Army awards $14.3M for engineering and technical services, with a 5-year period of performance

Contract Overview

Contract Amount: $14,281,614 ($14.3M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2005-07-14

End Date: 2010-09-30

Contract Duration: 1,904 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: 200510!004141!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0030 !A!N! !Y!0005 ! !20050714!20100708!034964945!034964945!034964945!N!INTUITIVE RESEARCH AND TECHNOL!6767 OLD MADISON PIKE NW !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000396263!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541710!E! !7! ! ! ! ! !20200930!C! ! !N!Z!A!N!J!2!002! ! !Z!N!Z! ! !Y!A!N!N!Z! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $14.3 million to CGI FEDERAL INC. for work described as: 200510!004141!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0030 !A!N! !Y!0005 ! !20050714!20100708!034964945!034964945!034964945!N!INTUITIVE RESEARCH AND TECHNOL!6767 OLD MADISON PIKE NW !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADI… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $14.3 million over approximately 5 years indicates a moderate annual spend. 3. The primary contractor, Intuitive Research and Technology, has secured this award, suggesting a track record with the agency. 4. Services are categorized under R&D in Physical, Engineering, and Life Sciences, aligning with specialized technical needs. 5. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework. 6. The fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be beneficial for the government.

Value Assessment

Rating: good

The contract value of $14.3 million over approximately 5 years (1904 days) translates to an average annual value of roughly $2.86 million. This appears to be a reasonable amount for specialized engineering and technical services within the defense sector. Without specific benchmarks for similar R&D services for the Army, a direct comparison is difficult, but the duration and scope suggest a focused effort rather than a massive program. The firm fixed-price nature of the contract is a positive indicator for cost control.

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 a bid. The data shows 3 bids were received. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The presence of multiple bidders suggests that the market for these specialized services is sufficiently robust to support competitive procurement.

Taxpayer Impact: A full and open competition with multiple bidders typically leads to better value for taxpayers by driving down prices and encouraging innovation from competing firms.

Public Impact

The primary beneficiary is the U.S. Army, which will receive engineering and technical services to support its operations and development efforts. The services delivered are likely to be critical for research and development in physical, engineering, and life sciences, potentially contributing to advancements in defense technology. The contract is geographically focused on Huntsville, Alabama, where the contractor is located, suggesting potential local economic impact. The contract supports specialized technical roles, likely benefiting a skilled workforce in engineering and research fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'engineering technical services' are not clearly defined.
Reliance on a single contractor for critical R&D services could pose a risk if performance issues arise.
The specific nature of R&D can sometimes lead to unpredictable outcomes or cost escalations, even with fixed-price contracts.

Positive Signals

Awarded through full and open competition, indicating a healthy market and competitive pricing.
Firm fixed-price contract type shifts cost risk to the contractor, promoting cost control.
The contract duration of over 5 years allows for sustained support and development.
The contractor, Intuitive Research and Technology, is located in Huntsville, AL, a known hub for aerospace and defense, suggesting potential synergy and expertise.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710). This sector is crucial for defense innovation, encompassing a wide range of activities from basic research to applied development. The market size for defense-related R&D services is substantial, with significant government investment annually. This contract represents a portion of that investment, likely supporting specific technological advancements or engineering solutions for the Army.

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 stemming from a set-aside provision. However, the prime contractor may choose to engage small businesses as subcontractors, depending on the specific technical requirements and their own business strategy. Without further information on subcontracting plans, the direct impact on the small business ecosystem from this specific award is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. The firm fixed-price nature of the contract provides a degree of accountability by placing cost control responsibility on the contractor. Transparency is generally maintained through contract award databases like FPDS. Specific Inspector General (IG) jurisdiction would depend on whether the contract falls under any active IG investigations or audits related to defense procurement.

