DoD's $81M R&D contract with Intuitive Research and Technology Corporation shows fair value despite limited competition

Contract Overview

Contract Amount: $81,216,710 ($81.2M)

Contractor: Intuitive Research and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2011-09-30

End Date: 2018-03-30

Contract Duration: 2,373 days

Daily Burn Rate: $34.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: BASE TASK ORDER AWARD AND OPTION EXERCISE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $81.2 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION for work described as: BASE TASK ORDER AWARD AND OPTION EXERCISE Key points: 1. Contract awarded via full and open competition, suggesting a broad search for qualified vendors. 2. The contract's duration of nearly 6 years indicates a long-term need for the R&D services. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The specific NAICS code points to specialized R&D in physical, engineering, and life sciences. 5. No small business set-aside was used, potentially limiting opportunities for smaller firms. 6. The contract was awarded as a delivery order under a larger contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging without more detailed cost breakdowns or comparable project data. However, the firm fixed-price structure suggests the government aimed to control costs upfront. The total award amount of over $81 million spread across nearly six years implies a significant investment in research and development, which can be considered fair if the outcomes meet the program's objectives. Further analysis would require understanding the specific deliverables and their market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a 'full and open competition' basis, indicating that the Department of Defense sought proposals from all responsible sources. While the specific number of bidders is not provided, this method generally fosters a competitive environment. The fact that it was a delivery order suggests it was part of a pre-existing contract vehicle, which might have its own competition history.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by ensuring a wide range of vendors can compete for the work.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the advancement of physical, engineering, and life sciences research. Services delivered include research and development activities, contributing to technological advancements. The geographic impact is primarily within Alabama, where Intuitive Research and Technology Corporation is located. Workforce implications include employment opportunities for scientists, engineers, and support staff involved in R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and impact of the R&D.
The duration of the contract could lead to scope creep if not managed carefully.
Limited information on the specific R&D areas may obscure potential risks or ethical considerations.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust process for selecting the contractor.
The contract supports critical research and development for national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for R&D services is highly specialized, with a mix of large corporations and niche firms. Government spending in this area is crucial for innovation and maintaining a technological edge. Comparable spending benchmarks would depend on the specific R&D domain, but significant investments are common for advanced research projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). This means that large businesses were eligible to compete and potentially win the award. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Without specific subcontracting requirements, the direct impact on small businesses is likely minimal unless they are part of the supply chain for Intuitive Research and Technology Corporation.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve program managers within the Department of the Army responsible for monitoring progress, adherence to scope, and quality of deliverables. Accountability measures are inherent in the firm fixed-price structure, where the contractor is responsible for delivering the agreed-upon research outcomes within the set budget. Transparency is generally facilitated through contract databases, though 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
Army R&D Procurement
Science and Technology Development Contracts
Engineering Services Contracts
Physical Sciences Research Contracts

Risk Flags

Limited Competition Potential
Lack of Specific Deliverables
Unclear Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $81.2 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION. BASE TASK ORDER AWARD AND OPTION EXERCISE

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 $81.2 million.

What is the period of performance?

Start: 2011-09-30. End: 2018-03-30.

What specific research and development projects were undertaken under this contract?

The provided data indicates the contract falls under NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).' However, the specific nature of the R&D projects is not detailed. These could range from materials science, aerospace engineering, advanced manufacturing techniques, to various other scientific and technical investigations relevant to national defense. Without access to the contract's statement of work or project reports, a precise description of the R&D activities remains unavailable. Further inquiry would require accessing classified or internal DoD documentation.

How does the $81.2 million award compare to similar R&D contracts within the Department of Defense?

Comparing this $81.2 million contract requires context on the specific R&D domain and duration. DoD R&D spending is vast, with individual contracts ranging from a few million to billions. For specialized R&D in physical and engineering sciences over a nearly six-year period, $81.2 million is a substantial but not extraordinary amount. Many advanced technology development programs, particularly those involving complex systems or cutting-edge research, often exceed this figure. However, without knowing the specific technological area and the number of comparable projects, a precise benchmark is difficult. It represents a significant investment in a particular research capability.

What are the key performance indicators (KPIs) used to evaluate the success of this R&D contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, R&D contracts define success through milestones such as the successful development of prototypes, validation of scientific theories, achievement of specific technical performance thresholds, or the generation of intellectual property. For a firm fixed-price contract, meeting the defined scope of work and delivering the research outcomes by the end date are primary success factors. However, the qualitative impact and long-term applicability of the R&D are often assessed through separate program reviews and follow-on efforts.

What is Intuitive Research and Technology Corporation's track record with government R&D contracts?

Intuitive Research and Technology Corporation (IRTC) has a history of performing work for the Department of Defense, as evidenced by this contract. While specific details on their past performance metrics are not provided here, their ability to secure an $81.2 million contract awarded through full and open competition suggests a demonstrated capability and a positive track record with the government. Companies that consistently win and successfully execute such contracts typically possess strong technical expertise, project management skills, and a history of meeting contractual obligations. Further assessment would involve reviewing past performance evaluations and other contract awards.

What is the historical spending trend for R&D contracts under NAICS code 541712 by the Department of the Army?

Historical spending trends for NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) by the Department of the Army are substantial, reflecting a continuous investment in technological advancement. While specific year-over-year figures for this exact code are not provided in the summary data, the Army consistently allocates significant portions of its budget to R&D. This spending supports a wide array of research areas crucial for maintaining military superiority, from advanced materials and propulsion to C4ISR systems and cyber technologies. The $81.2 million awarded to Intuitive Research and Technology Corporation is one component of this broader R&D investment strategy.

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: FIRM FIXED PRICE (J)

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: $190,291,272

Exercised Options: $81,216,710

Current Obligation: $81,216,710

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $8,354,647

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q09A0016

IDV Type: IDC

Timeline