DoD awards $6.8M for TURRET FLIR UNITs to Teledyne FLIR Defense, Inc. under a sole-source contract

Contract Overview

Contract Amount: $6,821,294 ($6.8M)

Contractor: Teledyne Flir Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-06-13

End Date: 2026-06-30

Contract Duration: 747 days

Daily Burn Rate: $9.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TURRET FLIR UNIT

Place of Performance

Location: WILSONVILLE, CLACKAMAS County, OREGON, 97070

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $6.8 million to TELEDYNE FLIR DEFENSE, INC. for work described as: TURRET FLIR UNIT Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. The contract duration of approximately two years suggests a need for ongoing supply of these specialized units. 3. Limited competition indicates a potential lack of market alternatives or specific contractor capabilities. 4. The firm-fixed-price structure shifts cost risk to the contractor, but the absence of competition limits upside for the government. 5. Performance context is limited without details on the specific application or quantity of units. 6. Sector positioning within Defense is clear, but specific sub-sector details are not provided.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money. The $6.8 million award for TURRET FLIR UNITS lacks comparable contract data to assess if the pricing is fair. The sole-source nature means the government did not benefit from market forces that typically drive down costs. Further analysis would require understanding the specific technical requirements and the availability of alternative solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source can provide the required supplies or services. The lack of competition means that the Department of the Navy did not solicit bids from multiple vendors, potentially limiting price negotiation and innovation.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, there is less assurance that the government secured the best possible price.

Public Impact

The primary beneficiaries are likely military units requiring advanced thermal imaging capabilities for situational awareness and targeting. The services delivered include the provision of specialized TURRET FLIR UNITS, crucial for defense operations. Geographic impact is not specified but is likely tied to operational deployment areas for the Department of the Navy. Workforce implications are minimal for the public sector, but the contract supports jobs within the defense contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-sourcing.
Absence of performance metrics makes it difficult to assess the effectiveness of the acquired units.
Potential for vendor lock-in due to specialized nature of the equipment.

Positive Signals

Award to a known defense contractor (Teledyne FLIR Defense, Inc.) suggests a potentially reliable supplier.
Firm-fixed-price contract provides cost certainty for the government once awarded.
Contract addresses a specific defense need for advanced imaging technology.

Sector Analysis

The defense sector relies heavily on specialized electronic equipment for surveillance, targeting, and navigation. Thermal imaging, or FLIR (Forward-Looking Infrared), technology is critical for operations in various conditions, including low light and adverse weather. Spending in this area is substantial, with numerous contracts awarded for sensors, systems, and related support. This contract for TURRET FLIR UNITS fits within the broader category of defense electronics and sensor systems, a market characterized by high technological barriers to entry and significant government investment.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting opportunities for small businesses. The award to Teledyne FLIR Defense, Inc., a large defense contractor, suggests that the primary focus was on acquiring specialized capabilities rather than promoting small business participation. Without a competitive process or specific set-aside requirements, the direct impact on the small business ecosystem is likely negligible.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded in contract clauses related to delivery schedules, quality standards, and payment terms. Transparency is limited due to the sole-source nature of the award; the justification for not competing the contract would be the primary document for public scrutiny. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) programs
Naval Sea Systems Command (NAVSEA) procurements
Tactical Intelligence, Surveillance, and Reconnaissance (ISR) systems
Advanced Sensor Technology Development

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.8 million to TELEDYNE FLIR DEFENSE, INC.. TURRET FLIR UNIT

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 $6.8 million.

What is the period of performance?

Start: 2024-06-13. End: 2026-06-30.

What is the specific technical capability and intended use of the TURRET FLIR UNITs being procured?

The provided data does not specify the exact technical capabilities or intended use of the TURRET FLIR UNITS. However, 'FLIR' typically refers to Forward-Looking Infrared, a technology that detects infrared radiation emitted by objects to create an image, allowing for visibility in low-light or obscured conditions. 'Turret' suggests the unit is designed to be mounted on a rotating platform, likely for panoramic surveillance, targeting, or tracking applications on vehicles, vessels, or aircraft. These units are critical for situational awareness, threat detection, and precision engagement in military operations.

Why was this contract awarded on a sole-source basis instead of being competed?

The data indicates the contract was 'NOT COMPETED,' implying a sole-source award. Justifications for sole-sourcing typically fall under specific exceptions in federal acquisition regulations, such as when only one vendor possesses the unique capability, technology, or intellectual property required. For specialized defense equipment like advanced thermal imaging systems, it's possible that Teledyne FLIR Defense, Inc. is the only manufacturer or possesses proprietary technology that meets the Department of the Navy's stringent requirements. Without the specific justification document, the precise reason remains unknown, but it suggests a lack of viable alternatives or a critical need that only this contractor could fulfill.

What is the historical spending pattern for TURRET FLIR UNITS or similar systems by the Department of Defense?

The provided data does not include historical spending patterns for TURRET FLIR UNITS or similar systems. To assess this, one would need to query federal procurement databases (like FPDS or USASpending) for past contracts awarded by the Department of Defense or Department of the Navy for 'FLIR systems,' 'thermal imaging,' 'turreted sensors,' or related terms. Analyzing past awards would reveal the frequency of procurement, the number of competing vendors, average prices, and the contractors most frequently awarded such business. This context is crucial for understanding if the current $6.8 million award represents a typical investment or an outlier.

What is Teledyne FLIR Defense, Inc.'s track record with the Department of Defense for similar procurements?

Teledyne FLIR Defense, Inc. is a known entity in the defense sector, specializing in sensor systems, including thermal imaging. Their track record with the Department of Defense likely includes numerous awards for various FLIR systems and related technologies. Without specific contract history data for 'TURRET FLIR UNITS,' it's difficult to pinpoint their performance on identical items. However, their established presence suggests they have successfully navigated DoD procurement processes and delivered defense-related products previously. A deeper dive into their contract history would reveal the volume, value, and types of systems they have supplied to the DoD.

What are the potential risks associated with a sole-source award for critical defense equipment?

The primary risks associated with a sole-source award for critical defense equipment include inflated pricing due to lack of competition, potential for complacency from the sole provider leading to reduced innovation or quality over time, and vendor lock-in. Taxpayers may bear a higher cost than if the contract were competed. Furthermore, reliance on a single source can create supply chain vulnerabilities if that contractor faces production issues, financial instability, or geopolitical challenges. The government also loses the opportunity to discover potentially more cost-effective or technologically superior solutions from other vendors.

Industry Classification

NAICS: Manufacturing › Other Textile Product Mills › Textile Bag and Canvas Mills

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Teledyne Technologies Incorporated

Address: 27700 SW PARKWAY AVE, WILSONVILLE, OR, 97070

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: $6,821,294

Exercised Options: $6,821,294

Current Obligation: $6,821,294

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: N0038322GZ701

IDV Type: BOA

Timeline