DoD awards $32M FFP Stryker vehicle kit to Teledyne Flir, supporting Bulgaria's defense modernization

Contract Overview

Contract Amount: $31,992,963 ($32.0M)

Contractor: Teledyne Flir Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-11

End Date: 2028-12-31

Contract Duration: 1,207 days

Daily Burn Rate: $26.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS IS A FIRM FIXED PRICE (FFP) STRYKER INFANTRY CARRIER VEHICLE RECON KIT, ACCESSORIES, INTEGRATION, AND TRAINING FOR PHASE 1, IN ACCORDANCE WITH FMS CASE BU-B-UCP AND ACQUISITION REQUIREMENT PACKAGE (ARP) AE24060, FOR THE COUNTRY OF BULGARIA.

Place of Performance

Location: WILSONVILLE, CLACKAMAS County, OREGON, 97070

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $32.0 million to TELEDYNE FLIR DEFENSE, INC. for work described as: THIS IS A FIRM FIXED PRICE (FFP) STRYKER INFANTRY CARRIER VEHICLE RECON KIT, ACCESSORIES, INTEGRATION, AND TRAINING FOR PHASE 1, IN ACCORDANCE WITH FMS CASE BU-B-UCP AND ACQUISITION REQUIREMENT PACKAGE (ARP) AE24060, FOR THE COUNTRY OF BULGARIA. Key points: 1. Contract awarded as a Firm Fixed Price (FFP) type, indicating clear cost expectations. 2. Supports foreign military sales (FMS) case BU-B-UCP, aligning with international security cooperation. 3. Procurement is for Stryker Infantry Carrier Vehicle Recon Kits, enhancing battlefield awareness. 4. Integration and training services are included, ensuring operational readiness. 5. Contract duration extends over four years, suggesting a phased implementation. 6. Sole-source award raises questions about potential cost efficiencies from competition.

Value Assessment

Rating: fair

The contract's value of $31.99 million for Stryker vehicle reconnaissance kits, integration, and training appears to be a significant investment. Benchmarking this specific kit's value is challenging without detailed component breakdowns and market comparisons for similar advanced reconnaissance systems. The FFP structure provides cost certainty, but the lack of competitive bidding limits the ability to assess if the price reflects optimal value for money compared to what might be achieved in a more open market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competitive bidding. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when urgency dictates a rapid award. The absence of competition means that the government did not benefit from the price discovery mechanisms that typically occur in a multi-bidder environment, potentially leading to a higher price than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition. Without bids from other qualified suppliers, it's difficult to ascertain if the negotiated price represents the best possible value.

Public Impact

Bulgarian armed forces will benefit from enhanced reconnaissance capabilities for their Stryker vehicles. The contract delivers specialized kits, integration services, and training to ensure effective deployment. This supports Bulgaria's defense modernization efforts and interoperability with NATO allies. The acquisition indirectly supports the defense industrial base through the prime contractor and potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for cost savings.
Long contract duration (over 4 years) may introduce risks related to technology obsolescence or changing requirements.
Reliance on a single supplier for critical vehicle components could create supply chain vulnerabilities.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Inclusion of integration and training ensures operational readiness and effective use of the equipment.
Supports a key U.S. ally through Foreign Military Sales, strengthening international partnerships.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on military vehicle systems and advanced sensor technology. The market for such specialized reconnaissance kits is relatively niche, often dominated by a few key defense contractors. Spending in this area is driven by geopolitical needs, technological advancements in surveillance, and the modernization efforts of allied nations. Comparable spending benchmarks would likely involve other FMS procurements of advanced military hardware or upgrades for similar vehicle platforms.

Small Business Impact

The contract was awarded to Teledyne Flir Defense, Inc., and there is no indication of a small business set-aside. While the prime contract may not directly benefit small businesses through a set-aside, the prime contractor could potentially engage small businesses as subcontractors for specific components or services. Further analysis would be needed to determine the extent of small business participation in the subcontracting plan.

Oversight & Accountability

Oversight for this contract will primarily reside within the Department of the Army, which awarded the contract. As a Foreign Military Sales case, there will also be oversight from the Defense Security Cooperation Agency (DSCA). The Firm Fixed Price nature of the contract simplifies some aspects of financial oversight, but performance monitoring and adherence to delivery schedules will be crucial. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available.

