DoD awards $20.3M for FLIR STAR SAFIRE III, a sole-source contract with limited competition
Contract Overview
Contract Amount: $20,320,087 ($20.3M)
Contractor: Teledyne Flir, LLC
Awarding Agency: Department of Defense
Start Date: 2008-05-27
End Date: 2009-01-30
Contract Duration: 248 days
Daily Burn Rate: $81.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FLIR STAR SAFIRE III
Place of Performance
Location: WILSONVILLE, CLACKAMAS County, OREGON, 97070
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $20.3 million to TELEDYNE FLIR, LLC for work described as: FLIR STAR SAFIRE III Key points: 1. The contract value is $20.3 million. 2. TELEDYNE FLIR, LLC is the sole awardee. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.
Value Assessment
Rating: fair
The contract value of $20.3 million for the FLIR STAR SAFIRE III is difficult to assess without specific unit details or comparison points. Given the sole-source nature, it's challenging to determine if this price represents fair value compared to potential market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the FLIR STAR SAFIRE III system.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on specialized equipment, potentially limiting competitive options. The duration of the contract (248 days) suggests a focused procurement rather than a long-term strategic acquisition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Specific equipment for defense needs
- Firm fixed price contract
Sector Analysis
The Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector includes a wide range of specialized technologies. Spending in this area can vary significantly based on defense needs and technological advancements, with sole-source awards often occurring for highly specialized or proprietary systems.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded directly to TELEDYNE FLIR, LLC on a sole-source basis.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained the best possible value. Further review of the justification for not competing the award would be beneficial for oversight.
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 limits price competition.
- Potential for overpayment due to lack of competition.
- Lack of transparency regarding the justification for sole-sourcing.
- No small business participation indicated.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, or, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.3 million to TELEDYNE FLIR, LLC. FLIR STAR SAFIRE III
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 $20.3 million.
What is the period of performance?
Start: 2008-05-27. End: 2009-01-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives in the market. Without specific documentation, it's presumed that TELEDYNE FLIR, LLC possesses the exclusive rights or necessary expertise for the FLIR STAR SAFIRE III, making competition infeasible or impractical for the Department of Defense's immediate needs.
What is the risk associated with a sole-source procurement for specialized defense equipment?
The primary risk of a sole-source procurement for specialized defense equipment is the potential for inflated costs due to the absence of competitive bidding. This can lead to taxpayers bearing a higher financial burden. Additionally, it may stifle innovation by not encouraging other companies to develop competing solutions, potentially limiting future options and technological advancements.
How effective is a sole-source award in meeting urgent defense needs?
Sole-source awards can be effective in meeting urgent defense needs when a specific, critical capability is required and only one vendor can provide it within the necessary timeframe. This contract's short duration (248 days) suggests a focused need. However, effectiveness must be balanced against cost and the long-term strategic implications of not fostering a competitive market.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 16505 SW 72ND AVE, PORTLAND, OR, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,320,087
Exercised Options: $20,320,087
Current Obligation: $20,320,087
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9113M07D0004
IDV Type: IDC
Timeline
Start Date: 2008-05-27
Current End Date: 2009-01-30
Potential End Date: 2009-01-30 00:00:00
Last Modified: 2008-11-14
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