DoD Awards $75M for FLIR Systems to Teledyne FLIR Defense, Inc

Contract Overview

Contract Amount: $75,199,739 ($75.2M)

Contractor: Teledyne Flir Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-09-28

End Date: 2018-10-31

Contract Duration: 398 days

Daily Burn Rate: $188.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF TACFLIR 380HD (TFU) STABILIZED TURRET FLIR UNIT AND ANCILLARY ITEMS FOR THE PRODUCT MANAGEMENT ELECTRO-OPTIC / INFRARED PAYLOADS - FORCE PROTECTION (PDM EO/IR-FP) PROGRAM.

Place of Performance

Location: WILSONVILLE, CLACKAMAS County, OREGON, 97070

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $75.2 million to TELEDYNE FLIR DEFENSE, INC. for work described as: IGF::OT::IGF TACFLIR 380HD (TFU) STABILIZED TURRET FLIR UNIT AND ANCILLARY ITEMS FOR THE PRODUCT MANAGEMENT ELECTRO-OPTIC / INFRARED PAYLOADS - FORCE PROTECTION (PDM EO/IR-FP) PROGRAM. Key points: 1. Contract awarded to a single, established provider in the electro-optical/infrared sector. 2. Significant investment in advanced surveillance technology for force protection. 3. Potential for cost efficiencies through bulk procurement, though specific benchmarks are absent. 4. Focus on specialized equipment suggests a niche but critical defense capability.

Value Assessment

Rating: fair

The contract value of $75.2 million for a single delivery order appears substantial. Without specific unit details or comparable contract data, a precise per-unit cost assessment is difficult. However, the nature of specialized defense equipment often commands premium pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple potential bidders. This method is generally expected to yield competitive pricing, though the final price is influenced by the specific technical requirements and the market for such specialized equipment.

Taxpayer Impact: Taxpayer funds are allocated for critical defense capabilities, aiming to enhance force protection through advanced surveillance technology.

Public Impact

Enhances battlefield awareness and surveillance capabilities for military personnel. Supports ongoing force protection efforts in potentially hostile environments. Contributes to the technological advantage of the U.S. military in electro-optical/infrared systems. Procurement of specialized equipment may lead to higher unit costs compared to mass-produced items.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for ancillary items.
Limited public information on performance metrics post-delivery.
Potential for obsolescence of technology over time.

Positive Signals

Awarded through full and open competition.
Addresses a critical need for force protection.
Utilizes specialized, high-performance technology.

Sector Analysis

This contract falls within the defense sector, specifically focusing on electro-optical/infrared (EO/IR) systems. Spending in this area is driven by the need for advanced surveillance and targeting capabilities, with benchmarks often varying widely based on technological sophistication and specific application.

Small Business Impact

The data indicates the award went to Teledyne FLIR Defense, Inc., a large business. There is no explicit information suggesting subcontracting opportunities for small businesses within this specific contract award, though larger defense contracts often have such provisions.

Oversight & Accountability

The Department of Defense, through its various agencies, is responsible for overseeing this contract. Accountability is maintained through contract clauses, performance monitoring, and reporting requirements, ensuring the delivery of specified equipment meets military standards.

Related Government Programs

Other Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

High contract value for a single delivery order.
Specialized equipment may have limited alternative suppliers.
Technology could become outdated relatively quickly.
Lack of detailed cost breakdown for ancillary items.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.2 million to TELEDYNE FLIR DEFENSE, INC.. IGF::OT::IGF TACFLIR 380HD (TFU) STABILIZED TURRET FLIR UNIT AND ANCILLARY ITEMS FOR THE PRODUCT MANAGEMENT ELECTRO-OPTIC / INFRARED PAYLOADS - FORCE PROTECTION (PDM EO/IR-FP) PROGRAM.

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 $75.2 million.

What is the period of performance?

Start: 2017-09-28. End: 2018-10-31.

What is the specific technological advantage gained by acquiring these FLIR units compared to existing systems?

The IGF::OT::IGF TACFLIR 380HD (TFU) STABILIZED TURRET FLIR UNIT represents an advancement in stabilized thermal imaging technology. Its primary advantage lies in providing enhanced, persistent surveillance and target acquisition capabilities in diverse environmental conditions, crucial for force protection. This likely translates to improved situational awareness and reduced risk to personnel compared to older or less sophisticated systems.

How does the $75.2 million expenditure align with the typical cost of similar advanced electro-optical/infrared systems in the defense market?

The $75.2 million figure for a suite of FLIR units and ancillary items is substantial but not necessarily outside the norm for advanced defense procurement. Specialized, stabilized turrets with high-resolution infrared sensors are complex and costly. Benchmarking is difficult without specific technical configurations, but similar systems for military applications can range from hundreds of thousands to millions of dollars per unit, making this award plausible for a significant quantity or advanced model.

What are the long-term implications for operational effectiveness and potential future upgrades given the 2017 award date?

Awarded in 2017 with an end date of October 2018, the operational effectiveness hinges on the system's performance during its intended service life. While the technology was advanced at the time, the rapid pace of defense technology means these systems may require upgrades or replacement sooner than anticipated. The initial procurement likely focused on immediate force protection needs, with future upgrade paths or replacements being a separate consideration.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Teledyne Flir, LLC (UEI: 091296244)

Address: 27700 SW PKWY AVE FL 2, 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: $75,199,739

Exercised Options: $75,199,739

Current Obligation: $75,199,739

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS03F099CA

IDV Type: FSS

Timeline