DoD's $50.5M R&D contract with Integration Innovation Inc. shows strong performance and competitive sourcing

Contract Overview

Contract Amount: $50,533,633 ($50.5M)

Contractor: Integration Innovation Inc

Awarding Agency: Department of Defense

Start Date: 2015-05-15

End Date: 2024-09-26

Contract Duration: 3,422 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: IGF::CT::IGF

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $50.5 million to INTEGRATION INNOVATION INC for work described as: IGF::CT::IGF Key points: 1. Contract demonstrates a commitment to research and development in physical, engineering, and life sciences. 2. Full and open competition suggests a healthy market and potential for competitive pricing. 3. Firm Fixed Price contract type helps mitigate cost overrun risks for the government. 4. Long duration indicates a sustained need for the services provided. 5. Contract awarded to a single entity, highlighting specialized capabilities or a strong bidding process. 6. Performance period spans nearly a decade, suggesting consistent delivery and value.

Value Assessment

Rating: good

The contract's total value of $50.5 million over its extended period suggests a significant investment in R&D. Without specific benchmarks for comparable R&D contracts in this niche, a direct value-for-money assessment is challenging. However, the firm fixed-price structure is a positive indicator for cost control. The long duration implies the government found the services valuable enough to maintain a long-term relationship, which can be a sign of good value if performance has been consistently strong.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method is generally preferred as it fosters a competitive environment, potentially leading to better pricing and innovation. The fact that Integration Innovation Inc. was ultimately awarded the contract suggests they offered the best value proposition among the competing firms.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures the government receives the best possible services for its investment.

Public Impact

The primary beneficiaries are the Department of Defense and its research initiatives, advancing technological capabilities. Services delivered likely involve cutting-edge research and development in physical, engineering, and life sciences. Geographic impact is centered in Alabama, where the contractor is located, potentially supporting the local economy. Workforce implications include employment for scientists, engineers, and support staff involved in R&D activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration, although competition was initially open.
R&D outcomes can be inherently uncertain, making it difficult to guarantee a specific return on investment.
Reliance on a single contractor for a long period may reduce opportunities for exploring alternative solutions or technologies.

Positive Signals

Firm Fixed Price contract type provides cost certainty and reduces the risk of budget overruns.
Long contract duration (over 9 years) suggests consistent performance and satisfaction with the contractor's capabilities.
Awarded through full and open competition, indicating a robust selection process and potential for competitive pricing.
Contractor has a sustained relationship with the DoD, implying a track record of meeting requirements.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This is a critical area for defense innovation, aiming to develop new technologies and enhance existing capabilities. The market for such specialized R&D services is often characterized by a mix of large corporations and specialized small businesses, with significant government spending directed towards advancing national security interests.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, the primary focus is on large-scale R&D capabilities. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The absence of set-asides means that opportunities for small businesses to directly participate in this specific contract are limited unless they are part of a larger team or a subcontractor to Integration Innovation Inc.

Oversight & Accountability

The contract is managed by the Department of the Army, a component of the Department of Defense. Oversight would typically involve program managers, contracting officers, and potentially the DoD Inspector General for audits and investigations. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details might be sensitive. Accountability is enforced through contract terms, performance metrics, and the potential for contract modifications or termination if requirements are not met.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Engineering and Technical Services Contracts
Physical Sciences Research Grants
Life Sciences Research Initiatives

Risk Flags

Long contract duration may increase risk of technological obsolescence.
R&D outcomes are inherently uncertain and may not yield desired results.
Reliance on a single contractor for an extended period could limit future flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.5 million to INTEGRATION INNOVATION INC. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is INTEGRATION INNOVATION 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 $50.5 million.

What is the period of performance?

Start: 2015-05-15. End: 2024-09-26.

What is the specific nature of the R&D being conducted under this contract?

The contract's NAICS code (541712) indicates 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. While the specific project details are not provided, this broad category suggests work could encompass areas like materials science, advanced manufacturing, robotics, sensor technology, environmental engineering, or various biological and chemical research applications relevant to defense. The long duration and firm fixed-price nature imply a defined scope of work with expected deliverables, rather than exploratory basic research.

How does the total contract value of $50.5 million compare to similar R&D contracts in the defense sector?

Assessing the value requires comparison with similar R&D contracts for 'Research and Development in the Physical, Engineering, and Life Sciences' awarded by the DoD or other federal agencies. Contracts of this magnitude are substantial and indicate a significant R&D effort. Benchmarking would involve looking at contracts with similar scopes, durations, and technical requirements. Without access to a comprehensive database of comparable contracts, it's difficult to definitively state if $50.5 million represents excellent, fair, or questionable value. However, given the nearly decade-long performance period, the annual average spend is around $5-6 million, which is within the range for significant R&D projects.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not specify the key performance indicators or deliverables for this contract. Typically, for R&D contracts, KPIs would relate to milestones achieved, prototypes developed, research findings documented, successful testing phases, or the transition of technology to operational use. The firm fixed-price nature suggests that these deliverables are well-defined in the contract's statement of work, and the contractor is obligated to meet them to receive payment.

What is Integration Innovation Inc.'s track record with the Department of the Army and DoD?

Integration Innovation Inc. (i3) has a history of working with the Department of Defense, including the Department of the Army. This contract, spanning from May 2015 to September 2024, indicates a long-standing relationship and likely a successful performance history to warrant such an extended award. Further investigation into their contract history, past performance reviews, and any reported issues would provide a more complete picture of their track record.

Are there any identified risks associated with this contract, such as cost overruns or performance failures?

The primary risk indicator is the contract type: Firm Fixed Price (FFP). FFP contracts are designed to shift cost risk to the contractor, making significant cost overruns less likely for the government. However, risks can still exist, such as performance failures if the contractor cannot meet technical requirements, or potential delays. The long duration also presents a risk of technological obsolescence if the R&D focus shifts rapidly. The absence of specific risk flags in the data suggests no major issues have been formally reported, but ongoing monitoring is crucial.

How has spending in this R&D category (NAICS 541712) by the Department of the Army trended over the past decade?

Historical spending data for NAICS 541712 by the Department of the Army would need to be analyzed from federal procurement databases (like USASpending.gov). Generally, R&D spending by the DoD fluctuates based on strategic priorities, technological advancements, and budget allocations. Given the increasing emphasis on advanced technologies for national security, it's plausible that spending in this R&D category has remained robust or even increased over the past decade, reflecting a continuous need for innovation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 689 DISCOVERY DR BLDG 1 STE 500, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,296,169

Exercised Options: $50,533,633

Current Obligation: $50,533,633

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: W31P4Q15A0034

IDV Type: BPA

Timeline