DoD awards $159M R&D contract to Teledyne for advanced imaging, with 8 bidders

Contract Overview

Contract Amount: $15,932,795 ($15.9M)

Contractor: Teledyne Scientific & Imaging, LLC

Awarding Agency: Department of Defense

Start Date: 2008-08-01

End Date: 2014-07-31

Contract Duration: 2,190 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BASIC CONTRACT AWARD- INCREMENTALLY FUNDED

Place of Performance

Location: THOUSAND OAKS, VENTURA County, CALIFORNIA, 91360

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.9 million to TELEDYNE SCIENTIFIC & IMAGING, LLC for work described as: BASIC CONTRACT AWARD- INCREMENTALLY FUNDED Key points: 1. Contract awarded via full and open competition, indicating a robust bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 3. Performance period spans over 6 years, suggesting a long-term research objective. 4. The North American Industry Classification System (NAICS) code 541712 points to specialized R&D services. 5. Awarded by the Defense Contract Management Agency, suggesting a focus on defense-related research. 6. The contract is incrementally funded, allowing for phased financial commitment. 7. No small business set-aside was utilized, suggesting the scope may not have been tailored for smaller entities.

Value Assessment

Rating: good

The total award amount of $159.3 million over six years for R&D services in physical sciences is substantial. Benchmarking this against similar contracts is challenging without more specific details on the research scope. However, the presence of 8 bidders suggests a competitive environment that likely drove a reasonable price. The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee, which can provide cost certainty for the government while incentivizing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 bids received. This level of competition is generally positive, as it allows a wide range of qualified contractors to participate and encourages competitive pricing. The significant number of bidders suggests that the market for these specialized R&D services is active and that the government had a good selection of potential providers.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It ensures that the government is obtaining services at a price reflecting market dynamics.

Public Impact

The primary beneficiary is the Department of Defense, which will receive advanced research and development in physical sciences. The contract supports innovation in areas relevant to national security and defense capabilities. The geographic impact is centered in California, where Teledyne Scientific & Imaging, LLC is located. The contract may indirectly support a specialized scientific and engineering workforce involved in R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
Incremental funding requires careful management to ensure continued program progress.
The long performance period could introduce risks related to technological obsolescence or changing requirements.

Positive Signals

Full and open competition with 8 bidders suggests a healthy market and competitive pricing.
The CPFF structure can provide cost control incentives for the contractor.
The contract is for R&D, which is crucial for technological advancement and future capabilities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). The R&D sector is critical for innovation and maintaining technological superiority, particularly in defense applications. Spending in this area is often characterized by long-term investments, specialized expertise, and a high degree of uncertainty. Comparable spending benchmarks would depend heavily on the specific sub-discipline of physical sciences being researched.

Small Business Impact

The contract was not awarded as a small business set-aside, and the awardee, Teledyne Scientific & Imaging, LLC, is likely a large business. This suggests that the scope of the R&D required was substantial and potentially beyond the capacity or specialization of many small businesses. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for broader economic impact.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for contract administration, which includes oversight of performance, cost, and compliance. The incrementally funded nature of the contract implies phased oversight and approval of expenditures. Transparency is generally maintained through contract databases, but specific details of the R&D progress and expenditures may be sensitive for national security reasons.

Related Government Programs

Defense Research and Development
Advanced Materials Research
Scientific and Technical Consulting Services
Department of Defense Research Contracts

Risk Flags

Incremental Funding
Cost Plus Fixed Fee Contract Type
Long Performance Period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to TELEDYNE SCIENTIFIC & IMAGING, LLC. BASIC CONTRACT AWARD- INCREMENTALLY FUNDED

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 $15.9 million.

What is the period of performance?

Start: 2008-08-01. End: 2014-07-31.

What is the specific nature of the 'advanced imaging' research being conducted under this contract?

The provided data does not specify the exact nature of the 'advanced imaging' research. The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' indicates a broad scope. To understand the specifics, one would need to consult the contract's statement of work (SOW) or related documentation. This could range from developing new sensor technologies, improving image processing algorithms, or creating novel imaging techniques for various defense applications, such as surveillance, reconnaissance, or target identification. Without the SOW, the precise research objectives remain undefined.

How does the Cost Plus Fixed Fee (CPFF) structure typically perform in R&D contracts compared to other contract types?

Cost Plus Fixed Fee (CPFF) contracts are common in R&D where the scope of work is not fully defined at the outset, making it difficult to establish a firm fixed price. In CPFF, the contractor is reimbursed for all allowable costs incurred and receives a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it can also lead to potential cost growth if the government approves scope changes or if initial cost estimates were inaccurate. Compared to Cost Plus Incentive Fee (CPIF), CPFF offers less direct incentive for cost reduction beyond avoiding disallowed costs. It is generally considered less risky for the government than pure cost-plus-award-fee (CPAF) contracts where the fee is highly subjective.

What are the potential risks associated with the incremental funding of this contract?

Incremental funding means that the contract is funded in stages, with funds allocated for specific periods or contract line item numbers (CLINs). The primary risk is that subsequent funding may not be appropriated or allocated, potentially leading to contract termination or suspension of work. This can disrupt research progress, cause inefficiencies, and result in contractor claims for termination costs. For the government, it requires careful planning and budgeting to ensure continuity of essential R&D efforts. It also provides a mechanism to limit the government's financial exposure at any given time, allowing for re-evaluation of program needs and priorities before committing the full contract value.

Given the 8 bidders, what does this imply about the market competitiveness for specialized R&D services?

The fact that 8 bids were received for this contract strongly suggests a competitive market for specialized R&D services in the physical sciences. A higher number of bidders generally indicates that the government has a wider pool of qualified contractors to choose from, increasing the likelihood of obtaining competitive pricing and innovative solutions. It also suggests that the barriers to entry for companies in this specific R&D niche are not prohibitively high, or that existing players are actively seeking government contracts. This level of competition is favorable for the government, as it reduces the risk of contractor lock-in and promotes better value for taxpayer money.

What is the typical track record of Teledyne Scientific & Imaging, LLC with DoD contracts?

Teledyne Scientific & Imaging, LLC, as part of the broader Teledyne Technologies conglomerate, has a significant history of contracting with the Department of Defense and other government agencies. They are known for their expertise in areas such as imaging sensors, advanced materials, and specialized electronic components, which align with R&D efforts. While specific details of their past performance on similar R&D contracts would require deeper analysis of contract databases, their sustained presence and multiple awards indicate a generally positive track record and capability to meet DoD requirements. However, a thorough review would involve examining past performance evaluations and any documented issues on previous contracts.

How does the $159 million award compare to overall DoD R&D spending in this category?

The $159.3 million award represents a specific investment within the broader Department of Defense R&D budget. DoD R&D spending is typically in the tens of billions of dollars annually, covering a vast array of scientific and technological pursuits. This particular contract, while substantial for a single award, would constitute a small fraction of the total DoD R&D portfolio. To provide a precise comparison, one would need to identify the specific sub-category within NAICS 541712 that this contract falls under and compare it to the DoD's allocated budget for that specific area in the relevant fiscal years. Without that granular detail, it's difficult to place this single award in the context of overall DoD R&D spending trends.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Teledyne Technologies Incorporated

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

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

Financial Breakdown

Contract Ceiling: $16,653,892

Exercised Options: $16,653,892

Current Obligation: $15,932,795

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline