DoD's $364M Missile Defense R&D Contract Awarded to Teledyne FLIR Defense, Inc

Contract Overview

Contract Amount: $12,708,844 ($12.7M)

Contractor: Teledyne Flir Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-09-08

End Date: 2004-09-07

Contract Duration: 365 days

Daily Burn Rate: $34.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200312!002934!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6003C0075 !A!N! !N! !20030908!20040907!364000711!364000711!364000711!N!SCIENTIFIC MATERIALS CORPORATI!310 ICEPOND ROAD !BOZEMAN !MT!59715!08950!031!30!BOZEMAN !GALLATIN !MONTANA !+000001531844!N!N!000015951682!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !4CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !3! ! ! ! ! !99990909!B! ! !B! !A!N!U!2!003!B! !A!Y!Z! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: BOZEMAN, GALLATIN County, MONTANA, 59715

State: Montana Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to TELEDYNE FLIR DEFENSE, INC. for work described as: 200312!002934!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6003C0075 !A!N! !N! !20030908!20040907!364000711!364000711!364000711!N!SCIENTIFIC MATERIALS CORPORATI!310 ICEPOND ROAD !BOZEMAN !MT!59715!08950!031!30!BOZEMAN !GALLA… Key points: 1. Contract awarded for advanced technology development in missile and space systems. 2. Significant investment in Ballistic Missile Defense Systems highlights national security priorities. 3. The contract duration of 365 days suggests a focused, short-term development effort. 4. Awarded under full and open competition, indicating a broad search for qualified contractors. 5. The primary focus on R&D suggests potential for future technological advancements. 6. Contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed profit.

Value Assessment

Rating: good

The contract value of $364,000,711 for a one-year period for R&D in missile and space systems appears to be within a reasonable range for such specialized and critical work. Benchmarking against similar advanced technology development contracts in defense, especially those involving missile defense, would be necessary for a precise value-for-money assessment. However, the scale of the award suggests a significant investment in a critical capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit bids. The presence of 3 bidders indicates a competitive environment, which generally leads to better pricing and innovation. The specific number of bidders is moderate, suggesting that while competition existed, it may not have been as extensive as in some other federal procurements.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it drives down costs and encourages the best possible solutions to be presented.

Public Impact

The primary beneficiaries are the Department of Defense and national security, through advancements in missile defense capabilities. Services delivered include research and development for advanced technologies in missile and space systems. The geographic impact is national, focusing on the development of strategic defense systems. Workforce implications include highly skilled scientists, engineers, and technicians involved in cutting-edge R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The specialized nature of missile defense R&D may limit the pool of qualified contractors in future competitions.
The relatively short duration of the contract (365 days) might indicate a need for follow-on contracts to ensure sustained development.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair procurement process.
The contract supports critical national security objectives in missile defense.
The investment in advanced technology development has the potential for significant future benefits.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced technology development for missile and space systems. The defense R&D market is characterized by high specialization, significant government investment, and long development cycles. Comparable spending benchmarks would typically be found within the broader DoD R&D budget, particularly allocations for strategic defense initiatives. The NAICS code 541710 covers R&D in physical, engineering, and life sciences, a broad category that encompasses this specialized contract.

Small Business Impact

There is no indication that this contract was set aside for small businesses. Given the specialized and advanced nature of missile defense R&D, it is likely that the prime contractor is a large business. Subcontracting opportunities for small businesses may exist, but would depend on the prime contractor's strategy and the specific technical requirements of the project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the Cost Plus Fixed Fee structure, which requires detailed reporting and justification of costs. Transparency is generally maintained through contract award databases and reporting requirements, though specific R&D details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Defense Agency (MDA) Research and Development Programs
Advanced Technology Development Contracts
Space and Missile Systems Center Contracts
Ballistic Missile Defense System Development

