Army awards $28M for Dismounted Reconnaissance Sets, Kits, Outfits to Teledyne FLIR Defense

Contract Overview

Contract Amount: $27,990,007 ($28.0M)

Contractor: Teledyne Flir Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-12-11

End Date: 2019-07-31

Contract Duration: 232 days

Daily Burn Rate: $120.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DISMOUNTED RECONNAISANCE SETS KITS OUTFITS (DR-SKO) FULL RATE PRODUCTION 24 ARMY SYSTEMS CONFIGURATIONS

Place of Performance

Location: ELKRIDGE, HOWARD County, MARYLAND, 21075

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $28.0 million to TELEDYNE FLIR DEFENSE, INC. for work described as: DISMOUNTED RECONNAISANCE SETS KITS OUTFITS (DR-SKO) FULL RATE PRODUCTION 24 ARMY SYSTEMS CONFIGURATIONS Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract value of $28 million for DR-SKO systems indicates significant investment in soldier modernization. 3. Delivery order issued under an existing contract, potentially indicating a streamlined procurement process. 4. The duration of 232 days for this delivery order suggests a focused production or delivery timeline. 5. The North American Industry Classification System (NAICS) code 334511 points to the manufacturing of navigation and guidance instruments. 6. The contract type is Firm Fixed Price, which transfers cost risk to the contractor. 7. No small business set-aside was utilized, indicating the competition was open to all eligible offerors.

Value Assessment

Rating: good

The contract value of approximately $28 million for Dismounted Reconnaissance Sets, Kits, and Outfits (DR-SKO) appears reasonable given the specialized nature of military equipment. Benchmarking against similar advanced sensor and reconnaissance systems for dismounted soldiers suggests this price point is within expected ranges for high-tech defense procurements. The firm fixed-price contract structure also provides cost certainty for the government, although it places the onus of cost control on Teledyne FLIR Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, the 'full and open' designation generally implies a robust competitive environment. This approach is designed to foster price discovery and ensure the government receives the best value by considering a wide range of potential suppliers.

Taxpayer Impact: A full and open competition maximizes the potential for competitive pricing, which is beneficial for taxpayers by driving down costs and encouraging innovation among defense contractors.

Public Impact

Soldiers operating in reconnaissance roles will benefit from enhanced situational awareness and operational capabilities provided by the DR-SKO. The contract supports the delivery of advanced sensor and navigation equipment crucial for modern military operations. The primary geographic impact is likely within military installations and operational theaters where Army units are deployed. This contract supports jobs within the defense manufacturing sector, specifically related to electronic systems and instruments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's fixed-price estimates are inaccurate.
Dependence on a single contractor for a critical component of soldier equipment.
Risk of obsolescence if technology rapidly advances beyond the capabilities of the procured systems.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting competitive pricing.
Teledyne FLIR Defense is an established provider of defense technologies.

Sector Analysis

The defense sector for navigation, guidance, and control systems is highly specialized and technologically driven. Companies like Teledyne FLIR Defense operate within a market characterized by significant R&D investment and stringent performance requirements. Spending in this area is critical for maintaining military superiority and soldier safety. Comparable spending benchmarks would typically involve other contracts for advanced sensor suites, night vision equipment, and battlefield management systems, often valued in the tens to hundreds of millions of dollars.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Teledyne FLIR Defense engages them as subcontractors. Further analysis would be needed to determine if small businesses are involved in the supply chain for this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting command and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Soldier Modernization Programs
Advanced Sensor Systems
Reconnaissance and Surveillance Equipment
Army Combat Systems

Risk Flags

Potential for technology obsolescence
Dependence on contractor for specialized maintenance
Limited visibility into specific bidder numbers

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 million to TELEDYNE FLIR DEFENSE, INC.. DISMOUNTED RECONNAISANCE SETS KITS OUTFITS (DR-SKO) FULL RATE PRODUCTION 24 ARMY SYSTEMS CONFIGURATIONS

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 $28.0 million.

What is the period of performance?

Start: 2018-12-11. End: 2019-07-31.

What is the specific performance history of Teledyne FLIR Defense, Inc. on similar defense contracts?

Teledyne FLIR Defense, Inc. has a significant track record in providing advanced sensor and imaging solutions to various defense agencies. Their portfolio includes thermal imaging cameras, unmanned systems, and integrated sensor platforms. Historically, they have secured numerous contracts for similar equipment, often involving night vision, reconnaissance, and targeting systems. While specific performance metrics for past contracts are not detailed here, their continued success in winning competitive bids suggests a generally positive performance record. However, a deeper dive into past contract closeouts, any incurred penalties, or customer satisfaction surveys would provide a more comprehensive assessment of their reliability and quality.

How does the per-unit cost of these DR-SKO systems compare to similar systems procured by other military branches or allied nations?

Without specific per-unit cost data for the DR-SKO, a direct comparison is challenging. However, the total contract value of $28 million for a full rate production order suggests a substantial quantity of units. To benchmark, one would need to identify the number of kits procured under this delivery order and then divide the total award amount by that quantity. Subsequently, this per-unit cost would be compared against publicly available data for similar reconnaissance sets, night vision goggles, or integrated soldier systems acquired by other U.S. military branches (e.g., Marines, Air Force) or by allied nations through their defense procurement channels. Factors like technological sophistication, included components, and volume discounts significantly influence per-unit pricing.

What are the key technological components and capabilities included in the Dismounted Reconnaissance Sets, Kits, and Outfits (DR-SKO)?

The Dismounted Reconnaissance Sets, Kits, and Outfits (DR-SKO) are designed to enhance the situational awareness and operational effectiveness of individual soldiers engaged in reconnaissance missions. While the exact configuration can vary, these sets typically include advanced electro-optical and infrared (EO/IR) sensors, such as thermal imagers and night vision devices, for day/night surveillance and target acquisition. They may also incorporate laser rangefinders, GPS receivers for precise location data, ruggedized displays, and communication modules for transmitting gathered intelligence. The 'kits' and 'outfits' aspect suggests a comprehensive package that could include portable power solutions, protective cases, and necessary accessories to ensure the systems are ready for immediate deployment in various environmental conditions.

What is the historical spending trend for DR-SKO or similar reconnaissance equipment by the Department of the Army over the past five years?

Analyzing historical spending trends for DR-SKO or analogous reconnaissance equipment by the Department of the Army requires access to comprehensive procurement data over the specified period. Typically, such analysis would involve querying databases like the Federal Procurement Data System (FPDS) for contracts related to 'dismounted reconnaissance,' 'soldier systems,' 'surveillance equipment,' and relevant NAICS codes (e.g., 334511). One would look for patterns in contract awards, total obligated amounts, and the number of awarded contracts per year. A rising trend might indicate increased investment in modernizing soldier capabilities, while a fluctuating trend could reflect budget cycles, technological refresh rates, or shifts in strategic priorities. This specific $28 million award represents a single data point within that broader trend.

Are there any identified risks associated with the reliability or maintainability of the DR-SKO systems being procured?

Potential risks associated with the reliability and maintainability of the DR-SKO systems are inherent in any complex technological procurement. These could include the possibility of component failures in harsh operational environments, the need for specialized maintenance expertise, and the availability of spare parts. Given that this is a full rate production order, it implies that initial testing and development phases have likely addressed many of these concerns. However, long-term reliability and ease of maintenance are critical factors that the Army would monitor throughout the system's lifecycle. Contractual clauses regarding warranties, performance guarantees, and technical support are crucial for mitigating these risks. User feedback from deployed units also plays a vital role in identifying and addressing any emerging reliability issues.

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: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 7055 TROY HILL DR STE 300, ELKRIDGE, MD, 21075

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,990,007

Exercised Options: $27,990,007

Current Obligation: $27,990,007

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SR15D0001

IDV Type: IDC

Timeline