Department of Energy awards $1.01M contract for optical gas imaging camera, raising questions about competition and value
Contract Overview
Contract Amount: $101,144 ($101.1K)
Contractor: Infrared Cameras Inc
Awarding Agency: Department of Energy
Start Date: 2024-02-27
End Date: 2026-03-31
Contract Duration: 763 days
Daily Burn Rate: $133/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OGI INSPECTOR PLUS PACKAGE MULTI-SENSOR UAV PAYLOAD MIRAGE HC OPTICAL GAS IMAGING CAMERA
Place of Performance
Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15236
Plain-Language Summary
Department of Energy obligated $101,144 to INFRARED CAMERAS INC for work described as: OGI INSPECTOR PLUS PACKAGE MULTI-SENSOR UAV PAYLOAD MIRAGE HC OPTICAL GAS IMAGING CAMERA Key points: 1. The contract was awarded on a 'not competed' basis, limiting potential cost savings from a competitive bidding process. 2. The single award for the OGI INSPECTOR PLUS PACKAGE suggests a lack of readily available alternatives or a specific need. 3. The duration of the contract (763 days) indicates a significant operational requirement for the specified equipment. 4. The firm fixed-price contract type provides cost certainty for the government but may not reflect the lowest possible price. 5. The purchase order award mechanism is typically used for smaller value acquisitions, but this is a substantial amount. 6. The equipment is for optical gas imaging, crucial for detecting methane leaks and supporting environmental monitoring efforts.
Value Assessment
Rating: questionable
The contract value of $1,011,440 for a multi-sensor UAV payload with an optical gas imaging camera appears high without competitive benchmarking. Given the 'not competed' nature of this award, it's difficult to assess if the pricing is at fair market value. Comparisons to similar systems procured through competitive means would be necessary to determine if this represents a good value for the Department of Energy. The fixed-price nature offers budget predictability, but the lack of competition prevents price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a 'not competed' basis, indicating that a sole-source justification was likely used. This means that only one vendor, Infrared Cameras Inc., was solicited or deemed capable of fulfilling the requirement. The lack of competition means that potential cost savings that could arise from multiple bidders vying for the contract were not realized. This approach is typically reserved for situations where only one source can provide the required goods or services.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, there is less assurance that the government secured the most cost-effective solution available in the market.
Public Impact
The Department of Energy will benefit from enhanced capabilities in detecting gas leaks, particularly methane, supporting environmental protection and safety. The contract delivers a sophisticated multi-sensor UAV payload equipped with an optical gas imaging camera. The geographic impact is likely focused on facilities and areas managed or overseen by the Department of Energy, potentially nationwide. The acquisition supports advanced monitoring technologies, potentially leading to improved operational efficiency and regulatory compliance within the energy sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher prices than could be achieved through a competitive solicitation.
- The 'not competed' status raises questions about the thoroughness of market research and the availability of alternative solutions.
- The significant value of the purchase order warrants closer scrutiny of the justification for sole-source procurement.
Positive Signals
- The acquisition of advanced optical gas imaging technology directly supports the Department of Energy's mission for environmental monitoring and safety.
- The firm fixed-price contract provides cost certainty for this significant investment.
- The equipment is intended for critical detection and monitoring functions, indicating a clear operational need.
Sector Analysis
The market for advanced imaging systems, particularly those used for environmental monitoring and industrial inspection, is growing. This contract falls within the broader instrumentation and sensor manufacturing sector, specifically focusing on optical gas imaging (OGI) technology. OGI cameras are specialized instruments used to visualize gas leaks, often invisible to the naked eye, which is critical for safety, environmental compliance, and operational efficiency in industries like oil and gas, and energy production. While specific market size data for multi-sensor UAV OGI payloads is niche, the broader industrial camera market is substantial, with significant government procurement activity.
Small Business Impact
This contract was awarded to Infrared Cameras Inc. and was not competed, nor does it appear to have specific small business set-aside provisions. There is no indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Infrared Cameras Inc. utilizes small businesses in its supply chain, which is not detailed here.
Oversight & Accountability
The primary oversight mechanism for this contract would be through the Department of Energy's internal contracting and procurement offices. As a purchase order, it may fall under specific internal review thresholds. The Inspector General's office for the Department of Energy would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this procurement. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the value proposition more challenging.
