DoD awards $47.1M to Teledyne FLIR for NBCRV Sensor Suite Upgrade, a sole-source contract

Contract Overview

Contract Amount: $47,151,578 ($47.2M)

Contractor: Teledyne Flir Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-02-13

End Date: 2029-02-02

Contract Duration: 1,450 days

Daily Burn Rate: $32.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NUCLEAR BIOLOGICAL CHEMICAL RECONNAISSANCE VEHICLE (NBCRV) SENSOR SUITE UPGRADE (SSU) CAPABILITY SET 2.2 (CS2.2)

Place of Performance

Location: ELKRIDGE, HOWARD County, MARYLAND, 21075

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $47.2 million to TELEDYNE FLIR DEFENSE, INC. for work described as: NUCLEAR BIOLOGICAL CHEMICAL RECONNAISSANCE VEHICLE (NBCRV) SENSOR SUITE UPGRADE (SSU) CAPABILITY SET 2.2 (CS2.2) Key points: 1. Contract awarded to a single vendor suggests potential lack of competitive pressure on pricing. 2. The definitive contract type indicates a firm agreement on scope and price. 3. A long performance period of nearly 5 years may introduce risks related to technological obsolescence or cost overruns. 4. The contract is for a critical defense capability, enhancing reconnaissance vehicles. 5. The specific NAICS code points to a specialized manufacturing sector. 6. The contract is not set aside for small businesses, indicating larger prime contractor involvement.

Value Assessment

Rating: questionable

The contract value of $47.1 million for a sensor suite upgrade is substantial. Without comparable contract data for similar upgrades or detailed cost breakdowns, it is difficult to definitively assess value for money. The sole-source nature of the award raises concerns about whether the government secured the most competitive pricing possible. Benchmarking against industry standards for advanced sensor systems would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or proprietary rights. The lack of competition means that the government did not benefit from the price discovery mechanisms that typically occur in a competitive bidding process, potentially leading to higher costs.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The government's ability to negotiate the best possible price is diminished in sole-source situations.

Public Impact

The primary beneficiaries are the U.S. Army units operating Nuclear Biological Chemical Reconnaissance Vehicles. The contract will deliver an upgraded sensor suite (Capability Set 2.2) to enhance the vehicles' detection and reconnaissance capabilities. The geographic impact is primarily within the Department of Defense's operational theaters. The contract supports specialized manufacturing jobs within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Long contract duration increases risk of cost escalation and technological obsolescence.
Lack of small business set-aside may limit opportunities for smaller specialized firms.

Positive Signals

Award to an established defense contractor (Teledyne FLIR) suggests potential for reliable execution.
Firm Fixed Price contract type provides cost certainty for the government.
Focus on critical defense capability upgrade addresses an important military need.

Sector Analysis

The contract falls within the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector, a highly specialized area of defense industrial production. This sector is characterized by high barriers to entry due to complex technology requirements and stringent quality standards. The market size for such specialized defense systems is driven by government procurement budgets and evolving threat landscapes. Comparable spending benchmarks would likely be found within other advanced sensor and reconnaissance system procurements for military applications.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This means that the prime contract is awarded to a large business, and opportunities for small businesses would likely depend on Teledyne FLIR's own subcontracting decisions. The absence of a set-aside suggests that the specific capabilities required were deemed beyond the scope or capacity of small business set-aside programs for this particular procurement.

Oversight & Accountability

The contract is a Firm Fixed Price definitive contract, which provides a degree of cost certainty. Oversight will likely be managed by the Department of the Army contracting and program management offices. Transparency regarding the sole-source justification and any subsequent modifications will be key. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

NBC Reconnaissance Vehicle Programs
Defense Sensor Systems Procurement
Army Ground Vehicle Modernization
Chemical, Biological, Radiological, and Nuclear (CBRN) Defense Equipment

Risk Flags

Sole-source award
Long contract duration
Potential for technological obsolescence
Lack of competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.2 million to TELEDYNE FLIR DEFENSE, INC.. NUCLEAR BIOLOGICAL CHEMICAL RECONNAISSANCE VEHICLE (NBCRV) SENSOR SUITE UPGRADE (SSU) CAPABILITY SET 2.2 (CS2.2)

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 $47.2 million.