Related Government Programs

Army Research and Development Programs
Missile and Space Intelligence Center (AMIC) Support
Engineering Services Contracts
Technical Support Services Contracts
Defense Research and Development

Risk Flags

Potential for technical challenges in R&D
Risk of obsolescence in rapidly evolving tech fields
Contractor performance dependency
Clarity of R&D scope and deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.3 million to CGI FEDERAL INC.. 200510!004141!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0030 !A!N! !Y!0005 ! !20050714!20100708!034964945!034964945!034964945!N!INTUITIVE RESEARCH AND TECHNOL!6767 OLD MADISON PIKE NW !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000396263!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541710!E! !7! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL 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 $14.3 million.

What is the period of performance?

Start: 2005-07-14. End: 2010-09-30.

What is the track record of Intuitive Research and Technology with the Department of Defense, particularly the Army?

Intuitive Research and Technology (IRT) has a history of contracting with the Department of Defense. While this specific award is for $14.3 million over approximately 5 years, IRT has secured numerous other contracts, often in similar technical and engineering support capacities. Their presence in Huntsville, Alabama, a major defense and aerospace hub, suggests a long-standing relationship and established expertise within the defense industrial base. Analyzing their broader contract portfolio, including past performance on similar projects, would provide a more comprehensive view of their reliability and capability in delivering complex engineering and technical services to the Army and other defense agencies.

How does the $14.3 million contract value compare to similar engineering and technical services contracts awarded by the Army?

The $14.3 million contract value, spread over roughly five years, represents an average annual expenditure of approximately $2.86 million. This figure is moderate for specialized engineering and technical services within the defense sector. Many Army R&D and engineering support contracts can range from a few million to tens or even hundreds of millions of dollars, depending on the scope, duration, and criticality of the services. This particular contract appears to be for a focused set of services, rather than a broad, large-scale program. Benchmarking against contracts with similar NAICS codes (541710) and service descriptions for the Army would provide a more precise comparison, but the value itself does not immediately suggest over or under-spending without that context.

What are the primary risks associated with this contract, given its R&D focus?

The primary risks associated with this contract stem from its Research and Development (R&D) focus. R&D projects inherently carry uncertainty regarding technical feasibility, timelines, and ultimate outcomes. Even with a firm fixed-price structure, there's a risk of the contractor encountering unforeseen technical challenges that could strain their ability to deliver within budget or scope, potentially leading to disputes or requests for modification. Another risk is the potential for the developed technology or service to become obsolete quickly due to rapid advancements in the field. Furthermore, the effectiveness and impact of the R&D outcomes are not guaranteed, posing a risk to the Army's investment if the results do not meet strategic objectives.

How effective is the 'Full and Open Competition' strategy in ensuring value for this type of specialized R&D service?

The 'Full and Open Competition' strategy is generally effective in ensuring value for specialized R&D services by fostering a competitive environment. By allowing all responsible sources to bid, the Army increases the likelihood of receiving innovative proposals and competitive pricing. The fact that three bids were received suggests sufficient market interest. However, the effectiveness is also contingent on the clarity of the solicitation's technical requirements and evaluation criteria. For highly specialized R&D, defining requirements precisely enough to allow meaningful comparison across different technical approaches can be challenging. Nonetheless, competition remains a cornerstone of achieving best value, pushing contractors to offer their most competitive technical solutions and pricing.

What are the historical spending patterns for engineering and technical services by the Department of the Army in Huntsville, Alabama?

Huntsville, Alabama, is a significant hub for Army R&D and engineering activities, particularly associated with organizations like the U.S. Army Aviation and Missile Command (AMCOM) and the Space and Missile Defense Command (SMDC). Consequently, historical spending patterns for engineering and technical services in this region are substantial. The Army consistently awards numerous contracts for R&D, systems engineering, technical support, and related services to various contractors operating in the Huntsville area. This specific $14.3 million contract aligns with the broader trend of significant Army investment in technical expertise within this geographic cluster, reflecting the concentration of defense-related research institutions and companies.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc (UEI: 248513116)

Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q05A0030

IDV Type: IDC

Timeline