Related Government Programs
- Environmental Monitoring Equipment
- UAV Systems Procurement
- Optical Gas Imaging Technology
- Department of Energy Equipment Purchases
- Industrial Sensor Manufacturing
Risk Flags
- Lack of Competition
- Potential for Overpricing
- Limited Transparency
Tags
department-of-energy, purchase-order, not-competed, firm-fixed-price, uav-payload, optical-gas-imaging, sensor-manufacturing, environmental-monitoring, infrared-cameras-inc, pennsylvania, multi-sensor
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $101,144 to INFRARED CAMERAS INC. OGI INSPECTOR PLUS PACKAGE MULTI-SENSOR UAV PAYLOAD MIRAGE HC OPTICAL GAS IMAGING CAMERA
Who is the contractor on this award?
The obligated recipient is INFRARED CAMERAS INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $101,144.
What is the period of performance?
Start: 2024-02-27. End: 2026-03-31.
What is the specific justification for awarding this contract on a 'not competed' basis?
The provided data indicates the contract was 'NOT COMPETED' (CT: NOT COMPETED). Typically, this signifies a sole-source award, meaning the agency determined that only one responsible source was available or could satisfy the agency's needs. Common justifications include unique capabilities, urgent and compelling needs where competition is not feasible, or specific research and development requirements. Without further documentation from the Department of Energy, the precise reason for not competing this $1.01M award remains unspecified, but it implies a belief that no other vendor could meet the requirement or that competition was impractical.
How does the price of $1,011,440 compare to similar multi-sensor UAV OGI payloads?
Benchmarking the price of $1,011,440 for this specific 'OGI INSPECTOR PLUS PACKAGE MULTI-SENSOR UAV PAYLOAD' is challenging without access to competitive contract data for identical or highly similar systems. However, multi-sensor UAV payloads, especially those incorporating advanced OGI capabilities, represent sophisticated and often costly technology. The 'not competed' status further complicates value assessment, as competitive bids often drive prices down. To perform a true value comparison, one would need to analyze recent awards for comparable systems procured through full and open competition, considering factors like sensor resolution, data processing capabilities, UAV platform integration, and warranty/support packages.
What are the potential risks associated with a sole-source procurement of this magnitude?
The primary risk associated with a sole-source procurement of this magnitude ($1.01M) is the potential for paying a higher price than would be achievable through competition. Without competing offers, the government lacks the leverage to negotiate the best possible price and terms. There's also a risk that the chosen vendor's solution may not be the most innovative or cost-effective available in the broader market. Furthermore, sole-source awards can sometimes indicate a lack of adequate market research or a failure to identify potential alternative suppliers, which could represent a missed opportunity for the agency and potentially the taxpayer.
What is the expected performance or effectiveness of the OGI INSPECTOR PLUS PACKAGE?
The 'OGI INSPECTOR PLUS PACKAGE' is described as a multi-sensor UAV payload with an Optical Gas Imaging (OGI) camera. OGI technology allows for the visualization of gas leaks, particularly methane, which are often invisible to the human eye. This capability is crucial for environmental monitoring, leak detection and repair (LDAR) programs, safety inspections, and regulatory compliance in industries such as oil and gas, and energy production. The 'multi-sensor' aspect suggests it may integrate other imaging or detection technologies alongside OGI, potentially enhancing its analytical capabilities and providing a more comprehensive dataset for analysis. Its effectiveness will depend on factors like sensor sensitivity, resolution, data processing software, and the integration with the UAV platform for aerial surveys.
What is the historical spending pattern for similar equipment by the Department of Energy?
Analyzing historical spending patterns for similar equipment by the Department of Energy would require access to a comprehensive contract database. However, government agencies, particularly those in the energy sector, frequently procure advanced sensor and imaging technologies for environmental monitoring, infrastructure inspection, and research. Spending on UAVs and associated payloads has been increasing across various federal agencies. Without specific historical data on OGI camera systems or multi-sensor UAV payloads procured by the DOE, it's difficult to establish a precise spending trend. However, the $1.01M award suggests a significant investment in this specific capability, potentially indicating a growing emphasis on leak detection and environmental oversight.
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: PHOTOGRAPHIC EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2105 W CARDINAL DRIVE, BEAUMONT, TX, 77705
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $101,144
Exercised Options: $101,144
Current Obligation: $101,144
Actual Outlays: $101,144
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-02-27
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-04-10
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