DoD's $113.6M missile defense R&D contract to Teledyne Brown Engineering shows limited competition
Contract Overview
Contract Amount: $29,047,614 ($29.0M)
Contractor: Teledyne Brown Engineering, Inc.
Awarding Agency: Department of Defense
Start Date: 2002-05-16
End Date: 2008-06-01
Contract Duration: 2,208 days
Daily Burn Rate: $13.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200209!002005!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002C0051 !A!N! !Y! !20020516!20070423!113633189!113633189!112358432!N!TELEDYNE BROWN ENGINEERING, IN!300 SPARKMAN DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000002084000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!R!1!001!N!1A!Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001!
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $29.0 million to TELEDYNE BROWN ENGINEERING, INC. for work described as: 200209!002005!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002C0051 !A!N! !Y! !20020516!20070423!113633189!113633189!112358432!N!TELEDYNE BROWN ENGINEERING, IN!300 SPARKMAN DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADIS… Key points: 1. Contract awarded for advanced technology development in missile and space systems. 2. Significant investment in ballistic missile defense systems. 3. Limited competition raises questions about optimal pricing and value. 4. Contract duration of over 6 years suggests a long-term need. 5. Focus on research and development indicates innovation in defense capabilities. 6. Geographic concentration of contractor in Huntsville, Alabama, a defense hub.
Value Assessment
Rating: fair
The contract's total value of $113.6 million over approximately 6 years for R&D in missile defense systems appears substantial. Without direct benchmarks for similar advanced technology development contracts in this highly specialized field, assessing value for money is challenging. The 'Cost Plus Award Fee' structure suggests incentives for performance, but the lack of robust competition could lead to less aggressive pricing than might be achieved in a more open market. Further analysis would require comparing specific technical milestones and deliverables against industry standards and costs for comparable research efforts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed openly, indicating a limited source selection process. The specific reasons for this limitation are not detailed in the provided data, but it suggests that only one or a very small number of contractors were considered capable of performing the required advanced research and development. This lack of broad competition means that the government may not have benefited from the full spectrum of potential bidders, which could impact price discovery and potentially lead to higher costs.
Taxpayer Impact: Limited competition can mean taxpayers may not be getting the best possible price for these critical defense research services, as the incentive for cost-efficiency is reduced without multiple bids.
Public Impact
The primary beneficiaries are the U.S. Army and the Department of Defense, receiving advanced research and development for missile defense. Services delivered include research, development, and engineering for advanced technologies in missile and space systems. The geographic impact is concentrated in Huntsville, Alabama, a known hub for aerospace and defense contractors. Workforce implications include highly skilled engineers and scientists employed by Teledyne Brown Engineering and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may result in higher costs for taxpayers.
- Lack of transparency in the limited source selection process.
- Potential for cost overruns in a cost-plus contract without strong oversight.
Positive Signals
- Contract awarded to a company with a presence in a key defense industry hub.
- Focus on critical R&D for national security (ballistic missile defense).
- Incentive structure (Award Fee) aims to reward performance.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced technology development for missile and space systems. The North American Industry Classification System (NAICS) code 541710 covers Research and Development in the Physical, Engineering, and Life Sciences. The market for defense R&D is characterized by high barriers to entry due to specialized knowledge, security clearances, and significant investment requirements. Spending in this area is driven by national security priorities and technological advancements, with major government agencies like the Department of Defense being the primary customers.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor, Teledyne Brown Engineering, Inc., is a large business. There is no explicit information regarding subcontracting plans or goals for small businesses within this specific contract award. Therefore, the direct impact on the small business ecosystem from this particular award is unclear, though large prime contractors often engage small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army, given its role as the procuring agency. As a 'Cost Plus Award Fee' contract, performance metrics and cost controls would be subject to regular review. Inspector General jurisdiction would apply to investigate any potential fraud, waste, or abuse. Transparency is often limited in defense R&D contracts due to national security considerations, but contract modifications, performance reports, and financial audits would be key accountability measures.
Related Government Programs
- Missile Defense Agency (MDA) Programs
- Advanced Research Projects Agency (ARPA) Initiatives
- Department of Defense Research and Development Budgets
- Space and Strategic Defense Command Contracts
Risk Flags
- Limited Competition
- Cost-Plus Contract Type
- Long Contract Duration
Tags
defense, department-of-defense, army, research-and-development, missile-defense, advanced-technology, cost-plus-award-fee, limited-competition, alabama, huntsville, large-business, strategic-defense
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.0 million to TELEDYNE BROWN ENGINEERING, INC.. 200209!002005!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002C0051 !A!N! !Y! !20020516!20070423!113633189!113633189!112358432!N!TELEDYNE BROWN ENGINEERING, IN!300 SPARKMAN DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000002084000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is TELEDYNE BROWN ENGINEERING, 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 $29.0 million.
