DoD's $156.5M ITT Corp contract for advanced tech development shows fair competition and potential value
Contract Overview
Contract Amount: $15,652,814 ($15.7M)
Contractor: ITT Corporation
Awarding Agency: Department of Defense
Start Date: 1999-06-02
End Date: 2010-02-28
Contract Duration: 3,924 days
Daily Burn Rate: $4.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 199909!5700!0158!GR09 !WL/AAKD DEVELOPMENT BRANCH !F3361599D1444 !A!*!0001 !19990602!20040527!052554441!001216845!001216845!N!1D522!ITT INDUSTRIES, INC !100 KINGSLAND RD !CLIFTON !NJ!07014!13690!031!34!CLIFTON !PASSAIC !NEW JERSEY!0001!+000000075000!N!N!000000000000!AC63!RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !8731!5!B!S!*!B!N!Z!A !N!U!1!002!N!6A!Z!Y!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $15.7 million to ITT CORPORATION for work described as: 199909!5700!0158!GR09 !WL/AAKD DEVELOPMENT BRANCH !F3361599D1444 !A!*!0001 !19990602!20040527!052554441!001216845!001216845!N!1D522!ITT INDUSTRIES, INC !100 KINGSLAND RD !CLIFTON !NJ!07014!13690!031!34!CLIFTON !PASSAI… Key points: 1. Contract awarded to ITT Industries for advanced technology development in electronics and communication. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is substantial (over 10 years), indicating a long-term need. 4. Potential for significant taxpayer impact due to the large contract value and extended period.
Value Assessment
Rating: fair
The contract value of $156.5M over a long period suggests a significant investment. Without specific unit costs or comparable contracts for similar advanced R&D, a precise value assessment is difficult, but the scale implies substantial resource allocation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters price discovery and competitive pricing. However, the nature of advanced R&D can make direct price comparisons challenging.
Taxpayer Impact: The substantial value and long duration mean that efficient use of funds is critical for maximizing taxpayer benefit and minimizing waste.
Public Impact
Advancement in electronics and communication technology could lead to future defense capabilities. Long-term commitment to a single contractor may limit opportunities for emerging technologies or smaller businesses. The contract's success hinges on the effective delivery of advanced technological solutions. Potential for spin-off technologies benefiting the commercial sector. Oversight is crucial to ensure funds are used for intended R&D purposes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to cost overruns or scope creep.
- Advanced R&D is inherently risky; outcomes are not guaranteed.
- Reliance on a single large contractor could stifle innovation from smaller firms.
Positive Signals
- Full and open competition suggests a potentially competitive price.
- Focus on advanced technology development aligns with future needs.
- Significant investment may yield groundbreaking capabilities.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences, specifically focusing on advanced electronics and communication technology. Spending in this sector is critical for maintaining technological superiority but can be subject to long development cycles and high costs.
Small Business Impact
The contract was awarded to a large corporation (ITT Industries) and there is no indication of specific provisions for small business participation. This suggests that small businesses may have had limited direct opportunities on this prime contract.
Oversight & Accountability
The contract's long duration and significant value necessitate robust oversight from the Department of Defense to ensure milestones are met, funds are used appropriately, and the project remains aligned with strategic objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration increases risk of cost overruns.
- Advanced R&D is inherently uncertain, with no guarantee of successful outcomes.
- Potential for contractor lock-in due to specialized knowledge gained.
- Lack of small business participation noted.
Tags
research-and-development-in-the-physical, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.7 million to ITT CORPORATION. 199909!5700!0158!GR09 !WL/AAKD DEVELOPMENT BRANCH !F3361599D1444 !A!*!0001 !19990602!20040527!052554441!001216845!001216845!N!1D522!ITT INDUSTRIES, INC !100 KINGSLAND RD !CLIFTON !NJ!07014!13690!031!34!CLIFTON !PASSAIC !NEW JERSEY!0001!+000000075000!N!N!000000000000!AC63!RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !8731!5!B!S!*!B!N!Z!A !N!U!1!0
Who is the contractor on this award?
The obligated recipient is ITT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $15.7 million.
What is the period of performance?
Start: 1999-06-02. End: 2010-02-28.
What specific technological advancements were achieved under this contract, and how did they impact the Department of the Air Force's capabilities?
The contract focused on 'RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV'. While specific outcomes are not detailed, such R&D aims to enhance communication systems, sensor technology, or electronic warfare capabilities. The impact would be measured by the successful integration of these advancements into operational platforms, improving situational awareness, command and control, or survivability.
Given the 'full and open competition' award, were there any post-award modifications or sole-source actions that altered the competitive landscape?
The provided data indicates the initial award was under 'FULL AND OPEN COMPETITION'. Without access to contract modification history, it's impossible to confirm if subsequent actions shifted the nature of competition. However, the initial award method suggests a deliberate effort to seek the best value through a broad solicitation process.
How does the cost-plus-fixed-fee (CPFF) pricing structure align with the risks inherent in advanced technology development for taxpayer value?
Cost-plus-fixed-fee contracts allow the contractor to recover allowable costs plus a predetermined fixed fee. This structure is often used for R&D where cost estimation is difficult. While it incentivizes the contractor to control costs to protect their fee, it places more risk on the government if costs escalate beyond projections, requiring careful monitoring to ensure value.
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
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 100 KINGSLAND RD, CLIFTON, NJ, 07014
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3361599D1444
IDV Type: IDC
Timeline
Start Date: 1999-06-02
Current End Date: 2010-02-28
Potential End Date: 2010-02-28 00:00:00
Last Modified: 2021-08-04
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