DoD awards $20.6M for FLIR STAR SAFIRE III, a sole-source contract with a 303-day duration

Contract Overview

Contract Amount: $20,063,293 ($20.1M)

Contractor: Teledyne Flir, LLC

Awarding Agency: Department of Defense

Start Date: 2008-12-31

End Date: 2009-10-30

Contract Duration: 303 days

Daily Burn Rate: $66.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Defense

Official Description: FLIR STAR SAFIRE III

Place of Performance

Location: PORTLAND, WASHINGTON County, OREGON, 97224

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to TELEDYNE FLIR, LLC for work described as: FLIR STAR SAFIRE III Key points: 1. The contract value of $20.6 million represents a significant investment in specialized imaging technology. 2. Sole-source procurement suggests a lack of readily available alternatives or a specific, unique capability. 3. The short duration of 303 days indicates a focused, time-sensitive requirement. 4. The award to TELEDYNE FLIR, LLC points to a reliance on established, specialized suppliers in this niche. 5. The absence of competition may limit opportunities for price discovery and potentially increase costs. 6. The contract falls under the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' NAICS code, indicating its technological nature.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to its sole-source nature and specialized equipment. Without competitive bids, it's difficult to ascertain if the $20.6 million price reflects optimal market value. However, the award amount for a single system, even a sophisticated one like the FLIR STAR SAFIRE III, warrants scrutiny to ensure it aligns with industry norms for similar advanced imaging systems. Further analysis would require access to internal cost breakdowns or comparable sole-source procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific product or service is only available from a single source, or when there's a compelling justification for avoiding competition, such as urgent and compelling needs. The lack of competition means that the Department of Defense did not receive multiple bids, which can limit price negotiation and potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. The absence of multiple offers means the government could not leverage competition to secure the best possible price for the FLIR STAR SAFIRE III system.

Public Impact

The primary beneficiaries are the Department of the Army, which receives advanced imaging capabilities for its operations. The contract delivers the FLIR STAR SAFIRE III system, likely used for surveillance, reconnaissance, or targeting. The geographic impact is primarily within the operational theaters of the Department of the Army. Workforce implications are likely limited to the installation, maintenance, and operation of the specialized equipment by military personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of competition raises questions about whether the government secured the best possible value.
Specialized nature of the equipment may create long-term reliance on a single vendor for support and upgrades.

Positive Signals

Award to a known entity (TELEDYNE FLIR) suggests a potentially reliable supplier for critical technology.
The specific system (STAR SAFIRE III) is likely a proven, high-performance capability meeting a defined military need.

Sector Analysis

The defense sector relies heavily on advanced electro-optical and infrared (EO/IR) systems for intelligence, surveillance, and reconnaissance (ISR). Companies like TELEDYNE FLIR are key players in this market, providing sophisticated imaging solutions. The market for such specialized equipment is often characterized by high barriers to entry due to R&D costs and technical expertise. This contract represents a specific procurement within the broader defense electronics and sensor market, where innovation and performance are paramount.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless TELEDYNE FLIR engages small businesses for support services or components not directly related to the core system procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management regulations. Given it's a sole-source award, the justification for not competing would be subject to review. Accountability measures would focus on the delivery of the specified system and adherence to contract terms. Transparency is limited due to the sole-source nature, but contract award data is publicly available.

Related Government Programs

Defense Intelligence Surveillance and Reconnaissance (ISR) Systems
Advanced Electro-Optical/Infrared (EO/IR) Systems
Department of Defense Procurement of Specialized Equipment

Risk Flags

Sole-source award
Potential for inflated pricing due to lack of competition
Limited transparency on cost justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 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 $20.1 million.

What is the period of performance?

Start: 2008-12-31. End: 2009-10-30.

What is the specific operational purpose of the FLIR STAR SAFIRE III system within the Department of the Army?

The FLIR STAR SAFIRE III is an advanced electro-optical/infrared (EO/IR) imaging system designed for a variety of demanding applications, including surveillance, reconnaissance, targeting, and situational awareness. Within the Department of the Army, such systems are typically integrated into platforms like helicopters, aircraft, or ground vehicles to provide real-time visual and thermal imagery in diverse operational environments. Its capabilities likely support intelligence gathering, threat detection, and force protection missions, enabling commanders to make informed decisions based on high-quality visual data, even in low-light or adverse weather conditions.

How does the $20.6 million award compare to other procurements of similar advanced imaging systems by the DoD?

Comparing the $20.6 million award for the FLIR STAR SAFIRE III is challenging without knowing the exact configuration and quantity. However, advanced EO/IR systems for military applications can range from hundreds of thousands to several million dollars per unit, depending on sophistication, features, and integration requirements. Sole-source awards, like this one, often lack direct price benchmarks from competitive bids. To assess value, one would need to compare it against other sole-source awards for comparable systems or against internal cost estimates if available. The duration of 303 days suggests a single system or a small batch, making the total value significant for a limited timeframe.

What are the primary risks associated with a sole-source procurement for specialized defense equipment like this?

The primary risks associated with a sole-source procurement for specialized defense equipment include a lack of price competition, which can lead to higher costs for the government. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier for maintenance, upgrades, and future procurements, potentially limiting future options and increasing long-term costs. Furthermore, without competitive pressure, there might be less incentive for the sole-source provider to innovate or offer the most cost-effective solutions. Ensuring fair and reasonable pricing requires rigorous justification and negotiation by the procuring agency.

What is TELEDYNE FLIR's track record in supplying advanced imaging systems to the U.S. military?

TELEDYNE FLIR, and its predecessor FLIR Systems, has a long-standing and extensive track record of supplying advanced electro-optical and infrared (EO/IR) imaging systems to the U.S. military and other government agencies. Their products are widely used across various platforms, including aerial, ground, and maritime applications, for surveillance, reconnaissance, targeting, and other critical missions. The company is a recognized leader in the field, known for its technological innovation and the reliability of its systems in demanding operational environments. Their consistent presence in military procurements indicates a strong relationship and established trust with defense organizations.

What are the historical spending patterns for similar imaging systems within the Department of Defense?

Historical spending patterns for similar advanced imaging systems within the Department of Defense are substantial and ongoing, reflecting the critical role of ISR capabilities. The DoD consistently invests billions of dollars annually in a wide array of sensors, including EO/IR systems, radar, and other intelligence-gathering technologies. Spending is often driven by modernization efforts, platform upgrades, and the need to maintain technological superiority in evolving threat landscapes. Contracts for such systems can vary widely in value, from individual unit purchases to large-scale program acquisitions, often involving sole-source awards for highly specialized or proprietary technologies, alongside competitively bid programs for more standardized equipment.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: $20,063,293

Exercised Options: $20,063,293

Current Obligation: $20,063,293

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9113M07D0004

IDV Type: IDC

Timeline