DoD Awards $474.7M for Aircraft Operational System Development to Teledyne, Inc
Contract Overview
Contract Amount: $474,696,322 ($474.7M)
Contractor: Teledyne, Inc
Awarding Agency: Department of Defense
Start Date: 2000-02-09
End Date: 2012-12-31
Contract Duration: 4,709 days
Daily Burn Rate: $100.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: 200011!1700!000968!AT722 !NAVAL AIR SYSTEMS COMMAND !N0001900C0277 !A!*!* !20000209!20030930!008391203!008255408!008255408!N!78023!TELEDYNE, INC !2049 CENTURY PARK E !LOS ANGELES !CA!90067!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!0001!+000023500000!N!N!000000000000!AC17!RDTE/AIRCRAFT-OPERATIONAL SYSTEM DEVELOPMENT !A1A!AIRFRAMES AND SPARES !2000!NOT DISCERNABLE OR CLASSIFIED !3721!3!*!*!*!B!A!*!A !N!V!2!003!B!* !Z!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Defense obligated $474.7 million to TELEDYNE, INC for work described as: 200011!1700!000968!AT722 !NAVAL AIR SYSTEMS COMMAND !N0001900C0277 !A!*!* !20000209!20030930!008391203!008255408!008255408!N!78023!TELEDYNE, INC !2049 CENTURY PARK E !LOS ANGELES !CA!90067!66000!073!06!SAN DIEGO !SAN… Key points: 1. Significant contract value of $474.7 million awarded for aircraft system development. 2. Competition was full and open, suggesting a competitive bidding process. 3. Potential risk associated with cost-plus contracts requiring close oversight. 4. Sector focus is R&D for aircraft operational systems, a critical defense area.
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive Fee (CPIF), which can lead to cost overruns if not managed carefully. The total value is substantial, making oversight crucial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. However, the CPIF structure still necessitates vigilance to ensure fair pricing.
Taxpayer Impact: Taxpayer funds are being used for advanced aircraft system development, with the potential for cost efficiencies through competitive bidding and incentive fees.
Public Impact
Enhances U.S. military aviation capabilities through advanced system development. Supports technological advancement in the aerospace and defense industry. Creates jobs and economic activity within the defense sector and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contract type
- Long contract duration (4709 days)
- Potential for scope creep in R&D
Positive Signals
- Full and open competition
- Award to established company (Teledyne, Inc.)
- Focus on critical defense technology
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on aircraft operational systems. Spending in this area is vital for maintaining military technological superiority.
Small Business Impact
While the primary awardee is Teledyne, Inc., a large corporation, the nature of R&D contracts often involves subcontracting opportunities for smaller businesses within the aerospace supply chain.
Oversight & Accountability
The contract's duration and cost-plus nature warrant strong oversight from the Naval Air Systems Command to ensure adherence to scope, budget, and performance objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Overruns
- Schedule Delays
- Performance Shortfalls
- Scope Creep
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $474.7 million to TELEDYNE, INC. 200011!1700!000968!AT722 !NAVAL AIR SYSTEMS COMMAND !N0001900C0277 !A!*!* !20000209!20030930!008391203!008255408!008255408!N!78023!TELEDYNE, INC !2049 CENTURY PARK E !LOS ANGELES !CA!90067!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!0001!+000023500000!N!N!000000000000!AC17!RDTE/AIRCRAFT-OPERATIONAL SYSTEM DEVELOPMENT !A1A!AIRFRAMES AND SPARES !2000!NOT DISCERNABLE OR CLASSIFIED !3721!3!*!*!*!B!A!*!A !N!V!
Who is the contractor on this award?
The obligated recipient is TELEDYNE, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $474.7 million.
What is the period of performance?
Start: 2000-02-09. End: 2012-12-31.
What specific aircraft operational systems are being developed under this contract, and how do they align with current defense priorities?
The contract specifies 'RDTE/AIRCRAFT-OPERATIONAL SYSTEM DEVELOPMENT' and 'AIRFRAMES AND SPARES'. While the exact systems are not detailed, this likely pertains to next-generation aircraft components, avionics, or integrated systems aimed at enhancing operational effectiveness, survivability, and mission capabilities in line with evolving defense strategies.
How effectively will the incentive fee structure in this CPIF contract control costs and drive performance for Teledyne, Inc.?
The effectiveness of the incentive fee relies heavily on clearly defined performance metrics and cost targets. If well-structured, it can motivate Teledyne to achieve specific technical milestones efficiently and control expenditures. However, poorly defined targets or inadequate monitoring could lead to cost overruns, necessitating robust oversight from the Naval Air Systems Command.
What is the projected long-term impact of this R&D investment on the U.S. defense industrial base and technological competitiveness?
This investment is expected to foster innovation in aircraft systems, potentially leading to significant advancements in military aviation technology. It strengthens the U.S. defense industrial base by supporting a key player like Teledyne, Inc., and ensuring continued technological superiority in a critical defense domain, which is vital for national security.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: ATI Inc.
Address: 2049 CENTURY PARK E, LOS ANGELES, CA, 90067
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: 2000-02-09
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2023-08-16
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