DoD awards $21.1M for Radiological Detection Systems, with LUDLUM MEASUREMENTS, INC. securing the FY25 delivery order

Contract Overview

Contract Amount: $21,128,845 ($21.1M)

Contractor: Ludlum Measurements, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-02-20

End Date: 2027-02-19

Contract Duration: 729 days

Daily Burn Rate: $29.0K/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 FOR FISCAL YEAR 2025

Place of Performance

Location: DRAPER, SALT LAKE County, UTAH, 84020

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to LUDLUM MEASUREMENTS, INC. for work described as: RADIOLOGICAL DETECTION SYSTEM FULL RATE PRODUCTION DELIVERY ORDER FOR FISCAL YEAR 2025 Key points: 1. The contract is a fixed-price incentive type, aiming to align contractor and government interests. 2. Competition was conducted after exclusion of sources, suggesting a specific justification for the procurement approach. 3. The contract duration is 729 days, indicating a medium-term supply requirement. 4. This award falls under the 'Other Measuring and Controlling Device Manufacturing' NAICS code. 5. The primary agency is the Department of Defense, with the Department of the Army as the specific service. 6. The award is for Fiscal Year 2025, ensuring readiness for the upcoming year.

Value Assessment

Rating: good

The contract value of $21.1 million for a radiological detection system delivery order appears reasonable given the fixed-price incentive structure and the 729-day duration. Benchmarking against similar large-scale defense procurements for specialized detection equipment would provide further context. The incentive structure suggests a focus on achieving specific performance targets, which can drive value if well-defined. Without detailed specifications of the system's capabilities and quantities, a precise value-for-money assessment is challenging, but the award type implies a focus on cost control and performance.

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 the intent was competition, specific circumstances led to excluding certain potential bidders. The exact reasons for this exclusion are not detailed but could relate to specialized capabilities, prior performance, or unique technical requirements. The limited competition may result in less aggressive pricing compared to a fully open solicitation.

Taxpayer Impact: Taxpayers may see slightly higher costs due to the restricted competitive landscape. However, if the exclusion was based on essential specialized capabilities, it ensures the government obtains the most suitable technology, potentially avoiding higher long-term costs associated with inadequate equipment.

Public Impact

The Department of Defense benefits from enhanced radiological detection capabilities, crucial for force protection and situational awareness. Personnel in the Department of the Army will be equipped with advanced systems to identify and respond to radiological threats. The geographic impact is likely global, supporting military operations and personnel stationed worldwide. This contract supports the manufacturing sector, specifically in specialized electronic and measurement devices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher prices than a fully open market.
The fixed-price incentive structure requires careful monitoring to ensure cost-effectiveness.
Dependence on a single supplier for this critical technology could pose supply chain risks.

Positive Signals

The fixed-price incentive contract aims to balance cost and performance.
The award ensures the availability of critical radiological detection systems for FY25.
LUDLUM MEASUREMENTS, INC. likely possesses specialized expertise in this niche market.

Sector Analysis

The market for radiological detection systems is a specialized segment within the broader defense and scientific instrumentation industry. This sector is characterized by high technical barriers to entry, stringent quality control, and significant R&D investment. Companies operating in this space often have long-standing relationships with government agencies due to the critical nature of the equipment. Spending in this area is driven by national security requirements, threat assessments, and the need for advanced monitoring capabilities in various environments. Comparable spending benchmarks would involve analyzing other contracts for similar detection equipment across different military branches and federal agencies.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary contractor, LUDLUM MEASUREMENTS, INC., is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this award notice. The impact on the small business ecosystem is minimal unless LUDLUM MEASUREMENTS, INC. voluntarily engages small businesses for components or services not covered by the primary contract.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Army contracting and program management offices. Accountability measures are embedded within the fixed-price incentive (FPI) contract type, which links contractor profit to achieving specific cost and performance targets. Transparency is facilitated through contract award databases, though detailed performance metrics and cost breakdowns may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Radiological Detection Equipment Procurement
Defense Threat Reduction Agency Programs
Homeland Security Equipment Grants
Nuclear Materials Monitoring Systems
Emergency Preparedness and Response Equipment

Risk Flags

Limited competition may impact price.
Potential for technological obsolescence over the contract duration.
Dependence on a single supplier for critical equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to LUDLUM MEASUREMENTS, INC.. RADIOLOGICAL DETECTION SYSTEM FULL RATE PRODUCTION DELIVERY ORDER FOR FISCAL YEAR 2025

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 $21.1 million.

What is the period of performance?

Start: 2025-02-20. End: 2027-02-19.

What is the specific type and capability of the radiological detection system being procured?

The provided data indicates the procurement is for a 'RADIOLOGICAL DETECTION SYSTEM FULL RATE PRODUCTION DELIVERY ORDER FOR FISCAL YEAR 2025.' While the specific model or technical specifications are not detailed in the summary, the NAICS code 334519 ('Other Measuring and Controlling Device Manufacturing') suggests a sophisticated electronic or mechanical device designed for detecting and measuring ionizing radiation. These systems are critical for military operations, homeland security, and emergency response, enabling personnel to identify potential radiological hazards, assess contamination levels, and ensure safety. The 'Full Rate Production' designation implies that the system has likely completed development and testing phases and is now being manufactured at scale.

How does the $21.1 million award compare to historical spending on similar radiological detection systems by the DoD?

To accurately compare the $21.1 million award, historical spending data for similar radiological detection systems by the Department of Defense (DoD) would be necessary. This would involve searching contract databases for awards with comparable Product Service Codes (PSCs) or NAICS codes (like 334519) related to radiation detection equipment over the past several fiscal years. Factors such as the quantity of units, technological sophistication, and specific threat environments addressed by previous procurements would need to be considered. Without this granular historical data, it's difficult to definitively state whether this award represents an increase, decrease, or stable level of spending. However, the 'Full Rate Production' nature suggests a mature program, potentially indicating consistent or scaled-up procurement.

What are the key performance indicators (KPIs) and incentive targets within the Fixed Price Incentive (FPI) contract structure?

The Fixed Price Incentive (FPI) contract structure implies that the contractor, LUDLUM MEASUREMENTS, INC., is motivated to control costs and meet performance targets to maximize profit. Key performance indicators (KPIs) would typically relate to the system's detection sensitivity, accuracy, response time, durability, and operational reliability under various environmental conditions. Incentive targets would be negotiated and could include achieving specific cost ceilings, delivery schedules, or exceeding minimum performance thresholds. For example, the government might offer a higher profit margin if the contractor delivers the systems under budget or ahead of schedule, while penalties could apply for significant cost overruns or performance shortfalls. The exact KPIs and incentive mechanisms are usually detailed in the contract's Statement of Work (SOW) and special provisions.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for this contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, while allowing for competition, introduces specific risks. The primary risk is that by excluding certain sources, the government may not be exposed to the full spectrum of available technologies or the most competitive pricing. The justification for exclusion must be robust; if it's based on overly narrow technical specifications or perceived sole-source capabilities that are not truly unique, it can limit innovation and drive up costs. This approach can also lead to protests from excluded bidders if they believe the exclusion was unwarranted. Furthermore, it concentrates the competitive field, potentially reducing the number of viable bidders and thus the intensity of price negotiation. Ensuring the exclusion criteria were objectively justified and documented is crucial for mitigating these risks.

What is LUDLUM MEASUREMENTS, INC.'s track record with the Department of Defense for similar equipment?

LUDLUM MEASUREMENTS, INC. is a known manufacturer of radiation detection instrumentation. A thorough review of their track record with the Department of Defense (DoD) would involve examining past contract awards, performance evaluations (e.g., CPARS - Contractor Performance Assessment Reporting System), and any documented issues or successes. Their history likely includes supplying similar detection devices to various military branches. Given they are awarded a 'Full Rate Production' delivery order, it suggests a positive past performance and established capability to meet DoD requirements. However, specific details regarding the scale, complexity, and success rate of previous DoD contracts would require deeper database analysis.

How does the 729-day contract duration impact the overall value and potential obsolescence of the radiological detection systems?

A contract duration of 729 days (approximately two years) for delivery and production implies a sustained need for these radiological detection systems. From a value perspective, this duration allows for economies of scale in manufacturing and potentially more stable pricing over the period. However, it also raises concerns about technological obsolescence. The field of radiation detection technology is constantly evolving. Systems delivered towards the end of this two-year period might be less advanced than newly emerging technologies available on the market. The government must ensure that the systems procured have a sufficient operational lifespan and that upgrade paths or future procurement strategies are considered to mitigate the risk of rapid obsolescence, especially given the critical nature of these safety and security devices.

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: $21,128,845

Exercised Options: $21,128,845

Current Obligation: $21,128,845

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