DoD awards $23.6M for Laser Target Locator Modules, with Safran Defense & Space Inc. as prime

Contract Overview

Contract Amount: $23,625,136 ($23.6M)

Contractor: Safran Defense & Space, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-07-13

End Date: 2020-04-15

Contract Duration: 1,372 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LASER TARGET LOCATOR MODULE (LTLM II)

Place of Performance

Location: BEDFORD, HILLSBOROUGH County, NEW HAMPSHIRE, 03110

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $23.6 million to SAFRAN DEFENSE & SPACE, INC. for work described as: LASER TARGET LOCATOR MODULE (LTLM II) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Performance period spans over three years, indicating a medium-term project. 4. The North American Industry Classification System (NAICS) code 334511 points to a specialized manufacturing sector. 5. The contract was awarded by the Defense Contract Management Agency, a key DoD oversight body. 6. The delivery order mechanism suggests this is part of a larger, potentially indefinite-delivery contract.

Value Assessment

Rating: fair

Benchmarking the value of this $23.6 million contract for Laser Target Locator Modules (LTLM II) is challenging without direct comparisons to similar, recent procurements. The firm fixed-price structure is standard for this type of equipment, aiming to control costs. However, the absence of detailed performance metrics or cost breakdowns makes a definitive value-for-money assessment difficult. The contract's duration of 1372 days (approximately 3.75 years) suggests a steady, but not exceptionally rapid, pace of delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' framework, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage innovation as contractors vie for the award. The lack of further details on the bidding process prevents a deeper analysis of the competition's intensity.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government is not unduly limited in its sourcing options.

Public Impact

The primary beneficiaries are military personnel who will utilize the Laser Target Locator Modules for enhanced targeting capabilities. The services delivered involve the manufacturing and supply of advanced defense equipment. The geographic impact is primarily within the Department of Defense's operational theaters, with manufacturing likely occurring at the contractor's facilities. Workforce implications include employment at Safran Defense & Space, Inc. and its supply chain partners involved in the production of these modules.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown makes it difficult to assess if the price reflects true market value.
Limited information on the number of bidders in the 'full and open competition' hinders assessment of competitive intensity.
The contract is a delivery order, suggesting it might be part of a larger, less transparent contract vehicle.
No specific performance metrics or quality indicators are readily available for this award.
The firm fixed-price nature, while shifting risk, could incentivize cost-cutting that might impact quality if not rigorously overseen.

Positive Signals

Awarded through 'full and open competition,' which typically promotes competitive pricing.
Firm Fixed Price contract type places cost control responsibility on the contractor.
The contractor, Safran Defense & Space, Inc., is a known entity in the defense sector.
The contract is managed by the Defense Contract Management Agency, an experienced oversight body.
The product is a specialized module, suggesting a focus on critical defense capabilities.

Sector Analysis

The defense electronics manufacturing sector is highly specialized, characterized by significant R&D investment and stringent quality requirements. Companies like Safran Defense & Space, Inc. operate within a market driven by government procurement, often involving long product development cycles and complex supply chains. Spending in this area is critical for maintaining military technological superiority. Comparable spending benchmarks would typically involve other advanced targeting systems, sensor modules, or guidance equipment procured by defense agencies.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary contractor, Safran Defense & Space, Inc., is likely responsible for managing subcontracting opportunities. Analysis of subcontracting plans and actual performance would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract, ensuring compliance with terms and conditions. As a delivery order under a larger contract vehicle, oversight may be integrated into broader program management. Transparency is facilitated through contract award databases, but detailed operational oversight mechanisms and specific accountability measures for this particular award are not publicly detailed. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Targeting Systems
Defense Electronics Manufacturing
Military Optics and Sensors
Aerospace and Defense Components

Risk Flags

Lack of specific bidder count for full and open competition.
Absence of detailed performance metrics or quality indicators.
Limited public information on unit costs or quantity procured.
Contract is a delivery order, potentially obscuring the parent contract's details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.6 million to SAFRAN DEFENSE & SPACE, INC.. LASER TARGET LOCATOR MODULE (LTLM II)

Who is the contractor on this award?

