Teledyne Brown Engineering awarded $24.6M for Joint Material Decontamination System development
Contract Overview
Contract Amount: $24,659,127 ($24.7M)
Contractor: Teledyne Brown Engineering, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-09-26
End Date: 2011-10-31
Contract Duration: 1,496 days
Daily Burn Rate: $16.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: JOINT MATERIAL DECONTAMINATION SYSTEM (JMDS) - SYSTEM DESIGN AND DEVELOPMENT (SDD) CLIN 0001
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $24.7 million to TELEDYNE BROWN ENGINEERING, INC. for work described as: JOINT MATERIAL DECONTAMINATION SYSTEM (JMDS) - SYSTEM DESIGN AND DEVELOPMENT (SDD) CLIN 0001 Key points: 1. Contract value represents a significant investment in specialized defense equipment. 2. The system aims to enhance military readiness through advanced decontamination capabilities. 3. Performance is tied to cost-plus incentive fee structure, aligning contractor and government interests. 4. The contract duration of nearly 5 years suggests a complex development cycle. 5. Geographic location of awardee in Alabama may indicate regional economic impact.
Value Assessment
Rating: fair
The contract's cost-plus incentive fee structure allows for shared savings if costs are below target, which can be beneficial. However, without specific performance metrics or a clear benchmark for the JMDS system's development, assessing the overall value for money is challenging. The initial award amount of $24.6 million for system design and development suggests a substantial undertaking, but a direct comparison to similar decontamination system development contracts is difficult due to the specialized nature of the technology.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. The presence of three bidders suggests a reasonable level of competition for this specialized system. While competition is generally positive for price discovery, the specific technical requirements for the Joint Material Decontamination System may have limited the pool of potential offerors.
Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down costs through market forces, ensuring the government receives competitive pricing.
Public Impact
The U.S. Department of the Army benefits from the development of advanced decontamination technology. This contract supports the delivery of a critical system for military personnel and equipment. The geographic impact is primarily centered around the contractor's operations in Alabama. The contract supports specialized engineering and manufacturing jobs within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus incentive fee contracts can sometimes lead to cost overruns if not managed tightly.
- The specialized nature of the technology may present unique development risks.
- Long contract duration increases exposure to potential changes in requirements or technology.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- The incentive fee structure encourages cost efficiency from the contractor.
- The system addresses a critical military need for material decontamination.
Sector Analysis
The defense sector, particularly within the manufacturing of specialized equipment, is characterized by high R&D costs and stringent performance requirements. Contracts like this, for system design and development, are crucial for maintaining technological superiority. The NAICS code 335999 (All Other Miscellaneous Electrical Equipment and Component Manufacturing) indicates a broad category, but the specific application for material decontamination places it within a niche but vital area of defense logistics and readiness.
Small Business Impact
This contract was not set aside for small businesses and the awardee, Teledyne Brown Engineering, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for specialized components or services.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The cost-plus incentive fee structure necessitates close monitoring of costs and performance against established targets. Transparency is generally maintained through contract reporting requirements, and any significant issues could be subject to review by the Department of Defense's Inspector General.
Related Government Programs
- Military Decontamination Equipment
- Chemical, Biological, Radiological, and Nuclear (CBRN) Defense Systems
- Defense System Design and Development Contracts
Risk Flags
- Cost-Plus Incentive Fee (CPIF) requires careful oversight to manage costs.
- Long contract duration increases risk of technological obsolescence or requirement changes.
Tags
defense, department-of-the-army, system-design-and-development, cost-plus-incentive-fee, full-and-open-competition, definitive-contract, alabama, teledyne-brown-engineering, miscellaneous-electrical-equipment-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.7 million to TELEDYNE BROWN ENGINEERING, INC.. JOINT MATERIAL DECONTAMINATION SYSTEM (JMDS) - SYSTEM DESIGN AND DEVELOPMENT (SDD) CLIN 0001
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 $24.7 million.
What is the period of performance?
Start: 2007-09-26. End: 2011-10-31.