What is the period of performance?
Start: 2002-05-16. End: 2008-06-01.
What is Teledyne Brown Engineering's track record with the Department of Defense, particularly in missile defense R&D?
Teledyne Brown Engineering, Inc. has a significant history of supporting the Department of Defense and its various agencies, including the Missile Defense Agency and the U.S. Army Space and Missile Defense Command. Their work often involves complex engineering, systems integration, and research and development for strategic defense systems. While specific details of past performance on contracts similar to DASG6002C0051 require deeper investigation into contract databases and performance reports, their sustained presence and multiple awards in this specialized field suggest a recognized capability. Their involvement in Huntsville, Alabama, a major center for missile defense, further indicates a long-standing relationship and expertise in this domain. Evaluating their performance would necessitate reviewing past contract outcomes, delivery timeliness, technical achievement, and cost control.
How does the $113.6 million contract value compare to similar missile defense R&D contracts awarded by the DoD?
The $113.6 million total contract value for Teledyne Brown Engineering's work on missile and space systems R&D is substantial, reflecting the high cost and complexity of advanced defense technology development. To benchmark this value, one would need to compare it against other 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) contracts awarded by the Department of Defense, specifically those focused on missile defense, strategic systems, or advanced weapon technologies. Contracts with similar durations (over 6 years) and 'Cost Plus Award Fee' (CPAF) structures would be most relevant. Without access to a comprehensive database of comparable contract values, adjusted for inflation and scope, it is difficult to definitively state whether $113.6 million represents a high, low, or average investment. However, given the specialized nature and critical importance of missile defense, such figures are not uncommon for long-term, high-risk R&D efforts.
What are the primary risks associated with this 'Cost Plus Award Fee' (CPAF) contract structure for missile defense R&D?
The 'Cost Plus Award Fee' (CPAF) structure for this missile defense R&D contract presents several risks. Primarily, the 'cost-plus' element means the contractor is reimbursed for allowable costs plus a fee, which can lead to cost overruns if not tightly managed. The 'award fee' component introduces subjectivity, as the fee amount is based on the government's evaluation of the contractor's performance against defined criteria. This can create challenges in objective performance measurement and potentially lead to disputes over fee allocation. For taxpayers, the risk lies in the potential for inflated costs if the government's oversight and performance evaluations are not rigorous enough to incentivize genuine cost efficiency. Furthermore, the inherent complexity and long-term nature of R&D mean that unforeseen technical challenges could significantly increase costs beyond initial projections, even with award fee incentives.
What does the 'limited competition' classification imply for the effectiveness and cost-efficiency of this contract?
The 'limited competition' classification for this contract suggests that the government did not solicit bids from the full range of potential contractors. This could be due to several reasons, such as the specialized nature of the technology required, the contractor possessing unique capabilities, or national security concerns. However, limited competition generally reduces the pressure on contractors to offer the most competitive pricing. Without the threat of losing out to multiple rivals, the incentive to minimize costs and maximize value may be diminished. This can potentially lead to higher prices for taxpayers and may not result in the most innovative or cost-effective solutions being identified. The effectiveness of the contract hinges heavily on the government's ability to clearly define requirements and rigorously manage the limited contractor's performance.
How has federal spending on missile defense R&D evolved over the years, and where does this contract fit in?
Federal spending on missile defense R&D has historically been significant, particularly following perceived threats and advancements in missile technology. Agencies like the Missile Defense Agency (MDA) and components within the Department of Defense (DoD) consistently allocate substantial budgets to research, development, testing, and evaluation (RDT&E) of missile defense systems. This contract, valued at $113.6 million over approximately six years for advanced technology development in missile and space systems, represents a specific investment within this broader R&D landscape. While this single contract's value might seem large, it needs to be viewed in the context of the overall annual DoD R&D budget, which often runs into tens of billions of dollars. The evolution of spending is typically driven by geopolitical factors, technological breakthroughs, and strategic defense reviews. This contract likely reflects a specific, ongoing effort within the larger, multi-year strategic push to enhance U.S. missile defense capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
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: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Teledyne Technologies Incorporated (UEI: 112358432)
Address: 300 SPARKMAN DR NW, HUNTSVILLE, AL, 05
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-05-16
Current End Date: 2008-06-01
Potential End Date: 2008-06-01 00:00:00
Last Modified: 2014-07-11
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