DoD's $28.6M Apache support contract to Integration Innovation Inc. shows R&D focus

Contract Overview

Contract Amount: $28,631,175 ($28.6M)

Contractor: Integration Innovation Inc

Awarding Agency: Department of Defense

Start Date: 2018-06-04

End Date: 2022-06-04

Contract Duration: 1,461 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: TASK ORDER FOR INTERNATIONAL APACHE TECHNICAL LIFECYCLE SUPPORT. IGF::CT::IGF

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $28.6 million to INTEGRATION INNOVATION INC for work described as: TASK ORDER FOR INTERNATIONAL APACHE TECHNICAL LIFECYCLE SUPPORT. IGF::CT::IGF Key points: 1. Contract awarded for technical lifecycle support of Apache helicopters, indicating a focus on sustainment and modernization. 2. The awardee, Integration Innovation Inc., has a track record in defense contracting, suggesting familiarity with the sector's demands. 3. A Time and Materials contract type can pose cost control risks if not managed diligently. 4. The contract duration of 4 years suggests a long-term need for these specialized services. 5. This contract falls under Research and Development in Physical, Engineering, and Life Sciences, highlighting its technical nature. 6. The contract was awarded via a BPA Call, implying it was part of a pre-competed agreement.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without more granular data on the services provided and market rates for specialized Apache technical support. The Time and Materials (T&M) pricing structure, while common for R&D and support services where scope can evolve, inherently carries a higher risk of cost overruns compared to fixed-price contracts. Comparing it to similar lifecycle support contracts for major weapon systems would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit offers. The specific mechanism used was a BPA Call, suggesting that the underlying Basic Ordering Agreement (BOA) or Blanket Purchase Agreement (BPA) was itself competed. The number of bidders for this specific task order is not provided, but the 'full and open' designation generally promotes a competitive environment.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it aims to secure the best value by allowing a wide range of potential contractors to compete, driving down prices through market forces.

Public Impact

The primary beneficiaries are the U.S. Army aviation units relying on the Apache helicopter fleet for combat and support missions. Services delivered include technical lifecycle support, crucial for maintaining the operational readiness and technological relevance of the Apache. The geographic impact is likely concentrated where Apache units are stationed or undergoing maintenance, potentially across various Army installations. Workforce implications include the need for specialized engineers, technicians, and support personnel with expertise in aviation systems and R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the efficiency of the support provided.
The 'Research and Development' classification might imply evolving requirements, potentially increasing complexity and cost.

Positive Signals

Awarded under Full and Open Competition, suggesting a competitive process.
Contractor has experience in defense, likely understanding program needs.
Long contract duration (4 years) indicates a stable, ongoing requirement for critical support.

Sector Analysis

This contract falls within the Defense sector, specifically supporting aviation platforms. The market for defense aviation lifecycle support is substantial, involving numerous contractors specializing in maintenance, repair, overhaul, and upgrade services for complex military aircraft. Integration Innovation Inc. operates in a segment focused on R&D and technical services, competing with both large prime contractors and specialized engineering firms. Spending benchmarks for similar sustainment contracts can vary widely based on aircraft type, age, and operational tempo.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Integration Innovation Inc. chooses to engage them. Without specific subcontracting plans or goals detailed in the award, it's difficult to assess the direct impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Time and Materials nature necessitates robust oversight to ensure labor hours and material costs are reasonable and allocable to the contract's objectives. Transparency is generally facilitated through contract award databases, but detailed performance reporting and audits would be key accountability measures. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Apache Helicopter Modernization Programs
Aviation Systems Maintenance and Repair
Defense Research and Development Contracts
Logistics and Sustainment Services for Military Equipment
Aerospace Engineering Services

Risk Flags

Cost Overrun Risk (T&M Contract)
Scope Creep Potential (R&D Classification)
Performance Measurement Difficulty (R&D/Support Mix)
Contractor Dependency (Specialized Support)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.6 million to INTEGRATION INNOVATION INC. TASK ORDER FOR INTERNATIONAL APACHE TECHNICAL LIFECYCLE SUPPORT. 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 $28.6 million.

What is the period of performance?

Start: 2018-06-04. End: 2022-06-04.

What is the specific nature of the 'technical lifecycle support' provided under this contract?

The contract description 'TASK ORDER FOR INTERNATIONAL APACHE TECHNICAL LIFECYCLE SUPPORT' suggests services related to the ongoing maintenance, repair, sustainment, and potentially upgrades or modifications of the Apache helicopter platform. This could encompass a range of activities including engineering support, troubleshooting, technical data package management, obsolescence management, and ensuring the platform remains operationally effective and compliant with evolving technical requirements throughout its service life. The 'International' aspect may imply support for foreign military sales or deployed U.S. assets abroad. Further details would be needed to delineate specific tasks.

How does Integration Innovation Inc.'s past performance compare to other potential bidders for this type of support?

Assessing Integration Innovation Inc.'s past performance requires access to detailed performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) which are not publicly available in this dataset. However, their selection for a $28.6 million task order under a full and open competition suggests they met the government's criteria for technical capability, past performance, and price. Typically, agencies evaluate bidders on their track record with similar contracts, including on-time delivery, quality of work, cost control, and management effectiveness. Without comparative data on other bidders' performance records, a direct comparison is not feasible.

What are the primary risks associated with the Time and Materials (T&M) contract type for this Apache support task order?

The primary risk of a T&M contract is the potential for cost growth, as the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or நிர் (rate). If the contractor's efficiency is low, or if the scope of work expands unexpectedly without adequate controls, costs can escalate beyond initial estimates. For this Apache support contract, risks include inefficient labor application, inflated material costs, scope creep in R&D activities, and inadequate contractor oversight. Mitigation strategies involve establishing labor hour ceilings, detailed monitoring of expenditures, and robust technical direction.

What is the historical spending trend for Apache technical lifecycle support within the Department of Defense?

Historical spending on Apache technical lifecycle support is likely substantial and has fluctuated over the years based on fleet readiness needs, modernization initiatives, and operational tempo. The Army consistently invests significant funds in maintaining its aviation assets. While this specific $28.6 million task order represents a snapshot, broader trends would show multi-year investments in sustainment, upgrades (like the Apache Aviator Integrated Helmet System or potential Future Vertical Lift integration), and contractor support services. Analyzing aggregate spending data for aviation maintenance and support across different fiscal years would reveal these trends and highlight the long-term commitment to the Apache platform.

How does the $28.6M value compare to the total lifecycle cost of the Apache helicopter program?

The $28.6 million task order represents a specific investment in technical lifecycle support over a four-year period. The total lifecycle cost of a major weapon system like the Apache helicopter program encompasses acquisition, sustainment, operations, and eventual disposal, often spanning decades and amounting to billions of dollars. This task order is a component of the sustainment phase, which itself is a significant portion of the total lifecycle cost. Therefore, $28.6 million is a relatively small fraction of the overall program cost but is critical for ensuring the continued viability and effectiveness of the Apache fleet.

What are the implications of the 'Research and Development' classification (NAICS 541712) for this contract's performance and oversight?

Classifying this contract under NAICS 541712 ('Research and Development in the Physical, Engineering, and Life Sciences') suggests that a significant portion of the work involves investigation, experimentation, or development to improve existing technologies or create new ones related to the Apache helicopter. This implies a degree of uncertainty in project outcomes and timelines, which is typical for R&D. Consequently, performance metrics might focus more on milestones, prototypes, or technical reports rather than fixed deliverables. Oversight needs to be adaptive, focusing on managing technical risks, ensuring progress aligns with research objectives, and controlling costs in an environment where the final technical solution may evolve.

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

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

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: $44,660,877

Exercised Options: $28,631,175

Current Obligation: $28,631,175

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: W31P4Q18A0089

IDV Type: BPA

Timeline