DoD Awards $169.6M Core Operations Task Order to Integration Innovation Inc. for R&D Support

Contract Overview

Contract Amount: $16,956,788 ($17.0M)

Contractor: Integration Innovation Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-22

End Date: 2026-09-30

Contract Duration: 373 days

Daily Burn Rate: $45.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE CORE OPERATIONS AND SUSTAINMENT TASK ORDER IS FOCUSED ON PROVIDING KEY SERVICES TO RESEARCH, DEVELOPMENT, TEST AND EVALUATION DURING FLIGHT TESTS, GROUND TESTS, CYBER TESTS, AND OTHER RELATED DEPARTMENT OF DEFENSE ACTIVITIES.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to INTEGRATION INNOVATION INC for work described as: THE CORE OPERATIONS AND SUSTAINMENT TASK ORDER IS FOCUSED ON PROVIDING KEY SERVICES TO RESEARCH, DEVELOPMENT, TEST AND EVALUATION DURING FLIGHT TESTS, GROUND TESTS, CYBER TESTS, AND OTHER RELATED DEPARTMENT OF DEFENSE ACTIVITIES. Key points: 1. The contract supports critical R&D activities including flight, ground, and cyber tests. 2. Integration Innovation Inc. is the awardee for this core operations and sustainment task order. 3. The contract falls under the Research and Development in Physical, Engineering, and Life Sciences NAICS code. 4. This award is for a Cost Plus Fixed Fee contract type.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking against similar R&D support contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a limited competition. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential R&D support, with the potential for cost inefficiencies due to the limited competition and contract type.

Public Impact

Supports critical Department of Defense research, development, test, and evaluation activities. Ensures continuity of operations for vital testing and analysis. Contributes to advancements in defense technologies and capabilities. The award impacts the aerospace and defense R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition raises concerns about optimal pricing.
  • Cost Plus Fixed Fee structure requires diligent oversight to control costs.

Positive Signals

  • Supports critical national defense R&D activities.
  • Awardee has a role in innovation and technology development.

Sector Analysis

This contract falls within the Research and Development sector, specifically supporting physical, engineering, and life sciences. Spending in this sector is crucial for technological advancement but requires careful management due to its complex nature and potential for cost escalation.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities exist within this task order.

Oversight & Accountability

The contract type and limited competition necessitate robust oversight from the Department of Defense to ensure cost control and effective service delivery. Accountability for performance and spending will be critical.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Missile Defense Agency Programs

Risk Flags

  • Limited competition may result in suboptimal pricing.
  • Cost Plus Fixed Fee contracts require stringent oversight to manage costs.
  • Lack of small business awardee.
  • Potential for cost overruns if not managed effectively.

Tags

research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to INTEGRATION INNOVATION INC. THE CORE OPERATIONS AND SUSTAINMENT TASK ORDER IS FOCUSED ON PROVIDING KEY SERVICES TO RESEARCH, DEVELOPMENT, TEST AND EVALUATION DURING FLIGHT TESTS, GROUND TESTS, CYBER TESTS, AND OTHER RELATED DEPARTMENT OF DEFENSE ACTIVITIES.

Who is the contractor on this award?

The obligated recipient is INTEGRATION INNOVATION INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $17.0 million.

What is the period of performance?

Start: 2025-09-22. End: 2026-09-30.

What specific R&D activities will be supported by this task order, and how do they align with current DoD priorities?

This task order focuses on core operations and sustainment for research, development, test, and evaluation (RDT&E) across flight tests, ground tests, and cyber tests. These activities are fundamental to the DoD's mission of maintaining technological superiority and ensuring national security. The specific alignment with current priorities would require a deeper dive into the Missile Defense Agency's strategic objectives and ongoing program requirements.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' award method for this contract?

This award method, while allowing for competition, restricts the pool of eligible bidders. This limitation can reduce competitive pressure, potentially leading to less favorable pricing for the government. It also raises questions about whether all capable sources were considered, impacting the government's ability to secure the best value and potentially increasing the risk of higher costs or suboptimal solutions.

How will the effectiveness of the services provided under this Cost Plus Fixed Fee contract be measured and ensured?

Effectiveness will be measured through performance metrics defined in the task order, likely focusing on the successful execution of test events, timely delivery of support services, and adherence to technical specifications. The Cost Plus Fixed Fee structure necessitates close monitoring of costs against the fixed fee and rigorous oversight to ensure that the contractor is delivering the required R&D support efficiently and meeting all performance objectives.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8000 RIDEOUT SW, SUITE 400, HUNTSVILLE, AL, 35808

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

Financial Breakdown

Contract Ceiling: $36,992,464

Exercised Options: $36,992,464

Current Obligation: $16,956,788

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ085825DE001

IDV Type: IDC

Timeline

Start Date: 2025-09-22

Current End Date: 2026-09-30

Potential End Date: 2026-09-30 00:00:00

Last Modified: 2025-12-18

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