DoD's PEO Aviation awards $54.2M to Intuitive Research for TETRAS, with 3 delivery orders expected

Contract Overview

Contract Amount: $54,244,593 ($54.2M)

Contractor: Intuitive Research and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2020-09-25

End Date: 2025-09-24

Contract Duration: 1,825 days

Daily Burn Rate: $29.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TEST&EVALUATION TECHNOLOGIES, ARMAMENTS, AND SPECTRUM (TETRAS), PROGRAM EXECUTIVE OFFICE AVIATION (PEO AVN) EXPERIMENT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $54.2 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION for work described as: TEST&EVALUATION TECHNOLOGIES, ARMAMENTS, AND SPECTRUM (TETRAS), PROGRAM EXECUTIVE OFFICE AVIATION (PEO AVN) EXPERIMENT Key points: 1. Contract awarded to Intuitive Research and Technology Corporation for Test & Evaluation Technologies, Armaments, and Spectrum (TETRAS). 2. The contract has a base value of $54.2 million and a period of performance through September 2025. 3. The contract was awarded under full and open competition. 4. The primary sector is Defense, specifically supporting PEO Aviation. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type allows for flexibility but carries inherent risk of cost growth. Benchmarking against similar PEO Aviation contracts would be necessary to fully assess value.

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 Cost Plus Fixed Fee structure requires diligent oversight to ensure competitive pricing is maintained throughout performance.

Taxpayer Impact: Taxpayer funds are being used for advanced aviation technologies. The competitive award aims for efficiency, but the CPFF structure necessitates vigilance against potential cost escalations.

Public Impact

Supports the Department of the Air Force's aviation technology and armament programs. Enhances testing and evaluation capabilities for critical defense systems. Potential for technological advancements in guided missile and space vehicle components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Long performance period (5 years)
No small business participation noted

Positive Signals

Full and open competition
Supports critical defense programs
Experienced contractor

Sector Analysis

This contract falls within the Defense sector, specifically supporting aviation programs. Spending benchmarks for similar PEO Aviation contracts would provide further context on the $54.2 million award.

Small Business Impact

There is no indication of small business participation in this contract. Efforts to include small businesses in subcontracting opportunities should be explored to foster broader economic impact.

Oversight & Accountability

The contract's long duration and CPFF structure necessitate strong oversight from PEO Aviation to ensure cost control and adherence to performance objectives. Regular reviews and audits are crucial.

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

Potential for cost overruns due to CPFF structure
Long contract duration may lead to scope creep or evolving requirements
Lack of small business participation
Limited transparency on specific technological deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.2 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION. TEST&EVALUATION TECHNOLOGIES, ARMAMENTS, AND SPECTRUM (TETRAS), PROGRAM EXECUTIVE OFFICE AVIATION (PEO AVN) EXPERIMENT

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 $54.2 million.

What is the period of performance?

Start: 2020-09-25. End: 2025-09-24.

What specific technologies or armaments does TETRAS encompass, and how do they align with current Air Force priorities?

The TETRAS program likely focuses on advanced research, development, testing, and evaluation of technologies related to armaments and spectrum utilization for aviation platforms. Its alignment with Air Force priorities would depend on specific program objectives, such as enhancing electronic warfare capabilities, improving missile guidance systems, or developing next-generation aerial vehicle technologies. A detailed review of the PEO Aviation's strategic roadmap would clarify this alignment.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure value for money?

Key performance indicators for this Cost Plus Fixed Fee contract would likely revolve around meeting technical performance specifications, adhering to delivery schedules for prototypes or evaluations, and managing costs within projected bounds. Measurement would involve rigorous testing, milestone reviews, and financial audits. Ensuring value for money requires comparing actual costs against established benchmarks and assessing the delivered technological advancements against program goals.

Given the CPFF structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient use of taxpayer funds?

Mitigation strategies for CPFF contracts typically include establishing realistic target costs, implementing robust Earned Value Management (EVM) systems, and defining clear ceilings or limitations on allowable costs. The contracting officer must maintain vigilant oversight, conduct regular cost reviews, and ensure that the contractor's financial reporting is accurate and transparent. Incentive clauses, if applicable, could also encourage cost efficiency.

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: 3

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: $54,289,739

Exercised Options: $54,289,739

Current Obligation: $54,244,593

Actual Outlays: $129,593

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $41,655,874

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