DoD's $212M R&D contract with Intuitive Research and Technology Corporation shows strong performance signals

Contract Overview

Contract Amount: $212,436,014 ($212.4M)

Contractor: Intuitive Research and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2013-03-06

End Date: 2019-03-02

Contract Duration: 2,187 days

Daily Burn Rate: $97.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: BASE OPTION - TECHNICAL SERVICE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $212.4 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION for work described as: BASE OPTION - TECHNICAL SERVICE Key points: 1. Contract value of over $212 million indicates significant investment in research and development. 2. Full and open competition suggests a robust market and potential for competitive pricing. 3. Fixed-price contract type shifts risk to the contractor, potentially leading to cost efficiencies. 4. Long contract duration of nearly six years implies a sustained need for the services. 5. The contract is positioned within the R&D sector, specifically focusing on physical, engineering, and life sciences. 6. Contract awarded to a single entity, Intuitive Research and Technology Corporation, highlights specialized capabilities.

Value Assessment

Rating: good

The contract's value of over $212 million for R&D services is substantial. Benchmarking against similar contracts in the physical, engineering, and life sciences R&D sector would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract suggests that the contractor bears the cost overrun risk, which is generally favorable for the government. The long duration also implies a consistent need and potentially a stable, albeit high, cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive down prices and ensure the government receives the best value. The specific number of bidders is not provided, but the 'full and open' designation is a positive indicator of market engagement.

Taxpayer Impact: A competitive award process means taxpayer funds are likely being used more efficiently, as the government secured services through a process designed to elicit the lowest possible price from qualified vendors.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research initiatives, advancing technological capabilities. Services delivered fall under Research and Development in Physical, Engineering, and Life Sciences, contributing to innovation. The contract's geographic impact is centered in Alabama, where Intuitive Research and Technology Corporation is based. Workforce implications include employment opportunities for scientists, engineers, and support staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract scope is not meticulously managed.
Dependence on a single contractor for critical R&D services could pose a risk if performance falters.
The long duration might lead to technological obsolescence if R&D focus shifts rapidly.

Positive Signals

Contractor's established presence and long-term award suggest a track record of successful performance.
Fixed-price structure incentivizes contractor efficiency and cost control.
Full and open competition indicates a healthy market and potential for high-quality service providers.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization and technological advancement. The market for specialized R&D services is often characterized by a mix of large corporations and niche firms. Spending in this area is driven by the need for innovation to maintain a technological edge. Comparable spending benchmarks would depend on the specific sub-discipline within R&D.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, it is unlikely to have significant direct subcontracting opportunities specifically targeted at small businesses unless stipulated in the contract's performance requirements. The primary focus appears to be on the capabilities of the prime contractor, Intuitive Research and Technology Corporation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. Performance reviews, milestone tracking, and financial audits are standard accountability measures. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Army Science and Technology Investments
Physical Sciences Research Contracts
Engineering Research and Development
Life Sciences Research Contracts

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Fixed-price contracts require diligent scope management to prevent cost overruns.
Dependence on a single contractor for critical R&D.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $212.4 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION. BASE OPTION - TECHNICAL SERVICE

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 $212.4 million.

What is the period of performance?

Start: 2013-03-06. End: 2019-03-02.

What is the specific nature of the 'Technical Service' provided under this contract?

The contract description 'BASE OPTION - TECHNICAL SERVICE' combined with the NAICS code '541712' (Research and Development in the Physical, Engineering, and Life Sciences except Biotechnology) suggests that Intuitive Research and Technology Corporation is providing specialized technical expertise and support for R&D activities. This could encompass a wide range of services, including but not limited to, scientific research, experimental development, engineering analysis, testing, prototyping, and technical consulting within the specified scientific domains. The exact nature would be detailed in the contract's statement of work, outlining specific research objectives, methodologies, and deliverables expected by the Department of the Army.

How does the $212 million contract value compare to other R&D contracts in the physical, engineering, and life sciences sector awarded by the DoD?

A contract valued at over $212 million for R&D services is substantial and indicates a significant investment by the Department of the Army. Within the broader R&D sector, particularly for physical, engineering, and life sciences, such a value places it among larger-scale projects. While specific comparative data requires access to a comprehensive database of DoD R&D contracts, contracts of this magnitude often support critical, long-term research initiatives or the development of advanced technologies. It suggests a high level of complexity and importance associated with the research objectives being pursued by Intuitive Research and Technology Corporation.

What are the potential risks associated with a nearly six-year duration for an R&D contract?

A contract duration of approximately six years (2187 days) for R&D presents several potential risks. Firstly, the rapid pace of technological advancement means that research priorities or the technological landscape could shift significantly during the contract period, potentially rendering the initial research objectives less relevant or obsolete. Secondly, managing a long-term fixed-price contract requires diligent oversight to ensure the scope remains well-defined and that the contractor maintains efficiency and quality throughout. Lastly, there's a risk of 'scope creep' if not managed tightly, where the project expands beyond its original intent, potentially impacting cost and schedule, despite the fixed-price nature.

What does the 'firm fixed price' contract type imply for the government and the contractor?

A 'firm fixed price' (FFP) contract type is generally considered advantageous for the government when the scope of work is well-defined and risks are manageable. It means the contractor is obligated to complete the work for a predetermined price, regardless of the actual costs incurred. This shifts the primary cost risk to the contractor. For Intuitive Research and Technology Corporation, this implies they must accurately estimate their costs and manage their resources efficiently to ensure profitability. Any cost overruns would be absorbed by the contractor, while any cost savings could increase their profit margin. This structure incentivizes the contractor to control costs and deliver efficiently.

What is the significance of the contract being awarded to a single entity, Intuitive Research and Technology Corporation?

The award of this substantial R&D contract to a single entity, Intuitive Research and Technology Corporation, suggests that the Department of the Army identified this company as possessing unique or highly specialized capabilities essential for the project's success. This could be due to proprietary technology, specific expertise, a proven track record in a niche area, or a comprehensive understanding of the research requirements. While full and open competition was utilized, the final selection points to this contractor being the most qualified or offering the best value proposition among the bidders for this particular requirement. It highlights the importance of specialized firms in advancing complex R&D objectives.

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: $572,829,016

Exercised Options: $212,436,014

Current Obligation: $212,436,014

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q09A0016

IDV Type: IDC

Timeline