DoD's $16.78M R&D Contract with Teledyne Scientific: A Deep Dive into Value and Competition

Contract Overview

Contract Amount: $16,717,989 ($16.7M)

Contractor: Teledyne Scientific & Imaging, LLC

Awarding Agency: Department of Defense

Start Date: 2006-06-30

End Date: 2012-09-30

Contract Duration: 2,284 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 26

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: THOUSAND OAKS, VENTURA County, CALIFORNIA, 91360

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to TELEDYNE SCIENTIFIC & IMAGING, LLC for work described as: Key points: 1. The contract awarded to Teledyne Scientific & Imaging, LLC for R&D services represents a significant investment by the Department of Defense. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The contract's duration of 2284 days (over 6 years) indicates a long-term project with potential for substantial technological advancement. 4. Analysis of the cost-plus-fixed-fee structure is crucial for understanding contractor incentives and overall project profitability. 5. The absence of small business participation warrants further investigation into potential barriers or opportunities.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently. Benchmarking against similar R&D contracts is difficult without detailed scope information, but the fixed fee component provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of 'Full and Open Competition' indicates that multiple bidders were likely considered, promoting a competitive environment for price discovery. This method generally leads to more favorable pricing for the government.

Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently by securing the best value for the research and development services.

Public Impact

Investment in advanced research and development by the DoD can lead to technological superiority and national security benefits. The long-term nature of the contract suggests a commitment to a specific research area, potentially yielding significant breakthroughs. Transparency in the contracting process, especially with full and open competition, builds public trust in government spending. The lack of small business involvement may indicate a need for future contracting strategies to encourage broader participation.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Cost Plus Fixed Fee structure requires careful monitoring to prevent cost creep.
Lack of small business participation.
Long contract duration could lead to scope creep or evolving technological needs.

Positive Signals

Full and open competition utilized.
Contract awarded to a specialized scientific and imaging company.
Significant investment in R&D.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is critical for maintaining technological advantage, with benchmarks varying widely based on the specific research domain and project complexity.

Small Business Impact

The contract data indicates that small businesses were not involved in this award. Further analysis would be needed to determine if opportunities were missed or if the nature of the R&D required specialized large-firm capabilities.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract. Their role includes ensuring contract compliance, monitoring performance, and managing payments to ensure accountability for taxpayer funds.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Lack of small business participation.
Long contract duration may not align with rapidly evolving technology.
Limited transparency on specific R&D outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to TELEDYNE SCIENTIFIC & IMAGING, LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TELEDYNE SCIENTIFIC & IMAGING, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2006-06-30. End: 2012-09-30.

What specific R&D advancements were achieved under this contract, and how do they align with DoD objectives?

The contract focused on Research and Development in Physical, Engineering, and Life Sciences. Without specific deliverables or final reports, it's challenging to detail the exact advancements. However, such contracts typically aim to enhance defense capabilities, improve existing technologies, or explore novel scientific principles relevant to national security. The alignment with DoD objectives would be assessed through the initial contract requirements and subsequent performance reviews.

Given the Cost Plus Fixed Fee structure, what mechanisms were in place to control costs and ensure value for money?

The Cost Plus Fixed Fee (CPFF) structure involves the contractor being reimbursed for allowable costs plus a fixed fee representing profit. To control costs and ensure value, the government relies on robust oversight, detailed cost accounting standards, and performance metrics. The fixed fee itself incentivizes efficiency, as it does not increase with higher costs. Regular audits and reviews by the contracting officer are essential to validate costs and ensure the contractor meets performance expectations.

How did the 'Full and Open Competition' process ensure the most effective contractor was selected for this long-term R&D project?

Full and Open Competition allows all responsible sources to submit proposals, fostering a competitive environment. The selection process would have involved evaluating proposals based on technical merit, past performance, and price. For a long-term R&D project, the evaluation likely emphasized the contractor's innovative capacity, scientific expertise, and ability to adapt to evolving research needs. This competitive approach aims to identify the contractor best positioned to deliver the required R&D outcomes effectively.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 26

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Teledyne Technologies Incorporated (UEI: 112358432)

Address: 1049 CAMINO DOS RIOS, THOUSAND OAKS, CA, 91360

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,017,943

Exercised Options: $17,017,943

Current Obligation: $16,717,989

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline