amount: $106,943,464 ($106.9M)
Contractor: Thales Defense & Security Inc
Awarding Agency: Department of Defense
Start Date: 2022-09-07
End Date: 2026-06-30
Contract Duration: 1,392 days
Daily Burn Rate: $76.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LEADER RADIO PROGRAM FULL RATE PRODUCTION 2 (FRP-2) 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 $106.9 million to THALES DEFENSE & SECURITY INC for work described as: LEADER RADIO PROGRAM FULL RATE PRODUCTION 2 (FRP-2) AWARD IN SUPPORT OF ACAT IC PEO-C3T/PM-TR/PDM-HMS. Key points: 1. The contract is a delivery order under a larger contract, indicating a phased approach to procurement. 2. Thales Defense & Security Inc. is a significant player in defense electronics, suggesting strong technical capabilities. 3. The firm fixed price contract type aims to control costs, but potential for cost overruns exists if scope changes. 4. The sector is dominated by a few large contractors, potentially limiting future competition. 5. The award supports ACAT IC programs, highlighting its importance in critical defense communications.
Value Assessment
Rating: good
The award value of $106.9M for a 46-month period suggests a reasonable price point for advanced radio production. Benchmarking against similar complex communication system contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific nature of advanced radio systems may limit the number of capable bidders.
Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently for critical defense needs.
Public Impact
Enhances military communication capabilities for the U.S. Army. Supports advanced technology development in wireless communications. Ensures operational readiness through reliable broadcasting equipment. Contributes to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in complex production contracts.
- Reliance on a single supplier for critical components.
- Long-term sustainment and upgrade costs not fully detailed.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
- Supports critical ACAT IC program.
- Experienced contractor with relevant capabilities.
Sector Analysis
This award falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector, a critical component of national defense infrastructure. Spending in this area is often driven by technological advancements and evolving operational requirements.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the prime contractor is a large business. There is no information on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The award is a delivery order under a larger contract, suggesting existing oversight mechanisms. Further review of the parent contract's oversight and accountability provisions is recommended.
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 overruns if scope expands.
- Dependence on a single large contractor.
- Limited visibility into small business participation.
- Long-term sustainment costs are unclear.
- Technological obsolescence risk in a rapidly evolving field.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $106.9 million to THALES DEFENSE & SECURITY INC. LEADER RADIO PROGRAM FULL RATE PRODUCTION 2 (FRP-2) 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 $106.9 million.
What is the period of performance?
Start: 2022-09-07. End: 2026-06-30.
What is the projected total value of the parent contract from which this delivery order was issued?
The provided data only details the value of this specific delivery order ($106.9M). The total value of the parent contract is not specified. Understanding the full contract scope and value is crucial for assessing the overall financial commitment and long-term implications for the Department of Defense.
How does the per-unit cost of the radio equipment compare to industry benchmarks for similar capabilities?
A precise per-unit cost benchmark is not available without detailed specifications of the 'LEADER RADIO PROGRAM FULL RATE PRODUCTION 2 (FRP-2)' equipment. However, the total award value and duration suggest a significant investment in advanced communication technology, warranting comparison with other high-end military radio systems.
What are the key performance metrics and deliverables for this production contract?
Key performance metrics and deliverables are not explicitly detailed in the provided data. Typically, such contracts would include specifications for radio performance, production timelines, quality control standards, and delivery schedules to ensure the equipment meets the demanding requirements of the ACAT IC PEO-C3T/PM-TR/PDM-HMS program.
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: $106,943,464
Exercised Options: $106,943,464
Current Obligation: $106,943,464
Subaward Activity
Number of Subawards: 138
Total Subaward Amount: $51,285,283
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: 2022-09-07
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 12:06:00
Last Modified: 2025-09-30
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