DoD's $16.4M Training Contract with Teledyne, Inc. Lacked Competition

Contract Overview

Contract Amount: $16,436,248 ($16.4M)

Contractor: Teledyne, Inc

Awarding Agency: Department of Defense

Start Date: 2007-10-01

End Date: 2012-02-15

Contract Duration: 1,598 days

Daily Burn Rate: $10.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TRAINING LSC 08

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to TELEDYNE, INC for work described as: TRAINING LSC 08 Key points: 1. Significant spending on aircraft manufacturing training services. 2. Sole-source award to Teledyne, Inc. raises competition concerns. 3. Contract duration of nearly 5 years suggests substantial program needs. 4. Cost-plus-fixed-fee structure may incentivize higher costs without strong oversight.

Value Assessment

Rating: questionable

The $16.4 million contract for training services was awarded on a cost-plus-fixed-fee basis. Without competitive bidding, it's difficult to assess if this pricing represents fair market value compared to similar training contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award to Teledyne, Inc. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. The long contract duration could indicate a critical but potentially inefficiently procured service. Limited transparency into the justification for a sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus-fixed-fee contract type
Long contract duration

Positive Signals

Specific training service provided

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically related to aircraft manufacturing support. Spending benchmarks for specialized training can vary widely, but competitive procurement is generally expected to yield better value.

Small Business Impact

There is no indication in the provided data whether small businesses were involved as subcontractors or if this contract offered opportunities for them.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure costs are reasonable and the training objectives are met efficiently. The cost-plus-fixed-fee structure requires diligent monitoring of expenditures.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency on justification
Cost-plus-fixed-fee structure can lead to higher costs without strict oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to TELEDYNE, INC. TRAINING LSC 08

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 $16.4 million.

What is the period of performance?

Start: 2007-10-01. End: 2012-02-15.

What was the justification for awarding this contract on a sole-source basis instead of competing it?

The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this information, it's impossible to evaluate the validity of the procurement approach.

How were the fixed fees determined in this cost-plus-fixed-fee contract, and were they benchmarked against industry standards?

The data does not specify how the fixed fees were determined or if they were benchmarked. In cost-plus-fixed-fee contracts, the fixed fee is negotiated separately from the estimated cost. Its reasonableness is crucial for ensuring value for money. Without details on the negotiation process or benchmarks, assessing the fairness of the fee is challenging.

What specific training was provided under this contract, and what was its impact on Air Force readiness or capabilities?

The specific training provided under this contract is not detailed in the data, only that it relates to 'TRAINING LSC 08' within Aircraft Manufacturing. The impact on Air Force readiness or capabilities is also not specified. Further investigation would be needed to understand the scope and effectiveness of the training.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

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

Financial Breakdown

Contract Ceiling: $41,536,304

Exercised Options: $20,765,108

Current Obligation: $16,436,248

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F3365703G4306

IDV Type: IDC

Timeline