DoD's $14.7M AN/KAX-1A Systems Contract Awarded to Teledyne FLIR Defense, Inc. with No Competition
Contract Overview
Contract Amount: $14,724,600 ($14.7M)
Contractor: Teledyne Flir Defense, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-06-25
End Date: 2009-12-24
Contract Duration: 547 days
Daily Burn Rate: $26.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE
Sector: Defense
Official Description: AN/KAX-1A SYSTEMS
Place of Performance
Location: NORTH BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01862
Plain-Language Summary
Department of Defense obligated $14.7 million to TELEDYNE FLIR DEFENSE, INC. for work described as: AN/KAX-1A SYSTEMS Key points: 1. Significant contract value of $14.7 million for specialized defense systems. 2. Sole-source award to Teledyne FLIR Defense, Inc. raises questions about competition. 3. Contract duration of 547 days suggests a focused, short-term project. 4. The 'Search, Detection, Navigation, Guidance' category indicates critical operational equipment.
Value Assessment
Rating: questionable
The contract value of $14.7 million for AN/KAX-1A systems appears high given the lack of competitive bidding. Without a benchmark from competing offers, it's difficult to definitively assess if the pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these defense systems.
Public Impact
Taxpayers may be overpaying for critical defense equipment due to the absence of competitive bidding. The Department of the Navy relies on this sole-source provider for essential navigation and guidance systems. Potential for reduced innovation and efficiency gains that often arise from competitive procurements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Award to established defense contractor
- Specific system for navigation and guidance
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is critical for national defense, but often involves specialized, high-cost equipment where competition can be limited.
Small Business Impact
The award went to Teledyne FLIR Defense, Inc., a large corporation, with no indication of small business subcontracting. This procurement does not appear to benefit small businesses.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained the best possible value. Further review of the justification for sole-sourcing is recommended.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing due to no competitive bidding.
- Limited transparency in price discovery.
- No indication of small business participation.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.7 million to TELEDYNE FLIR DEFENSE, INC.. AN/KAX-1A SYSTEMS
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 Navy).
What is the total obligated amount?
The obligated amount is $14.7 million.
What is the period of performance?
Start: 2008-06-25. End: 2009-12-24.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without specific documentation, it's impossible to confirm the exact reason, but it's crucial for ensuring fair pricing and exploring all viable options.
How does the $14.7 million price compare to similar systems procured competitively by other defense agencies?
Without access to specific competitive procurement data for comparable systems, a direct price comparison is challenging. However, the absence of competition for this $14.7 million award raises a red flag. Agencies should strive for competitive processes to ensure cost-effectiveness and benchmark pricing against market alternatives.
What is the long-term strategic impact of relying on a sole-source provider for these critical navigation and guidance systems?
Long-term reliance on a sole-source provider can stifle innovation, limit flexibility, and potentially lead to escalating costs over time. It also creates a single point of failure. Agencies should periodically reassess sole-source justifications and explore opportunities to introduce competition or develop alternative solutions.
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
Solicitation ID: N0016408RJQ43
Offers Received: 1
Pricing Type: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Teledyne Flir, LLC (UEI: 091296244)
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
Financial Breakdown
Contract Ceiling: $14,724,600
Exercised Options: $14,724,600
Current Obligation: $14,724,600
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-06-25
Current End Date: 2009-12-24
Potential End Date: 2009-12-24 00:00:00
Last Modified: 2021-04-21
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