DoD Awards $49.5M for FLIR Imaging Systems, Sole-Source Contract Raises Concerns

Contract Overview

Contract Amount: $49,476,870 ($49.5M)

Contractor: Teledyne Flir, LLC

Awarding Agency: Department of Defense

Start Date: 2008-03-11

End Date: 2008-10-31

Contract Duration: 234 days

Daily Burn Rate: $211.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: FLIR STARSAFIRE III AND FLIR THV-3000 IMAGING SYSTEMS

Place of Performance

Location: WILSONVILLE, CLACKAMAS County, OREGON, 97070

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $49.5 million to TELEDYNE FLIR, LLC for work described as: FLIR STARSAFIRE III AND FLIR THV-3000 IMAGING SYSTEMS Key points: 1. Significant award for specialized imaging systems. 2. Sole-source nature limits competitive pricing. 3. Potential for higher costs due to lack of competition. 4. Sector: Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.

Value Assessment

Rating: questionable

The award of $49,476,870 for FLIR imaging systems was not competed. Without a competitive process, it is difficult to assess if the pricing is fair and reasonable compared to market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This significantly limits price discovery and may lead to inflated costs for the government.

Taxpayer Impact: The lack of competition in this sole-source award could result in taxpayers paying more than necessary for these imaging systems.

Public Impact

Taxpayers may be overpaying for essential military equipment due to a lack of competitive bidding. The Department of Defense relies on specialized technology, but procurement methods should still prioritize value. Transparency in sole-source procurements is crucial to ensure accountability and prevent potential waste.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competition
Potential for overpayment

Positive Signals

Awarded for specialized imaging systems

Sector Analysis

The award falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this area can vary widely based on technological advancements and defense needs.

Small Business Impact

There is no indication that small businesses were involved in this specific sole-source award, which limits opportunities for them to compete for this contract.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the pricing is justified and that future procurements explore competitive options where feasible.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of competitive pricing
Potential for cost overruns
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.5 million to TELEDYNE FLIR, LLC. FLIR STARSAFIRE III AND FLIR THV-3000 IMAGING SYSTEMS

Who is the contractor on this award?

The obligated recipient is TELEDYNE FLIR, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $49.5 million.

What is the period of performance?

Start: 2008-03-11. End: 2008-10-31.

What justification was provided for awarding this contract on a sole-source basis instead of seeking competitive bids?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation into the contract file would be required to determine the specific rationale.

What is the estimated cost savings if this contract had been competed?

Without a competitive bidding process, it is impossible to accurately estimate cost savings. However, historical data across various government procurements often shows significant savings, sometimes ranging from 10% to 30% or more, when contracts are competed versus awarded sole-source.

Are there alternative imaging systems available from other manufacturers that could meet the Department of the Army's needs?

The data does not provide information on alternative systems. A sole-source award implies that alternatives were either not available, not suitable, or that the justification for sole-sourcing was accepted. Market research would be needed to determine if other vendors could meet the requirements.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16505 SW 72ND AVE, PORTLAND, OR, 97224

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $49,476,870

Exercised Options: $49,476,870

Current Obligation: $49,476,870

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: W9113M07D0004

IDV Type: IDC

Timeline