Radiological Detection System Delivery Order Awarded to Ludlum Measurements for $25.3M

Contract Overview

Contract Amount: $25,289,555 ($25.3M)

Contractor: Ludlum Measurements, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-07-31

End Date: 2026-07-30

Contract Duration: 729 days

Daily Burn Rate: $34.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: RADIOLOGICAL DETECTION SYSTEM FULL RATE PRODUCTION DELIVERY ORDER #2

Place of Performance

Location: DRAPER, SALT LAKE County, UTAH, 84020

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $25.3 million to LUDLUM MEASUREMENTS, INC. for work described as: RADIOLOGICAL DETECTION SYSTEM FULL RATE PRODUCTION DELIVERY ORDER #2 Key points: 1. Contract value represents a significant investment in critical detection capabilities. 2. Competition dynamics suggest a potentially competitive bidding process for this delivery order. 3. Fixed Price Incentive contract type introduces performance-based financial incentives. 4. Delivery order duration of two years indicates a medium-term requirement. 5. The award falls within the 'Other Measuring and Controlling Device Manufacturing' sector. 6. Contract awarded to a single entity, Ludlum Measurements, Inc.

Value Assessment

Rating: good

The contract value of $25.3 million for a radiological detection system delivery order appears reasonable given the specialized nature of the equipment. Benchmarking against similar advanced sensor systems, the price per unit, if calculable, would provide a clearer picture of value. However, the fixed-price incentive structure suggests a focus on achieving specific performance targets, which can drive value if met effectively. The historical performance and pricing of Ludlum Measurements, Inc. in similar contracts would be a key factor in a more detailed value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while an initial broad competition may have been considered, specific circumstances led to the exclusion of certain sources before the final award. The exact reasons for this exclusion are not detailed but could relate to specialized capabilities, prior performance, or specific security requirements. The limited competition may impact the final price, potentially leading to a higher cost than under full and open competition.

Taxpayer Impact: The limited competition nature of this award means taxpayers may not have benefited from the full range of potential cost savings that could arise from a broader, more inclusive bidding process.

Public Impact

The Department of the Army benefits from enhanced radiological detection capabilities, crucial for national security and safety. The services delivered include the production and delivery of specialized radiological detection systems. The geographic impact is primarily within the United States, supporting domestic defense and security operations. Workforce implications may include specialized manufacturing and technical support roles within Ludlum Measurements, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher prices for taxpayers.
Lack of detailed justification for source exclusion raises transparency concerns.
Fixed Price Incentive contracts can become costly if performance targets are not well-defined or achievable.

Positive Signals

Award to a known entity, Ludlum Measurements, Inc., suggests potential for reliable delivery.
The fixed-price incentive structure can encourage contractor performance and efficiency.
Specialized nature of the equipment implies a critical need being met.

Sector Analysis

The 'Other Measuring and Controlling Device Manufacturing' sector encompasses a wide array of specialized equipment. This contract for radiological detection systems fits within a niche market focused on safety, security, and scientific instrumentation. The market for such devices is often driven by government procurement, particularly in defense and homeland security. Comparable spending benchmarks would likely be found within other advanced sensor and detection technology procurements by federal agencies.

Small Business Impact

The data indicates that small business participation was not a primary consideration for this specific delivery order, as the 'sb' field is false and there is no mention of set-asides. This suggests that the primary contractor, Ludlum Measurements, Inc., is likely a larger entity, or that the contract requirements were not structured to facilitate small business involvement. Subcontracting opportunities for small businesses are not explicitly detailed but could exist depending on the manufacturing and supply chain needs of the primary contractor.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. Accountability measures are embedded within the Fixed Price Incentive contract type, which ties contractor profit to performance against established targets. Transparency is facilitated through contract award databases, though specific details regarding the justification for 'EXCLUSION OF SOURCES' would require further inquiry. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Radiological Detection Equipment Procurement
Homeland Security Instrumentation
Defense Department Sensor Technology
Advanced Manufacturing Contracts

Risk Flags

Limited competition justification unclear
Potential for price inflation due to reduced bidder pool

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.3 million to LUDLUM MEASUREMENTS, INC.. RADIOLOGICAL DETECTION SYSTEM FULL RATE PRODUCTION DELIVERY ORDER #2

Who is the contractor on this award?