What is the historical spending pattern for the Joint Material Decontamination System (JMDS) program?
The provided data represents a single contract award for the JMDS System Design and Development (SDD) phase, valued at approximately $24.6 million. This specific award was made in 2007 and completed in 2011. To understand the broader historical spending pattern, one would need to examine prior or subsequent contracts related to the JMDS program, including potential sustainment, upgrade, or production phases. Without access to a comprehensive contract history for the JMDS, it is difficult to establish a trend or overall program expenditure. This single data point indicates an initial investment in the development of the system.
How does the cost-plus incentive fee (CPIF) structure compare to other contract types for defense system development?
Cost-plus incentive fee (CPIF) contracts are a type of cost-reimbursement contract where the contractor receives a final negotiated fee based on meeting or exceeding certain performance targets (e.g., cost, schedule, or technical performance). This contrasts with fixed-price contracts, where the price is set regardless of actual costs, and cost-plus-fixed-fee (CPFF) contracts, where the fee is fixed. For complex system development like the JMDS, where technical uncertainties are high and precise cost estimation is difficult, CPIF can be advantageous. It incentivizes the contractor to control costs and meet performance goals, sharing potential savings with the government if targets are exceeded. However, it requires robust government oversight to ensure targets are appropriate and costs are reasonable.
What are the key performance indicators (KPIs) associated with the JMDS development contract?
The provided data does not explicitly list the Key Performance Indicators (KPIs) for the Joint Material Decontamination System (JMDS) System Design and Development (SDD) contract. However, given the CPIF (Cost Plus Incentive Fee) structure, it is highly probable that KPIs were established related to cost targets, schedule milestones, and technical performance specifications for the decontamination system. These could include factors like decontamination effectiveness rates, system reliability, operational speed, weight, power consumption, and ease of maintenance. The incentive fee would be directly tied to the contractor's performance against these defined metrics, encouraging efficient and effective development.
What is the track record of Teledyne Brown Engineering in developing similar defense systems?
Teledyne Brown Engineering has a significant track record in supporting U.S. military and government programs, often involving complex engineering and manufacturing. While specific details on their past development of decontamination systems are not provided in this data snippet, their broader portfolio includes work on satellite systems, missile defense components, and other advanced technological solutions for defense applications. Their experience in systems integration, design, and production for demanding environments suggests a capability to undertake projects like the JMDS. A comprehensive assessment would require reviewing their specific project history related to CBRN defense or similar specialized equipment.
What is the estimated market size for material decontamination systems within the defense sector?
Estimating the precise market size for specialized material decontamination systems within the defense sector is challenging without specific market research reports. However, the ongoing need for military readiness, particularly in environments potentially exposed to chemical, biological, radiological, or nuclear threats, ensures a consistent demand. This market is driven by factors such as evolving threat landscapes, modernization of military equipment, and international security agreements. The development of systems like the JMDS reflects a commitment to addressing these threats, suggesting a niche but critical market segment within the broader defense procurement landscape. Spending in this area is often project-specific and tied to strategic defense initiatives.
What are the potential risks associated with the long duration and complexity of the JMDS development contract?
The JMDS development contract, with a duration of nearly five years (1496 days), carries inherent risks associated with its length and complexity. These risks include potential technological obsolescence if the system's design lags behind advancements during development. There's also a risk of scope creep, where requirements may change or expand over time, leading to cost overruns and schedule delays. Furthermore, the contractor's key personnel or critical supply chains could be disrupted. The CPIF structure aims to mitigate some cost risks, but managing the overall program effectively requires continuous government oversight to adapt to evolving needs and technological shifts throughout the development lifecycle.
Industry Classification
NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911SR07R0007
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Teledyne Technologies Incorporated (UEI: 112358432)
Address: 300 SPARKMAN DR NW, HUNTSVILLE, AL, 35805
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $24,712,625
Exercised Options: $24,712,625
Current Obligation: $24,659,127
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-09-26
Current End Date: 2011-10-31
Potential End Date: 2011-10-31 00:00:00
Last Modified: 2017-08-07
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