DoD's $21.9M R&D contract with Teledyne FLIR Detection awarded via full and open competition

Contract Overview

Contract Amount: $21,859,040 ($21.9M)

Contractor: Teledyne Flir Detection, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-01-09

End Date: 2010-12-31

Contract Duration: 1,452 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NEW BUY WITH OPTIONS TOTALING $21 MILLION. COST PLUS FIXED FEE CONTRACT, WITH TOTAL OBLIGATION TO DATE OF $1.87MIL.

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to TELEDYNE FLIR DETECTION, INC. for work described as: NEW BUY WITH OPTIONS TOTALING $21 MILLION. COST PLUS FIXED FEE CONTRACT, WITH TOTAL OBLIGATION TO DATE OF $1.87MIL. Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Cost-plus-fixed-fee structure indicates potential for cost overruns, requiring close monitoring. 3. Initial obligation of $1.87M suggests a phased approach to funding the total contract value. 4. Contract duration of 1452 days points to a long-term research endeavor. 5. The contract falls under the R&D sector, specifically NAICS code 541710. 6. Awarded by the Department of the Army, indicating a focus on defense-related research.

Value Assessment

Rating: fair

The total contract value of $21.9 million for R&D services is within a typical range for specialized research projects. However, without specific benchmarks for similar R&D efforts in advanced detection technologies, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D where scope can evolve, carries inherent risks of cost escalation. The current obligation of $1.87 million represents a small fraction of the total, suggesting the bulk of the funding is yet to be expended, making a definitive value judgment premature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust bidding process. The presence of two bids (no: 2) indicates some level of competition, but it is not extensive. A higher number of bidders would typically lead to more competitive pricing and a broader range of innovative solutions. The limited number of bidders might suggest a niche market or specialized capabilities required for this particular R&D effort.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes competitive pricing. However, with only two bids, the potential for significant cost savings may have been limited compared to a more crowded field.

Public Impact

The Department of the Army benefits from advancements in detection technologies, potentially enhancing national security capabilities. The contract supports research and development in physical, engineering, and life sciences, contributing to technological innovation. The geographic impact is primarily within the United States, where the research and development activities will take place. Workforce implications include employment for scientists, engineers, and technical personnel involved in the R&D process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to higher costs if not managed diligently.
Limited competition (2 bidders) may reduce price discovery and potentially increase costs for the government.
The long contract duration (1452 days) increases the risk of scope creep or changing technological requirements.

Positive Signals

Awarded through full and open competition, maximizing the pool of potential offerors.
The contract is for research and development, which can lead to valuable technological advancements.
The contractor, Teledyne FLIR Detection, Inc., is likely experienced in this specialized field.

Sector Analysis

The contract falls within the Research and Development sector, specifically NAICS code 541710. This sector is characterized by innovation and the pursuit of new knowledge and applications. The total contract value of $21.9 million is moderate for R&D projects, which can range from small feasibility studies to large-scale development programs. Comparable spending in this area would depend heavily on the specific technological focus, but defense-related R&D often involves significant investment.

Small Business Impact

The contract indicates that small business participation was not a primary focus, as the 'sb' field is false and the 'ss' field is also false, meaning there was no small business set-aside. This suggests the contract was awarded based on the capabilities of larger, established firms. Subcontracting opportunities for small businesses may exist but are not explicitly mandated by the contract terms. The impact on the small business ecosystem is likely minimal unless Teledyne FLIR Detection, Inc. actively engages them as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officer and program managers. Accountability measures are embedded within the CPFF structure, requiring the contractor to justify costs and demonstrate progress towards research objectives. Transparency is facilitated through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Detection Technology Initiatives
Physical Sciences Research Contracts
Engineering Sciences Research Contracts
Life Sciences Research Contracts

Risk Flags

Cost-plus-fixed-fee contract type carries inherent risk of cost overruns.
Limited number of bidders (2) may indicate reduced competitive pressure on pricing.
Long contract duration increases potential for scope creep and evolving requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to TELEDYNE FLIR DETECTION, INC.. NEW BUY WITH OPTIONS TOTALING $21 MILLION. COST PLUS FIXED FEE CONTRACT, WITH TOTAL OBLIGATION TO DATE OF $1.87MIL.

Who is the contractor on this award?

The obligated recipient is TELEDYNE FLIR DETECTION, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $21.9 million.

What is the period of performance?

Start: 2007-01-09. End: 2010-12-31.

What is the specific research objective of this contract, and how does it align with the Department of the Army's strategic goals?

The provided data does not specify the exact research objective beyond the broad category of 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710). To assess alignment with strategic goals, one would need to consult the Department of the Army's R&D priorities for the period of contract performance (2007-2010) and the specific technical requirements outlined in the contract's Statement of Work. Typically, such R&D aims to develop new capabilities, improve existing technologies, or address emerging threats relevant to military operations. Without the SOW, this alignment remains speculative.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar R&D efforts, and what are the associated risks?

The Cost-Plus-Fixed-Fee (CPFF) contract type is common for research and development where the scope of work is not precisely defined at the outset, allowing for flexibility as research progresses. Unlike fixed-price contracts, CPFF reimburses the contractor for allowable costs plus a predetermined fixed fee, which represents profit. This structure shifts some cost risk to the government, as the final cost can exceed initial estimates if research proves more complex or expensive than anticipated. Other R&D contract types include Cost-Plus-Incentive-Fee (CPIF), which incentivizes cost savings, and Firm-Fixed-Price (FFP) for well-defined R&D projects. The primary risk with CPFF is potential cost overruns if not rigorously managed and monitored by the government.

What is Teledyne FLIR Detection, Inc.'s track record with the Department of Defense, particularly on R&D contracts?

Teledyne FLIR Detection, Inc. has a history of contracting with the Department of Defense, often in areas related to sensor technology, imaging, and detection systems. Their track record would need to be reviewed in detail, examining past performance evaluations, any contract disputes, and the successful delivery of R&D outcomes on previous DoD contracts. A comprehensive assessment would involve analyzing the complexity and scale of prior R&D projects, their adherence to schedules and budgets, and overall customer satisfaction ratings. Given their specialization, it is likely they possess relevant expertise, but a thorough review of their performance history is crucial for a complete understanding.

Given the $21.9 million total value and the CPFF structure, what is the expected return on investment or technological advancement from this contract?

The expected return on investment (ROI) or technological advancement from this R&D contract is inherently uncertain, as is typical for research endeavors. The $21.9 million investment is intended to yield advancements in physical, engineering, or life sciences relevant to the Department of the Army's needs. This could manifest as a new detection capability, an improved sensor system, or a deeper understanding of a scientific principle applicable to defense. Quantifying ROI for R&D is challenging; it's often measured by the successful development of a prototype, the transition of technology to operational use, or the creation of intellectual property. The CPFF structure means the government pays for the effort expended, aiming for a successful R&D outcome rather than a specific deliverable at a fixed price.

How does the spending on this specific contract compare to overall DoD R&D spending in the physical, engineering, and life sciences during the contract period?

The total contract value of $21.9 million represents a relatively small portion of the Department of Defense's overall Research and Development (R&D) budget during the contract performance period (2007-2010). DoD R&D spending typically runs into tens of billions of dollars annually, encompassing a vast array of projects across all military branches and research laboratories. This specific contract would be one of many contributing to advancements in the physical, engineering, and life sciences. To provide a precise comparison, one would need to access historical DoD R&D budget allocations and identify the specific sub-categories that align with NAICS code 541710 to determine the proportion this contract represents.

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

Solicitation ID: W15P7T07RP605

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Teledyne Flir, LLC (UEI: 091296244)

Address: 105 FOREST PWY STE 400, FOREST PARK, GA, 30297

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,859,040

Exercised Options: $21,859,040

Current Obligation: $21,859,040

Contract Characteristics

Cost or Pricing Data: YES

Timeline