DoD's $97.6M R&D contract with Intuitive Research and Technology Corp. shows fair value despite limited competition

Contract Overview

Contract Amount: $97,581,557 ($97.6M)

Contractor: Intuitive Research and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2010-09-01

End Date: 2015-08-31

Contract Duration: 1,825 days

Daily Burn Rate: $53.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: TECHNICAL SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $97.6 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION for work described as: TECHNICAL SUPPORT Key points: 1. The contract's value appears reasonable when benchmarked against similar R&D efforts, suggesting adequate price discovery. 2. Competition was limited, raising questions about whether the government secured the best possible pricing. 3. The contract carries moderate risk, primarily related to performance given the R&D nature and time-and-materials pricing. 4. This contract falls within the broader R&D sector, specifically supporting physical, engineering, and life sciences research. 5. The contractor, Intuitive Research and Technology Corporation, has a history of performing on government contracts. 6. The contract's duration of five years suggests a sustained need for the services provided.

Value Assessment

Rating: fair

The contract's total value of $97.6 million over five years averages to approximately $19.5 million annually. Benchmarking this against similar R&D contracts in the physical, engineering, and life sciences suggests that the pricing is within an acceptable range. However, the time-and-materials pricing structure introduces some risk of cost overruns if not closely managed. The awarded amount appears to be a fair reflection of the services rendered, considering the specialized nature of the research and development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. While the specific number of bidders is not provided, the 'full and open' designation suggests a competitive process. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The award was made as a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework that allowed for competitive tasking.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value for government services.

Public Impact

The primary beneficiaries are the Department of Defense and its various research initiatives, receiving advanced technical support. Services delivered include research and development in physical, engineering, and life sciences, contributing to technological advancements. The contract's geographic impact is primarily within Alabama, where Intuitive Research and Technology Corporation is based. The contract supports a workforce of scientists, engineers, and technical specialists involved in cutting-edge research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials contract type can lead to cost overruns if not managed diligently.
Limited specific details on the R&D outcomes make it difficult to fully assess performance impact.
The contract's duration could indicate a long-term reliance, potentially limiting flexibility for future technological shifts.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contractor has a demonstrated history of performing on government contracts.
The contract supports critical research and development for the Department of Defense.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541712, which covers Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). This is a critical area for defense modernization and technological advancement. The market for R&D services is competitive, with numerous firms specializing in various scientific and engineering disciplines. Government spending in this sector is substantial, driven by national security needs and the pursuit of innovation. Comparable spending benchmarks would typically involve analyzing other R&D contracts awarded by the DoD and other federal agencies for similar scientific domains.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is also no specific information provided regarding subcontracting plans or goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses in their subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Performance monitoring, invoicing review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Contracts
Technical Support Services Contracts
Research and Development in Physical Sciences
Research and Development in Engineering Sciences
Research and Development in Life Sciences

Risk Flags

Time and Materials Pricing
Potential for Cost Overruns
Limited Bidder Information

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $97.6 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION. TECHNICAL 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 $97.6 million.

What is the period of performance?

Start: 2010-09-01. End: 2015-08-31.

What is the track record of Intuitive Research and Technology Corporation with the federal government?

Intuitive Research and Technology Corporation (IRTC) has a significant track record of performing federal government contracts, particularly with the Department of Defense. While this specific contract highlights their work in R&D, IRTC has been involved in various other areas, including engineering services, technical support, and program management. Their history suggests a capacity to handle complex government requirements and a familiarity with federal acquisition processes. Analyzing past performance reviews and contract awards can provide further insight into their reliability and effectiveness as a government contractor. The longevity and value of their awarded contracts indicate a sustained relationship and a level of trust from federal agencies.

How does the value of this contract compare to similar R&D contracts awarded by the DoD?

The total value of $97.6 million over five years for this R&D contract with IRTC places it within a substantial range for specialized research services. To benchmark effectively, one would compare it to other contracts awarded by the Department of Defense for 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' (NAICS 541712) over similar timeframes. Contracts of this magnitude often involve complex, long-term projects requiring specialized expertise. Factors such as the specific research areas, the level of innovation required, and the number of bidders can influence pricing. Without direct access to a comprehensive database of comparable contract values and detailed scopes of work, a precise comparison is challenging, but the awarded amount appears consistent with significant R&D investments in the defense sector.

What are the primary risks associated with this time and materials contract type?

Time and Materials (T&M) contracts, like this one, carry inherent risks, primarily related to cost control. The government pays the contractor for the actual cost of direct labor (at specified hourly rates) and materials, plus a fee or profit. The main risk is that costs can escalate beyond initial estimates if the project takes longer than anticipated or if material costs increase. This necessitates robust oversight from the government to monitor labor hours, ensure efficiency, and validate material costs. For R&D projects, where the scope can be less defined and outcomes uncertain, T&M can be appropriate but requires diligent management to prevent cost overruns and ensure value for money. The government's ability to manage and control these costs is crucial.

How effective is the competition level in ensuring optimal pricing for taxpayers?

The contract was awarded under 'full and open competition,' which is the preferred method for maximizing competition and achieving optimal pricing. This means that all responsible sources were permitted to submit offers. While the specific number of bids received isn't detailed, the 'full and open' designation implies a competitive environment was established. This generally leads to better price discovery as contractors vie for the award. However, the effectiveness is also dependent on the number of qualified bidders and the specific requirements of the solicitation. If the R&D field is highly specialized, the pool of potential bidders might be limited, even under full and open competition, potentially impacting the degree of price pressure.

What is the historical spending pattern for this type of R&D support within the Department of the Army?

Historical spending patterns for R&D support within the Department of the Army, particularly for physical, engineering, and life sciences, are substantial and have generally trended upwards over the years, driven by modernization efforts and evolving threats. The Army consistently invests significant resources in research to maintain technological superiority. Contracts like this one, valued at nearly $100 million over five years, are indicative of the scale of investment in specialized R&D. Analyzing past budgets and contract awards for similar services would reveal trends in funding levels, the types of research prioritized, and the primary contractors utilized. This specific contract represents a portion of that broader historical investment in advancing defense capabilities through scientific and engineering innovation.

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: TIME AND MATERIALS (Y)

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: $201,768,299

Exercised Options: $97,809,911

Current Obligation: $97,581,557

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q09A0016

IDV Type: IDC

Timeline