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

Positive Signals

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

Risk Flags

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: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTMAINT, 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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