DoD awards $187.8M Aircraft Manufacturing contract to Teledyne, Inc. with no competition
Contract Overview
Contract Amount: $187,792,127 ($187.8M)
Contractor: Teledyne, Inc
Awarding Agency: Department of Defense
Start Date: 2003-06-27
End Date: 2009-08-18
Contract Duration: 2,244 days
Daily Burn Rate: $83.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Defense obligated $187.8 million to TELEDYNE, INC for work described as: Key points: 1. Significant contract value of $187.8 million awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The contract falls under the Aircraft Manufacturing sector, indicating specialized defense needs. 4. Fixed Price Incentive contract type suggests shared risk between government and contractor.
Value Assessment
Rating: questionable
The contract value of $187.8 million is substantial. Without competitive bidding, it's difficult to assess if this price is fair or represents good value for the government. Benchmarking against similar aircraft manufacturing contracts would be necessary for a proper evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on this large contract likely resulted in a higher cost to taxpayers than if multiple vendors had vied for the award.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The long duration of the contract (2244 days) means potential for sustained higher costs. Limited transparency into the justification for a sole-source award. Potential for reduced innovation as the contractor faced no competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
- Long contract duration
Positive Signals
- Fixed Price Incentive contract type can control costs if managed well.
Sector Analysis
This contract is within the Aircraft Manufacturing sector, which is critical for defense capabilities. Spending benchmarks in this sector are highly variable based on the complexity and type of aircraft. The $187.8 million value is significant for a sole-source award in this specialized area.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature of the award further limits opportunities for small business participation.
Oversight & Accountability
The lack of competition suggests a potential gap in oversight regarding procurement strategies. A thorough review of the justification for the sole-source award and ongoing performance monitoring would be crucial for accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns without competitive pressure.
- Limited transparency into procurement justification.
- Risk of vendor lock-in and reduced future innovation.
- No indication of small business participation.
Tags
aircraft-manufacturing, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $187.8 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 $187.8 million.
What is the period of performance?
Start: 2003-06-27. End: 2009-08-18.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented and approved?
The justification for a sole-source award is critical for understanding the necessity of bypassing competition. Without access to the specific documentation, it's impossible to verify if the procurement process followed regulations and if alternative sources were genuinely unavailable or impractical. This information is key to assessing the legitimacy of the award and potential taxpayer impact.
How was the 'incentive' aspect of the Fixed Price Incentive contract structured, and what mechanisms were in place to ensure cost control and performance?
The effectiveness of a Fixed Price Incentive contract hinges on its specific structure, including target costs, ceiling prices, and incentive formulas. Understanding these details is crucial to evaluating whether the government effectively shared risk while incentivizing the contractor to achieve cost savings and meet performance targets. Without this information, it's difficult to gauge the true value and efficiency of the contract.
What is the long-term strategic value of this sole-source contract to the Department of Defense, considering the lack of competitive alternatives?
The long-term strategic value is questionable when a critical capability is secured through a sole-source award. While it may address an immediate need, it potentially stifles innovation and creates a dependency on a single supplier. The DoD should have a strategy to foster competition or develop alternative capabilities to mitigate risks associated with relying on one vendor for essential aircraft manufacturing.
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: FIXED PRICE INCENTIVE (L)
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
Cost or Pricing Data: NO
Timeline
Start Date: 2003-06-27
Current End Date: 2009-08-18
Potential End Date: 2020-12-15 00:00:00
Last Modified: 2021-01-07
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