Teledyne FLIR awarded $18.4M for Electro Optic Systems, highlighting a competitive procurement process

Contract Overview

Contract Amount: $18,384,660 ($18.4M)

Contractor: Teledyne Flir, LLC

Awarding Agency: Department of Defense

Start Date: 2010-03-31

End Date: 2010-07-30

Contract Duration: 121 days

Daily Burn Rate: $151.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ELECTRO OPTIC SYSTEM (EOS)

Place of Performance

Location: WILSONVILLE, CLACKAMAS County, OREGON, 97070

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to TELEDYNE FLIR, LLC for work described as: ELECTRO OPTIC SYSTEM (EOS) Key points: 1. The contract value of $18.4 million for Electro Optic Systems suggests a significant investment in advanced sensor technology. 2. A full and open competition indicates a robust market for these specialized systems, potentially driving better pricing. 3. The relatively short duration of 121 days for this contract may point to a specific, time-sensitive need or a phased approach. 4. The award to Teledyne FLIR, a known entity in defense contracting, provides a degree of performance predictability. 5. The absence of small business set-aside flags suggests the primary contractor is likely a large business, with potential subcontracting opportunities. 6. The North American Industry Classification System (NAICS) code 334511 points to a focus on manufacturing sophisticated navigation and guidance instruments.

Value Assessment

Rating: good

The contract value of $18.4 million for Electro Optic Systems appears reasonable given the specialized nature of the equipment. Benchmarking against similar contracts for advanced sensor systems is challenging without more detailed specifications, but the competitive award process suggests that pricing was scrutinized. The firm fixed-price contract type shifts risk to the contractor, which can be favorable for the government if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a healthy level of competition for this specialized defense system. A competitive process like this generally leads to better price discovery and ensures the government receives offers from multiple qualified vendors.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value and competitive pricing for advanced defense systems.

Public Impact

The primary beneficiaries are likely military personnel requiring advanced electro-optic systems for operational effectiveness. The services delivered involve the provision of sophisticated search, detection, navigation, and guidance instruments. The geographic impact is likely concentrated within Department of Defense operational theaters or testing facilities. Workforce implications may include specialized manufacturing and engineering roles within Teledyne FLIR and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during production, despite the fixed-price nature.
Dependence on a single contractor for critical electro-optic system components could pose supply chain risks.
Ensuring timely delivery within the 121-day period is crucial for operational readiness.

Positive Signals

Award to an established contractor like Teledyne FLIR suggests a higher probability of meeting technical specifications.
The competitive bidding process likely resulted in a fair market price for the systems procured.
Firm fixed-price contract structure provides cost certainty for the government.

Sector Analysis

The defense sector's demand for advanced electro-optic systems is driven by the need for superior situational awareness and targeting capabilities. This contract falls within the broader instrumentation and systems manufacturing segment, characterized by high R&D investment and stringent performance requirements. Comparable spending in this area can vary widely based on system complexity, but contracts for advanced sensors often range from millions to tens of millions of dollars.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. This suggests that the primary contract was likely awarded to a large business. There may be opportunities for small businesses to participate as subcontractors to Teledyne FLIR, depending on their supply chain needs and the specific components required for the electro-optic systems.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Performance monitoring, quality assurance checks, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements, though specific technical details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) programs
Naval Sea Systems Command (NAVSEA) procurements
Night Vision and Electronic Sensors Directorate (NVESD) research
Tactical Technology programs

Risk Flags

Potential for obsolescence if technology advances rapidly
Integration challenges with existing platforms
Performance degradation in adverse environmental conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to TELEDYNE FLIR, LLC. ELECTRO OPTIC SYSTEM (EOS)

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 Navy).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2010-03-31. End: 2010-07-30.

What is the specific type and capability of the Electro Optic System (EOS) being procured?

The provided data indicates the contract is for 'ELECTRO OPTIC SYSTEM (EOS)' under NAICS code 334511 (Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing). While the specific model or detailed technical specifications are not available in this summary, EOS typically refers to systems that use optical sensors to detect, track, and identify targets, often incorporating infrared, visible light, or laser technologies. These systems are crucial for surveillance, reconnaissance, targeting, and navigation in various defense applications, including naval operations as indicated by the awarding agency (Department of the Navy).

How does the $18.4 million contract value compare to similar procurements for electro-optic systems?

Without specific details on the EOS capabilities, a direct comparison is difficult. However, $18.4 million is a substantial but not extraordinary amount for advanced defense systems. Contracts for sophisticated targeting pods, surveillance sensors, or integrated navigation systems can range from a few million to tens or even hundreds of millions of dollars depending on complexity, quantity, and technology maturity. The fact that this was a competitive award with 3 bidders suggests the price was likely aligned with market expectations for systems of this nature. Further analysis would require comparing specifications, quantities, and contract types (e.g., firm fixed price vs. cost-plus) of similar procurements.

What are the key performance risks associated with this contract?

Key performance risks include potential technical performance issues where the delivered EOS may not meet the stringent operational requirements, especially concerning sensitivity, range, or reliability in harsh environments. Schedule risk exists due to the relatively short 121-day duration, which could be challenging for manufacturing and integration. Cost risk, while mitigated by the firm fixed-price structure, could still manifest if unforeseen issues lead to contractor claims or if the initial pricing did not adequately account for all potential challenges. Lastly, integration risk with existing naval platforms is a concern, ensuring seamless compatibility and functionality.

What is Teledyne FLIR's track record with similar Department of Defense contracts?

Teledyne FLIR (and its predecessor FLIR Systems) has a significant and established track record of supplying electro-optic and infrared systems to the Department of Defense and other government agencies. They are well-known for a wide range of products including thermal imaging cameras, surveillance systems, and targeting solutions used across various military branches. Their history includes numerous contracts, some substantial in value, for similar technologies. While specific performance metrics for all past contracts aren't detailed here, their continued success in winning competitive bids suggests a generally positive performance history and strong market position in defense optics.

How has federal spending on electro-optic systems evolved over the past five years?

Federal spending on electro-optic systems has generally seen consistent demand, driven by ongoing modernization efforts and the need for advanced surveillance, targeting, and reconnaissance capabilities across all military branches. While specific figures for 'electro-optic systems' as a distinct category can fluctuate based on major program starts or completions, the broader market for sensor technology and defense electronics has remained robust. Factors influencing spending include geopolitical tensions, technological advancements (e.g., AI integration, improved sensor resolution), and specific platform upgrade requirements. The Department of Defense remains the largest purchaser, with significant investments allocated through various research, development, testing, and evaluation (RDT&E) and procurement accounts.

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: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27700A SW PARKWAY AVENUE, WILSONVILLE, OR, 05

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,384,660

Exercised Options: $18,384,660

Current Obligation: $18,384,660

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0016405D8534

IDV Type: IDC

Timeline