The obligated recipient is LUDLUM MEASUREMENTS, 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 $25.3 million.

What is the period of performance?

Start: 2024-07-31. End: 2026-07-30.

What is the historical performance and track record of Ludlum Measurements, Inc. with the Department of Defense?

Ludlum Measurements, Inc. has a history of providing radiological detection equipment to various government agencies, including the Department of Defense. Their track record typically involves the manufacturing of specialized instruments for radiation detection, measurement, and monitoring. Analyzing past contracts awarded to Ludlum Measurements would reveal their performance in terms of on-time delivery, product quality, and adherence to specifications. A review of contract databases and performance reports (if publicly available) would be necessary to assess their reliability and identify any past issues or commendations. This historical data is crucial for understanding the risk associated with this current delivery order and for benchmarking the value proposition.

How does the pricing of this radiological detection system delivery order compare to similar contracts awarded by the Department of Defense or other federal agencies?

A precise comparison of pricing requires detailed specifications of the radiological detection systems being procured under this delivery order and comparable contracts. However, general benchmarking can be done by looking at the average price per unit for similar types of detectors (e.g., Geiger counters, scintillators, personal dosimeters) procured by the DoD or agencies like the Department of Energy or Homeland Security. The $25.3 million award for a delivery order suggests a significant quantity or highly advanced capabilities. If unit costs are available, they should be compared against market rates for comparable commercial-off-the-shelf (COTS) or custom-developed systems. The 'FIXED PRICE INCENTIVE' (FPI) contract type adds complexity, as the final price can vary based on performance outcomes, making direct price comparisons challenging without understanding the incentive structure and target costs.

What are the specific risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award for specialized equipment?

The primary risk associated with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is reduced competition, which can lead to higher costs for the government and taxpayers. When certain potential bidders are excluded, the pool of qualified contractors shrinks, potentially diminishing price discovery and innovation. The justification for exclusion is critical; if it's based on legitimate, well-documented reasons such as unique capabilities, proprietary technology, or critical security requirements, the risk might be mitigated. However, if the exclusion is poorly justified or appears arbitrary, it could signal a lack of due diligence or potential favoritism, increasing the risk of an inefficiently priced contract. Furthermore, it limits the government's ability to leverage the full market's offerings.

What is the expected program effectiveness and impact of these radiological detection systems for the Department of the Army?

The expected program effectiveness of these radiological detection systems for the Department of the Army is centered on enhancing situational awareness and response capabilities related to radiological threats. These systems are critical for force protection, border security, and potentially for supporting civil authorities in hazardous material incidents. Effective deployment would allow military personnel to accurately detect, identify, and quantify radioactive materials, thereby enabling informed decision-making to mitigate risks, ensure safety, and maintain operational readiness. The impact includes improved security posture, reduced risk to personnel and the public, and a more robust capability to respond to radiological emergencies or attacks.

How has federal spending on radiological detection systems evolved over the past five years, and does this award align with historical patterns?

Federal spending on radiological detection systems has likely seen fluctuations driven by evolving threat assessments, technological advancements, and specific program requirements across agencies like the Department of Defense, Department of Homeland Security, and Department of Energy. Historically, spending in this area tends to be consistent, reflecting ongoing needs for security and safety. A $25.3 million delivery order is a significant single award, but it needs to be viewed within the context of the total annual federal expenditure on such systems. Analyzing spending trends would involve aggregating data from similar contract awards over the past five years. This award appears to align with the continuous need for advanced detection capabilities, suggesting a sustained level of investment rather than a radical departure from historical patterns, assuming similar awards have been made previously.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911SR15R0001

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 11814 ELECTION RD STE 200, DRAPER, UT, 84020

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,289,555

Exercised Options: $25,289,555

Current Obligation: $25,289,555

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SR16D0027

IDV Type: IDC

Timeline