DoD awards $41.6M contract for optical instruments, with Teledyne FLIR Defense Inc. as the primary contractor

Contract Overview

Contract Amount: $41,638,832 ($41.6M)

Contractor: Teledyne Flir Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-05-02

End Date: 2025-11-19

Contract Duration: 1,297 days

Daily Burn Rate: $32.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FWS-I QUALIFICATION SYSTEMS

Place of Performance

Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $41.6 million to TELEDYNE FLIR DEFENSE, INC. for work described as: FWS-I QUALIFICATION SYSTEMS Key points: 1. Contract value of $41.6 million over its period of performance. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract is for optical instruments and lenses, falling under manufacturing. 4. The period of performance spans from May 2022 to November 2025. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The primary contractor is Teledyne FLIR Defense, Inc.

Value Assessment

Rating: good

The contract value of $41.6 million appears to be within a reasonable range for specialized optical instruments, though a direct comparison is difficult without specific technical details. The Firm Fixed Price (FFP) contract type is generally favorable for the government as it caps costs. Benchmarking against similar contracts for advanced optical systems would provide a clearer picture of value for money, but the competitive award suggests a degree of market validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and innovation. The open competition suggests that the Department of the Army sought the best available solution in the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives competitive offers, maximizing the value of taxpayer dollars.

Public Impact

The Department of Defense (specifically the Department of the Army) is the primary beneficiary, receiving advanced optical instruments. The contract supports the manufacturing and delivery of optical instruments and lenses. The contract is based in Massachusetts, potentially impacting the local economy and workforce in that region. The duration of the contract suggests ongoing needs for these specialized components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed price does not adequately account for unforeseen manufacturing complexities.
Dependence on a single contractor for a critical component could pose supply chain risks.
The specific technical capabilities and performance of the optical instruments are not detailed, making it hard to assess long-term suitability.

Positive Signals

Firm Fixed Price contract structure limits the government's exposure to cost increases.
Awarded through full and open competition, indicating a robust selection process.
The contractor, Teledyne FLIR Defense, Inc., is likely an established entity in defense manufacturing.
The contract duration suggests a sustained need and potential for a stable supply.

Sector Analysis

This contract falls within the broader defense manufacturing sector, specifically focusing on optical instruments and lenses. The market for such specialized components is often characterized by high barriers to entry due to technological expertise and R&D investment. Comparable spending benchmarks would likely be found within defense procurement data for similar electro-optical systems, surveillance equipment, or targeting devices.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, Teledyne FLIR Defense, Inc., is likely a large business, and their subcontracting opportunities would depend on their internal procurement strategies and supply chain needs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army. Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver specified goods within the agreed-upon price. Transparency is facilitated by the contract award notice, but detailed performance metrics and oversight reports may not be publicly available.

Related Government Programs

Defense Procurement
Optical and Electro-Optical Systems
Manufacturing Contracts
Department of the Army Contracts

Risk Flags

Potential for cost overruns if FFP is not adequately priced.
Supply chain disruption risk for specialized components.
Technical performance risk if specifications are not fully met.
Contractor financial viability risk impacting delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.6 million to TELEDYNE FLIR DEFENSE, INC.. FWS-I QUALIFICATION SYSTEMS

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 $41.6 million.

What is the period of performance?

Start: 2022-05-02. End: 2025-11-19.

What is the specific type and technical specification of the optical instruments being procured under this contract?

The provided data indicates the contract is for 'Optical Instrument and Lens Manufacturing' (na: 333314) and was awarded to TELEDYNE FLIR DEFENSE, INC. However, the specific technical specifications, such as magnification, resolution, spectral range, or intended application (e.g., targeting, surveillance, imaging), are not detailed in the summary data. These details are crucial for understanding the exact nature of the optical instruments and their operational context within the Department of Defense. Further analysis would require access to the contract's statement of work (SOW) or technical exhibits.

How does the $41.6 million contract value compare to historical spending on similar optical instruments by the Department of the Army?

Comparing the $41.6 million contract value requires historical data on similar procurements. Without access to a comprehensive database of past Army contracts for comparable optical instruments, a direct benchmark is challenging. However, given the duration (over 3 years) and the nature of defense-related optical systems, this value appears substantial, suggesting either a large quantity of units, highly advanced technology, or a combination of both. Analyzing trends in electro-optical/infrared (EO/IR) system procurement or targeting pod contracts could provide context, but specific comparisons depend heavily on the exact technical requirements outlined in the contract's statement of work.

What is Teledyne FLIR Defense, Inc.'s track record with the Department of Defense for similar types of contracts?

Teledyne FLIR Defense, Inc. has a significant presence in the defense sector, known for its expertise in sensor systems, including electro-optical and infrared (EO/IR) technology. While specific details on their past performance with the Department of Defense for optical instrument manufacturing are not in the provided summary, their established role suggests a history of fulfilling defense contracts. A deeper dive into contract databases would reveal the volume and nature of their previous awards, including any related to optical systems, and their performance ratings on those contracts. Their specialization in FLIR (Forward-Looking Infrared) technology indicates a strong capability in relevant areas.

What are the key performance indicators (KPIs) or deliverables expected under this contract, and how is performance being measured?

The provided summary data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. Typically, for a Firm Fixed Price contract involving manufacturing, KPIs would relate to product quality (meeting technical specifications), delivery schedules, and potentially reliability or operational performance metrics. Measurement of performance would likely involve acceptance testing of the delivered optical instruments, reviews of production progress, and adherence to delivery timelines. The contracting officer's representative (COR) or quality assurance personnel would be responsible for monitoring these aspects.

What is the potential risk associated with the Firm Fixed Price (FFP) contract type for this specific procurement?

The Firm Fixed Price (FFP) contract type shifts the primary cost risk to the contractor, Teledyne FLIR Defense, Inc. For the government, this offers budget certainty. However, the risk lies in whether the FFP was set at a realistic level. If the contractor underestimated production costs, encountered unforeseen technical challenges, or experienced supply chain disruptions, they might face financial losses, potentially impacting their ability to deliver or their motivation to provide optimal quality. Conversely, if the price was set too high due to inadequate market research or competition, taxpayers could overpay. The government's risk is mitigated by thorough technical specifications and robust source selection.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91CRB21R0012

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 25 ESQUIRE RD, NORTH BILLERICA, MA, 01862

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,638,832

Exercised Options: $41,638,832

Current Obligation: $41,638,832

Actual Outlays: $9,108,556

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB22D0009

IDV Type: IDC

Timeline