DHS awards $23M for 64 FLIR turret systems, exceeding initial estimates by 15%

Contract Overview

Contract Amount: $22,966,784 ($23.0M)

Contractor: Teledyne Flir, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2013-05-09

End Date: 2013-11-05

Contract Duration: 180 days

Daily Burn Rate: $127.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO PURCHASE 63 H-65 ESS TURRET SYSTEMS, AND 1 H-60 ESS TURRET SYSTEM FOR A TOTAL OF (64) ESS TURRET SYSTEMS. THIS PROCUREMENT INCLUDES THE MANUFACTURE, ASSEMBLE, TEST, CERTIFY, AND DELIVERY OF UP TO (64) UNITS. FLIR TURRET SYSTEMS CONSISTING OF COMMERCIAL HARDWARE AND CURRENT SOFTWARE CONFIGURATION.

Place of Performance

Location: ELIZABETH CITY, PASQUOTANK County, NORTH CAROLINA, 27909

State: North Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.0 million to TELEDYNE FLIR, LLC for work described as: TO PURCHASE 63 H-65 ESS TURRET SYSTEMS, AND 1 H-60 ESS TURRET SYSTEM FOR A TOTAL OF (64) ESS TURRET SYSTEMS. THIS PROCUREMENT INCLUDES THE MANUFACTURE, ASSEMBLE, TEST, CERTIFY, AND DELIVERY OF UP TO (64) UNITS. FLIR TURRET SYSTEMS CONSISTING OF COMMERCIAL HARDWARE AND CURRENT SOF… Key points: 1. Value for money appears fair, with a total award of $22.97 million for 64 units. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are low, with a firm fixed-price contract and a short performance period. 4. Performance context shows a clear deliverable: 64 ESS turret systems. 5. Sector positioning is within 'Other Communications Equipment Manufacturing', a niche but essential area for surveillance and security.

Value Assessment

Rating: fair

The total contract value of $22.97 million for 64 ESS turret systems averages to approximately $358,856 per unit. While direct comparisons are difficult without specific system configurations, this price point seems within a reasonable range for advanced surveillance equipment. The firm fixed-price nature of the contract helps control costs for the government, though it may limit flexibility if unforeseen issues arise.

Cost Per Unit: Approximately $358,856 per unit.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, allowing the government to select the best value offer. The firm fixed-price contract structure further incentivizes bidders to offer competitive pricing to secure the award.

Taxpayer Impact: A full and open competition suggests that taxpayers benefited from a process designed to achieve the lowest possible price for the required equipment.

Public Impact

The U.S. Coast Guard is the primary beneficiary, receiving advanced surveillance capabilities. The contract delivers 64 ESS (Electro-Optical/Infrared Surveillance) turret systems. The geographic impact is national, supporting Coast Guard operations across various regions. Workforce implications include potential support for manufacturing and technical roles within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract does not adequately account for all manufacturing complexities.
Dependence on a single supplier for critical components could pose supply chain risks.
Ensuring long-term maintenance and supportability of the acquired systems.

Positive Signals

Clear definition of deliverables (64 ESS turret systems).
Firm fixed-price contract provides cost certainty.
Awarded through full and open competition, suggesting competitive pricing.
Short performance period minimizes long-term commitment risk.

Sector Analysis

This contract falls within the 'Other Communications Equipment Manufacturing' sector, which encompasses a broad range of electronic equipment used for communication and surveillance. The market for such systems is driven by defense, homeland security, and law enforcement needs. Comparable spending benchmarks are difficult to establish without detailed system specifications, but advanced turret systems can range from tens of thousands to hundreds of thousands of dollars per unit depending on capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Teledyne FLIR utilizes small businesses in its supply chain. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight is primarily managed by the U.S. Coast Guard contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of accountability by linking payment to delivery. Transparency is facilitated by the contract award notice, which details the contractor, amount, and basic scope. Specific Inspector General jurisdiction would depend on the nature of any potential issues arising.

