DoD's $179M Engineering Services Contract with Intuitive Research and Technology Corporation shows strong competition and value

Contract Overview

Contract Amount: $179,377,742 ($179.4M)

Contractor: Intuitive Research and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2017-09-27

End Date: 2024-09-21

Contract Duration: 2,551 days

Daily Burn Rate: $70.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF AMRDEC PROGRAMMATIC SUPPORT

Place of Performance

Location: COOKEVILLE, PUTNAM County, TENNESSEE, 38505

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $179.4 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION for work described as: IGF::CT::IGF AMRDEC PROGRAMMATIC SUPPORT Key points: 1. Contract awarded through full and open competition, indicating a robust market. 2. Pricing appears competitive based on the firm-fixed-price structure. 3. Performance duration of over 6 years suggests a stable, long-term need. 4. The contract is a BPA Call, often used for efficient procurement of established services. 5. Focus on engineering services aligns with critical defense research and development needs. 6. The contractor's location in Tennessee may have local economic implications.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides cost certainty for the government. While specific benchmarking data is not provided, the competitive award process suggests that the pricing achieved is likely aligned with market rates for specialized engineering services. The long duration of the contract (over 6 years) implies a consistent need and potentially stable pricing over time, which can be advantageous. However, without detailed cost breakdowns or comparisons to similar, recently awarded contracts, a definitive 'excellent' rating is difficult to assign.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 3 bidders, as indicated, suggests a healthy level of competition for these specialized engineering services. This competitive environment generally leads to better price discovery and encourages contractors to offer their best value propositions to secure the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. It provides assurance that the government is not overpaying due to a lack of viable alternatives.

Public Impact

Benefits the Department of Defense by providing essential engineering support for its programs. Delivers critical engineering services that likely contribute to the development and maintenance of defense systems. The contract's impact is primarily national, supporting defense readiness across the United States. The workforce implications are likely concentrated within the engineering and technical fields, potentially supporting specialized jobs in Tennessee.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly due to the long duration.
Reliance on a single contractor for a significant period could pose risks if performance degrades.
Limited visibility into specific performance metrics without further data.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Awarded through full and open competition, suggesting competitive pricing.
Long contract duration indicates a stable and ongoing requirement, potentially leading to efficiencies.
BPA Call mechanism can streamline future task orders.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports a wide range of government functions, particularly in defense, aerospace, and technology development. The market for specialized engineering services is competitive, with numerous firms capable of providing these expertise. The $179 million value places this contract within the mid-to-large size category for federal engineering procurements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside requirement. However, the prime contractor, Intuitive Research and Technology Corporation, may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices. As a Department of Defense contract, it is also subject to oversight by the Department of Defense Inspector General. Transparency is facilitated through contract award databases like FPDS, though detailed performance reports are often internal.

Related Government Programs

Department of Defense Research and Development Contracts
Engineering and Technical Services
Base Period Agreements (BPA)

Risk Flags

Long contract duration may increase risk of performance degradation or obsolescence.
Potential for cost growth if scope is not tightly managed.
Limited public data on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $179.4 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION. IGF::CT::IGF AMRDEC PROGRAMMATIC SUPPORT

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 $179.4 million.

What is the period of performance?

Start: 2017-09-27. End: 2024-09-21.

What is the track record of Intuitive Research and Technology Corporation with the Department of Defense?

Intuitive Research and Technology Corporation (IRTC) has a history of performing contracts with the Department of Defense, including various agencies within the Army and Air Force. Their work often centers on engineering, scientific, and technical support services. While this specific $179 million contract is a significant award, IRTC has secured other contracts, indicating a level of established performance and capability recognized by the DoD. Further analysis would involve examining past performance reviews, any documented issues or successes on prior contracts, and their overall financial stability to fully assess their track record.

How does the value of this contract compare to similar engineering services contracts awarded by the DoD?

The $179 million value over approximately 7 years (from 2017 to 2024) positions this contract as a substantial award within the engineering services category for the Department of Defense. Comparable contracts in this domain can range from a few million to hundreds of millions of dollars, depending on the scope, duration, and specialization required. Contracts for broad programmatic support or complex system engineering often reach these figures. Benchmarking against similar BPA Calls or firm-fixed-price contracts for engineering services awarded around the same period would provide a more precise comparison, but the scale suggests a significant and ongoing requirement.

What are the primary risks associated with this contract for the government?

The primary risks for the government on this contract include potential performance issues if the contractor fails to meet technical or schedule requirements, cost overruns if the firm-fixed-price structure proves inadequate for unforeseen complexities (though less likely than cost-plus), and contractor dependency over the long duration. There's also a risk of vendor lock-in if transitioning to another provider becomes difficult or costly. Ensuring robust oversight, clear performance metrics, and proactive risk management by the contracting officer are crucial to mitigate these potential downsides.

How effective is the use of a BPA Call for procuring these engineering services?

The use of a BPA Call (Blanket Purchase Agreement Call) is generally an effective method for procuring recurring or established services like engineering support, especially when a pre-competed BPA exists. It streamlines the ordering process, reduces administrative burden, and can lead to faster delivery of services compared to starting a new procurement from scratch. For the government, it leverages the initial competition of the BPA to ensure fair pricing and access to qualified vendors. The effectiveness hinges on the quality of the underlying BPA and the specific call order's clarity and management.

What is the historical spending trend for engineering services within the Department of the Army?

Historical spending trends for engineering services within the Department of the Army typically show a consistent and significant investment. The Army relies heavily on engineering expertise for the research, development, acquisition, and sustainment of its vast array of equipment, infrastructure, and systems. Spending in this category often fluctuates based on major modernization programs, infrastructure projects, and evolving technological requirements. While specific year-over-year data for this contract isn't provided, the overall trend indicates a sustained demand for engineering services, making contracts like this a regular feature of Army procurement.

What does the 'Engineering Services' NAICS code (541330) typically encompass in federal contracting?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' encompasses establishments primarily engaged in providing a wide range of engineering services. This includes architectural and engineering services, as well as services related to civil, mechanical, electrical, industrial, and environmental engineering. In the context of federal contracting, this code covers activities such as design, development, testing, analysis, and consulting related to military systems, infrastructure, technology, and scientific research. It's a broad category reflecting the diverse engineering needs of government agencies.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $244,847,773

Exercised Options: $179,377,742

Current Obligation: $179,377,742

Subaward Activity

Number of Subawards: 62

Total Subaward Amount: $204,938,809

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q16A0009

IDV Type: BPA

Timeline