What is the period of performance?

Start: 2025-02-13. End: 2029-02-02.

What is Teledyne FLIR's track record with similar defense sensor upgrade contracts?

Teledyne FLIR Defense, Inc. has a significant history of providing advanced sensor and imaging solutions to military and government clients. While specific details on prior NBCRV sensor suite upgrades are not provided, the company is known for its expertise in thermal imaging, chemical detection, and other sensor technologies critical for reconnaissance and surveillance. Their portfolio includes systems for various platforms, suggesting a strong capability to execute complex defense integration projects. A deeper dive into their contract history with the Department of Defense, particularly for sensor modernization efforts on ground vehicles, would offer more precise insights into their performance and reliability in delivering similar capabilities.

How does the $47.1 million contract value compare to similar sensor suite upgrades in the defense sector?

Benchmarking the $47.1 million value for this Nuclear Biological Chemical Reconnaissance Vehicle (NBCRV) Sensor Suite Upgrade (SSU) against similar defense contracts is challenging without more specific comparative data. However, upgrades to complex sensor suites on military platforms can range widely in cost depending on the technology involved, the number of vehicles affected, and the scope of integration. Contracts for advanced electro-optical/infrared systems, chemical detection payloads, or integrated reconnaissance suites for other platforms have historically varied from tens to hundreds of millions of dollars. Given the specialized nature of NBCRV capabilities and the sole-source award, this figure appears substantial but potentially within the expected range for such critical, niche defense technology modernization.

What are the primary risks associated with this sole-source contract for the NBCRV Sensor Suite Upgrade?

The primary risk associated with this sole-source contract is the potential for suboptimal pricing due to the lack of competitive bidding. Without competing offers, the government may not achieve the most cost-effective solution. Another significant risk stems from the contract's long duration (nearly 5 years), which increases the likelihood of technological obsolescence if advancements occur rapidly in sensor technology. Cost overruns are also a risk, particularly if unforeseen technical challenges arise during development and integration. Finally, sole-source awards can sometimes indicate a lack of robust market research or a reliance on a single vendor, which can limit future options and potentially stifle innovation in the broader defense industrial base.

How effective is the 'Firm Fixed Price' contract type in managing costs for this long-term upgrade?

The Firm Fixed Price (FFP) contract type is generally considered effective in providing cost certainty for the government, especially for well-defined scopes of work. For this NBCRV Sensor Suite Upgrade, an FFP contract means Teledyne FLIR is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This shifts the risk of cost overruns to the contractor. However, for long-duration contracts involving complex technology, there's a risk that the initial price may not adequately account for potential future cost increases or unforeseen technical hurdles. While FFP aims to cap costs, the initial negotiation and the contractor's ability to manage risks are crucial for its effectiveness over a nearly five-year period.

What are the historical spending patterns for NBCRV sensor upgrades or similar reconnaissance systems within the Department of the Army?

Historical spending patterns for NBCRV sensor upgrades or similar reconnaissance systems within the Department of the Army are typically characterized by significant, but infrequent, large-scale procurements and modernization efforts. These systems are highly specialized and critical, meaning investments are often substantial when undertaken. Data from previous budget cycles would likely show periods of research and development followed by major procurement contracts for system upgrades or new platforms. The total spending can fluctuate based on evolving threat assessments, technological advancements, and overall defense budget priorities. Without access to specific historical procurement data for NBCRV sensor suites, it's difficult to provide precise figures, but such specialized systems generally represent a notable portion of the Army's investment in ground force protection and situational awareness capabilities.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911SR24R0007

Offers Received: 1

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: $85,796,651

Exercised Options: $85,796,651

Current Obligation: $47,151,578

Actual Outlays: $321,432

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline