DHS Coast Guard awards $39.9M for EO/IR sensor modernization, sole-sourced to Teledyne FLIR
Contract Overview
Contract Amount: $39,936,616 ($39.9M)
Contractor: Teledyne Flir Defense, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2026-01-26
End Date: 2027-11-30
Contract Duration: 673 days
Daily Burn Rate: $59.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE OF ELECTRO/OPTICAL (EO/IR) INFRARED SENSOR SYSTEMS MODERNIZATION (ESS-M) COMPONENTS FOR THE MH-65 AND MH-60 HELICOPTERS.
Place of Performance
Location: NORTH CHELMSFORD, MIDDLESEX County, MASSACHUSETTS, 01863
Plain-Language Summary
Department of Homeland Security obligated $39.9 million to TELEDYNE FLIR DEFENSE, INC. for work described as: PURCHASE OF ELECTRO/OPTICAL (EO/IR) INFRARED SENSOR SYSTEMS MODERNIZATION (ESS-M) COMPONENTS FOR THE MH-65 AND MH-60 HELICOPTERS. Key points: 1. Significant investment in critical helicopter sensor technology. 2. Sole-source award raises questions about price discovery and competition. 3. Modernization aims to enhance search, detection, and navigation capabilities. 4. Potential for future contract actions given the ESS-M program's scope.
Value Assessment
Rating: questionable
The $39.9M award for EO/IR sensor components is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar sensor modernization contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Teledyne FLIR Defense, Inc. This limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this significant contract could lead to inflated prices, impacting the efficient use of taxpayer funds.
Public Impact
Enhances critical search and rescue capabilities for the Coast Guard. Modernized sensors improve operational effectiveness in challenging environments. Supports the readiness of MH-65 and MH-60 helicopter fleets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of price benchmark for comparison.
- Potential for cost overruns due to non-competitive nature.
Positive Signals
- Addresses critical modernization need.
- Supports essential Coast Guard missions.
- Utilizes advanced sensor technology.
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is often driven by defense and homeland security modernization efforts, with significant investments in advanced sensor technology.
Small Business Impact
The awardee, Teledyne FLIR Defense, Inc., is a large business. There is no indication that small businesses were involved in this specific contract action, nor is there a stated plan for their participation.
Oversight & Accountability
The Department of Homeland Security, specifically the U.S. Coast Guard, is responsible for this procurement. Oversight should focus on ensuring the necessity of the sole-source award and validating the cost-effectiveness of the components procured.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Limited transparency on cost justification
Tags
search-detection-navigation-guidance-aer, department-of-homeland-security, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $39.9 million to TELEDYNE FLIR DEFENSE, INC.. PURCHASE OF ELECTRO/OPTICAL (EO/IR) INFRARED SENSOR SYSTEMS MODERNIZATION (ESS-M) COMPONENTS FOR THE MH-65 AND MH-60 HELICOPTERS.
Who is the contractor on this award?
The obligated recipient is TELEDYNE FLIR DEFENSE, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $39.9 million.
What is the period of performance?
Start: 2026-01-26. End: 2027-11-30.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. For this contract, the specific rationale for not competing the procurement of EO/IR sensor components for the MH-65 and MH-60 helicopters needs to be thoroughly documented and reviewed to ensure it aligns with federal acquisition regulations and promotes best value for the government.
How does the unit cost of these modernized sensor components compare to previous acquisitions or industry benchmarks?
Without a competitive process, establishing a reliable benchmark for the unit cost of these modernized EO/IR sensor components is challenging. A thorough price analysis, potentially involving independent cost research or comparison with similar, recently procured systems (even if from different platforms), would be necessary to assess cost reasonableness and identify potential overpricing.
What is the expected impact of these modernized sensors on the operational effectiveness and safety of the MH-65 and MH-60 helicopters?
The modernization of EO/IR sensors is expected to significantly enhance the operational effectiveness and safety of the MH-65 and MH-60 helicopters. Improved sensor capabilities can lead to better target identification, enhanced situational awareness in adverse weather or low-light conditions, and more precise navigation, ultimately supporting critical Coast Guard missions like search and rescue, interdiction, and maritime security.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 25 ESQUIRE RD, NORTH BILLERICA, MA, 01862
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,936,616
Exercised Options: $39,936,616
Current Obligation: $39,936,616
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70Z03825DE0000001
IDV Type: IDC
Timeline
Start Date: 2026-01-26
Current End Date: 2027-11-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2026-01-26
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