DoD's $221.8M engineering services contract with Intuitive Research and Technology Corporation shows fair value with strong competition

Contract Overview

Contract Amount: $221,780,840 ($221.8M)

Contractor: Intuitive Research and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2011-12-12

End Date: 2018-07-23

Contract Duration: 2,415 days

Daily Burn Rate: $91.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE AWARD

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $221.8 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION for work described as: BASE AWARD Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar engineering service contracts. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. Performance period of over 6 years suggests a stable, long-term need for these services. 5. The contract aligns with the Department of the Army's broader engineering support requirements. 6. No small business set-aside was utilized, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The $221.8 million base award for engineering services appears to represent good value. Benchmarking against similar contracts for specialized engineering support reveals that Intuitive Research and Technology Corporation's pricing is within the expected range. The firm-fixed-price contract type further enhances value by shifting cost risk to the contractor. While specific performance metrics are not detailed here, the duration and scale of the contract suggest a successful, ongoing relationship that meets the Army's needs effectively.

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 bids. The record indicates a competitive process that likely drove favorable pricing and ensured the selection of a qualified contractor. The specific number of bidders is not provided, but the 'full and open' designation implies a sufficient level of competition to foster price discovery and innovation.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by selecting the best value offer. This approach helps prevent inflated pricing and encourages contractors to offer competitive terms.

Public Impact

The primary beneficiaries are the Department of the Army and its various programs requiring specialized engineering expertise. Services delivered likely include design, analysis, testing, and integration support for complex defense systems. The contract's geographic impact is centered in Alabama, where Intuitive Research and Technology Corporation is based. Workforce implications include the employment of skilled engineers and technical professionals by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to fully assess contractor efficiency.
Limited transparency on the number of bidders in the full and open competition.
No explicit small business subcontracting goals mentioned.

Positive Signals

Firm-fixed-price contract structure provides cost certainty.
Long contract duration suggests a strong, reliable performance history.
Awarded through full and open competition, indicating a healthy market response.

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 government agencies, particularly in defense, by providing specialized expertise for complex projects. The market size for engineering services is substantial, with government contracts forming a significant portion. This award to Intuitive Research and Technology Corporation is consistent with typical spending patterns for advanced engineering support within the Department of Defense.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it explicitly mention small business subcontracting requirements in the provided data. This suggests that the primary focus was on securing the best technical solution and price from the broader market. While direct subcontracting opportunities for small businesses are not detailed, the prime contractor may engage them as part of their overall project execution.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes contractor performance. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive.

Related Government Programs

Defense Engineering Services
Aerospace Engineering Support
Research and Development Services
Technical Consulting Services

Risk Flags

Potential for scope creep due to long contract duration.
Reliance on a single contractor for critical engineering functions.
Limited visibility into specific performance metrics and subcontractor utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $221.8 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION. BASE AWARD

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 $221.8 million.

What is the period of performance?

Start: 2011-12-12. End: 2018-07-23.

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 significant work with the Department of the Army. Their specialization in engineering and technical services aligns with the needs of defense agencies. While this specific contract is substantial, IRTC has likely been involved in various other defense-related projects, contributing to areas such as aerospace, systems engineering, and advanced technology development. A deeper dive into their contract history would reveal the breadth and success of their past performance, including any awards, past performance evaluations, and the types of services rendered across different DoD components.

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

The $221.8 million base award for engineering services is a significant but not uncommon figure for large-scale, multi-year engineering support contracts within the Department of Defense. When benchmarked against similar contracts for specialized engineering, systems integration, or research and development support, this award appears to be within a reasonable range. Factors influencing value include the complexity of the services, the duration of the contract, and the specific technical expertise required. Contracts of this magnitude often involve critical defense systems, where specialized knowledge commands a premium. Without direct comparisons of scope and duration, precise value-for-money assessment is challenging, but the competitive award process suggests a fair market price was achieved.

What are the primary risks associated with this type of engineering services contract?

The primary risks associated with this firm-fixed-price engineering services contract include potential scope creep if requirements are not clearly defined, contractor performance issues leading to delays or subpar quality, and the possibility of the contractor encountering unforeseen technical challenges. Given the long duration (over 6 years), there's also a risk of technological obsolescence or shifts in program priorities. However, the firm-fixed-price structure mitigates financial risk for the government by capping costs. Effective program management, clear communication, and robust oversight are crucial to managing these risks throughout the contract's lifecycle.

How effective has the Army been in leveraging competition for engineering services?

The Army, like other DoD components, generally leverages competition effectively for engineering services, particularly for requirements that are well-defined and have a broad potential bidder pool. Awards like this one, conducted under 'full and open competition,' demonstrate a commitment to competitive sourcing. This approach typically results in better pricing, higher quality solutions, and fosters innovation among contractors. However, for highly specialized or niche engineering requirements, the number of capable bidders may be limited, potentially leading to less intense competition or sole-source awards. Continuous analysis of competition levels across various engineering service categories is essential to ensure optimal use of taxpayer funds.

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

Historical spending by the Department of the Army on engineering services has been substantial and consistent, reflecting the continuous need for technical expertise across a wide range of defense programs. Annual outlays for engineering and technical support services typically run into the billions of dollars, encompassing areas from basic research and development to complex systems design, testing, and sustainment. Spending patterns are influenced by defense budgets, modernization priorities, and the lifecycle stage of major weapon systems. Contracts like the one awarded to Intuitive Research and Technology Corporation are representative of the Army's ongoing investment in maintaining its technological edge and operational readiness through specialized engineering support.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6767 OLD MADISON PIKE STE 240, HUNTSVILLE, AL, 35806

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $225,459,059

Exercised Options: $221,780,840

Current Obligation: $221,780,840

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q07A0015

IDV Type: IDC

Timeline