Teledyne FLIR Defense awarded $9.28M for NBCRV sensor suite upgrades, a sole-source contract

Contract Overview

Contract Amount: $9,282,484 ($9.3M)

Contractor: Teledyne Flir Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2026-07-27

Contract Duration: 664 days

Daily Burn Rate: $14.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: REFURBISHMENT OF TEST ASSETS FOR NUCLEAR, BIOLOGICAL AND CHEMICAL RECONNAISSANCE VEHICLE (NBCRV) SENSOR SUITE UPGRADE (SSU) CAPABILITY SET 2.1

Place of Performance

Location: ELKRIDGE, HOWARD County, MARYLAND, 21075

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $9.3 million to TELEDYNE FLIR DEFENSE, INC. for work described as: REFURBISHMENT OF TEST ASSETS FOR NUCLEAR, BIOLOGICAL AND CHEMICAL RECONNAISSANCE VEHICLE (NBCRV) SENSOR SUITE UPGRADE (SSU) CAPABILITY SET 2.1 Key points: 1. Contract awarded to a single vendor, raising questions about price competitiveness. 2. Focus on upgrading critical reconnaissance vehicle sensor capabilities. 3. Long-term contract duration suggests ongoing need for sustainment and upgrades. 4. Potential for follow-on work given the nature of defense systems. 5. Limited transparency on specific performance metrics for this award. 6. Geographic concentration of work in Maryland.

Value Assessment

Rating: questionable

The contract value of $9.28 million for refurbishment of test assets is difficult to benchmark without comparable sole-source awards. Given the lack of competition, it is challenging to definitively assess value for money. The firm-fixed-price structure provides some cost certainty, but the absence of competitive bidding means potential savings may have been foregone. Further analysis would require access to historical pricing data for similar refurbishment efforts or internal cost estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Teledyne FLIR Defense, Inc., was solicited. The justification for sole-sourcing is not provided in the available data, but typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The lack of competition limits the government's ability to explore alternative solutions or secure the most favorable pricing through a bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price pressures inherent in a competitive bidding environment. This can result in less efficient use of public funds.

Public Impact

The primary beneficiaries are the U.S. Army units operating the Nuclear, Biological, and Chemical Reconnaissance Vehicles (NBCRV). The contract delivers upgraded sensor suite capabilities, enhancing the vehicles' ability to detect and identify threats. The geographic impact is primarily centered in Maryland, where the contractor is located. Workforce implications include specialized technical roles for the refurbishment and testing of advanced sensor systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value for money.
Lack of transparency regarding the justification for sole-sourcing.
Long contract duration could indicate potential for cost overruns if not managed effectively.

Positive Signals

Focus on critical defense capabilities for NBC threat detection.
Firm-fixed-price contract provides cost certainty for the government.
Award to an established defense contractor with relevant expertise.

Sector Analysis

This contract falls within the defense sector, specifically focusing on sensor and instrumentation manufacturing for military vehicles. The market for defense electronics and sensor systems is highly specialized, often dominated by a few key players due to high research and development costs, stringent security requirements, and long product lifecycles. Comparable spending benchmarks are difficult to establish without more specific details on the technology involved, but investments in sensor upgrades for critical platforms are a consistent area of defense spending.

Small Business Impact

The data indicates this contract was not competed and there is no indication of small business set-asides or subcontracting plans. As a sole-source award to a large defense contractor, it is unlikely to directly benefit small businesses through set-asides. The impact on the small business ecosystem would be indirect, potentially through Teledyne FLIR's existing supply chain, but specific subcontracting opportunities are not detailed.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency is limited due to the sole-source nature and lack of public justification. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NBCRV Program
Sensor Suite Upgrade Programs
Military Vehicle Modernization
Defense Electronics Manufacturing
Test and Evaluation Services

Risk Flags

Sole-source award
Lack of competition justification
Potential for higher cost without competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.3 million to TELEDYNE FLIR DEFENSE, INC.. REFURBISHMENT OF TEST ASSETS FOR NUCLEAR, BIOLOGICAL AND CHEMICAL RECONNAISSANCE VEHICLE (NBCRV) SENSOR SUITE UPGRADE (SSU) CAPABILITY SET 2.1

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 $9.3 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-07-27.

What is the specific justification for awarding this contract on a sole-source basis to Teledyne FLIR Defense, Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-sourcing is employed when only one responsible source is available or capable of meeting the government's requirements. This could be due to unique technical capabilities, proprietary technology, urgent and compelling needs, or a lack of adequate competition. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the precise reasons. This lack of transparency is a common concern with sole-source contracts, as it limits the public's understanding of why competitive processes were bypassed.

How does the $9.28 million contract value compare to historical spending on similar NBCRV sensor suite refurbishments?

Direct comparison to historical spending on similar NBCRV sensor suite refurbishments is challenging with the provided data. The contract value of $9.28 million is for the refurbishment of test assets for capability set 2.1. Without knowing the scope, quantity, and specific technological advancements included in this refurbishment, or access to historical contract data for similar efforts (especially sole-source ones), a meaningful benchmark is difficult to establish. Sole-source awards, by their nature, do not provide a competitive baseline for comparison, making value-for-money assessments more reliant on internal government cost estimates or contractor-provided data, which are not publicly available.

What are the key risks associated with this sole-source contract for the Department of Defense?

The primary risk associated with this sole-source contract is the potential for reduced value for money due to the absence of competition. The Department of Defense (DoD) may end up paying a higher price than if the contract had been competed. Another risk is the potential for vendor lock-in, where the government becomes overly reliant on a single supplier for critical components or services, limiting future flexibility and potentially increasing long-term costs. Furthermore, a lack of transparency surrounding the sole-source justification can lead to perceptions of impropriety or inefficient use of funds, impacting public trust and accountability.

What is the expected impact of these sensor suite upgrades on the operational effectiveness of the NBCRV?

The contract aims to refurbish test assets for the NBCRV Sensor Suite Upgrade (SSU) Capability Set 2.1. While the specific details of the upgrades are not provided, the objective is generally to enhance the vehicle's ability to detect, identify, and report on nuclear, biological, and chemical threats. Improved sensor suites typically lead to faster and more accurate threat detection, better situational awareness for the crew, and potentially expanded detection ranges or the ability to identify a wider spectrum of agents. This directly contributes to the operational effectiveness of the NBCRV by improving its core mission performance in hazardous environments.

What is Teledyne FLIR Defense, Inc.'s track record with the Department of Defense, particularly concerning NBCRV or similar sensor systems?

Teledyne FLIR Defense, Inc. (and its predecessor FLIR Systems, Inc.) has a significant track record with the Department of Defense, supplying a wide range of sensor and imaging systems. They are known for their expertise in thermal imaging, chemical detection, and other sensor technologies relevant to military applications. While specific details on their involvement with the NBCRV program prior to this award are not provided, their established presence in the defense sector suggests they possess the necessary technical capabilities and experience. A deeper dive into their contract history would reveal the extent and nature of their previous work on similar platforms or sensor technologies for the DoD.

Are there any planned future procurements or sustainment contracts related to the NBCRV sensor suite beyond this refurbishment effort?

The provided data focuses solely on the current refurbishment contract for test assets. However, the nature of defense systems, particularly those involving complex sensor suites on platforms like the NBCRV, often implies a lifecycle approach to sustainment and upgrades. It is highly probable that the Department of the Army anticipates future needs for further upgrades, maintenance, repairs, and potentially new sensor capabilities as technology evolves or threats change. This current contract for test assets could be a precursor to larger production or sustainment efforts. Further investigation into the NBCRV program's long-term roadmap and acquisition strategy would be necessary to confirm future procurement plans.

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: WEAPONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911SR24R0005

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7055 TROY HILL DR STE B, 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: $9,282,485

Exercised Options: $9,282,485

Current Obligation: $9,282,484

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W911SR24D0008

IDV Type: IDC

Timeline