Intellisense Systems Inc. awarded $9.5M for Bradley vehicle digital distribution boxes, a sole-source R&D contract

Contract Overview

Contract Amount: $9,523,810 ($9.5M)

Contractor: Intellisense Systems Inc

Awarding Agency: General Services Administration

Start Date: 2025-12-01

End Date: 2026-11-30

Contract Duration: 364 days

Daily Burn Rate: $26.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SBIR PHASE III BRADLEY DIGITAL VEHICLE DISTRIBUTION BOX DVDB REPLACEMENT TASK ORDER 1

Place of Performance

Location: TORRANCE, LOS ANGELES County, CALIFORNIA, 90501

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $9.5 million to INTELLISENSE SYSTEMS INC for work described as: SBIR PHASE III BRADLEY DIGITAL VEHICLE DISTRIBUTION BOX DVDB REPLACEMENT TASK ORDER 1 Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Research and Development focus suggests innovation and potential for future technological advancements. 3. Task order structure indicates a specific, defined scope of work within a larger program. 4. Contract duration of one year with options for extension. 5. The contract falls under the General Services Administration's Federal Acquisition Service. 6. The North American Industry Classification System (NAICS) code 541715 points to physical and engineering R&D.

Value Assessment

Rating: questionable

Benchmarking the value of this specific task order is challenging without detailed cost breakdowns and comparison to similar R&D efforts for specialized military vehicle components. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not closely managed, as contractor profit is fixed regardless of actual costs incurred. However, for R&D, it can incentivize innovation. Without more data on the specific deliverables and the contractor's historical performance on similar tasks, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that could have resulted from an open bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The primary beneficiaries are likely the U.S. Army, specifically units utilizing Bradley Fighting Vehicles, who will receive upgraded or replacement digital distribution boxes. The services delivered involve research, development, and potentially the production of critical electronic components for military vehicles. The geographic impact is primarily within the United States, where the contractor operates and where the military vehicles are deployed. Workforce implications may include specialized engineering and technical roles at Intellisense Systems Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for the government.
CPFF contract type requires robust oversight to ensure cost control and prevent overruns.
Lack of competition may indicate a reliance on a single vendor, posing a potential supply chain risk.
The specific nature of R&D can introduce inherent uncertainties in cost and timeline.

Positive Signals

Focus on R&D suggests investment in advanced technology for critical defense systems.
The contract addresses a specific need for replacement or upgrade of essential vehicle components.
Task order structure implies a well-defined requirement within a broader acquisition strategy.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the research and development of electronic components for military vehicles. The market for defense electronics is highly specialized, with a significant portion dominated by a few key contractors possessing the necessary security clearances, technical expertise, and production capabilities. Spending in this area is driven by the need for modernization, enhanced performance, and replacement of aging systems. Comparable spending benchmarks would involve other R&D contracts for vehicle electronics or specialized military hardware.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Intellisense Systems Inc. is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this specific task order. Without a small business set-aside, the primary contractor has discretion over subcontracting, which may or may not involve small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) and potentially the Department of Defense (DoD) given the nature of the equipment. Mechanisms would include contract performance reviews, financial audits, and adherence to the terms of the Cost Plus Fixed Fee agreement. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Bradley Fighting Vehicle Systems
Department of Defense Research and Development
Military Vehicle Electronics
General Services Administration Acquisition Programs
SBIR Phase III Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Research and Development focus
Potential for cost overruns
Supply chain risk due to single source

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9.5 million to INTELLISENSE SYSTEMS INC. SBIR PHASE III BRADLEY DIGITAL VEHICLE DISTRIBUTION BOX DVDB REPLACEMENT TASK ORDER 1

Who is the contractor on this award?

The obligated recipient is INTELLISENSE SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $9.5 million.

What is the period of performance?

Start: 2025-12-01. End: 2026-11-30.

What is Intellisense Systems Inc.'s track record with similar sole-source R&D contracts for defense vehicles?

Assessing Intellisense Systems Inc.'s track record with similar sole-source R&D contracts requires a deep dive into historical contract awards and performance evaluations. While this specific task order is for 'SBIR PHASE III BRADLEY DIGITAL VEHICLE DISTRIBUTION BOX DVDB REPLACEMENT TASK ORDER 1', the 'SBIR Phase III' designation suggests a connection to the Small Business Innovation Research program, which aims to transition innovative technologies developed by small businesses into commercial products or government use. Intellisense Systems Inc. may have acquired or partnered with an original SBIR awardee. Analyzing past performance on sole-source awards, particularly those involving complex electronic systems for military platforms, would reveal their ability to deliver on time, within budget, and to the required technical specifications. A review of past performance ratings, any contract disputes, or termination for cause would be crucial indicators of their reliability and capability in executing sole-source R&D efforts.

How does the $9.5 million cost compare to the market value of similar digital distribution box R&D projects?

Directly comparing the $9.5 million cost to the market value of similar digital distribution box R&D projects is challenging due to the specialized nature of military hardware and the inherent variability in R&D costs. The 'Cost Plus Fixed Fee' (CPFF) contract type means that the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure can sometimes lead to higher overall costs compared to fixed-price contracts if cost controls are not stringent. To benchmark effectively, one would need to identify comparable R&D efforts for electronic control systems in other military vehicles, considering factors like complexity, technological advancement, and the specific performance requirements. Without access to detailed cost breakdowns from Intellisense Systems Inc. or data from other sole-source or competed R&D contracts for similar components, a precise market value comparison is difficult. The lack of competition further complicates price discovery.

What are the primary risks associated with this sole-source R&D contract?

The primary risks associated with this sole-source R&D contract are multifaceted. Firstly, the lack of competition inherently increases the risk of paying a higher price than might be achieved through a competitive bidding process. Secondly, the 'Cost Plus Fixed Fee' (CPFF) structure, while incentivizing innovation, carries the risk of cost overruns if not managed meticulously; the fixed fee provides a guaranteed profit margin regardless of the final cost, potentially reducing the contractor's incentive for aggressive cost control. Thirdly, as an R&D effort, there's an inherent risk of technical challenges, delays, or the technology not meeting the desired performance specifications, potentially impacting the Bradley vehicle's operational readiness. Finally, reliance on a single source for critical components can create supply chain vulnerabilities.

What is the expected program effectiveness or impact of these digital distribution boxes on Bradley vehicle performance?

The expected program effectiveness and impact of these digital distribution boxes on Bradley vehicle performance are anticipated to be significant improvements in reliability, functionality, and potentially maintainability. Digital distribution boxes are critical components that manage and distribute electrical power throughout the vehicle's complex systems, including communications, navigation, weapon systems, and sensors. Upgrading or replacing these boxes with advanced versions, as implied by an R&D task order, suggests an aim to enhance power management efficiency, reduce electromagnetic interference, improve fault detection and diagnostics, and potentially integrate newer technologies. This could lead to increased operational uptime, reduced maintenance burdens, and improved overall combat effectiveness for Bradley vehicles by ensuring stable and efficient power delivery to all essential systems.

How does this $9.5 million award fit into historical spending patterns for Bradley vehicle upgrades or R&D?

This $9.5 million award represents a specific investment within the broader, often substantial, lifecycle costs associated with maintaining and upgrading military platforms like the Bradley Fighting Vehicle. Historical spending on Bradley upgrades has encompassed various aspects, including armor enhancements, lethality improvements, and modernization of internal systems. R&D spending, in particular, is crucial for ensuring that the vehicle remains relevant against evolving threats. While $9.5 million might seem significant for a single task order, it is likely a component of a larger, multi-year modernization strategy or a specific technological advancement initiative. To contextualize it fully, one would need to compare it against the total budget allocated for Bradley modernization over several fiscal years and analyze the proportion dedicated to electronic systems R&D versus other upgrade categories.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 21041 S WESTERN AVE, TORRANCE, CA, 90501

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,712,585

Exercised Options: $9,712,585

Current Obligation: $9,523,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47QFLA26D0002

IDV Type: IDC

Timeline