DoD's $13.5M R&D contract with Teledyne Optech Inc. for advanced sensor technology

Contract Overview

Contract Amount: $13,500,000 ($13.5M)

Contractor: Teledyne Optech Inc

Awarding Agency: Department of Defense

Start Date: 2006-09-28

End Date: 2010-12-31

Contract Duration: 1,555 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: BAA - THIS IS A DIRECT FUND CITE-

Place of Performance

Location: KILN, HANCOCK County, MISSISSIPPI, 39556

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to TELEDYNE OPTECH INC for work described as: BAA - THIS IS A DIRECT FUND CITE- Key points: 1. Contract awarded for advanced sensor technology development. 2. Significant investment in research and development for defense applications. 3. Long-term contract duration suggests a complex and ongoing project. 4. Fixed-price contract type aims to control costs for the government. 5. Awarded under full and open competition, indicating broad market engagement. 6. Contractor has a history of work with the Department of Defense.

Value Assessment

Rating: good

The contract's value of $13.5 million for R&D in advanced sensor technology appears reasonable given the scope and duration. While specific benchmarking data for this niche R&D area is limited, the fixed-price structure suggests an effort to manage costs effectively. The contractor, Teledyne Optech Inc., has a track record with the DoD, which can imply a level of established value and understanding of requirements. Further analysis would require comparing the specific deliverables and technological advancements against similar R&D investments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of two bids indicates a degree of competition, which is generally positive for price discovery and ensuring the government receives competitive offers. The specific details of the bidding process and the number of proposals received would provide a clearer picture of the competitive landscape.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

Benefits the Department of Defense by advancing sensor technology capabilities. Supports research and development in physical, engineering, and life sciences. Potential for technological advancements to enhance national security. Workforce implications may include specialized R&D personnel in Mississippi.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if R&D proves more complex than anticipated.
Risk of technological obsolescence if development timelines are extended.
Dependence on a single contractor for critical technology development.

Positive Signals

Fixed-price contract helps mitigate cost escalation risks.
Full and open competition suggests a robust selection process.
Contractor's experience with DoD may lead to efficient project execution.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The market for advanced sensor technology is highly specialized, driven by defense, aerospace, and scientific research needs. Comparable spending benchmarks in this area are difficult to establish without detailed technical specifications, but R&D contracts of this magnitude are typical for developing cutting-edge defense capabilities. The industry is characterized by innovation and long development cycles.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit information regarding subcontracting plans for small businesses. The focus on advanced R&D may limit opportunities for broad small business participation unless specific components or services are outsourced to smaller, specialized firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management within the Department of the Army. Accountability measures are inherent in the fixed-price contract structure, requiring the contractor to deliver specified outcomes within budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details may be sensitive.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) projects
Army Research Laboratory initiatives
Sensor technology development programs
Advanced materials research

Risk Flags

Long contract duration may increase risk of requirement changes.
R&D projects can face unforeseen technical challenges.
Dependence on a single contractor for critical technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to TELEDYNE OPTECH INC. BAA - THIS IS A DIRECT FUND CITE-

Who is the contractor on this award?

The obligated recipient is TELEDYNE OPTECH 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 $13.5 million.

What is the period of performance?

Start: 2006-09-28. End: 2010-12-31.

What specific advancements in sensor technology is this contract intended to achieve?

The provided data does not specify the exact technological advancements sought. However, given the NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) and the agency (Department of Defense), it is highly probable that the contract aims to develop next-generation sensors with enhanced capabilities. This could include improvements in resolution, sensitivity, range, data processing, or the ability to operate in challenging environments. Such advancements are crucial for intelligence gathering, surveillance, reconnaissance, and targeting systems.

How does the $13.5 million contract value compare to similar R&D efforts in sensor technology?

Benchmarking this $13.5 million contract value against similar R&D efforts in sensor technology is challenging without more specific details on the technological scope and deliverables. However, R&D contracts for advanced defense technologies can range widely, from a few million to hundreds of millions of dollars, depending on complexity and maturity. Teledyne Optech Inc.'s award suggests a significant, but not exceptionally large, investment for a multi-year R&D project. The fixed-price nature implies a defined scope, which aids in value assessment compared to cost-plus contracts often seen in early-stage, high-risk R&D.

What is Teledyne Optech Inc.'s track record with government contracts, particularly in R&D?

Teledyne Optech Inc. has a history of receiving government contracts, including those with the Department of Defense. While the provided data doesn't detail their entire contract history, the fact that they were awarded this definitive contract under full and open competition suggests they possess the necessary qualifications and experience. Their past performance likely played a role in the selection process, indicating a level of reliability and capability in delivering on research and development objectives for federal agencies.

What are the potential risks associated with this long-term R&D contract?

Long-term R&D contracts inherently carry risks. For this $13.5 million contract, potential risks include technological hurdles where development may stall or fail to meet objectives. There's also the risk of cost overruns, although the firm fixed-price structure aims to mitigate this for the government. Programmatic risks include potential shifts in defense priorities or requirements, rendering the developed technology less relevant. Furthermore, the contractor might face challenges in retaining specialized personnel over the contract's duration, impacting project continuity.

How does the 'full and open competition' aspect influence the value and outcome of this contract?

Awarding this contract under 'full and open competition' is a positive indicator for value. It means that all responsible sources were permitted to submit a bid, fostering a competitive environment. This typically drives down prices and encourages innovation as contractors vie for the award. The fact that there were two bids suggests a reasonable level of competition, which helps ensure the government is receiving a fair price and that the chosen solution is likely robust. This process increases the likelihood of achieving the desired technological advancements cost-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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7225 STENNIS AIRPORT DR, KILN, MS, 39556

Business Categories: Category Business, Emerging Small Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $13,500,000

Exercised Options: $13,500,000

Current Obligation: $13,500,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline