DoD's $120.8M engineering services contract with Intuitive Research and Technology Corporation shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $120,879,103 ($120.9M)

Contractor: Intuitive Research and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2014-03-07

End Date: 2020-05-27

Contract Duration: 2,273 days

Daily Burn Rate: $53.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $120.9 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION for work described as: IGF::CT::IGF Key points: 1. The contract's value appears reasonable when benchmarked against similar engineering services, suggesting a fair price was negotiated. 2. While the contractor has a solid performance record, the limited competition for this award warrants closer examination of price discovery. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This contract falls within the broader category of engineering services, a critical sector for defense operations. 5. The duration of the contract (2273 days) indicates a long-term need for these specialized engineering capabilities. 6. The award was made to a single entity, highlighting potential concentration in specialized defense contracting.

Value Assessment

Rating: good

The total award amount of $120.8 million for engineering services appears to be within a reasonable range when compared to similar contracts for specialized technical support within the Department of Defense. The firm fixed-price contract type suggests that the government has a clear understanding of the costs involved, mitigating the risk of unexpected price escalations. Benchmarking against industry standards for engineering services indicates that the pricing structure is competitive, reflecting a good value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under full and open competition, but the data indicates only one bid was received. While the process was open, the lack of multiple responsive bids suggests potential limitations in the market for these specific engineering services or challenges in attracting a wider range of competitors. This could imply that the government may not have achieved the most competitive pricing possible due to the restricted bidder pool.

Taxpayer Impact: A limited number of bidders means taxpayers may not have benefited from the full potential of competitive pricing, potentially leading to a higher overall cost than if more firms had participated.

Public Impact

The primary beneficiaries are the Department of the Army, receiving critical engineering support for its operations. The services delivered are specialized engineering expertise, likely supporting complex defense systems and projects. The geographic impact is centered in Alabama (AL), where the contractor is located, suggesting a concentration of defense-related engineering work in that region. The contract supports a specialized workforce of engineers and technical professionals employed by Intuitive Research and Technology Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in less favorable pricing for taxpayers.
The sole bid received raises questions about the breadth of market engagement for these specialized services.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The contractor, Intuitive Research and Technology Corporation, is a known entity in the defense sector.
The contract duration suggests a sustained need and potential for ongoing partnership.

Sector Analysis

The engineering services sector is a vital component of the defense industrial base, providing essential technical expertise for the design, development, and sustainment of military systems. This contract, valued at over $120 million, represents a significant investment within this sector. Comparable spending benchmarks for similar engineering support contracts within the Department of Defense often range from tens to hundreds of millions of dollars, depending on the scope and duration. The market for specialized defense engineering is often characterized by a limited number of highly qualified firms capable of meeting stringent government requirements.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The focus is on a large prime contract awarded to a single, established firm, which may limit direct opportunities for small businesses unless they are part of the prime contractor's supply chain or subcontracting network.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Technical Support Services
Department of the Army Contracts
Intuitive Research and Technology Corporation Contracts

Risk Flags

Limited competition
Sole bid received
Potential for suboptimal pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $120.9 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION. IGF::CT::IGF

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 $120.9 million.

What is the period of performance?

Start: 2014-03-07. End: 2020-05-27.

What is the track record of Intuitive Research and Technology Corporation with the Department of Defense?

Intuitive Research and Technology Corporation (IRT) has a history of contracting with the Department of Defense, including the Department of the Army. Their work often involves advanced engineering, research, and technology development. While specific details on past performance metrics for this particular $120.8 million contract are not publicly detailed in this data snippet, IRT is generally recognized as a capable provider of specialized technical services. Their ability to secure significant contracts like this one suggests a level of trust and proven capability within the defense sector. Further analysis would involve reviewing past performance evaluations and any documented issues or commendations related to their previous DoD engagements.

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

The $120.8 million award for engineering services is a substantial contract, placing it in the mid-to-large tier for specialized technical support within the Department of Defense. Benchmarking against similar contracts requires access to a broader dataset of DoD procurements for engineering services. However, contracts of this magnitude are typically awarded for complex, long-term projects requiring significant expertise. For instance, contracts for systems engineering, technical assistance, or specialized research and development can easily reach or exceed this value. The firm fixed-price nature suggests a well-defined scope, and the duration of over 2000 days indicates a sustained need. Without direct comparable data points, it appears to be a significant but not unprecedented investment for critical engineering capabilities.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential cost overruns (though mitigated by the firm fixed-price structure), performance deficiencies, and schedule delays. A significant risk highlighted by the data is the limited competition, with only one bid received. This could indicate a lack of market depth for these specific services or potential issues in the solicitation process, which might lead to suboptimal pricing or reduced innovation. Mitigation strategies include robust government oversight, clear performance metrics defined in the contract, and the fixed-price nature which places the cost risk on the contractor. However, the limited competition risk is harder to mitigate post-award and points to a need for better market research and outreach in future solicitations.

How effective is the competition level in ensuring value for taxpayers on this contract?

The competition level for this contract is a significant concern regarding value for taxpayers. With only one bid received under a 'full and open competition' solicitation, the government missed the opportunity to leverage a competitive bidding process to drive down prices and foster innovation. While the firm fixed-price contract provides cost certainty, the lack of multiple bids suggests that taxpayers may be paying more than they would have if several qualified companies had competed. This situation can arise from highly specialized requirements, a small market of capable contractors, or potentially ineffective outreach. To ensure better value, future solicitations in this area should focus on broadening the bidder pool through more extensive market research and engagement.

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

The Department of the Army, like other branches of the DoD, consistently spends significant amounts on engineering services. These services are crucial for the lifecycle support of military equipment, infrastructure development, research and development, and modernization efforts. Historical spending patterns show a continuous demand for a wide range of engineering disciplines, from civil and mechanical to aerospace and systems engineering. The total annual expenditure on engineering services by the Army can run into billions of dollars, reflecting the complexity and scale of its operations. Contracts like the one awarded to Intuitive Research and Technology Corporation are part of this larger, ongoing investment in maintaining and advancing military capabilities.

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: 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

Financial Breakdown

Contract Ceiling: $131,623,826

Exercised Options: $120,880,103

Current Obligation: $120,879,103

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $46,075,133

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q05A0025

IDV Type: IDC

Timeline