Related Government Programs

Stryker Infantry Carrier Vehicle Program
Foreign Military Sales (FMS)
Defense Security Cooperation Agency (DSCA) Programs
Military Vehicle Modernization

Risk Flags

Sole-source award
Potential for cost overruns due to lack of competition
Long-term contract duration may lead to technology obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.0 million to TELEDYNE FLIR DEFENSE, INC.. THIS IS A FIRM FIXED PRICE (FFP) STRYKER INFANTRY CARRIER VEHICLE RECON KIT, ACCESSORIES, INTEGRATION, AND TRAINING FOR PHASE 1, IN ACCORDANCE WITH FMS CASE BU-B-UCP AND ACQUISITION REQUIREMENT PACKAGE (ARP) AE24060, FOR THE COUNTRY OF BULGARIA.

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 $32.0 million.

What is the period of performance?

Start: 2025-09-11. End: 2028-12-31.

What is Teledyne Flir Defense, Inc.'s track record with similar military vehicle upgrade contracts?

Teledyne FLIR Defense, Inc. has a significant history in providing advanced sensor and surveillance systems for military applications. They are known for their thermal imaging, electro-optical, and sensor integration capabilities. While specific details on their track record with Stryker vehicle reconnaissance kits are not immediately available in the provided data, their broader experience in defense electronics and integrated systems suggests a strong technical foundation for this contract. Past performance reviews and contract databases would offer more granular insights into their successful delivery of comparable systems, including any challenges encountered and their resolution. Their portfolio often includes solutions for situational awareness and target acquisition, aligning well with the requirements of a reconnaissance kit.

How does the $31.99 million cost compare to similar reconnaissance system procurements?

Directly comparing the $31.99 million cost for this specific Stryker reconnaissance kit is challenging without detailed breakdowns of the kit's components, integration complexity, and training scope. However, the value is substantial, reflecting the advanced technology involved in modern military reconnaissance. Similar procurements for advanced sensor suites or vehicle upgrade packages for other platforms can range from several million to tens of millions of dollars, depending on the system's sophistication and the number of units. Given this is a sole-source award for a specific allied nation's needs under FMS, the price is likely influenced by specific requirements and potentially less aggressive pricing than a large-scale competitive bid. A comprehensive benchmark would require access to classified or internal DoD cost-estimating data for comparable systems.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bidders vying for the contract, there is less incentive for the contractor to offer the lowest possible price. Another risk is the potential for less robust performance standards or innovation, as the contractor may face fewer consequences for underperformance compared to a competitive scenario. Furthermore, sole-source awards can sometimes indicate a lack of readily available alternatives or a dependence on a single supplier, which could pose supply chain risks if issues arise with the contractor. Ensuring rigorous oversight and clear performance metrics becomes even more critical in sole-source situations.

How effective is the Firm Fixed Price (FFP) contract type in managing costs for this type of specialized equipment?

The Firm Fixed Price (FFP) contract type is generally effective in managing costs for specialized equipment like the Stryker reconnaissance kits, especially when requirements are well-defined. FFP places the primary cost risk on the contractor, incentivizing them to control expenses and deliver within the agreed-upon price. This provides budget certainty for the government, as the final cost is known upfront, barring any contract modifications. However, for highly complex or rapidly evolving technologies, an FFP contract might lead contractors to build in higher contingency reserves to cover unforeseen issues, potentially increasing the initial price. In this case, with defined requirements for Phase 1, FFP offers a predictable cost structure.

What is the historical spending pattern for Stryker vehicle-related procurements by the Department of Defense?

Historical spending on Stryker vehicle-related procurements by the Department of Defense has been substantial, reflecting the platform's widespread use and ongoing upgrades. The Army has consistently invested in the Stryker family of vehicles for various roles, including troop transport, reconnaissance, and fire support. Spending encompasses not only the initial procurement of vehicles but also continuous upgrades, integration of new technologies (like advanced sensors and communication systems), spare parts, maintenance, and training. Annual spending can fluctuate based on modernization priorities, operational tempo, and specific program phases, often running into hundreds of millions or even billions of dollars over the lifecycle of the platform and its associated systems.

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: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Teledyne Technologies Incorporated

Address: 27700 SW PARKWAY AVE, WILSONVILLE, OR, 97070

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: $31,992,963

Exercised Options: $31,992,963

Current Obligation: $31,992,963

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline