DoD's $13.8M binocular contract to Fraser Optics LLC awarded under full and open competition

Contract Overview

Contract Amount: $13,783,830 ($13.8M)

Contractor: Fraser Optics LLC

Awarding Agency: Department of Defense

Start Date: 2008-01-25

End Date: 2011-07-31

Contract Duration: 1,283 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER FOR 2421 M25 STABILIZED BINOCULAR NSN 1240-01-410-7418

Place of Performance

Location: WARMINSTER, BUCKS County, PENNSYLVANIA, 18974

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to FRASER OPTICS LLC for work described as: DELIVERY ORDER FOR 2421 M25 STABILIZED BINOCULAR NSN 1240-01-410-7418 Key points: 1. Contract awarded for specialized optical equipment, indicating a need for advanced visual aids. 2. The duration of the contract suggests a long-term requirement for these binoculars. 3. Awarded by the Department of the Army, highlighting its role in military readiness. 4. The fixed-price nature of the contract aims to control costs for the government. 5. Fraser Optics LLC, a manufacturer in optical instruments, is the sole awardee. 6. The contract was competed broadly, suggesting potential for competitive pricing. 7. The binocular's NSN points to a specific, standardized military requirement.

Value Assessment

Rating: good

The contract value of $13.8 million for 1,283 days of delivery orders appears reasonable for specialized military optics. While direct comparisons are difficult without specific unit pricing, the fixed-price structure suggests an effort to manage costs. The benchmark of $10,743 per delivery order, though a broad average, falls within a plausible range for high-specification optical equipment.

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 offers. The fact that it resulted in a single award does not necessarily imply a lack of competition during the bidding process, but rather that Fraser Optics LLC was selected as the best value offeror. The broad competition likely contributed to price discovery and ensured the government received competitive proposals.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality goods and services.

Public Impact

Military personnel requiring enhanced visual capabilities for observation and targeting. Delivery of specialized stabilized binoculars essential for various operational environments. The contract's impact is primarily within the Department of Defense's operational readiness. Potential workforce implications for Fraser Optics LLC in manufacturing and quality control.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for sole-source reliance if future needs are highly specialized and only one vendor can meet them.
Dependence on a single manufacturer for critical optical equipment could pose supply chain risks.
Ensuring ongoing technological relevance of the binoculars against evolving military requirements.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type helps control government expenditure.
The contractor, Fraser Optics LLC, specializes in optical instruments, suggesting relevant expertise.
The contract duration implies a stable, long-term relationship for a critical need.

Sector Analysis

This contract falls within the optical instrument and lens manufacturing sector, a niche but critical part of the broader defense industrial base. The market for military-grade optics is characterized by high technical specifications, stringent quality control, and often long development cycles. Spending in this sector is driven by defense modernization efforts and the need for advanced surveillance and targeting equipment. Comparable spending benchmarks would typically be found within other defense contracts for electro-optical systems.

Small Business Impact

There is no indication that this contract involved small business set-asides, as the awardee, Fraser Optics LLC, is likely a larger entity in its specialized manufacturing field. The contract does not explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though the prime contractor may engage small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers responsible for procurement and delivery. Accountability is established through the firm fixed-price terms, requiring delivery of specified goods. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Procurement
Military Optics and Surveillance Equipment
Optical Instrument and Lens Manufacturing
Army Tactical Equipment Procurement

Risk Flags

Single Award Risk
Supply Chain Dependency
Long-Term Requirement Stability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to FRASER OPTICS LLC. DELIVERY ORDER FOR 2421 M25 STABILIZED BINOCULAR NSN 1240-01-410-7418

Who is the contractor on this award?

The obligated recipient is FRASER OPTICS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2008-01-25. End: 2011-07-31.

What is the specific type and capability of the 'stabilized binocular' procured under NSN 1240-01-410-7418?

The National Stock Number (NSN) 1240-01-410-7418 corresponds to 'Binoculars, Stabilized'. While the provided data does not detail the exact specifications, stabilized binoculars typically incorporate internal mechanisms (like gyroscopes or accelerometers) to counteract vibrations and movement, providing a steady image even when used from unstable platforms such as moving vehicles, aircraft, or handheld by a moving operator. This is crucial for military applications requiring precise observation, targeting, or reconnaissance in dynamic environments. The 'stabilized' feature significantly enhances usability and effectiveness compared to standard binoculars, justifying potentially higher costs for advanced optical and mechanical systems.

How does the contract value of $13.8 million compare to historical spending on similar stabilized binoculars by the Department of Defense?

Comparing the $13.8 million contract value requires looking at historical data for similar NSNs or contract types. Without access to a comprehensive database of past DoD procurements for stabilized binoculars, a precise historical comparison is challenging. However, the average value per delivery order ($10,743) suggests a significant investment per unit or set of units. Given that this contract spans multiple years (2008-2011) and involves a specialized, high-technology item, the total value appears plausible for equipping military units. Further analysis would involve identifying other contracts for stabilized binoculars, potentially from different manufacturers or for different models, to establish a more robust benchmark.

What are the key performance indicators (KPIs) or quality assurance measures associated with this contract?

The provided data does not explicitly list Key Performance Indicators (KPIs) or specific quality assurance (QA) measures for this contract. However, standard government contracting practices for defense procurements typically include stringent QA provisions. These often involve inspections at the contractor's facility, acceptance testing upon delivery, and adherence to military specifications (Mil-Specs) relevant to optical equipment. For stabilized binoculars, KPIs might relate to the degree of stabilization achieved, optical clarity (e.g., resolution, field of view), durability under environmental stress (temperature, shock, vibration), and battery life for powered stabilization systems. The firm fixed-price nature of the contract implies that meeting these quality and performance standards is a prerequisite for payment.

What is Fraser Optics LLC's track record with the Department of Defense and other government agencies for similar optical equipment?

Fraser Optics LLC has a history of contracting with the U.S. government, particularly the Department of Defense, for optical equipment. Publicly available contract data indicates they have received awards for various optical systems, including binoculars and related components. Their specialization in optical instrument manufacturing suggests a focused expertise relevant to this contract. While this specific $13.8 million award is for stabilized binoculars, their broader portfolio likely includes other electro-optical and optical devices. A deeper dive into their contract history would reveal the volume and types of awards, performance ratings (if available), and any significant issues or successes in fulfilling government requirements.

What is the potential risk associated with relying on a single supplier for this critical military equipment over the contract's duration?

Relying on a single supplier, even one selected through full and open competition, carries inherent risks. For this contract, potential risks include supply chain disruptions (e.g., due to natural disasters, geopolitical events, or the contractor's internal issues), potential price increases in future procurements if competition is not re-established, and a lack of incentive for the supplier to innovate beyond the contract's scope. If Fraser Optics LLC were to face production challenges or cease operations, the Department of the Army could experience delays in obtaining these critical stabilized binoculars. Mitigation strategies often involve maintaining adequate inventory levels, exploring alternative suppliers for future needs, and fostering strong communication with the incumbent contractor.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Fraser-Volpe LLC (UEI: 808018878)

Address: 1025 THOMAS DRIVE, WARMINSTER, PA, 01

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $13,783,830

Exercised Options: $13,783,830

Current Obligation: $13,783,830

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52H0904D0153

IDV Type: IDC

Timeline