DoD Navy awards $20.7M for aircraft parts, services to Thales, raising competition concerns
Contract Overview
Contract Amount: $20,775,111 ($20.8M)
Contractor: Thales
Awarding Agency: Department of Defense
Start Date: 2010-02-25
End Date: 2011-08-31
Contract Duration: 552 days
Daily Burn Rate: $37.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRODUCTION, SPARE, AND RETROFIT ITEMS AND SERVICES.
Plain-Language Summary
Department of Defense obligated $20.8 million to THALES for work described as: PRODUCTION, SPARE, AND RETROFIT ITEMS AND SERVICES. Key points: 1. Significant contract value of $20.7 million for aircraft parts and services. 2. Sole-source award to Thales limits competitive pricing and innovation. 3. Potential for higher costs due to lack of competition. 4. Sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.
Value Assessment
Rating: questionable
The contract value of $20.7 million is substantial. Without competitive bidding, it's difficult to assess if this price is fair compared to market rates for similar aircraft parts and services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Thales, was considered. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these aircraft parts and services.
Public Impact
Taxpayers may be overpaying for essential aircraft components due to the absence of competitive bidding. The Department of the Navy relies on Thales for critical parts, potentially creating vendor lock-in. Limited transparency in pricing for specialized aircraft parts and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Contract awarded to a known entity (Thales)
Sector Analysis
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector involves specialized components. Benchmarking costs in this niche can be challenging, especially when contracts are not competed.
Small Business Impact
This award does not appear to involve small businesses, as it was a sole-source contract awarded to Thales, a large corporation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained fair value and that competition was not improperly excluded.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source procurement
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on justification
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.8 million to THALES. PRODUCTION, SPARE, AND RETROFIT ITEMS AND SERVICES.
Who is the contractor on this award?
The obligated recipient is THALES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $20.8 million.
What is the period of performance?
Start: 2010-02-25. End: 2011-08-31.
What specific justification was provided for awarding this contract on a sole-source basis, and were alternative competitive strategies explored?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services. Agencies must document these justifications thoroughly, and the absence of this information raises questions about the procurement process and whether competitive alternatives were adequately considered.
How does the unit cost of these aircraft parts and services compare to similar items procured competitively by other defense agencies or allies?
Without specific item details and competitive benchmark data, a direct comparison is impossible. However, the sole-source nature of this $20.7 million award suggests a higher likelihood of inflated pricing compared to competitively procured items. Further analysis would require detailed product specifications and access to broader market pricing data.
What is the long-term strategic impact of relying on a sole-source provider for critical aircraft parts and services?
Long-term reliance on a sole-source provider can lead to vendor lock-in, reduced bargaining power, and potential price increases over time. It also limits opportunities for innovation from other suppliers and can create supply chain vulnerabilities if the sole provider faces disruptions. This strategy may also hinder the development of a robust and competitive industrial base.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 45 RUE DE VILLIERS, NEUILLY SUR SEINE
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,775,111
Exercised Options: $20,775,111
Current Obligation: $20,775,111
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001905G0019
IDV Type: IDC
Timeline
Start Date: 2010-02-25
Current End Date: 2011-08-31
Potential End Date: 2011-08-31 00:00:00
Last Modified: 2021-10-30
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