Army Awards $21.4M to Teledyne FLIR for NBCRV Sensor Upgrade Production
Contract Overview
Contract Amount: $21,419,832 ($21.4M)
Contractor: Teledyne Flir Defense, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-03-31
End Date: 2026-09-30
Contract Duration: 548 days
Daily Burn Rate: $39.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRODUCTION 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 $21.4 million to TELEDYNE FLIR DEFENSE, INC. for work described as: PRODUCTION OF TEST ASSETS FOR NUCLEAR, BIOLOGICAL, AND CHEMICAL RECONNAISSANCE VEHICLE (NBCRV) SENSOR SUITE UPGRADE (SSU) CAPABILITY SET 2.1 Key points: 1. Significant investment in critical defense technology for reconnaissance vehicles. 2. Sole-source award to Teledyne FLIR raises questions about competition and potential cost savings. 3. Focus on sensor suite upgrades highlights the importance of advanced detection capabilities. 4. Long-term contract duration suggests a sustained need for these assets.
Value Assessment
Rating: questionable
The award amount of $21.4 million for the production of test assets is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar sensor suite production contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no opportunity for other vendors to offer competitive pricing.
Taxpayer Impact: The lack of competition on this $21.4 million contract means taxpayers may not be receiving the best possible price for these critical defense assets.
Public Impact
Enhances the reconnaissance capabilities of the NBCRV, improving soldier safety and mission effectiveness. Supports the modernization of military equipment with advanced sensor technology. Potential for follow-on production contracts could represent continued investment in this area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Limited price discovery
Positive Signals
- Critical defense capability upgrade
- Investment in advanced sensor technology
Sector Analysis
This contract falls within the defense sector, specifically focusing on advanced sensor systems for military vehicles. Spending benchmarks for similar sensor suite production can vary widely based on complexity and quantity, but a sole-source award often deviates from typical competitive market pricing.
Small Business Impact
The data provided does not indicate whether small businesses were involved as subcontractors or partners in this award. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army's contracting process for this sole-source award warrants oversight to ensure the justification for non-competition is sound and that taxpayer funds are used efficiently.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to lack of competition.
- Limited transparency in price discovery.
- Dependency on a single supplier for critical technology.
Tags
search-detection-navigation-guidance-aer, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.4 million to TELEDYNE FLIR DEFENSE, INC.. PRODUCTION 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 $21.4 million.
What is the period of performance?
Start: 2025-03-31. End: 2026-09-30.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further details on the justification, it's difficult to assess the price. Agencies usually conduct price analyses, comparing proposed costs to historical data or independent cost estimates, even for sole-source contracts, to ensure reasonableness.
What are the potential risks associated with relying on a single vendor for critical defense sensor technology production?
Sole-source reliance creates risks such as vendor lock-in, potential price escalation without competitive pressure, and supply chain vulnerabilities if the vendor faces production issues. It also limits opportunities for innovation and competition that could lead to better or more cost-effective solutions in the future.
How will the effectiveness of the NBCRV sensor suite upgrade be measured, and what metrics will be used to evaluate the success of this production contract?
Effectiveness is typically measured through rigorous testing and evaluation (T&E) of the produced assets against defined performance requirements and operational scenarios. Metrics may include sensor accuracy, detection range, reliability, integration success with the NBCRV platform, and feedback from end-users during field exercises.
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: $21,419,833
Exercised Options: $21,419,833
Current Obligation: $21,419,832
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
Start Date: 2025-03-31
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-22
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