Dod Awards $68.2M for Tactical Range AIR Defense Missile (tacram) II R&D to Teledyne Brown Engineering

Contract Overview

Contract Amount: $68,168,351 ($68.2M)

Contractor: Teledyne Brown Engineering, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-05-20

End Date: 2028-03-31

Contract Duration: 1,411 days

Daily Burn Rate: $48.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TACTICAL RANGE AIR DERENSE MISSILE (TACRAM) II

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $68.2 million to TELEDYNE BROWN ENGINEERING, INC. for work described as: TACTICAL RANGE AIR DERENSE MISSILE (TACRAM) II Key points: 1. Contract focuses on research and development, indicating early-stage innovation. 2. Full and open competition suggests a potentially competitive bidding process. 3. Cost Plus Fixed Fee contract type may lead to cost overruns if not managed carefully. 4. The contract duration of over three years allows for sustained development. 5. Awarded by the Department of the Army, aligning with defense modernization efforts. 6. The North American Industry Classification System (NAICS) code 541712 points to R&D in physical and engineering sciences.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee structure introduces inherent risk for cost control. Comparing this to similar R&D efforts in missile technology would require detailed analysis of scope and objectives. The total award amount of $68.2 million is substantial for a research project, suggesting a significant scope or complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This generally promotes a competitive environment, which can lead to better pricing and innovation. The number of bidders is not specified, but the method of competition suggests multiple entities likely vied for this award.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers, fostering a market that drives efficiency.

Public Impact

The Department of Defense, specifically the Department of the Army, is the primary beneficiary, seeking advancements in air defense missile technology. The contract will fund research and development activities, potentially leading to new or improved tactical range air defense missile systems. The geographic impact is primarily within Alabama, where Teledyne Brown Engineering is located, suggesting potential local economic benefits. Workforce implications may include employment for researchers, engineers, and support staff involved in the R&D process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on defense technologies. The market for advanced air defense systems is highly specialized and competitive, driven by national security needs. Spending in this area is often characterized by long development cycles, significant investment, and close government oversight. Comparable spending benchmarks would typically involve other major defense R&D programs for next-generation weapon systems.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale R&D effort, it is unlikely to involve significant subcontracting opportunities for small businesses unless specifically mandated or if Teledyne Brown Engineering chooses to engage them. The primary focus appears to be on the prime contractor's capabilities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and program management offices. Accountability measures would be tied to the Cost Plus Fixed Fee structure and the achievement of R&D milestones. Transparency is typically maintained through contract reporting requirements, though specific details on public transparency for R&D projects can vary.

Related Government Programs

Risk Flags

Tags

research-and-development, department-of-defense, department-of-the-army, missile-defense, tactical-air-defense, cost-plus-fixed-fee, full-and-open-competition, alabama, teledyne-brown-engineering, advanced-technology, weapon-systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $68.2 million to TELEDYNE BROWN ENGINEERING, INC.. TACTICAL RANGE AIR DERENSE MISSILE (TACRAM) II

Who is the contractor on this award?

The obligated recipient is TELEDYNE BROWN ENGINEERING, 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 $68.2 million.

What is the period of performance?

Start: 2024-05-20. End: 2028-03-31.

What is the specific technical objective of the TACTICAL RANGE AIR DEFENSE MISSILE (TACRAM) II project?

The provided data does not specify the exact technical objectives for the TACTICAL RANGE AIR DEFENSE MISSILE (TACRAM) II project. However, the name suggests a focus on developing or enhancing air defense missiles designed for tactical ranges. This could involve improvements in areas such as guidance systems, warhead effectiveness, range, speed, countermeasure resistance, or integration with existing command and control systems. Further details would likely be found in the contract's Statement of Work (SOW) or technical exhibits, which are not publicly available in this summary.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of risk and potential value?

The Cost Plus Fixed Fee (CPFF) contract type is common for R&D where the scope is not fully defined, allowing flexibility. The government agrees to pay the contractor's actual costs plus a fixed fee representing profit. This shifts some cost risk to the government, as the final price can exceed initial estimates if costs escalate. However, the fixed fee provides the contractor with an incentive to control costs to some extent, as their profit is capped. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for uncertain R&D but less cost certainty for the government. Cost-Plus-Incentive-Fee (CPIF) contracts, which adjust the fee based on performance against targets, might offer a better balance of risk and reward for both parties in certain R&D scenarios.

What is Teledyne Brown Engineering's track record with similar Department of Defense R&D contracts?

Teledyne Brown Engineering has a significant history of performing research and development contracts for the Department of Defense and other government agencies. While specific details on their TACRAM II-related experience are not provided here, the company is known for its work in areas such as aerospace engineering, systems integration, and advanced technology development. Their portfolio often includes projects related to missile systems, space exploration, and defense modernization. A deeper dive into their contract history, available through databases like SAM.gov or FPDS, would reveal the scale, scope, and success rates of their past R&D endeavors, providing a clearer picture of their capabilities and reliability for this specific project.

What are the potential implications of awarding this contract in Alabama?

Awarding this $68.2 million R&D contract to Teledyne Brown Engineering, Inc., which is based in Alabama, is likely to have positive economic implications for the state. This includes job creation or retention for highly skilled personnel such as engineers, scientists, and technicians. It also stimulates local economies through increased demand for goods and services from suppliers and support businesses within Alabama. Furthermore, it reinforces the state's position as a hub for defense contracting and technological innovation, potentially attracting further investment and talent in the aerospace and defense sectors.

How does the $68.2 million award compare to historical spending on tactical air defense missile R&D?

The $68.2 million award for the TACRAM II project represents a significant investment in tactical air defense missile R&D. To provide a precise comparison, historical spending data for similar programs would be needed. However, R&D for advanced defense systems, particularly missile technology, is typically characterized by substantial funding requirements due to the complexity, long development timelines, and cutting-edge research involved. This amount is consistent with major defense R&D initiatives aimed at developing next-generation capabilities. Without specific program comparisons, it's difficult to definitively state if it's high or low, but it signals a substantial commitment by the Department of the Army to this specific area of technology.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Teledyne Technologies Incorporated

Address: 300 SPARKMAN DR NW, HUNTSVILLE, AL, 35805

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: $114,080,435

Exercised Options: $114,080,435

Current Obligation: $68,168,351

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $27,416,150

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9113M17D0008

IDV Type: IDC

Timeline

Start Date: 2024-05-20

Current End Date: 2028-03-31

Potential End Date: 2028-03-31 00:00:00

Last Modified: 2025-10-01

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