DoD awards $156.5M for MBITR Urban System to Thales Defense & Security Inc

Contract Overview

Contract Amount: $15,651,516 ($15.7M)

Contractor: Thales Defense & Security Inc

Awarding Agency: Department of Defense

Start Date: 2008-03-04

End Date: 2009-07-20

Contract Duration: 503 days

Daily Burn Rate: $31.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MBITR URBAN SYSTEM

Place of Performance

Location: CLARKSBURG, MONTGOMERY County, MARYLAND, 20871

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to THALES DEFENSE & SECURITY INC for work described as: MBITR URBAN SYSTEM Key points: 1. Significant contract value of $156.5 million awarded. 2. Sole-source award to Thales Defense & Security Inc. raises competition concerns. 3. Contract duration of 503 days suggests a focused, short-term need. 4. Spending falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $156.5 million for a specialized communication system is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or potential alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had submitted bids.

Taxpayer Impact: The lack of competition for a $156.5 million contract could lead to suboptimal use of taxpayer funds.

Public Impact

Special Operations Command procurement impacts national security communication capabilities. Award to a single vendor may limit technological advancement through market competition. Taxpayers may be paying a premium due to the absence of a competitive bidding process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation indicated

Positive Signals

Award to established defense contractor
Specific system for Special Operations Command

Sector Analysis

This contract falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this area is critical for modern defense, but competitive procurement is key to ensuring value.

Small Business Impact

There is no indication of small business participation in this sole-source contract. This represents a missed opportunity to support small businesses within the defense supply chain.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Defense received the best possible value and that the justification for not competing was robust.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Defense Contracting
U.S. Special Operations Command Programs

Risk Flags

Sole-source award limits competition.
Potential for overpayment due to lack of price discovery.
No small business participation.
Lack of transparency regarding justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to THALES DEFENSE & SECURITY INC. MBITR URBAN SYSTEM

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 (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $15.7 million.

What is the period of performance?

Start: 2008-03-04. End: 2009-07-20.

What was the justification for awarding this contract on a sole-source basis, and was it adequately documented?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to ascertain the specific justification (e.g., urgent need, unique capability). Without this documentation, it's impossible to definitively assess the validity of the sole-source decision and its impact on value for money.

How does the $156.5 million cost compare to similar communication systems procured by other agencies or allies?

Benchmarking this $156.5 million award against similar systems is challenging without detailed specifications of the MBITR Urban System and its capabilities. A comparative analysis would require access to technical data and pricing information from comparable procurements, which is not available in the provided summary.

What is the long-term strategy for maintaining and upgrading the MBITR Urban System, and will future procurements be competed?

The data does not provide insight into the long-term strategy for the MBITR Urban System. Future procurements will depend on the system's lifecycle, technological relevance, and the agency's procurement strategy. It is crucial for the Department of Defense to plan for competitive follow-on contracts where feasible to ensure continued value and innovation.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Thales (UEI: 275250553)

Address: 22605 GATEWAY CENTER DR, CLARKSBURG, MD, 06

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,651,516

Exercised Options: $15,651,516

Current Obligation: $15,651,516

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222207D0012

IDV Type: IDC

Timeline