DoD's $21.8M Teledyne Brown Analytical Services Contract Lacked Competition, Raising Cost Concerns
Contract Overview
Contract Amount: $21,812,784 ($21.8M)
Contractor: Teledyne Brown Engineering, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-06-01
End Date: 2017-12-31
Contract Duration: 1,674 days
Daily Burn Rate: $13.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF LABORATORY ANALYTICAL SERVICES
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $21.8 million to TELEDYNE BROWN ENGINEERING, INC. for work described as: IGF::OT::IGF LABORATORY ANALYTICAL SERVICES Key points: 1. Significant spending on analytical services without competitive bidding. 2. Sole-source award to Teledyne Brown Engineering, Inc. limits price discovery. 3. Contract duration of nearly 5 years suggests potential for sustained overpricing. 4. The 'Testing Laboratories and Services' sector often benefits from competition.
Value Assessment
Rating: questionable
The contract value of $21.8M over 4.7 years is substantial. Without a competitive benchmark, it's difficult to assess if the pricing is fair. The lack of competition suggests potential for inflated costs compared to what might be achieved through a bidding process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The absence of competition on this $21.8M contract likely resulted in higher costs for taxpayers than if it had been competitively bid.
Public Impact
Taxpayers may have overpaid for analytical services due to the lack of competition. The Department of the Air Force's reliance on a single vendor for critical testing services warrants scrutiny. Future contracts in this service area should prioritize competitive sourcing to ensure value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration without re-competition
Positive Signals
- Contract awarded to a known entity (Teledyne Brown Engineering)
Sector Analysis
The contract falls under 'Testing Laboratories and Services' (NAICS 541380). Spending in this sector can vary widely, but competitive bidding is generally expected to yield better pricing for standardized testing and analytical services.
Small Business Impact
The data indicates this contract was not awarded to small businesses, and the sole-source nature further suggests no specific provisions were made to include small business participation.
Oversight & Accountability
The sole-source award mechanism raises questions about the oversight applied to ensure this was the most appropriate procurement method and that fair pricing was achieved. Further review of the justification for sole-sourcing is recommended.
Related Government Programs
- Testing Laboratories and Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Limited vendor options
- No small business participation evident
Tags
testing-laboratories-and-services, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.8 million to TELEDYNE BROWN ENGINEERING, INC.. IGF::OT::IGF LABORATORY ANALYTICAL SERVICES
Who is the contractor on this award?
The obligated recipient is TELEDYNE BROWN ENGINEERING, 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 $21.8 million.
What is the period of performance?
Start: 2013-06-01. End: 2017-12-31.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source justification was likely made. However, the specific reasons and documentation supporting this decision are not included. A thorough review would be needed to assess if the justification met regulatory requirements and truly precluded competition, or if it was a missed opportunity for market research and competitive sourcing.
How does the cost of these analytical services compare to industry benchmarks or similar government contracts awarded competitively?
Without competitive bids or access to pricing data from similar competitively awarded contracts, a direct cost comparison is challenging. The lack of competition inherently makes it difficult to ascertain if Teledyne Brown Engineering's pricing was optimal. Benchmarking against industry standards for 'Testing Laboratories and Services' would be necessary to identify potential cost deviations.
What was the impact of this long-term, sole-source contract on the Air Force's ability to access potentially more innovative or cost-effective analytical solutions?
A sole-source, long-term contract can stifle innovation by limiting exposure to alternative solutions and technologies from other vendors. The Air Force may have missed opportunities to benefit from advancements or more cost-effective methods that a competitive environment could have fostered. This could lead to using outdated or more expensive services than necessary.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA702212R0001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Teledyne Technologies Incorporated (UEI: 112358432)
Address: 300 SPARKMAN DR NW, HUNTSVILLE, AL, 35805
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: $21,820,531
Exercised Options: $21,814,463
Current Obligation: $21,812,784
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $605,753
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-06-01
Current End Date: 2017-12-31
Potential End Date: 2017-12-31 00:00:00
Last Modified: 2021-02-27
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