DoD awards $31.3M contract for advanced sensor systems to Teledyne FLIR Defense, Inc

Contract Overview

Contract Amount: $31,306,001 ($31.3M)

Contractor: Teledyne Flir Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-06-25

End Date: 2025-11-19

Contract Duration: 512 days

Daily Burn Rate: $61.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FWS-I SYSTEMS PY-3 TO FLIR

Place of Performance

Location: NORTH BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01862

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to TELEDYNE FLIR DEFENSE, INC. for work described as: FWS-I SYSTEMS PY-3 TO FLIR Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for sensor systems, a critical component in defense operations. 3. Delivery order under an existing contract indicates a need for ongoing or expanded capabilities. 4. The fixed-price contract type aims to control costs for the government. 5. The duration of the delivery order is over a year, suggesting a sustained requirement. 6. The award value is substantial, reflecting the importance and complexity of the systems procured.

Value Assessment

Rating: good

The contract value of $31.3 million for sensor systems appears reasonable given the nature of defense procurements. Benchmarking against similar advanced sensor system contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. However, without specific details on the system's capabilities and performance requirements, a definitive value assessment is challenging.

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. The presence of two bids suggests a moderate level of competition for this specific delivery order. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions, but two bidders still provide a basis for price discovery and selection.

Taxpayer Impact: A competitive process, even with two bidders, is generally favorable for taxpayers as it encourages vendors to offer their best pricing and terms to secure the contract.

Public Impact

The Department of Defense benefits from enhanced sensor capabilities for its operations. The contract supports the development and delivery of advanced optical and sensor systems. The geographic impact is primarily within the defense sector, potentially supporting global operations. The contract may have implications for the specialized workforce in defense technology manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Teledyne FLIR is the sole provider of these specific advanced systems.
Dependence on a single contractor for critical sensor technology could pose supply chain risks.

Positive Signals

Award through full and open competition suggests a deliberate effort to avoid sole-source dependency.
The firm fixed-price contract type aligns incentives for efficient delivery and cost management.
The contract is a delivery order under an existing contract, implying a pre-vetted and established relationship.

Sector Analysis

The contract falls within the Optical Instrument and Lens Manufacturing sector, a niche but critical area for defense and surveillance technologies. This sector is characterized by high R&D investment, specialized manufacturing processes, and often serves government clients. The market size for defense optics and sensors is significant, driven by ongoing modernization efforts and the need for advanced situational awareness. This award to Teledyne FLIR Defense, Inc. positions them as a key supplier in this specialized segment.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. As a large prime contractor, Teledyne FLIR Defense, Inc. may have opportunities to engage small businesses for subcontracting, but this is not guaranteed by the contract terms provided. Further analysis of the contract's subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

The contract is a delivery order under an existing contract, suggesting that initial oversight and vetting have already occurred. Oversight will likely involve contract performance monitoring by the Department of the Army, ensuring adherence to specifications, delivery schedules, and quality standards. Transparency is generally maintained through contract award databases, but detailed performance metrics and specific oversight mechanisms are typically internal to the agency.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) programs
Night Vision and Electronic Sensors Directorate (NVESD) procurements
Tactical Sensor Systems
Intelligence, Surveillance, and Reconnaissance (ISR) platforms

Risk Flags

Potential for sole-source dependency if this technology is highly specialized.
Risk of cost overruns if the fixed-price contract does not adequately account for unforeseen technical challenges.
Supply chain vulnerabilities for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to TELEDYNE FLIR DEFENSE, INC.. FWS-I SYSTEMS PY-3 TO FLIR

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 $31.3 million.

What is the period of performance?

Start: 2024-06-25. End: 2025-11-19.

What is the specific type and capability of the sensor systems being procured under this contract?

The contract identifies the procurement as 'FWS-I SYSTEMS PY-3 TO FLIR', suggesting it relates to Forward-Looking Infrared (FLIR) systems, likely for night vision or thermal imaging applications. These systems are crucial for situational awareness, target identification, and navigation in various operational environments. The 'PY-3' designation might refer to a specific generation or model of the system. Without access to the detailed statement of work or technical specifications, the precise capabilities, such as resolution, range, spectral sensitivity, and integration with other platforms, remain unspecified. However, given the contractor (Teledyne FLIR Defense) and the agency (Department of Defense), these are expected to be advanced, military-grade systems.

How does the awarded price of $31.3 million compare to similar sensor system procurements by the DoD?

Benchmarking the $31.3 million award requires comparing it to contracts for similar sensor systems, considering factors like quantity, technological sophistication, and system integration. Teledyne FLIR Defense is a major provider of thermal imaging and sensor solutions. A direct comparison to other FLIR or advanced sensor contracts awarded by the Army or other DoD branches within the last 1-3 years would be necessary. For instance, if similar systems for ground vehicles or aircraft were procured for $20-40 million, this award would fall within a comparable range. However, if comparable systems were significantly less expensive, it might indicate a premium price for this specific technology or a less competitive bid outcome than anticipated.

What are the key performance indicators (KPIs) for these sensor systems, and how will their successful delivery be measured?

Key performance indicators for advanced sensor systems typically include metrics such as detection range, target identification accuracy, image resolution (e.g., thermal sensitivity, spatial resolution), operational reliability under various environmental conditions (temperature, humidity, shock), power consumption, size, weight, and integration capabilities with existing platforms (e.g., aircraft, vehicles, soldier systems). Successful delivery will be measured against the technical specifications outlined in the contract's Statement of Work (SOW). This includes meeting all performance parameters, passing rigorous government testing and acceptance trials, and adhering to the specified delivery schedule and quality control standards. The firm fixed-price nature of the contract implies that meeting these defined requirements is paramount for the contractor to achieve full payment.

What is Teledyne FLIR Defense's track record with the Department of Defense for similar sensor systems?

Teledyne FLIR Defense, Inc. has a well-established and extensive track record of supplying advanced sensor systems, including thermal imaging and infrared technologies, to the Department of Defense and other government agencies. They are a recognized leader in this field, providing solutions for a wide range of applications such as intelligence, surveillance, reconnaissance (ISR), target acquisition, and force protection. Past contracts have likely involved similar systems for various platforms, including ground vehicles, aircraft, and maritime vessels. Their long-standing presence and continued awards suggest a history of meeting DoD requirements, though specific performance details on past contracts would require deeper investigation into contract performance reports and historical award data.

What is the historical spending trend for similar sensor systems within the Department of the Army?

Historical spending on sensor systems by the Department of the Army has been substantial and generally increasing, driven by the continuous need for enhanced situational awareness, precision targeting, and force protection capabilities. The Army consistently invests in technologies like infrared, electro-optical, and radar sensors for various platforms, including ground vehicles (e.g., Abrams tanks, Stryker vehicles), aircraft (e.g., Apache helicopters, drones), and dismounted soldier systems. Spending patterns often reflect modernization priorities, such as upgrades to existing systems or the procurement of new generations of sensors to counter evolving threats. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) for relevant Product Service Codes (PSCs) would reveal trends in annual spending, key contractors, and the types of sensor systems most frequently procured.

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: 2

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: $31,306,001

Exercised Options: $31,306,001

Current Obligation: $31,306,001

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