DoD's $55M Contract for Threat Systems Management: Intuitive Research & Technology Corp. Secures Deal
Contract Overview
Contract Amount: $55,024,909 ($55.0M)
Contractor: Intuitive Research and Technology Corporation
Awarding Agency: Department of Defense
Start Date: 2019-09-30
End Date: 2024-09-30
Contract Duration: 1,827 days
Daily Burn Rate: $30.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THREAT SYSTEMS MANAGEMENT OFFICE OPERATIONAL TEST&EVALUATION
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $55.0 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION for work described as: THREAT SYSTEMS MANAGEMENT OFFICE OPERATIONAL TEST&EVALUATION Key points: 1. Contract Value: $55.02 million over 5 years. 2. Competition: Awarded under full and open competition. 3. Risk: Cost-plus fixed fee contract type may pose cost overrun risks. 4. Sector: Defense sector, specifically missile and space vehicle parts manufacturing.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs if not managed carefully. Benchmarking against similar CPFF contracts for specialized R&D and testing services is recommended to ensure fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the CPFF structure means the government pays costs plus a fixed fee, which could be less price-sensitive than fixed-price contracts.
Taxpayer Impact: Taxpayer funds are utilized for R&D and operational testing. While competition aims for efficiency, the CPFF structure warrants close monitoring to prevent unnecessary cost escalation.
Public Impact
Supports critical Department of Defense operational test and evaluation efforts. Enhances national security by ensuring the effectiveness of threat systems. Contributes to technological advancement in defense capabilities. Potential for job creation within the aerospace and defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus fixed fee contract type
- Long contract duration (5 years)
- Potential for scope creep in R&D
Positive Signals
- Full and open competition
- Supports critical national security mission
- Experienced contractor in the field
Sector Analysis
This contract falls within the Defense sector, specifically supporting the manufacturing and testing of missile and space vehicle parts. Spending in this niche area is driven by national security requirements and technological advancements.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine the extent of small business participation as subcontractors.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. Given the CPFF structure, rigorous oversight and performance monitoring are crucial to ensure cost control and effective delivery of services.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Overruns
- Scope Creep
- Performance Below Expectations
- Contractor Dependency
- Technological Obsolescence
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.0 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION. THREAT SYSTEMS MANAGEMENT OFFICE OPERATIONAL TEST&EVALUATION
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 Air Force).
What is the total obligated amount?
The obligated amount is $55.0 million.
What is the period of performance?
Start: 2019-09-30. End: 2024-09-30.
What is the typical profit margin for Cost Plus Fixed Fee contracts in the defense sector for similar services?
Profit margins for CPFF contracts in the defense sector can vary significantly based on contract complexity, risk, and specific service requirements. Generally, fixed fees are negotiated and aim to provide a reasonable profit for the contractor while incentivizing efficient performance. Benchmarking against industry standards and historical data for similar specialized R&D and testing services is essential for ensuring the fee is fair and competitive.
How will the government mitigate potential cost overruns associated with the Cost Plus Fixed Fee contract type?
Mitigation strategies for CPFF contracts typically involve robust government oversight, detailed cost tracking, and performance metrics. The government should establish clear milestones, require regular reporting on expenditures and progress, and conduct thorough audits. Incentive clauses or award-fee structures could also be incorporated to reward efficient performance and cost savings, further aligning contractor and government interests.
What are the key performance indicators (KPIs) used to measure the effectiveness of this contract?
Key performance indicators for this contract would likely focus on the successful completion of operational test and evaluation objectives for threat systems. This could include metrics such as the accuracy and completeness of test reports, adherence to testing schedules, the identification of system vulnerabilities, and the overall contribution to improving weapon system readiness and effectiveness. Feedback from end-users and program managers would also be critical.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 5030 BRADFORD DR NW STE 205, HUNTSVILLE, AL, 35805
Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,099,789
Exercised Options: $55,099,789
Current Obligation: $55,024,909
Actual Outlays: $1,802,960
Subaward Activity
Number of Subawards: 28
Total Subaward Amount: $22,012,055
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA248718D4300
IDV Type: IDC
Timeline
Start Date: 2019-09-30
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-09-08
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- Base Option - Technical Service — $212.4M (Department of Defense)
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