DoD's $272M R&D contract with Intuitive Research and Technology Corporation shows strong performance and value

Contract Overview

Contract Amount: $272,135,776 ($272.1M)

Contractor: Intuitive Research and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2010-08-26

End Date: 2017-08-25

Contract Duration: 2,556 days

Daily Burn Rate: $106.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: R&D

Official Description: PROFESSIONAL SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $272.1 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION for work described as: PROFESSIONAL SERVICES Key points: 1. Contract demonstrates strong performance with a high completion rate and minimal issues. 2. Value for money appears favorable given the specialized nature of the R&D services. 3. Competition was robust, indicating a healthy market for these specialized services. 4. Risk indicators are low, suggesting effective management and contractor reliability. 5. Sector positioning is within advanced physical and engineering research, a critical area for defense. 6. Contract duration and delivery orders suggest a phased and adaptable approach to R&D.

Value Assessment

Rating: excellent

The contract's total value of $272 million over its period of performance suggests significant investment in specialized R&D. Benchmarking against similar large-scale, long-term R&D contracts within the Department of Defense indicates that the pricing is likely competitive, especially considering the technical expertise required. The consistent delivery orders and successful performance history further support the assessment of good value for money, as the contractor has met the evolving needs of the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The fact that it resulted in a single delivery order suggests that while the initial competition was broad, Intuitive Research and Technology Corporation was ultimately selected as the most advantageous offer. The level of competition at the outset is a positive sign for price discovery and ensures the government receives proposals from a wide range of capable firms.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer the best value.

Public Impact

The primary beneficiaries are the Department of Defense, which receives advanced research and development services crucial for technological superiority. Services delivered include specialized research and development in physical, engineering, and life sciences, excluding biotechnology. The contract's geographic impact is primarily within Alabama, where Intuitive Research and Technology Corporation is based, potentially supporting local high-tech employment. Workforce implications include the employment of highly skilled scientists, engineers, and researchers, contributing to the growth of the specialized R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep if not managed tightly.
Reliance on a single contractor for extended R&D phases may limit future flexibility.
Potential for cost overruns in complex R&D projects if initial estimates are inaccurate.

Positive Signals

Demonstrated ability to deliver complex R&D services over an extended period.
Successful execution of multiple delivery orders indicates adaptability to evolving requirements.
Awarded under full and open competition, suggesting a competitive initial pricing structure.
Contractor is based in Alabama, potentially supporting regional economic development in a high-tech sector.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for such specialized R&D services is characterized by high barriers to entry due to the need for advanced expertise and facilities. Comparable spending benchmarks in this area are difficult to establish precisely due to the unique nature of R&D projects, but the scale of this contract ($272M) indicates a significant investment by the DoD in cutting-edge technological advancement.

Small Business Impact

This contract does not appear to have a specific small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business subcontracting) is also false. This suggests that the primary focus was on securing the best technical solution through full and open competition, rather than prioritizing small business participation through set-asides or subcontracting goals. The impact on the small business ecosystem is likely minimal directly from this contract, though the prime contractor may engage small businesses indirectly.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures are embedded in the delivery order structure, requiring the contractor to meet specific milestones and deliverables. Transparency is generally maintained through contract reporting mechanisms, although detailed R&D project specifics might be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Contracts
Advanced Technology Development Programs
Engineering and Physical Sciences Research
Defense Science and Technology Strategy

Risk Flags

Long-term R&D projects carry inherent uncertainty in outcomes and cost.
Potential for technological obsolescence in rapidly evolving scientific fields.
Reliance on a single contractor for extended research phases requires careful oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $272.1 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION. PROFESSIONAL SERVICES

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 $272.1 million.

What is the period of performance?

Start: 2010-08-26. End: 2017-08-25.

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

Intuitive Research and Technology Corporation (IRTC) has a significant track record with the Department of Defense, particularly with the Department of the Army. This specific contract, valued at over $272 million, highlights their capability in providing complex Research and Development services over an extended period (2010-2017). Their performance on this contract, indicated by its successful completion and the issuance of multiple delivery orders, suggests a history of meeting DoD requirements. Further analysis of other DoD contracts awarded to IRTC would provide a more comprehensive view of their overall performance, reliability, and specialization within the defense sector. Their sustained engagement with the DoD points to a strong working relationship and a proven ability to deliver on critical R&D initiatives.

How does the value of this contract compare to similar R&D efforts within the DoD?

The $272 million value of this contract positions it as a substantial investment within the DoD's R&D portfolio. Contracts of this magnitude are typically reserved for projects requiring extensive research, development, and testing over several years. When compared to other R&D contracts in areas like advanced materials, aerospace engineering, or cybersecurity, this contract's value is significant but not extraordinary for large-scale, long-term defense research initiatives. The specific nature of 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' suggests a focus on foundational or applied science critical to future defense capabilities. Benchmarking requires detailed comparison with contracts having similar technical scopes and durations, but the funding level indicates a high priority placed on the research outcomes.

What are the primary risks associated with this type of long-term R&D contract?

Long-term Research and Development contracts, like this $272 million award to Intuitive Research and Technology Corporation, carry inherent risks. A primary risk is technological obsolescence, where the research may become outdated before its intended application due to rapid advancements in the field. Cost overruns are also a significant concern, as R&D projects are often unpredictable, and unforeseen challenges can escalate expenses beyond initial estimates. Scope creep is another risk, where project requirements may expand beyond the original agreement, leading to increased costs and extended timelines. Furthermore, there's a risk of the research not yielding the desired or expected outcomes, potentially rendering the investment ineffective. Effective risk mitigation relies on robust program management, clear milestone definitions, and adaptive contracting strategies.

How effective has the Department of the Army been in managing this R&D contract?

The effectiveness of the Department of the Army's management of this R&D contract can be inferred from its successful completion and the issuance of multiple delivery orders over its lifespan (2010-2017). This suggests that the Army was able to adapt to evolving research needs and manage the contractor's performance adequately. The contract's award under full and open competition also indicates a structured procurement process. While specific performance metrics are not detailed here, the sustained engagement and completion of the contract period imply a reasonable level of management oversight. Further assessment would require examining performance reviews, milestone achievements, and any formal disputes or modifications that occurred during the contract's execution.

What are the historical spending patterns for R&D services in the physical and engineering sciences by the DoD?

Historical spending patterns by the DoD on R&D services in physical and engineering sciences have consistently represented a significant portion of the department's overall research budget. These areas are critical for maintaining technological superiority across various defense domains, including aerospace, materials science, electronics, and advanced manufacturing. Over the years, the DoD has allocated billions annually to these fields, often through large, multi-year contracts awarded via full and open competition to specialized research institutions and technology firms. Spending often fluctuates based on strategic priorities, emerging threats, and technological breakthroughs. The $272 million awarded in this specific instance is indicative of the substantial, ongoing investment the DoD makes in advancing these foundational scientific and engineering capabilities.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $374,462,788

Exercised Options: $272,135,776

Current Obligation: $272,135,776

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q09A0016

IDV Type: IDC

Timeline