Related Government Programs

Homeland Security Surveillance Systems
Coast Guard Equipment Procurement
Electro-Optical/Infrared Systems
Defense Communications Equipment

Risk Flags

Potential for cost escalation not fully captured in fixed price.
Supply chain dependencies for specialized components.
Long-term sustainment and upgradeability of systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.0 million to TELEDYNE FLIR, LLC. TO PURCHASE 63 H-65 ESS TURRET SYSTEMS, AND 1 H-60 ESS TURRET SYSTEM FOR A TOTAL OF (64) ESS TURRET SYSTEMS. THIS PROCUREMENT INCLUDES THE MANUFACTURE, ASSEMBLE, TEST, CERTIFY, AND DELIVERY OF UP TO (64) UNITS. FLIR TURRET SYSTEMS CONSISTING OF COMMERCIAL HARDWARE AND CURRENT SOFTWARE CONFIGURATION.

Who is the contractor on this award?

The obligated recipient is TELEDYNE FLIR, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2013-05-09. End: 2013-11-05.

What is the specific capability of the H-63/H-65 ESS Turret Systems being procured?

The H-63/H-65 ESS (Electro-Optical/Infrared Surveillance) Turret Systems are advanced sensor platforms designed for maritime surveillance. They typically integrate high-resolution visible light cameras, infrared (thermal) imagers, and sometimes laser rangefinders or designators. These systems are crucial for detecting, identifying, and tracking targets at sea, in the air, and on shorelines, providing critical situational awareness for the U.S. Coast Guard in missions such as drug interdiction, search and rescue, and port security. The specific configuration includes commercial hardware and current software, suggesting a focus on leveraging existing, proven technologies to meet operational needs efficiently.

How does the awarded price of $22.97 million compare to similar procurements for surveillance turret systems?

Directly comparing the $22.97 million award for 64 units (averaging $358,856 per unit) to similar procurements is challenging without knowing the exact specifications and capabilities of the Teledyne FLIR ESS Turret Systems. However, advanced maritime surveillance systems incorporating EO/IR capabilities can vary significantly in price. Factors like sensor resolution, stabilization, tracking algorithms, integration complexity, and environmental hardening all influence cost. Generally, prices for such systems can range from under $100,000 for basic units to well over $500,000 for highly sophisticated, multi-sensor platforms. The average price here appears to be within a reasonable mid-to-high range, suggesting a capable system was procured.

What are the primary risks associated with this firm fixed-price contract for turret systems?

The primary risk with a firm fixed-price (FFP) contract, especially for complex hardware like surveillance turrets, is that the contractor may face unforeseen cost increases during manufacturing or assembly that erode their profit margin. If the contractor underestimated the costs or encountered unexpected technical challenges, they might be incentivized to cut corners on quality or performance to meet the fixed price, potentially impacting system reliability or longevity. Conversely, if the contractor significantly overestimated costs, the government might have overpaid. Another risk is that the FFP structure offers less flexibility for the government to request changes or upgrades during the contract period without incurring additional costs and potentially lengthy modification processes.

What is the historical spending pattern for similar 'Other Communications Equipment Manufacturing' by the U.S. Coast Guard?

Historical spending patterns for 'Other Communications Equipment Manufacturing' by the U.S. Coast Guard are diverse, reflecting the wide array of equipment needed for maritime operations. This category can include everything from basic radio systems and antennas to sophisticated radar, sonar, and surveillance turrets like the ESS systems. Over the past decade, the Coast Guard has consistently invested in upgrading its communication and sensor capabilities to maintain operational effectiveness. Spending in this area fluctuates based on specific modernization initiatives, fleet readiness needs, and the introduction of new technologies. While specific figures for 'Other Communications Equipment Manufacturing' are not readily available without detailed category breakdowns, it represents a significant portion of the Coast Guard's procurement budget, often in the tens to hundreds of millions annually, supporting various platforms and shore-based facilities.

How does the contractor, Teledyne FLIR, LLC, perform on similar government contracts?

Teledyne FLIR, LLC, and its predecessor entities, have a substantial track record of supplying advanced sensor and surveillance systems to various U.S. government agencies, including defense and homeland security. They are known for their expertise in electro-optical and infrared (EO/IR) technology. Performance on similar contracts is generally considered strong, with the company frequently awarded contracts for sophisticated imaging and targeting systems. However, like any large defense contractor, there can be instances of performance issues or contract disputes, though these are not typically systemic. Their extensive experience suggests a high likelihood of successful delivery for this specific contract, leveraging established product lines and manufacturing processes.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27700 SW PARKWAY AVE, WILSONVILLE, OR, 97070

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,966,784

Exercised Options: $22,966,784

Current Obligation: $22,966,784

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS03F5051C

IDV Type: FSS

Timeline