Risk Flags

Cost Overrun Potential (CPFF contract type)
Technical Feasibility Risk (Advanced R&D)
Scope Creep Risk (R&D uncertainty)
Contractor Performance Risk (Newer entity or specific program focus)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to TELEDYNE FLIR DEFENSE, INC.. 200312!002934!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6003C0075 !A!N! !N! !20030908!20040907!364000711!364000711!364000711!N!SCIENTIFIC MATERIALS CORPORATI!310 ICEPOND ROAD !BOZEMAN !MT!59715!08950!031!30!BOZEMAN !GALLATIN !MONTANA !+000001531844!N!N!000015951682!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !4CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !3! ! ! ! ! !99990909!B

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 $12.7 million.

What is the period of performance?

Start: 2003-09-08. End: 2004-09-07.

What is Teledyne FLIR Defense, Inc.'s track record with similar large-scale R&D contracts for the Department of Defense?

Teledyne FLIR Defense, Inc. (and its predecessors through acquisition) has a significant history of performing complex R&D and manufacturing for defense applications. While specific details on past contracts of this exact magnitude and focus require deeper database analysis, the company is known for its expertise in sensor technology, imaging, and related defense systems. Their involvement in missile defense R&D is consistent with their established capabilities. A review of their contract history would reveal their performance on cost, schedule, and technical objectives for prior DoD engagements, providing context for their ability to execute this current $364M award.

How does the $364M contract value compare to other Ballistic Missile Defense System development contracts?

The $364 million contract value for a one-year R&D effort in ballistic missile defense systems is substantial, reflecting the complexity and critical nature of this field. To benchmark this value, one would compare it against other contracts awarded by the Missile Defense Agency (MDA) or related DoD entities for similar R&D phases, system components, or advanced technology demonstrations. Contracts for full-system development or large-scale production of interceptors or sensors typically run into billions of dollars over multiple years. This $364M award appears to be focused on a specific, advanced technological development within the broader BMDS program, making direct comparisons challenging without knowing the precise scope of work. However, it represents a significant investment for a single-year R&D initiative.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D, like this $364M award, revolve around cost control and scope definition. For the government, the risk is that actual costs could exceed initial estimates, although the fixed fee limits the contractor's profit. If the R&D effort proves more complex or requires more resources than anticipated, costs can escalate significantly. For the contractor, the risk lies in accurately estimating the costs to achieve the fixed fee; if costs are underestimated, their profit margin shrinks. In advanced R&D, where the path to success is often uncertain, defining the 'completion' criteria for the fixed fee can also be challenging, potentially leading to disputes or scope creep if not managed meticulously.

What is the expected program effectiveness or outcome of this specific R&D contract?

The expected outcome of this R&D contract is the advancement of technologies related to missile and space systems, specifically within the Ballistic Missile Defense System (BMDS) domain. The contract aims to develop 'advanced tech,' implying improvements in areas such as threat detection, tracking, discrimination, or interception capabilities. The effectiveness will be measured by the successful development and demonstration of these technologies, potentially leading to their integration into future BMDS iterations. Given the R&D nature, the immediate outcome is knowledge and prototype development, with long-term effectiveness tied to successful transition to operational systems and their contribution to national security.

How does this contract fit into the broader historical spending patterns for missile defense R&D within the Department of Defense?

This $364 million contract represents a component of the Department of Defense's consistent and substantial investment in missile defense R&D over several decades. Historical spending patterns show a significant allocation towards developing and enhancing capabilities to counter evolving ballistic missile threats. Programs like the Ballistic Missile Defense System (BMDS) have seen multi-billion dollar annual budgets. This specific award, focused on advanced technology development, aligns with the DoD's strategy of pursuing technological superiority and innovation to maintain an effective defense posture. It reflects a continuation of efforts to address emerging threats through cutting-edge research, fitting within the established trend of prioritizing missile defense.

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: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 310 ICEPOND ROAD, BOZEMAN, MT, 01

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline