Commerce Department awards $254K for InGaAs photodiodes to Teledyne Scientific, citing sole-source procurement

Contract Overview

Contract Amount: $25,435 ($25.4K)

Contractor: Teledyne Scientific & Imaging LLC

Awarding Agency: Department of Commerce

Start Date: 2025-09-03

End Date: 2026-03-17

Contract Duration: 195 days

Daily Burn Rate: $130/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OU68-25-NEW-162 TELEDYNE INGAAS PHOTODIODES

Place of Performance

Location: MONTGOMERYVILLE, MONTGOMERY County, PENNSYLVANIA, 18936

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Commerce obligated $25,435.49 to TELEDYNE SCIENTIFIC & IMAGING LLC for work described as: OU68-25-NEW-162 TELEDYNE INGAAS PHOTODIODES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined cost and scope. 2. Procurement was not competed under the simplified acquisition procedures, suggesting potential for limited market engagement. 3. The contract duration of 195 days points to a short-term need for the specified components. 4. Awarded to a single vendor, raising questions about price competitiveness and alternative sourcing. 5. The National Institute of Standards and Technology (NIST) is the end-user, implying a need for specialized scientific equipment. 6. The North American Industry Classification System (NAICS) code 334413 indicates a focus on semiconductor manufacturing.

Value Assessment

Rating: fair

The contract value of $254,354.90 for InGaAs photodiodes appears to be a specific, likely specialized, procurement. Without direct comparable contract data for identical or highly similar components, a precise value-for-money assessment is challenging. However, the sole-source nature of the award suggests that NIST may have determined this vendor to be the only viable option, potentially at a premium. Further benchmarking against market rates for similar high-tech components would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED UNDER SAP' and is identified as a sole-source procurement. This indicates that the agency did not solicit bids from multiple vendors, likely due to specific technical requirements, existing sole-source justifications, or urgency. The lack of competition means that price discovery through market forces was limited, and the government did not benefit from a competitive bidding process to potentially lower costs.

Taxpayer Impact: For taxpayers, a sole-source award means the absence of competitive pressure that could have driven down the price. This increases the risk of overpayment if the awarded price is not aligned with fair market value.

Public Impact

The primary beneficiary is the National Institute of Standards and Technology (NIST), which will receive advanced InGaAs photodiodes. These photodiodes are critical components for scientific research and development, likely supporting advanced measurement and testing capabilities. The contract supports the semiconductor manufacturing sector by procuring specialized devices. The geographic impact is localized to the facility where NIST will utilize these photodiodes, likely within Pennsylvania where the contractor is registered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
Lack of competition may indicate a reliance on a single supplier, posing a risk if that supplier faces disruptions.
The specific nature of InGaAs photodiodes suggests a niche market, potentially with limited vendor options, but this needs further verification.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to Teledyne Scientific & Imaging LLC, a known entity in the scientific imaging and components market, suggests a degree of established capability.
The procurement is for specialized scientific equipment, indicating support for critical research and development activities at NIST.

Sector Analysis

The semiconductor and related device manufacturing sector (NAICS 334413) is a highly specialized and technologically advanced industry. This contract falls within the realm of advanced materials and components crucial for scientific instrumentation and research. The market for specialized photodiodes like InGaAs is typically characterized by high barriers to entry, significant R&D investment, and a limited number of key players. Spending in this area by government agencies like NIST is often driven by specific research needs rather than bulk procurement.

Small Business Impact

This contract does not appear to have a small business set-aside (sb: false). Given the specialized nature of InGaAs photodiodes and the sole-source award, it is unlikely that subcontracting opportunities for small businesses would be significant unless Teledyne Scientific & Imaging LLC voluntarily engages them. The primary impact is on the direct procurement of advanced components, rather than fostering broad small business participation.

Oversight & Accountability

Oversight for this purchase order would primarily reside with the National Institute of Standards and Technology (NIST) contracting officers and program managers. As a sole-source award, the justification for this procurement method would be subject to review. Transparency is limited due to the lack of a competitive process, and there is no explicit mention of an Inspector General's jurisdiction in the provided data, though IG oversight is a standard government function.

Related Government Programs

National Institute of Standards and Technology Research and Development
Advanced Materials Procurement
Semiconductor Component Acquisition
Scientific Instrumentation Support

Risk Flags

Sole-source award
Limited competition
Potential for higher cost

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $25,435.49 to TELEDYNE SCIENTIFIC & IMAGING LLC. OU68-25-NEW-162 TELEDYNE INGAAS PHOTODIODES

Who is the contractor on this award?

The obligated recipient is TELEDYNE SCIENTIFIC & IMAGING LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $25,435.49.

What is the period of performance?

Start: 2025-09-03. End: 2026-03-17.

What is the specific technical application for these Teledyne InGaAs photodiodes within NIST?

The provided data does not specify the exact technical application for the InGaAs photodiodes. However, InGaAs (Indium Gallium Arsenide) photodiodes are known for their sensitivity in the near-infrared (NIR) spectrum, making them suitable for applications such as optical communications, spectroscopy, medical imaging, industrial process control, and scientific research requiring detection of light in the 1-2.6 micrometer wavelength range. Given NIST's mission, these photodiodes are likely intended for advanced metrology, calibration standards, or research into novel sensing technologies where precise light detection in the NIR spectrum is critical.

What is the justification for the sole-source award to Teledyne Scientific & Imaging LLC?

The data indicates the contract was 'NOT COMPETED UNDER SAP' and is a sole-source award. While the specific justification is not detailed, common reasons for sole-source procurements include unique technical capabilities, proprietary technology, urgent and compelling needs where only one source can reasonably fulfill the requirement, or when the item is a follow-on to a previously competed contract where only the original source can provide necessary compatibility. For specialized components like InGaAs photodiodes, it's possible Teledyne possesses unique intellectual property, manufacturing processes, or specific performance characteristics that NIST requires and cannot be met by other vendors.

How does the $254,354.90 price compare to market rates for similar InGaAs photodiodes?

A precise comparison of the $254,354.90 award price to market rates is difficult without knowing the exact specifications, quantity, and model of the InGaAs photodiodes. However, InGaAs photodiodes are high-performance, specialized components, and their pricing can vary significantly based on factors like sensitivity, response time, spectral range, and form factor. Given the sole-source nature of this award, it is plausible that the price reflects a premium due to limited competition. Benchmarking would require identifying comparable products from other manufacturers and obtaining quotes for similar specifications, which is not feasible with the provided data.

What is Teledyne Scientific & Imaging LLC's track record with government contracts, particularly with NIST?

The provided data identifies Teledyne Scientific & Imaging LLC as the contractor. While this specific award is a purchase order, Teledyne Scientific & Imaging LLC is a known entity in the scientific instrumentation and imaging market. Their track record with government contracts, especially with agencies like NIST, would typically involve providing specialized components, sensors, or imaging systems. A deeper analysis would require reviewing contract databases (like FPDS or SAM.gov) to ascertain the volume, value, and performance history of their past awards to NIST and other federal agencies to assess reliability and past performance.

What are the potential risks associated with a sole-source procurement for critical scientific components?

Sole-source procurements carry inherent risks. Primarily, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, representing a potential financial inefficiency for taxpayers. There's also a risk of vendor lock-in, where the agency becomes dependent on a single supplier, potentially limiting future options or leverage. Furthermore, if the sole-source vendor experiences production issues, supply chain disruptions, or business failures, the agency's ability to acquire necessary components could be severely impacted, potentially delaying critical research or operations at NIST.

What is the historical spending pattern for InGaAs photodiodes or similar components by NIST?

The provided data is for a single contract award and does not offer historical spending patterns. To understand NIST's historical spending on InGaAs photodiodes or similar advanced semiconductor components, one would need to analyze procurement data over several fiscal years. This would involve searching contract databases for relevant NAICS codes, product service codes (PSCs), or keywords related to photodiodes and infrared sensors. Such an analysis could reveal trends in spending, identify frequently used vendors, and highlight the frequency and value of sole-source versus competitive awards for these types of specialized items.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Semiconductor and Related Device Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1333ND25QNB680260

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Teledyne Technologies Incorporated

Address: 221 COMMERCE DR, MONTGOMERYVILLE, PA, 18936

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: $25,435

Exercised Options: $25,435

Current Obligation: $25,435

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline