DoD Army Awards $78.9M Engineering Services Contract to Intuitive Research and Technology Corp

Contract Overview

Contract Amount: $78,927,489 ($78.9M)

Contractor: Intuitive Research and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2008-06-09

End Date: 2014-02-09

Contract Duration: 2,071 days

Daily Burn Rate: $38.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Engineering Services

Official Description: NEW TASK ORDER

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $78.9 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION for work described as: NEW TASK ORDER Key points: 1. Contract value of $78.9M over 6 years. 2. Awarded under full and open competition. 3. Potential for cost overruns with Time and Materials pricing. 4. Engineering services sector, NAICS 541330.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure, coupled with a duration of 2071 days, presents a risk for cost escalation. Benchmarking against similar engineering services contracts is difficult without specific labor categories and rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Time and Materials (T&M) pricing type can limit the effectiveness of competition in controlling final costs.

Taxpayer Impact: Taxpayer funds are utilized for engineering services. The T&M pricing model necessitates careful oversight to ensure costs remain reasonable and aligned with project scope.

Public Impact

Supports Department of the Army operations with critical engineering services. Contract duration spans over six years, indicating a long-term need. Potential for increased costs due to T&M pricing model.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
Long contract duration

Positive Signals

Full and open competition
Established contractor

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is crucial for government infrastructure and defense projects. Spending in this sector can vary significantly based on national priorities and project complexity.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The prime contractor, Intuitive Research and Technology Corporation, is not explicitly identified as a small business in this context.

Oversight & Accountability

The long duration and T&M pricing necessitate robust oversight from the Department of the Army to monitor performance, control costs, and ensure adherence to contract terms and taxpayer value.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Time and Materials pricing increases cost uncertainty.
Long contract duration (over 6 years) poses long-term budget risk.
Lack of specific labor rate data hinders detailed cost analysis.
Potential for scope creep without strict oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.9 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION. NEW TASK ORDER

Who is the contractor on this award?

The obligated recipient is INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $78.9 million.

What is the period of performance?

Start: 2008-06-09. End: 2014-02-09.

What is the average hourly rate for key labor categories under this Time and Materials contract, and how does it compare to industry benchmarks?

Determining the average hourly rates for key labor categories is essential for assessing value. Without this specific data, it's challenging to benchmark against industry standards. However, typical rates for specialized engineering services can range from $100 to $300+ per hour, depending on skill level and experience. Government agencies often negotiate ceilings or use GSA schedules to control these costs.

What mechanisms are in place to mitigate the risk of cost overruns inherent in Time and Materials contracts for this long-duration project?

Mitigation strategies for T&M contracts often include establishing firm-fixed-price CLINs for specific tasks, implementing labor hour limitations, requiring detailed progress reports, and conducting regular audits. The contracting officer's representative (COR) plays a critical role in monitoring expenditures and ensuring work performed aligns with the contract's objectives and budget constraints.

How effectively has the Department of the Army managed the competition and pricing discovery for this significant engineering services award?

The award was made under full and open competition, which is a positive indicator for price discovery. However, the use of Time and Materials pricing introduces a degree of uncertainty regarding the final cost. Effective management would involve rigorous negotiation of labor rates and continuous monitoring of expenditures throughout the contract's lifecycle to ensure value for money.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 5030 BRADFORD DR BLDG 2 STE 205, HUNTSVILLE, AL, 35805

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $78,970,812

Exercised Options: $78,927,489

Current Obligation: $78,927,489

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q08A0018

IDV Type: IDC

Timeline