Teledyne FLIR Defense awarded $38.3M for Army's Dismounted Reconnaissance Sets, Kits, and Outfits

Contract Overview

Contract Amount: $38,330,092 ($38.3M)

Contractor: Teledyne Flir Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-12-15

End Date: 2017-06-10

Contract Duration: 543 days

Daily Burn Rate: $70.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF DISMOUNTED RECONNAISSANCE SETS, KITS, AND OUTFITS (DR-SKO) FULL RATE PRODUCTION (FRP) ARMY CONFIGURATION THIRTY SEVEN (37) ARMY SYSTEMS.

Place of Performance

Location: ELKRIDGE, HOWARD County, MARYLAND, 21075

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $38.3 million to TELEDYNE FLIR DEFENSE, INC. for work described as: IGF::OT::IGF DISMOUNTED RECONNAISSANCE SETS, KITS, AND OUTFITS (DR-SKO) FULL RATE PRODUCTION (FRP) ARMY CONFIGURATION THIRTY SEVEN (37) ARMY SYSTEMS. Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract is for Full Rate Production (FRP) of 37 Army systems. 3. Fixed-price contract type indicates that costs are largely predictable. 4. Delivery order signifies a specific quantity or phase within a larger contract. 5. The contract duration of 543 days suggests a moderate-term project. 6. The award value of $38.3M falls within a typical range for specialized defense equipment.

Value Assessment

Rating: good

The contract value of $38.3 million for 37 systems appears reasonable given the specialized nature of dismounted reconnaissance equipment. Benchmarking against similar advanced sensor and surveillance systems suggests this pricing is competitive. The firm fixed-price structure provides cost certainty for the government, mitigating risk of cost overruns.

Cost Per Unit: Approximately $1.04 million per system (38,330,091.54 / 37 systems).

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 presence of 5 bids suggests a healthy level of competition for this specialized defense requirement. This competitive environment is expected to drive more favorable pricing and innovative solutions for the Army.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in better value for taxpayers by ensuring the government received the most advantageous offer.

Public Impact

Directly benefits the U.S. Army by providing essential dismounted reconnaissance capabilities. Enhances soldier situational awareness and operational effectiveness in various environments. Supports the development and production of advanced defense technology. Implications for military personnel operating in reconnaissance and surveillance roles. Geographic impact primarily within military installations and operational theaters.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for future sustainment and upgrade costs not fully detailed in this award.
Dependence on a single contractor for full rate production could pose supply chain risks if not managed.

Positive Signals

Awarded under full and open competition, indicating a robust market.
Firm fixed-price contract type provides cost predictability.
Delivery order structure allows for phased procurement and management.
The contractor, Teledyne FLIR Defense, Inc., is a known entity in defense technology.

Sector Analysis

This contract falls within the defense sector, specifically focusing on advanced surveillance and reconnaissance equipment. The market for such systems is characterized by high technological barriers to entry and significant government investment. Comparable spending benchmarks in this niche often involve multi-million dollar procurements for sophisticated sensor and imaging technologies, reflecting the specialized R&D and manufacturing involved.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this specific award (sb: false). However, the prime contractor, Teledyne FLIR Defense, Inc., may engage small businesses for subcontracting opportunities related to component manufacturing or specialized services. Further analysis would be needed to determine the extent of small business involvement in the supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance metrics may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Intelligence Systems
Tactical Surveillance Equipment
Infantry Support Systems
Advanced Sensor Technology Procurement
Dismounted Soldier Systems

Risk Flags

Potential for technological obsolescence in rapidly evolving defense landscape.
Supply chain vulnerability for specialized components.
Integration challenges with existing or future Army systems.
Dependence on contractor for sustainment and upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.3 million to TELEDYNE FLIR DEFENSE, INC.. IGF::OT::IGF DISMOUNTED RECONNAISSANCE SETS, KITS, AND OUTFITS (DR-SKO) FULL RATE PRODUCTION (FRP) ARMY CONFIGURATION THIRTY SEVEN (37) ARMY SYSTEMS.

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $38.3 million.

What is the period of performance?

Start: 2015-12-15. End: 2017-06-10.

What is the specific capability provided by the Dismounted Reconnaissance Sets, Kits, and Outfits (DR-SKO)?

The Dismounted Reconnaissance Sets, Kits, and Outfits (DR-SKO) are designed to enhance the situational awareness and operational capabilities of dismounted soldiers. These systems typically include a suite of sensors, communication devices, navigation tools, and other equipment that allows soldiers to gather intelligence, detect threats, and navigate effectively in complex environments without relying on vehicles. The 'Full Rate Production (FRP) Army Configuration Thirty Seven (37) Army Systems' indicates that this award is for the mass production of a standardized configuration of these essential reconnaissance tools for the Army.

How does the $38.3 million award compare to historical spending on similar reconnaissance systems?

The $38.3 million award for 37 DR-SKO systems represents an average cost of approximately $1.04 million per system. Historical spending on advanced military reconnaissance and surveillance equipment can vary widely based on technological sophistication and quantity. However, for specialized, integrated systems like DR-SKO, this per-unit cost is within a plausible range, especially considering the research, development, and manufacturing complexities involved. Comparing this to other large-scale procurements of similar sensor suites or soldier-worn technology would provide a more precise benchmark, but the value appears consistent with the high-tech nature of the equipment.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks associated with this contract include potential for schedule delays if production issues arise, although the firm fixed-price nature mitigates cost overrun risks. Technological obsolescence is another concern, as defense technology evolves rapidly; however, the FRP stage suggests the system has likely undergone significant testing and validation. Supply chain disruptions for critical components could also impact timely delivery. Finally, ensuring the systems are effectively integrated into existing Army operations and that soldiers receive adequate training are crucial for realizing the intended benefits.

What is Teledyne FLIR Defense, Inc.'s track record with similar defense contracts?

Teledyne FLIR Defense, Inc. (and its predecessors/related entities) has a significant track record in developing and supplying advanced sensor, imaging, and reconnaissance systems to military and government customers. They are known for their expertise in thermal imaging, electro-optical systems, and integrated solutions for surveillance and targeting. Their portfolio often includes products used in dismounted operations, airborne platforms, and ground vehicles. While specific performance data for every contract isn't publicly available, their continued success in securing competitive defense contracts suggests a history of meeting technical requirements and delivery schedules for complex systems.

How does the 'Full Rate Production' designation impact the assessment of this contract's maturity and risk?

The designation of 'Full Rate Production' (FRP) indicates that the DR-SKO system has successfully passed through earlier phases of development, testing, and low-rate initial production. This implies that the system's design is stable, its performance has been validated against requirements, and the manufacturing processes are mature enough for large-scale output. Consequently, the risk associated with technical performance and design maturity is generally lower compared to contracts in the research, development, or early production stages. The primary risks shift towards production efficiency, supply chain management, and meeting delivery schedules at scale.

What are the potential long-term implications of this contract for Army's reconnaissance capabilities?

This contract signifies a significant investment in equipping the Army with standardized, modern dismounted reconnaissance capabilities. The widespread fielding of 37 Army systems under FRP suggests a strategic commitment to enhancing soldier situational awareness and intelligence gathering at the tactical level. This can lead to improved mission effectiveness, reduced risk to personnel, and more informed decision-making in the field. The successful production and deployment of these DR-SKO units could also influence future requirements for soldier systems and integrated battlefield technologies, potentially driving further innovation and investment in this domain.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Teledyne Flir, LLC (UEI: 091296244)

Address: 7055 TROY HILL DR STE 300, 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: $38,330,092

Exercised Options: $38,330,092

Current Obligation: $38,330,092

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SR15D0001

IDV Type: IDC

Timeline