DoD Awards $9.5M for Helmet Processors to Thales, Lacking Competition

Contract Overview

Contract Amount: $9,467,220 ($9.5M)

Contractor: Thales Defense & Security Inc

Awarding Agency: Department of Defense

Start Date: 2024-04-17

End Date: 2026-04-14

Contract Duration: 727 days

Daily Burn Rate: $13.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCESSOR,HELMET

Place of Performance

Location: CLARKSBURG, MONTGOMERY County, MARYLAND, 20871

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $9.5 million to THALES DEFENSE & SECURITY INC for work described as: PROCESSOR,HELMET Key points: 1. Significant award for specialized aircraft parts. 2. Sole-source award raises questions about price discovery. 3. Potential for higher costs due to lack of competition. 4. Focus on critical defense components.

Value Assessment

Rating: questionable

The award amount of $9.5M for helmet processors appears substantial. Without competitive bids, it's difficult to benchmark against similar contracts or market rates, raising concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for the government compared to a competitive process.

Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for these critical defense components.

Public Impact

Ensures supply of essential helmet components for military operations. Potential for increased defense spending due to non-competitive award. Highlights reliance on specific contractors for specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Potential for cost overruns

Positive Signals

Ensures critical component availability
Supports defense readiness

Sector Analysis

This award falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for defense readiness, but competitive sourcing is key to cost efficiency.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to compete.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and adherence to procurement regulations. Oversight is needed to confirm the necessity of this procurement approach.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price gouging
Limited transparency in pricing
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.5 million to THALES DEFENSE & SECURITY INC. PROCESSOR,HELMET

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 Navy).

What is the total obligated amount?

The obligated amount is $9.5 million.

What is the period of performance?

Start: 2024-04-17. End: 2026-04-14.

What is the justification for the sole-source award of this contract?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further details, it's difficult to ascertain the specific reason. However, such awards necessitate rigorous justification to ensure taxpayer funds are used efficiently and that competition was genuinely not feasible.

What is the potential risk associated with awarding this contract without competition?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. This can lead to inefficient use of taxpayer funds. Additionally, it may stifle innovation from other potential suppliers and create a dependency on a single vendor, posing a supply chain risk.

How does this award contribute to the overall effectiveness of the Department of Defense's operations?

This award ensures the provision of critical helmet processors, which are vital for the operational effectiveness of military personnel. By securing these components, the DoD maintains readiness and supports the safety and performance of its forces. However, the cost-effectiveness of this procurement method impacts the overall value for money.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

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

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: $10,914,365

Exercised Options: $10,914,365

Current Obligation: $9,467,220

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $4,915,903

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0038322GZK01

IDV Type: BOA

Timeline