The obligated recipient is SAFRAN DEFENSE & SPACE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $23.6 million.

What is the period of performance?

Start: 2016-07-13. End: 2020-04-15.

What is the track record of Safran Defense & Space, Inc. with similar Department of Defense contracts?

Safran Defense & Space, Inc. has a history of engaging with the Department of Defense on various contracts, often related to aerospace and defense components, including systems for navigation, guidance, and targeting. While specific details on past performance for Laser Target Locator Modules (LTLM) are not provided in this data snippet, their presence as a prime contractor suggests established capabilities and a prior relationship with DoD procurement processes. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous DoD awards, would be necessary for a comprehensive assessment of their reliability and expertise in delivering complex defense systems.

How does the awarded price of $23.6 million compare to market rates for similar Laser Target Locator Modules?

Directly comparing the $23.6 million award for the LTLM II to current market rates is difficult without specific unit cost data or details on the quantity of modules procured under this contract. The 'firm fixed price' nature indicates that Safran Defense & Space, Inc. assumed the cost risk. To benchmark value, one would need to identify comparable contracts awarded around the same period, factoring in differences in technical specifications, quantities, and contractor overhead. Publicly available data often lacks the granularity to make precise comparisons, but the 'full and open competition' suggests an effort to achieve a competitive price point.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential cost overruns if the fixed-price contract underestimated complexities (though risk is on the contractor), delivery delays impacting operational readiness, and performance issues where the modules do not meet stringent military specifications. Mitigation strategies typically involve robust contract oversight by the Defense Contract Management Agency (DCMA), adherence to the firm fixed-price terms which incentivize contractor efficiency, and quality assurance protocols during manufacturing and acceptance testing. The 'full and open competition' also mitigates risk by selecting a contractor based on demonstrated capability and competitive pricing.

How effective is the 'full and open competition' in ensuring optimal value for taxpayers on this contract?

Full and open competition is generally considered the most effective method for ensuring optimal value for taxpayers, as it allows the widest possible pool of qualified contractors to bid. This broad competition typically drives prices down and encourages innovation. For this $23.6 million contract, the process suggests that the Department of Defense sought the best possible solution at a competitive price. However, the ultimate value depends on the number and quality of bids received, the clarity of the requirements, and the effectiveness of the evaluation process. Without knowing the number of bidders, it's hard to quantify the competitive pressure.

What is the historical spending pattern for Laser Target Locator Modules or similar targeting systems within the Department of Defense?

Historical spending on Laser Target Locator Modules (LTLM) and related targeting systems within the Department of Defense can vary significantly year-over-year, influenced by modernization programs, operational tempo, and evolving threat landscapes. While this specific $23.6 million award represents a single procurement action, broader trends show consistent investment in advanced targeting technologies. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) for NAICS code 334511 or specific product service codes related to targeting devices would reveal patterns of spending, key contractors, and the typical scale of such procurements over time.

What are the implications of the 'Delivery Order' contract type for transparency and oversight?

A 'Delivery Order' typically signifies that this award is a specific task order issued under a larger, pre-existing contract vehicle, often an Indefinite Delivery/Indefinite Quantity (IDIQ) contract. While the delivery order itself is a specific commitment ($23.6 million), the underlying contract vehicle might have been awarded previously, potentially through a different competition process. This can sometimes reduce transparency compared to a standalone, single-award contract, as the broader terms, conditions, and initial competition for the IDIQ are not detailed here. Oversight is still conducted by the DCMA for this specific order, but understanding the full context requires examining the parent contract.

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: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91CRB14R0017

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Safran Power USA LLC (UEI: 275374015)

Address: 2 COOPER LN, BEDFORD, NH, 03110

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

Financial Breakdown

Contract Ceiling: $23,625,136

Exercised Options: $23,625,136

Current Obligation: $23,625,136

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB16D0018

IDV Type: IDC

Timeline