Army Awards $41.9M for Engineering Services to Teledyne Brown Engineering, Inc

Contract Overview

Contract Amount: $41,950,742 ($42.0M)

Contractor: Teledyne Brown Engineering, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-06-20

End Date: 2017-09-30

Contract Duration: 5,216 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: R&D

Official Description: 200309!001215!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0003 !A!N! !N!0005 !20030620!20040331!113633189!113633189!112358432!N!TELEDYNE BROWN ENGINEERING, IN!300 SPARKMAN DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000003492118!N!N!000000000000!AD21!RDTE/SERVICES-BASIC RESEARCH !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!V!2!004!B! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35801

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $42.0 million to TELEDYNE BROWN ENGINEERING, INC. for work described as: 200309!001215!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0003 !A!N! !N!0005 !20030620!20040331!113633189!113633189!112358432!N!TELEDYNE BROWN ENGINEERING, IN!300 SPARKMAN DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADIS… Key points: 1. Contract awarded for engineering services to support Army industrial operations. 2. Teledyne Brown Engineering, Inc. is the sole awardee. 3. The contract has a duration of over 14 years, indicating a long-term need. 4. The sector is Research, Development, Test, and Evaluation (RDTE).

Value Assessment

Rating: fair

The contract value is $41.9 million over a significant period. Without specific performance metrics or comparable contracts for similar long-term basic research services, a precise value assessment is difficult. The Cost Plus Incentive Fee (CPIF) structure suggests an attempt to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the long duration and specific nature of the services may limit the number of truly competitive bids.

Taxpayer Impact: The competitive award process aims to secure fair pricing for taxpayers, but the long-term nature and potential for cost overruns in CPIF contracts warrant monitoring.

Public Impact

Supports critical Army industrial operations through specialized engineering services. Long-term contract suggests sustained demand for these services. Potential for technological advancements stemming from basic research.

Waste & Efficiency Indicators

Waste Risk Score: 80 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting RDTE for the Department of the Army. Benchmarks for long-term basic research contracts are difficult to establish due to their specialized nature and varying scope.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large corporation, Teledyne Brown Engineering, Inc. There is no indication of small business subcontracting in the provided data.

Oversight & Accountability

The long duration of the contract necessitates robust oversight from the Department of the Army to ensure performance, manage costs, and verify that the services continue to meet evolving requirements.

Related Government Programs

Risk Flags

Tags

engineering-services, department-of-defense, al, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.0 million to TELEDYNE BROWN ENGINEERING, INC.. 200309!001215!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0003 !A!N! !N!0005 !20030620!20040331!113633189!113633189!112358432!N!TELEDYNE BROWN ENGINEERING, IN!300 SPARKMAN DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000003492118!N!N!000000000000!AD21!RDTE/SERVICES-BASIC RESEARCH !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!M! !A! !99990909!B

Who is the contractor on this award?

The obligated recipient is TELEDYNE BROWN ENGINEERING, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $42.0 million.

What is the period of performance?

Start: 2003-06-20. End: 2017-09-30.

What specific engineering services are being provided under this contract, and how do they directly contribute to Army industrial operations?

The contract specifies 'Engineering Services' (NAICS 541330) and is categorized under RDTE/Services-Basic Research. While the exact nature of the services is not detailed, they likely involve complex technical analysis, design, testing, and support for advanced industrial processes or systems critical to the Army's operational capabilities. The 'basic research' designation suggests foundational work that may not have immediate applications but is crucial for future technological development.

Given the Cost Plus Incentive Fee (CPIF) structure and the long contract duration, what are the primary risks to taxpayers regarding cost overruns?

The primary risks to taxpayers include potential cost overruns due to the CPIF structure, where the contractor is reimbursed for allowable costs plus a fee that varies based on performance against targets. A long duration (over 14 years) amplifies this risk, as unforeseen technical challenges or scope creep can significantly increase costs. Without stringent oversight and clear performance metrics, the incentive fee may not adequately control expenses, leading to a higher final cost than initially projected.

How effective is the 'full and open competition' approach for securing specialized, long-term basic research services like those provided by Teledyne Brown Engineering?

Full and open competition is generally effective for standard services, promoting a wide range of bidders and competitive pricing. However, for highly specialized, long-term basic research, the pool of qualified contractors may be limited. While competition ensures a baseline of fairness, the unique expertise required might mean only a few firms can realistically compete, potentially reducing the price discovery benefits. The long duration also means the initial competition must accurately forecast future needs and costs.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Teledyne Technologies Incorporated (UEI: 112358432)

Address: 300 SPARKMAN DR NW, HUNTSVILLE, AL, 35805

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAA0902D0003

IDV Type: IDC

Timeline

Start Date: 2003-06-20

Current End Date: 2017-09-30

Potential End Date: 2017-09-30 00:00:00

Last Modified: 2018-08-13

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