Air Force awards $15.9M contract for aircraft manufacturing to Teledyne, Inc

Contract Overview

Contract Amount: $15,925,774 ($15.9M)

Contractor: Teledyne, Inc

Awarding Agency: Department of Defense

Start Date: 2006-07-10

End Date: 2012-02-28

Contract Duration: 2,059 days

Daily Burn Rate: $7.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.9 million to TELEDYNE, INC for work described as: Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns. 2. The contract was not competed, raising questions about potential price inefficiencies. 3. A long performance period of 2059 days suggests a significant, ongoing need. 4. The award was a delivery order under a larger contract, details of which are not provided. 5. The contractor, Teledyne, Inc., has a history of federal contracts, indicating established capabilities. 6. The specific product or service procured is not detailed, limiting performance assessment.

Value Assessment

Rating: questionable

The contract's value of $15.9 million is difficult to benchmark without knowing the specific aircraft components or services procured. As a cost-plus-fixed-fee contract, the final cost is not fixed, and the government bears the risk of cost increases. Without competitive bidding, it's challenging to ascertain if this price represents fair market value. Further analysis would require understanding the scope of work and comparing it to similar procurements for comparable aircraft manufacturing services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source procurement, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates robust internal justification and oversight to ensure the price is still reasonable.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving aircraft manufacturing services. This contract supports the operational readiness and maintenance of Air Force aircraft. The geographic impact is likely concentrated in California, where the contractor is located. The contract supports jobs within the aerospace manufacturing sector, particularly at Teledyne, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Cost-plus-fixed-fee structure introduces cost overrun risks for the government.
Limited information on the specific deliverables makes performance monitoring challenging.
Long contract duration could mask inefficiencies if not actively managed.

Positive Signals

Teledyne, Inc. is an established entity with experience in federal contracting.
The contract addresses a specific need within the Department of the Air Force.
The award was a delivery order, suggesting it's part of a pre-existing framework.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector. This sector is characterized by high technological complexity, significant R&D investment, and often long production cycles. Federal spending in this area is crucial for national security and technological advancement. Comparable spending benchmarks would typically involve analyzing other aircraft component manufacturing contracts awarded by the Department of Defense or other federal agencies.

Small Business Impact

There is no indication that this contract included a small business set-aside. As a sole-source award to a large corporation, it is unlikely to have direct subcontracting opportunities for small businesses unless specified by the prime contractor. This award does not appear to actively contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures would be tied to the terms of the cost-plus-fixed-fee agreement and the delivery order's specifications. Transparency is limited due to the sole-source nature and lack of publicly available detailed performance metrics.

Related Government Programs

Aircraft Manufacturing
Aerospace Defense Contracts
Department of Defense Procurement
Air Force Logistics and Maintenance

Risk Flags

Sole-source award lacks competitive pricing.
Cost-plus-fixed-fee contract type carries inherent cost overrun risk.
Lack of detailed scope of work limits performance assessment.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to TELEDYNE, INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TELEDYNE, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $15.9 million.

What is the period of performance?

Start: 2006-07-10. End: 2012-02-28.

What specific aircraft components or manufacturing services were procured under this contract?

The provided data indicates the contract is for 'Aircraft Manufacturing' (NAICS 336411) and was awarded to Teledyne, Inc. However, the specific components, systems, or manufacturing services are not detailed in the available information. This lack of specificity makes it difficult to assess the technical requirements, the complexity of the work, and to compare the value proposition effectively against other potential suppliers or historical data for similar items.

How was the 'fair and reasonable' price determined for this sole-source award?

For sole-source contracts, agencies must conduct a price analysis to determine if the proposed price is fair and reasonable. This typically involves reviewing the contractor's cost and pricing data, comparing it to historical prices for similar items, using cost estimating techniques, or referencing commercial price lists if applicable. Without access to Teledyne's pricing proposal and the Air Force's price negotiation documentation, it is impossible to verify the thoroughness or accuracy of this determination. The cost-plus-fixed-fee structure itself implies that the government is accepting a degree of risk regarding the final cost.

What is Teledyne, Inc.'s track record with similar sole-source aircraft manufacturing contracts?

Teledyne, Inc. is a large, established company with a significant history of receiving federal contracts, including those with the Department of Defense. While the data indicates this specific award was sole-source, Teledyne likely has experience fulfilling various types of contracts, including sole-source procurements, for aircraft components or related manufacturing services. A deeper dive into their contract history would reveal the frequency and scale of similar sole-source awards, the types of products delivered, and any performance issues or successes associated with them.

What are the key performance indicators (KPIs) for this contract, and how has Teledyne performed against them?

The provided data does not include specific Key Performance Indicators (KPIs) or performance metrics for this contract. For a contract of this nature, KPIs would typically relate to delivery schedules, quality standards, technical specifications adherence, and potentially cost control within the fixed-fee component. Assessing Teledyne's performance would require access to contract performance reports, quality assurance reviews, and any documented issues or commendations related to this specific delivery order.

How does the $15.9 million total value compare to historical spending on aircraft manufacturing by the Air Force?

The $15.9 million awarded to Teledyne, Inc. represents a specific procurement action. To contextualize this amount historically, one would need to analyze the Air Force's total annual or multi-year spending on aircraft manufacturing, particularly for components or services similar to those procured here. This $15.9 million could be a small fraction of the overall budget or a significant investment depending on the specific nature of the requirement. Benchmarking against average contract values for similar items or against the total budget allocated for aircraft sustainment and production would provide better perspective.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: ATI Inc. (UEI: 949262737)

Address: 17066 GOLDENTOP ROAD, SAN DIEGO, CA, 92127

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: F3365703G4306

IDV Type: IDC

Timeline