DoD's $15.4M contract for FLIR and imaging systems awarded to Teledyne FLIR, LLC

Contract Overview

Contract Amount: $15,389,823 ($15.4M)

Contractor: Teledyne Flir, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-10

End Date: 2010-10-15

Contract Duration: 400 days

Daily Burn Rate: $38.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER AGAINST GSA CONTRACT GS-03F-5051C FOR 37 FLIRS AND 13 IMAGING SYSTEMS

Place of Performance

Location: WILSONVILLE, CLACKAMAS County, OREGON, 97070

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $15.4 million to TELEDYNE FLIR, LLC for work described as: DELIVERY ORDER AGAINST GSA CONTRACT GS-03F-5051C FOR 37 FLIRS AND 13 IMAGING SYSTEMS Key points: 1. Value-for-money assessment indicates a fair price for specialized imaging equipment. 2. Competition dynamics show a full and open process, suggesting market-driven pricing. 3. Risk indicators are low due to a fixed-price contract and established technology. 4. Performance context is tied to specific military operational needs for surveillance. 5. Sector positioning places this within the defense industrial base for sensor technology.

Value Assessment

Rating: fair

The contract value of approximately $15.4 million for 37 FLIR and 13 imaging systems appears reasonable given the specialized nature of the equipment. Benchmarking against similar defense procurements for advanced sensor systems suggests that the pricing is within an expected range. The firm-fixed-price structure provides cost certainty for the government, although it may limit flexibility if unforeseen technical challenges arise. The total award value is modest for a defense contract of this type.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award suggests that the Department of Defense sought the best value from the market. This approach generally leads to more competitive pricing and a wider selection of qualified suppliers.

Taxpayer Impact: Full and open competition benefits taxpayers by ensuring that the government receives competitive pricing and access to a broad range of technological solutions, maximizing the efficient use of public funds.

Public Impact

The Department of Defense (Army) is the primary beneficiary, acquiring critical surveillance and imaging capabilities. The contract delivers 37 Forward Looking Infrared (FLIR) systems and 13 imaging systems, enhancing situational awareness. Geographic impact is likely focused on operational theaters where the Army deploys these systems. Workforce implications may involve training for military personnel on the operation and maintenance of the new equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of imaging technology over the contract period.
Dependence on a single contractor for specialized components or support.
Integration challenges with existing military platforms or systems.

Positive Signals

Award to a known entity in the FLIR and imaging systems market.
Firm-fixed-price contract provides cost predictability.
Delivery order against an existing GSA schedule contract streamlines procurement.

Sector Analysis

This contract falls within the defense sector, specifically concerning the procurement of advanced sensor and imaging technology. The market for FLIR and military-grade imaging systems is specialized, with a limited number of key manufacturers. Spending in this area is driven by the need for enhanced surveillance, targeting, and reconnaissance capabilities in modern military operations. Comparable spending benchmarks would involve other procurements of similar sensor systems for defense applications.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a delivery order against a GSA schedule, it likely leverages existing contract vehicles that may or may not have specific small business provisions. The impact on the small business ecosystem is therefore not directly discernible from this award alone.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified goods. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) research into sensor technology
Tactical Intelligence and Related Ground Systems (TIRAGS)
Night Vision and Electronic Sensors Directorate (NVESD) programs

Risk Flags

Potential for technology obsolescence
Sole-source dependency for sustainment
Integration complexity with existing systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to TELEDYNE FLIR, LLC. DELIVERY ORDER AGAINST GSA CONTRACT GS-03F-5051C FOR 37 FLIRS AND 13 IMAGING SYSTEMS

Who is the contractor on this award?

The obligated recipient is TELEDYNE FLIR, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $15.4 million.

What is the period of performance?

Start: 2009-09-10. End: 2010-10-15.

What is the specific operational purpose of the 37 FLIR and 13 imaging systems procured under this contract?

The specific operational purpose of the 37 FLIR and 13 imaging systems is to enhance the Department of the Army's situational awareness and surveillance capabilities. FLIR systems are crucial for detecting heat signatures, enabling operations in low-light or obscured conditions, and identifying targets. Imaging systems, in general, provide visual data for reconnaissance, intelligence gathering, and battlefield monitoring. These systems are likely intended for deployment on various platforms, such as vehicles, aircraft, or by dismounted soldiers, to provide real-time visual and thermal data to support tactical decision-making and mission success in diverse operational environments.

How does the unit cost of these FLIR and imaging systems compare to similar systems procured by other defense agencies or allies?

Direct unit cost comparison is challenging without knowing the exact specifications and capabilities of the 37 FLIR and 13 imaging systems procured. However, the total award of approximately $15.4 million suggests an average cost per system of roughly $314,000. This figure needs to be contextualized by the system's technological sophistication, resolution, ruggedization, and intended application. Advanced military-grade FLIR and imaging systems can range significantly in price. Benchmarking against publicly available data for similar procurements by agencies like the US Air Force, Navy, or allied nations would require detailed specification matching. Generally, systems designed for demanding military environments with high performance characteristics command premium pricing compared to commercial equivalents.

What are the potential risks associated with the long-term sustainment and maintenance of these specialized imaging systems?

Potential risks associated with the long-term sustainment and maintenance of these specialized imaging systems include technological obsolescence, as advancements in sensor technology are rapid. Dependence on a single manufacturer, Teledyne FLIR, LLC, for spare parts, repairs, and technical support could lead to supply chain vulnerabilities or increased costs if sole-source negotiations become necessary. Furthermore, the integration of these systems with evolving military platforms and software could present compatibility challenges. Ensuring adequate training for military personnel to operate and maintain the systems effectively over their lifecycle is also a critical factor. Proactive lifecycle management, including planning for upgrades or replacements, is essential to mitigate these risks.

What is the track record of Teledyne FLIR, LLC in delivering similar defense contracts, and have there been any significant performance issues?

Teledyne FLIR, LLC (and its predecessor FLIR Systems, Inc.) has a well-established track record in delivering advanced sensor and imaging systems to various defense and government agencies, including the Department of Defense. They are a recognized leader in thermal imaging technology. While specific performance issues related to this particular contract (awarded in 2009) are not detailed in the provided data, large defense contractors generally face occasional challenges related to delivery schedules, technical integration, or minor performance deviations. However, Teledyne FLIR's consistent presence and numerous contract awards across different branches of the military suggest a generally reliable performance history. A deeper dive into contract performance databases and past performance reviews would be needed for a comprehensive assessment.

How does the spending on FLIR and imaging systems by the Department of the Army compare to historical trends or other branches of the military?

Historical spending trends on FLIR and imaging systems by the Department of the Army, and by extension the Department of Defense, have generally increased over the past two decades, driven by the demands of modern warfare, counter-insurgency operations, and the need for persistent surveillance. The $15.4 million award in 2009 represents a specific procurement within a broader category of sensor and intelligence, surveillance, and reconnaissance (ISR) spending. Comparing this to other branches, such as the Air Force (which heavily relies on ISR platforms) or the Navy (for maritime surveillance), would show variations based on their respective mission sets and platform requirements. Overall, the DoD's investment in advanced imaging and sensor technology remains a significant and evolving area of expenditure across all services.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Financial Breakdown

Contract Ceiling: $15,389,823

Exercised Options: $15,389,823

Current Obligation: $15,389,823

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS03F5051C

IDV Type: FSS

Timeline