Army awards $54.2M for dismounted reconnaissance suits, with Teledyne FLIR Defense securing the full amount

Contract Overview

Contract Amount: $54,232,420 ($54.2M)

Contractor: Teledyne Flir Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-02-07

End Date: 2018-05-31

Contract Duration: 478 days

Daily Burn Rate: $113.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF-DISMOUNTED RECONAISSANCE-SUITS KITS OUTFITS FULL RATE PRODUCTION (50) FIFTY ARMY CONFIGURATION SYSTEMS

Place of Performance

Location: ELKRIDGE, HOWARD County, MARYLAND, 21075

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $54.2 million to TELEDYNE FLIR DEFENSE, INC. for work described as: IGF::OT::IGF-DISMOUNTED RECONAISSANCE-SUITS KITS OUTFITS FULL RATE PRODUCTION (50) FIFTY ARMY CONFIGURATION SYSTEMS Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract value of $54.2 million for 50 systems indicates a significant investment in advanced reconnaissance capabilities. 3. The firm fixed-price contract type shifts cost risk to the contractor, potentially stabilizing final expenditure. 4. Delivery order issued under a larger contract vehicle, implying a streamlined procurement process for existing needs. 5. The North American Industry Classification System (NAICS) code 334511 points to the specialized nature of the equipment manufactured. 6. The contract duration of approximately 1.5 years suggests a focused production and delivery timeline.

Value Assessment

Rating: good

The contract value of $54.2 million for 50 dismounted reconnaissance suit kits translates to approximately $1.08 million per system. Benchmarking this against similar advanced military equipment requires detailed market analysis, but the firm fixed-price structure suggests the government secured a defined price. Given the specialized nature of the equipment, direct comparisons may be limited, but the award under full and open competition implies a degree of price discovery.

Cost Per Unit: Approximately $1.08 million per system.

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 specific number of bidders is not provided, but the designation suggests a robust competitive environment. This approach is generally favored to ensure the best possible pricing and value for the government by allowing multiple companies to vie for the contract.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it is designed to drive down costs through market forces and encourage innovation among potential suppliers, leading to better value for public funds.

Public Impact

Soldiers operating in dismounted reconnaissance roles will benefit from enhanced situational awareness and protection. The delivery of 50 complete systems will equip specialized units within the U.S. Army. The contract supports advanced manufacturing capabilities within the defense industrial base. This procurement directly impacts the operational effectiveness of Army reconnaissance units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract does not adequately account for all production complexities.
Dependence on a single contractor (Teledyne FLIR Defense, Inc.) for the full production run could pose supply chain risks.
The specific performance metrics and testing protocols for the reconnaissance suits are not detailed, raising questions about ultimate effectiveness.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
Firm fixed-price contract type provides cost certainty for the government.
The contract supports the acquisition of critical technology for soldier modernization and operational advantage.

Sector Analysis

The defense sector for specialized equipment manufacturing, particularly for soldier systems, is highly competitive and technologically driven. Companies like Teledyne FLIR Defense, Inc. operate within a market focused on providing advanced sensor, surveillance, and reconnaissance capabilities. Spending in this area is often tied to evolving battlefield requirements and technological advancements, with contracts typically awarded through rigorous competitive processes to ensure value for significant government investments.

Small Business Impact

The contract was awarded to Teledyne FLIR Defense, Inc., a large business. There is no explicit indication of small business set-asides within this specific delivery order. However, large defense contracts often have subcontracting requirements, which could provide opportunities for small businesses to participate in the supply chain for components or specialized services related to the reconnaissance suits.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting command and potentially the Department of Defense's Inspector General. The firm fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is generally maintained through contract award databases, though detailed performance metrics and production oversight specifics are often internal to the agency.

Related Government Programs

Army Combat Systems
Soldier Modernization Programs
Reconnaissance and Surveillance Equipment
Defense Advanced Research Projects Agency (DARPA) Initiatives

Risk Flags

Potential for supply chain disruption
Risk of technological obsolescence
Integration complexity of advanced systems
Performance validation in diverse environments

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.2 million to TELEDYNE FLIR DEFENSE, INC.. IGF::OT::IGF-DISMOUNTED RECONAISSANCE-SUITS KITS OUTFITS FULL RATE PRODUCTION (50) FIFTY ARMY CONFIGURATION 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 $54.2 million.

What is the period of performance?

Start: 2017-02-07. End: 2018-05-31.

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

Teledyne FLIR Defense, Inc. has a significant history of securing contracts with the Department of Defense and other government agencies, particularly in the areas of thermal imaging, sensor systems, and unmanned platforms. Their portfolio includes numerous awards for surveillance, reconnaissance, and targeting equipment. While this specific contract is for dismounted reconnaissance suits, the company's broader experience in advanced electro-optical and infrared (EO/IR) systems suggests a strong capability to deliver complex integrated solutions. Analyzing their past performance on similar firm-fixed-price contracts would provide further insight into their reliability and cost management in delivering advanced military hardware.

How does the per-unit cost of these reconnaissance suits compare to market rates or similar government procurements?

The per-unit cost of approximately $1.08 million for these dismounted reconnaissance suits is substantial, reflecting the advanced technology and integrated systems likely included. Benchmarking this against the broader market is challenging due to the specialized nature of military-grade equipment and the limited public data on comparable systems. However, within the defense sector, costs for advanced soldier systems, including integrated sensor suites, communication gear, and protective elements, can range widely. The firm fixed-price nature of this contract suggests the government aimed to cap costs, but a detailed comparison would require access to classified or proprietary data on similar systems procured by other nations or through different contract vehicles.

What are the primary risks associated with the production and delivery of these reconnaissance suits?

Key risks include potential technological obsolescence if the development cycle is lengthy, integration challenges between various sensor and communication components, and supply chain disruptions for specialized parts. Given the firm fixed-price contract, there's also a risk that the contractor might cut corners on quality or performance to maintain profitability if unforeseen production issues arise. Furthermore, the effectiveness of the suits in diverse operational environments and their long-term maintainability represent performance risks that are critical to assess post-delivery.

How effective are dismounted reconnaissance suits in enhancing soldier capabilities, and what is the expected program effectiveness?

Dismounted reconnaissance suits are designed to significantly enhance soldier capabilities by providing integrated situational awareness, advanced sensor data (e.g., thermal imaging, laser rangefinding), secure communication, and potentially enhanced protection. Their effectiveness lies in enabling soldiers to gather intelligence, identify threats, and navigate complex terrain with greater safety and efficiency. The expected program effectiveness hinges on the successful integration of these technologies, user training, and the suit's reliability in real-world combat scenarios. The Army's investment suggests a high expectation for improved operational outcomes in reconnaissance missions.

What are the historical spending patterns for dismounted reconnaissance equipment within the Department of the Army?

Historical spending on dismounted reconnaissance equipment within the Department of the Army has generally trended upwards, driven by the need to equip soldiers with advanced technology for asymmetric warfare and peer/near-peer competition. This includes investments in night vision, thermal imagers, portable sensor systems, and communication devices. While specific figures for 'dismounted reconnaissance suits' as a distinct category might fluctuate, the overall budget allocation for soldier modernization and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems has been substantial. This $54.2 million award represents a significant, albeit specific, investment within this broader spending trend.

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

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: $54,232,420

Exercised Options: $54,232,420

Current Obligation: $54,232,420

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SR15D0001

IDV Type: IDC

Timeline