DOT's FAA awarded $24.1M for electrical equipment, with Thales Defense & Security winning the contract

Contract Overview

Contract Amount: $24,091,888 ($24.1M)

Contractor: Thales Defense & Security, Inc.

Awarding Agency: Department of Transportation

Start Date: 2009-01-30

End Date: 2011-03-31

Contract Duration: 790 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DAFIS UDO RECONSTRUCT W/O ADVANCE

Place of Performance

Location: LENEXA, JOHNSON County, KANSAS, 66227

State: Kansas Government Spending

Plain-Language Summary

Department of Transportation obligated $24.1 million to THALES DEFENSE & SECURITY, INC. for work described as: DAFIS UDO RECONSTRUCT W/O ADVANCE Key points: 1. The contract value of $24.1 million represents a significant investment in specialized electrical equipment. 2. Competition dynamics for this contract are crucial for understanding price discovery and potential savings. 3. Risk indicators will be assessed based on contractor performance and the complexity of the equipment. 4. Performance context is provided by the contract duration of approximately 790 days. 5. This contract falls within the 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' sector. 6. The award amount should be benchmarked against similar procurements for value-for-money assessment.

Value Assessment

Rating: fair

The contract value of $24.1 million for miscellaneous electrical equipment needs careful benchmarking. Without specific details on the exact nature of the equipment, it's challenging to compare directly to similar contracts. However, the fixed-price nature suggests a defined scope, which can aid in cost control. Further analysis would require understanding the unit costs and comparing them to industry standards for comparable technological components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This level of competition is generally favorable for price discovery, as it encourages vendors to offer competitive pricing to secure the award. The presence of three bidders, as suggested by the 'no' field, provides a reasonable basis for comparison, though the specific details of the bidding process would offer more insight.

Taxpayer Impact: Full and open competition typically leads to better value for taxpayers by driving down prices through market forces. This ensures that the government is not overpaying for the required goods or services.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving specialized electrical equipment. This equipment is likely critical for maintaining or upgrading aviation infrastructure and safety systems. The geographic impact is national, supporting FAA operations across the United States. The contract supports the manufacturing sector, potentially involving a skilled workforce in electrical component production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'miscellaneous electrical equipment' is not tightly defined.
Dependence on a single contractor for specialized components could pose supply chain risks.
Ensuring the long-term reliability and maintainability of the procured equipment.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type helps to control costs and provides budget certainty.
The contractor, Thales Defense & Security, Inc., is a known entity in the defense and security sector, implying a level of established capability.

Sector Analysis

The 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' sector is broad, encompassing a wide range of products. This contract likely pertains to specialized components that are not easily categorized elsewhere. The market for such components can be niche, with a few key players. Benchmarking spending in this area is difficult without precise product identification, but it falls under the broader manufacturing and defense industrial base spending categories.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Thales Defense & Security, Inc. engages in significant small business subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting officer and program management. The firm fixed-price nature provides some cost control. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Aviation Administration Procurement
Defense and Security Equipment Contracts
Electrical Equipment Manufacturing
Miscellaneous Manufacturing Contracts

Risk Flags

Potential for obsolescence of specialized electronic components.
Dependence on contractor's technical expertise for specialized equipment.
Need for rigorous quality assurance given the critical nature of aviation systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $24.1 million to THALES DEFENSE & SECURITY, INC.. DAFIS UDO RECONSTRUCT W/O ADVANCE

Who is the contractor on this award?

The obligated recipient is THALES DEFENSE & SECURITY, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $24.1 million.

What is the period of performance?

Start: 2009-01-30. End: 2011-03-31.

What specific types of electrical equipment were procured under this contract?

The contract data indicates the procurement falls under the 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' NAICS code (335999). This broad classification suggests the equipment is specialized and not easily categorized. Without further details from the contract statement of work or product descriptions, it is difficult to specify the exact nature of the electrical equipment. It could range from power distribution units, specialized sensors, control systems, or other critical electronic components essential for aviation infrastructure or operational systems managed by the FAA.

How does the $24.1 million award compare to similar FAA procurements for electrical equipment?

Benchmarking the $24.1 million award requires identifying comparable contracts for similar types of electrical equipment procured by the FAA or other federal agencies. Given the broad NAICS code, direct comparisons are challenging without knowing the specific technical requirements. However, for large-scale infrastructure or system upgrades, $24.1 million can represent a substantial investment. A thorough comparison would involve analyzing contract databases for procurements with similar scopes, durations, and technical specifications to assess if the price is within a reasonable range, considering factors like inflation, technological advancements, and market demand at the time of award.

What is the track record of Thales Defense & Security, Inc. in fulfilling federal contracts, particularly with the FAA?

Thales Defense & Security, Inc. is a significant player in the defense and security sector, suggesting a substantial track record with government contracts. While specific performance details for this particular $24.1 million contract are not provided in the summary data, the company's general experience in complex procurements implies a capacity to handle such awards. A deeper dive into their contract history would reveal their performance ratings on past federal awards, including on-time delivery, quality of goods/services, and adherence to budget. Examining their history with the FAA specifically would indicate their familiarity with the agency's requirements and processes.

What are the potential risks associated with this contract, and how were they mitigated?

Potential risks for this contract could include scope creep if the 'miscellaneous electrical equipment' definition is not precise, leading to cost overruns. There's also a risk related to the reliability and obsolescence of specialized electronic components. Given the firm fixed-price nature, the contractor bears much of the cost risk. Mitigation strategies would likely involve rigorous technical specifications, quality assurance testing during production, and potentially performance bonds. The contract duration of approximately 790 days also implies a need for careful project management to ensure timely delivery and integration.

How does this contract fit into the broader context of FAA's capital investments or modernization efforts?

This contract likely supports the FAA's ongoing efforts to maintain, upgrade, or modernize its air traffic control systems, communication networks, or airport infrastructure. Specialized electrical equipment is fundamental to the operation of these systems. The $24.1 million expenditure, while significant, should be viewed in the context of the FAA's overall annual budget and capital investment plans, which can run into billions of dollars. Understanding the specific program or project this contract supports would clarify its strategic importance and contribution to the agency's long-term goals for safety and efficiency.

What was the competitive landscape like for this specific procurement, and what does it imply for taxpayer value?

The contract was awarded under 'full and open competition,' with three bidders participating. This indicates a healthy level of market interest and competition for this requirement. A competitive environment generally pressures bidders to offer their best pricing and terms, which is beneficial for taxpayers. The fact that multiple companies were willing and able to bid suggests that the market is not overly concentrated for this type of equipment. The resulting price achieved through this competition is a key indicator of value for money, assuming the equipment meets all necessary specifications and performance standards.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Thales (UEI: 275250553)

Address: 23501 W 84TH ST, SHAWNEE MISSION, KS, 03

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: $177,434,950

Exercised Options: $25,717,828

Current Obligation: $24,091,888

Timeline