DoD Awards $64M for Tactical Radios to Thales, Full Rate Production Underway
Contract Overview
Contract Amount: $64,001,002 ($64.0M)
Contractor: Thales Defense & Security Inc
Awarding Agency: Department of Defense
Start Date: 2023-07-20
End Date: 2029-03-10
Contract Duration: 2,060 days
Daily Burn Rate: $31.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PEO-C3T TACTICAL RADIOS LEADER RADIO FULL RATE PRODUCTION LEADER RADIO ORDER #3
Place of Performance
Location: CLARKSBURG, MONTGOMERY County, MARYLAND, 20871
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $64.0 million to THALES DEFENSE & SECURITY INC for work described as: PEO-C3T TACTICAL RADIOS LEADER RADIO FULL RATE PRODUCTION LEADER RADIO ORDER #3 Key points: 1. Significant award for essential tactical communication equipment. 2. Thales Defense & Security Inc. is the sole awardee for this order. 3. Potential for cost overruns or schedule delays exists given the long duration. 4. Spending falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector.
Value Assessment
Rating: good
The contract is a firm-fixed-price delivery order, which helps control costs. The total value of $64M over 2060 days suggests a reasonable per-unit cost, though specific unit pricing is not provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for critical defense equipment.
Public Impact
Ensures continued availability of vital communication systems for soldiers. Supports advanced wireless communication technology in military operations. Contributes to the readiness and effectiveness of the U.S. Army.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or evolving technology obsolescence.
- Sole awardee for this specific order may warrant monitoring for future competition.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Awarded under full and open competition.
- Supports critical national defense capabilities.
Sector Analysis
This award is within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector, a key area for defense technology. Benchmarks for similar tactical radio procurements would be useful for a more precise comparison.
Small Business Impact
The data does not indicate any specific set-asides for small businesses in this particular delivery order. Analysis of the prime contractor's subcontracting plan would be necessary to assess small business participation.
Oversight & Accountability
The Department of the Army is the contracting activity, with PEO-C3T overseeing the program. Standard oversight mechanisms for production contracts should be in place to monitor performance and costs.
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 technological obsolescence due to long contract duration.
- Reliance on a single awardee for this order.
- Supply chain vulnerability for specialized electronic components.
- Long-term sustainment and maintenance costs not detailed.
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 $64.0 million to THALES DEFENSE & SECURITY INC. PEO-C3T TACTICAL RADIOS LEADER RADIO FULL RATE PRODUCTION LEADER RADIO ORDER #3
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 $64.0 million.
What is the period of performance?
Start: 2023-07-20. End: 2029-03-10.
What is the projected per-unit cost of the Leader Radio, and how does it compare to industry benchmarks for similar tactical communication devices?
The provided data does not specify the per-unit cost for the Leader Radio. A detailed cost analysis would require breaking down the total award value by the number of units procured. Comparing this to industry benchmarks for tactical radios is crucial to assess value for money and identify potential overpricing or cost efficiencies.
What are the specific risks associated with a 2060-day production run for tactical radios, considering technological advancements and potential supply chain disruptions?
A long production run increases the risk of technological obsolescence, as communication technology evolves rapidly. Supply chain disruptions, geopolitical instability, or changes in material availability could also impact delivery schedules and costs. Robust risk mitigation strategies and flexible contract terms are essential to address these potential issues.
How effectively does the full and open competition process ensure the government receives the best value for these critical tactical radio systems?
Full and open competition is designed to maximize the number of potential bidders, fostering a competitive environment that typically drives down prices and encourages innovation. This process allows the government to evaluate technical capabilities and pricing from multiple sources, increasing the likelihood of securing advanced technology at a fair market 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: $64,010,597
Exercised Options: $64,001,002
Current Obligation: $64,001,002
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $2,663,844
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: 2023-07-20
Current End Date: 2029-03-10
Potential End Date: 2029-03-10 12:03:00
Last Modified: 2025-09-30
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