DoD awards $104M for radio and communication equipment to Thales Defense & Security Inc

Contract Overview

Contract Amount: $104,244,130 ($104.2M)

Contractor: Thales Defense & Security Inc

Awarding Agency: Department of Defense

Start Date: 2024-09-18

End Date: 2026-09-18

Contract Duration: 730 days

Daily Burn Rate: $142.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS LEADER RADIO FULL RATE PRODUCTION ORDER AUTHORIZES THE PURCHASE OF RADIO AND COMMUNICATION EQUIPMENT.

Place of Performance

Location: CLARKSBURG, MONTGOMERY County, MARYLAND, 20871

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $104.2 million to THALES DEFENSE & SECURITY INC for work described as: THIS LEADER RADIO FULL RATE PRODUCTION ORDER AUTHORIZES THE PURCHASE OF RADIO AND COMMUNICATION EQUIPMENT. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. Equipment is for radio and communication systems, a critical component for defense operations. 4. The contract duration is 730 days, indicating a medium-term supply need. 5. The award is a delivery order against a larger contract vehicle, not a standalone award. 6. The North American Industry Classification System (NAICS) code 334220 points to manufacturing of radio and television broadcasting and wireless communications equipment.

Value Assessment

Rating: good

The total value of $104.24 million for radio and communication equipment over two years appears reasonable given the nature of defense-grade technology. Benchmarking against similar large-scale procurements for specialized communication systems would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overruns for the government.

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 bids. The presence of two bids suggests a moderate level of competition for this specific delivery order. A higher number of bidders would typically lead to more aggressive pricing and potentially better value.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing, potentially driving down costs compared to sole-source or limited competition scenarios.

Public Impact

The Department of the Army will benefit from enhanced radio and communication capabilities. This contract ensures the delivery of essential communication equipment for military operations. The primary geographic impact is likely within the operational areas of the Department of the Army. The contract supports the manufacturing sector, specifically in the production of advanced communication technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this equipment becomes proprietary and difficult to integrate with future systems.
Dependence on a single contractor for critical communication hardware could pose supply chain risks.
The specific performance requirements and testing protocols are not detailed, which could lead to unforeseen issues.
Long-term sustainment and maintenance costs for the awarded equipment are not explicitly outlined in this award notice.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm-fixed-price contract type provides cost certainty and limits the government's financial exposure.
Procurement of advanced radio and communication equipment is vital for maintaining operational readiness.
The contractor, Thales Defense & Security Inc., is a known entity in the defense sector, suggesting a degree of established capability.

Sector Analysis

The defense communications market is a significant segment within the broader aerospace and defense industry. Companies like Thales Defense & Security Inc. specialize in providing advanced electronic systems, including secure radio and communication equipment, to military and government clients globally. This contract fits within the trend of ongoing modernization of military communication infrastructure to ensure interoperability and enhanced battlefield awareness. Spending in this sector is often driven by evolving threats and the need for resilient, secure communication networks.

Small Business Impact

There is no indication in the provided data that this contract includes a small business set-aside. Given the specialized nature and significant value of the contract, it is unlikely that small businesses would be the primary awardees, though they may participate as subcontractors to Thales Defense & Security Inc. Further analysis of subcontracting plans would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and procurement regulations. The firm-fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is facilitated by the public nature of contract awards, though detailed technical specifications and performance metrics are often considered sensitive. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

Tactical Radio Systems
Secure Communication Networks
Military Communications Equipment
Defense Electronics Procurement

Risk Flags

Potential for obsolescence
Supply chain vulnerability
Integration complexity
Long-term sustainment costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $104.2 million to THALES DEFENSE & SECURITY INC. THIS LEADER RADIO FULL RATE PRODUCTION ORDER AUTHORIZES THE PURCHASE OF RADIO AND COMMUNICATION EQUIPMENT.

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 $104.2 million.

What is the period of performance?

