DoD's $26.9M R&D contract for production of kits awarded to Teledyne FLIR Defense, Inc

Contract Overview

Contract Amount: $26,895,854 ($26.9M)

Contractor: Teledyne Flir Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-24

End Date: 2014-10-15

Contract Duration: 751 days

Daily Burn Rate: $35.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: PRODUCTION OF KITS

Place of Performance

Location: ELKRIDGE, HOWARD County, MARYLAND, 21075

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $26.9 million to TELEDYNE FLIR DEFENSE, INC. for work described as: PRODUCTION OF KITS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for Research and Development, indicating investment in new technologies or capabilities. 3. The duration of 751 days suggests a moderately complex or lengthy development period. 4. The firm fixed-price contract type aims to control costs by establishing a set price. 5. The award was made by the Department of Defense, a major federal contracting agency. 6. The North American Industry Classification System (NAICS) code 541712 points to R&D in physical, engineering, and life sciences. 7. The contract was issued as a delivery order, implying it's part of a larger contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific $26.9 million R&D contract is challenging without comparable data for similar 'production of kits' R&D efforts. The firm fixed-price structure suggests an attempt to manage cost certainty. However, R&D contracts inherently carry risk, and the ultimate value is realized through the successful development and deployment of the kits. Without performance metrics or post-award data, a definitive value assessment is difficult.

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 number of bidders is not specified, but this method generally promotes a competitive environment, which can lead to better pricing and innovation. The agency sought proposals from a wide range of potential contractors, aiming to secure the best value.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages a broader pool of contractors to offer their best solutions, potentially leading to more cost-effective outcomes.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel, who will receive the developed kits. The services delivered involve research and development for the production of specific kits. The geographic impact is primarily within the United States, where the R&D and production activities would occur. Workforce implications may include employment for researchers, engineers, technicians, and manufacturing personnel involved in the R&D and production phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

R&D contracts can face scope creep, potentially increasing costs beyond initial estimates if not managed tightly.
The success of R&D is inherently uncertain; the developed kits may not meet all performance expectations.
Dependence on a single contractor for a specific R&D effort can create future sole-source risks if follow-on work is needed.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract type provides cost certainty for the government.
The contract is for R&D, indicating investment in potentially critical defense capabilities.

Sector Analysis

The contract falls within the Research and Development sector, specifically NAICS code 541712, which covers R&D in physical, engineering, and life sciences. This sector is characterized by innovation and the creation of new technologies. Federal spending in R&D is crucial for national security, scientific advancement, and economic competitiveness. Comparable spending benchmarks would depend heavily on the specific type of kits being developed.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Teledyne FLIR Defense, Inc., may engage small businesses as subcontractors, depending on their supply chain needs and subcontracting plans, which are not detailed here.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified outputs. Transparency is generally maintained through contract databases, though specific R&D details might be sensitive. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Defense Production Act Investments
Advanced Technology Development Contracts
Kit Production Contracts

Risk Flags

Potential for scope creep in R&D
Uncertainty of R&D outcomes
Contract duration may impact technology relevance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to TELEDYNE FLIR DEFENSE, INC.. PRODUCTION OF KITS

Who is the contractor on this award?

The obligated recipient is TELEDYNE FLIR DEFENSE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $26.9 million.

What is the period of performance?

Start: 2012-09-24. End: 2014-10-15.

What is the track record of Teledyne FLIR Defense, Inc. with the Department of Defense?

Teledyne FLIR Defense, Inc. has a significant history of contracting with the Department of Defense. While this specific contract is for $26.9 million over 751 days for R&D, the company's broader portfolio includes numerous awards across various defense-related categories. Analyzing their complete contract history, including past performance on similar R&D projects, delivery timelines, and adherence to budget, would provide a more comprehensive understanding of their reliability and capability. Information on past performance evaluations and any disputes or contract terminations would be crucial for a thorough assessment.

How does the $26.9 million value compare to similar R&D contracts for kit production?

Directly comparing the $26.9 million value of this 'production of kits' R&D contract is difficult without more specific details on the nature of the kits and the R&D scope. R&D contracts can vary immensely in cost based on technological complexity, required innovation, and scale. If these kits are for advanced electronic systems, the cost might be within a typical range. If they are for simpler mechanical components, it could be high. Benchmarking would require access to databases of similar NAICS-coded R&D contracts with comparable objectives and deliverables to ascertain if this represents a fair market value.

What are the primary risks associated with this R&D contract?

The primary risks associated with this R&D contract include technical risk (the technology may not perform as expected or be feasible), schedule risk (delays in development impacting deployment timelines), cost risk (despite being fixed-price, unforeseen technical challenges could lead to contractor requests for modification or impact future bids), and performance risk (the final product may not meet the stringent requirements of the DoD). Given it's a 'production of kits' R&D, there's also a risk that the developed solution might become obsolete quickly or face integration challenges with existing systems.

How effective is the firm fixed-price contract type in managing costs for R&D?

The firm fixed-price (FFP) contract type is generally preferred by the government for cost control as it shifts most of the risk to the contractor. For R&D, FFP can be effective if the scope of work is well-defined and the technical challenges are understood. However, R&D is inherently uncertain. If significant unforeseen technical hurdles arise, the contractor might struggle to deliver within the fixed price, potentially leading to requests for equitable adjustments, disputes, or a compromised final product. The effectiveness hinges on the clarity of the SOW and the contractor's ability to accurately estimate costs for an uncertain outcome.

What is the historical spending trend for 'production of kits' R&D by the DoD?

Analyzing the historical spending trend for 'production of kits' R&D by the DoD requires a broader dataset than provided. This specific contract represents a single data point. To understand trends, one would need to query federal procurement databases for similar contracts over several fiscal years, filtering by agency (DoD), NAICS code (541712 or related), and contract description keywords like 'kits' and 'R&D'. This would reveal if spending in this niche area is increasing, decreasing, or remaining stable, and identify major contractors and contract types prevalent in this domain.

What are the implications of the 751-day duration for this R&D effort?

A duration of 751 days (approximately two years) for an R&D contract suggests a moderately complex undertaking. It allows sufficient time for research, prototyping, testing, and initial production planning. Shorter durations might indicate simpler projects or task orders under a larger IDIQ, while significantly longer periods could point to highly ambitious, cutting-edge research or programs with extensive validation requirements. This duration implies a substantial commitment of resources and a need for sustained contractor focus, while also providing a reasonable timeframe for achieving defined R&D milestones.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6610 AMBERTON DR STE 400, ELKRIDGE, MD, 21075

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,895,854

Exercised Options: $26,895,854

Current Obligation: $26,895,854

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911NF12D0002

IDV Type: IDC

Timeline