DoD awards $95.9M for Combat Net Radio transmitters, with Thales Defense & Security Inc. as the contractor

Contract Overview

Contract Amount: $95,929,004 ($95.9M)

Contractor: Thales Defense & Security Inc

Awarding Agency: Department of Defense

Start Date: 2024-05-15

End Date: 2026-03-30

Contract Duration: 684 days

Daily Burn Rate: $140.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO ISSUE THE SECOND DELIVERY ORDER QUANTITY FOR RADIO TRANSMITTER (R/T) AGAINST COMBAT NET RADIO (CNR) POST- FIRST ARTICLE TESTING (FAT) ORDERING PERIOD 3.

Place of Performance

Location: CLARKSBURG, MONTGOMERY County, MARYLAND, 20871

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $95.9 million to THALES DEFENSE & SECURITY INC for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO ISSUE THE SECOND DELIVERY ORDER QUANTITY FOR RADIO TRANSMITTER (R/T) AGAINST COMBAT NET RADIO (CNR) POST- FIRST ARTICLE TESTING (FAT) ORDERING PERIOD 3. Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract is for radio transmitters, a critical component for military communications. 3. The duration of the contract is 684 days, indicating a medium-term supply need. 4. The award is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 334220 points to the wireless communications equipment manufacturing sector. 6. The contract value of $95.9 million represents a significant investment in communication technology.

Value Assessment

Rating: good

The contract value of $95.9 million for radio transmitters appears to be within a reasonable range for specialized defense equipment. Benchmarking against similar contracts for communication systems would provide a clearer picture of value for money. The firm fixed-price nature of the contract shifts cost risk to the contractor, which can be beneficial for the government if costs are managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it was competed suggests that multiple vendors likely participated, which generally leads to better price discovery and potentially more competitive pricing for the government. The specific number of bidders is not provided, but the competition type is a positive sign.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

The Department of the Army benefits from enhanced battlefield communication capabilities. Radio transmitters are delivered, crucial for maintaining secure and reliable communication networks. The primary geographic impact is within military operational theaters, supporting deployed forces. The contract supports the manufacturing workforce within the wireless communications equipment sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of radio transmitter technology given rapid advancements in the field.
Dependence on a single contractor for a critical component could pose supply chain risks if not managed proactively.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract type provides cost certainty for the government.
The contractor, Thales Defense & Security Inc., is a known entity in the defense sector.

Sector Analysis

The contract falls within the Information Technology and Defense sectors, specifically focusing on wireless communications equipment manufacturing. The market for military communication systems is highly specialized, with significant R&D investment. Spending in this area is driven by the need for secure, interoperable, and advanced communication capabilities for modern warfare. Comparable spending benchmarks would likely be found within other large defense contracts for electronic warfare and communication systems.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. However, as a large prime contract, there may be opportunities for small businesses to participate as subcontractors to Thales Defense & Security Inc. The extent of small business subcontracting would depend on the prime contractor's policies and the nature of the components and services required.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and procurement regulations. The firm fixed-price nature provides some cost control. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Combat Net Radio (CNR) Systems
Tactical Communication Systems
Military Radio Equipment
Defense Communications Infrastructure

Risk Flags

Potential for technological obsolescence
Supply chain dependency
Performance in harsh environments

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.9 million to THALES DEFENSE & SECURITY INC. THE PURPOSE OF THIS DELIVERY ORDER IS TO ISSUE THE SECOND DELIVERY ORDER QUANTITY FOR RADIO TRANSMITTER (R/T) AGAINST COMBAT NET RADIO (CNR) POST- FIRST ARTICLE TESTING (FAT) ORDERING PERIOD 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 $95.9 million.

What is the period of performance?

Start: 2024-05-15. End: 2026-03-30.

What is the track record of Thales Defense & Security Inc. in delivering similar radio transmitter systems to the Department of Defense?

Thales Defense & Security Inc. has a significant history of providing defense electronics and communication systems to various branches of the U.S. military, including the Department of the Army. Their portfolio often includes tactical radios, secure communication solutions, and related electronic warfare systems. While specific performance metrics for past radio transmitter contracts are not detailed here, their established presence suggests experience in meeting military specifications and delivery schedules. Further analysis would involve reviewing past performance evaluations and contract histories for similar procurements to assess reliability and quality.

How does the awarded amount of $95.9 million compare to previous or similar procurements for Combat Net Radio (CNR) transmitters?

Without direct comparative data for identical CNR transmitter procurements, a precise value-for-money assessment is challenging. However, $95.9 million for a significant quantity of specialized military radio equipment over a period of approximately two years (delivery end date March 2026) suggests a substantial investment. The 'Post-First Article Testing (FAT) Ordering Period 3' implies this is part of an ongoing program, and the current award might reflect updated pricing, quantity adjustments, or market conditions compared to earlier phases. Benchmarking against other large-scale defense electronics contracts could offer a broader perspective on cost efficiency.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include technological obsolescence, as radio technology evolves rapidly; supply chain disruptions affecting component availability; and potential performance issues with the transmitters in demanding operational environments. Mitigation strategies likely involve robust first article testing (FAT) as indicated, clear performance specifications, and the firm fixed-price contract type which incentivizes the contractor to manage costs and quality. The Department of Defense also likely has contingency plans for communication system failures or gaps, and may maintain relationships with alternative suppliers or technologies.

What is the expected impact of these radio transmitters on the Department of the Army's operational effectiveness?

These radio transmitters are critical for establishing and maintaining secure, reliable battlefield communication networks. They enable voice and data transmission between various military units, supporting command and control, intelligence sharing, and logistical coordination. Enhanced communication capabilities directly improve situational awareness, operational tempo, and the overall effectiveness of ground forces. The Combat Net Radio (CNR) system is designed for tactical environments, ensuring interoperability and resilience, which are vital for mission success.

What are the historical spending patterns for Combat Net Radio (CNR) systems or similar communication equipment by the Department of Defense?

Historical spending on CNR systems and related tactical communication equipment by the Department of Defense has been substantial and consistent, reflecting the enduring need for robust battlefield networks. Major defense budgets allocate significant portions to modernizing communication infrastructure, driven by evolving threats and technological advancements. Spending often occurs through multi-year IDIQ contracts with various delivery orders, similar to the structure indicated here. Fluctuations in spending can be influenced by specific modernization programs, operational tempo, and shifts in defense priorities, but the underlying requirement for reliable tactical radios remains a constant.

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $95,929,004

Exercised Options: $95,929,004

Current Obligation: $95,929,004

Subaward Activity

Number of Subawards: 121

Total Subaward Amount: $33,878,266

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: W15P7T22D0002

IDV Type: IDC

Timeline