Start: 2024-09-18. End: 2026-09-18.

What is the track record of Thales Defense & Security Inc. in delivering similar radio and communication equipment to the Department of Defense?

Thales Defense & Security Inc. has a substantial history of providing defense and security solutions, including radio and communication systems, to various branches of the U.S. military and allied nations. Their portfolio often includes secure, tactical, and strategic communication platforms designed for challenging operational environments. While specific performance metrics for past contracts are not publicly detailed in this award notice, the company's continued presence and success in securing large defense contracts suggest a generally positive track record. A deeper dive into historical contract performance data, including on-time delivery, adherence to specifications, and any past disputes or corrective actions, would be necessary for a comprehensive assessment of their reliability for this specific procurement.

How does the awarded price of $104.24 million compare to similar procurements for advanced radio and communication systems?

Benchmarking the $104.24 million award requires comparing it against contracts for similar quantities, specifications, and technological sophistication of radio and communication equipment. Given that this is a delivery order for specialized defense-grade equipment over two years, the price point is likely within the expected range for such procurements. However, without detailed specifications on the type of radios, their capabilities (e.g., encryption levels, range, bandwidth), and the total quantity ordered, a precise comparison is difficult. Generally, firm-fixed-price contracts awarded under full and open competition aim to achieve competitive pricing. Further analysis would involve examining the unit cost of comparable systems or the total value of similar multi-year procurements for advanced military communication suites.

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

Primary risks include potential technical obsolescence of the equipment over its lifecycle, supply chain disruptions affecting delivery, and integration challenges with existing military networks. The firm-fixed-price contract mitigates financial risk for the government by capping costs. Mitigation for technical obsolescence and supply chain issues often relies on robust contract specifications that include upgrade paths and performance guarantees, as well as the contractor's own supply chain management. Integration risks are typically addressed through rigorous testing and validation phases outlined in the contract's statement of work. The full and open competition may also reduce risk by ensuring multiple vendors were considered, potentially selecting the most capable and reliable.

What is the expected effectiveness of the procured radio and communication equipment in enhancing military operational capabilities?

The effectiveness of this equipment is expected to be high, as modern radio and communication systems are crucial for maintaining command and control, situational awareness, and interoperability among different military units and platforms. Advanced features such as secure data transmission, jam resistance, and extended range are vital for operations in contested environments. By procuring new equipment, the Department of the Army aims to upgrade its communication infrastructure, ensuring that soldiers have reliable and secure means to communicate, which directly impacts mission success and personnel safety. The specific enhancements will depend on the technological capabilities of the systems delivered under this contract.

How does this contract's value and scope compare to historical spending on similar communication equipment by the Department of Defense?

The $104.24 million award represents a significant but not unprecedented investment in radio and communication equipment. The Department of Defense historically spends billions annually on various communication systems, including tactical radios, satellite communications, and network infrastructure. This specific contract appears to be a substantial procurement for a particular type of radio and communication equipment, likely contributing to a broader modernization effort. Comparing its value to historical spending requires analyzing trends in defense communication budgets and the specific categories of equipment procured over time. This award could be part of a larger, multi-year strategy to upgrade the Army's tactical communication capabilities.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this contract that indicate success?

While the award notice itself does not detail specific performance metrics or KPIs, such indicators are standard components of defense contracts. For radio and communication equipment, KPIs typically include reliability rates (e.g., Mean Time Between Failures - MTBF), data throughput speeds, communication range, encryption strength and compliance, battery life, and environmental resilience (e.g., resistance to shock, vibration, temperature extremes). The contract likely specifies acceptance testing criteria that the delivered equipment must meet before final payment. Success would be measured by the contractor's ability to meet these technical specifications and delivery schedules, ensuring the equipment functions as intended in its operational environment.

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: $362,730,608

Exercised Options: $104,244,130

Current Obligation: $104,244,130

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $20,194,830

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