DoD awards $26.4M for search and navigation systems to Teledyne FLIR Defense, Inc
Contract Overview
Contract Amount: $26,407,446 ($26.4M)
Contractor: Teledyne Flir Defense, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-08-28
End Date: 2022-09-10
Contract Duration: 1,109 days
Daily Burn Rate: $23.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FIRST ORDER
Place of Performance
Location: WILSONVILLE, CLACKAMAS County, OREGON, 97070
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $26.4 million to TELEDYNE FLIR DEFENSE, INC. for work described as: FIRST ORDER Key points: 1. Significant award value for specialized defense equipment. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (1109 days) may indicate complex integration or sustainment needs. 4. Focus on aeronautical and nautical systems highlights a critical defense sector.
Value Assessment
Rating: fair
The award value of $26.4M over approximately three years suggests a substantial investment. Without comparable contracts for similar specialized systems, it's difficult to definitively assess pricing, but the lack of competition is a concern.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning it was not competed. This approach limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this significant award could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.
Public Impact
Enhances critical search and navigation capabilities for the Army. Supports advanced technology development in defense systems. Potential for follow-on contracts based on performance and evolving needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Supports critical defense mission
- Award to established defense contractor
Sector Analysis
This contract falls within the defense sector, specifically focusing on the manufacturing of advanced search, detection, and navigation systems. Spending in this area is crucial for maintaining military readiness and technological superiority.
Small Business Impact
The contract was awarded to Teledyne FLIR Defense, Inc., a large business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants careful oversight to ensure the government is receiving fair value and that the contractor is meeting all performance requirements.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for overpayment due to sole-source award.
- Lack of transparency in the procurement process.
- Long contract duration may mask inefficiencies.
- Dependency on a single supplier for critical systems.
Tags
search-detection-navigation-guidance-aer, department-of-defense, or, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.4 million to TELEDYNE FLIR DEFENSE, INC.. FIRST ORDER
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 $26.4 million.
What is the period of performance?
Start: 2019-08-28. End: 2022-09-10.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further documentation, it's unclear if other vendors could have met the requirements or if a competitive process was explored and deemed unsuitable. This lack of transparency limits the ability to assess if the government secured the best possible value.
How does the per-unit cost of these systems compare to industry benchmarks or previous procurements?
Benchmarking the per-unit cost is challenging without specific unit details and comparable contract data. Given the sole-source nature, there's a heightened risk that the pricing may not reflect competitive market rates. A thorough cost analysis by the agency would be necessary to validate the pricing's reasonableness.
What are the key performance metrics and how will contract effectiveness be measured?
Effectiveness will likely be measured against specific technical performance requirements, delivery schedules, and operational readiness contributions. The Department of the Army will need robust quality assurance and performance monitoring processes to ensure the systems meet mission needs and justify the significant investment.
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: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Teledyne Flir, LLC
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: $28,514,717
Exercised Options: $26,407,446
Current Obligation: $26,407,446
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W909MY19D0016
IDV Type: IDC
Timeline
Start Date: 2019-08-28
Current End Date: 2022-09-10
Potential End Date: 2022-09-10 12:09:00
Last Modified: 2024-07-18
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