Naval Research Laboratory contract awarded to Innovative Technical Solutions for $11.1M in R&D services

Contract Overview

Contract Amount: $11,108,791 ($11.1M)

Contractor: Innovative Technical Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-08-30

End Date: 2008-09-30

Contract Duration: 2,223 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200212!001449!1700!E3250 !NAVAL RESEARCH LABORATORY !N0017302C6027 !A!N! !N! !20020830!20030901!043448575!043448575!043448575!N!INNOVATIVE TECHNICAL SOLUTIONS!1100 ALAKEA STREET !HONOLULU !HI!96813!17000!003!15!HONOLULU !HONOLULU !HAWAII !+000002000000!N!N!000010401243!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!002!E! !Z!N!Z! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96813

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to INNOVATIVE TECHNICAL SOLUTIONS, INC. for work described as: 200212!001449!1700!E3250 !NAVAL RESEARCH LABORATORY !N0017302C6027 !A!N! !N! !20020830!20030901!043448575!043448575!043448575!N!INNOVATIVE TECHNICAL SOLUTIONS!1100 ALAKEA STREET !HONOLULU !HI!96813!17000!003!15!HONOLULU !HONOL… Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Funding allocated for innovative technical solutions, suggesting a focus on advanced research. 3. Contract duration of over two years indicates a substantial project scope. 4. Awarded under full and open competition, implying a competitive bidding process. 5. The contract's value is moderate within the context of defense R&D spending. 6. Performance period spans across fiscal years 2002 to 2008.

Value Assessment

Rating: fair

The contract value of $11.1 million for R&D services appears reasonable for a multi-year project. Benchmarking against similar contracts for basic research in defense would provide a clearer picture of value for money. The cost-plus-fixed-fee structure can sometimes lead to cost overruns if not managed tightly, but it also allows for flexibility in research projects where scope may evolve.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple bidders were likely considered, but specific sources may have been excluded for defined reasons. This suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging innovation among bidders.

Public Impact

Benefits the Department of the Navy by advancing research in critical scientific and technical areas. Delivers research and development services aimed at enhancing national defense capabilities. Geographic impact is primarily within Hawaii, where the contractor is located. Workforce implications include employment for researchers and technical staff at Innovative Technical Solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can present cost control challenges if not meticulously monitored.
The 'exclusion of sources' clause warrants further investigation to understand its impact on competition.
Long contract duration may increase exposure to evolving technological needs and market shifts.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Focus on R&D aligns with strategic defense priorities.
Contractor's location in Hawaii may support regional economic development.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve analyzing other contracts for basic research awarded by agencies like the Department of Defense to similar types of firms.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there explicit information on subcontracting plans. The award to Innovative Technical Solutions, Inc. suggests it may be a larger entity or that subcontracting opportunities for small businesses were not a primary focus of this specific award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Naval Research Laboratory and the Department of the Navy. Accountability measures would be tied to the performance requirements outlined in the Cost Plus Fixed Fee contract. Transparency is generally maintained through contract award databases, though specific project details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Naval Research Laboratory Programs
Basic Scientific Research Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost-plus-fixed-fee contract type may lead to cost overruns if not managed effectively.
Classification of specific research areas as 'NOT DISCERNABLE OR CLASSIFIED' limits transparency.
Potential for scope creep in R&D projects can impact budget and timeline adherence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to INNOVATIVE TECHNICAL SOLUTIONS, INC.. 200212!001449!1700!E3250 !NAVAL RESEARCH LABORATORY !N0017302C6027 !A!N! !N! !20020830!20030901!043448575!043448575!043448575!N!INNOVATIVE TECHNICAL SOLUTIONS!1100 ALAKEA STREET !HONOLULU !HI!96813!17000!003!15!HONOLULU !HONOLULU !HAWAII !+000002000000!N!N!000010401243!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is INNOVATIVE TECHNICAL SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2002-08-30. End: 2008-09-30.

What is the track record of Innovative Technical Solutions, Inc. with federal contracts, particularly with the Department of Defense?

Innovative Technical Solutions, Inc. has been awarded federal contracts, including this one from the Naval Research Laboratory. A comprehensive review of their contract history would reveal the number of awards, their values, agencies involved, and performance ratings, if available. Understanding their past performance, especially in R&D and similar service areas, is crucial for assessing their capability to execute this contract successfully. Analyzing their award trends and any reported issues or successes would provide context for their reliability as a government contractor.

How does the $11.1 million contract value compare to similar R&D contracts awarded by the Navy or DoD?

The $11.1 million contract value for R&D services is a moderate sum within the broader landscape of Department of Defense research and development spending. To benchmark effectively, one would compare this award to other contracts for basic research in physical, engineering, and life sciences awarded by the Navy or other DoD branches over similar timeframes. Factors such as contract duration, specific research areas, and the type of contract (e.g., cost-plus, fixed-price) would need to be considered. Without direct comparative data, it's challenging to definitively state if this represents exceptional value, but it falls within a typical range for specialized R&D projects.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services revolve around cost control and potential for scope creep. For the government, the risk is that the contractor may not be incentivized to control costs as rigorously as in a fixed-price contract, potentially leading to expenditures exceeding initial estimates, even with a fixed fee. For the contractor, the risk lies in accurately estimating the costs to ensure the fixed fee is sufficient to cover their efforts and profit. In R&D, where outcomes can be uncertain, managing scope changes and ensuring efficient resource allocation are critical to mitigating these risks and achieving the desired research objectives within budget.

What specific research areas or technological advancements is this contract intended to support?

The contract data indicates the award is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under the North American Industry Classification System (NAICS) code 541712. While the specific project details are not fully discernible from the provided data ('NOT DISCERNABLE OR CLASSIFIED'), the Naval Research Laboratory's mission is to advance science and technology for the benefit of the Navy and the nation. Therefore, this contract likely supports research in areas critical to naval operations, such as materials science, advanced manufacturing, sensor technology, propulsion systems, or other scientific endeavors that enhance naval capabilities and national security.

What was the historical spending pattern for similar R&D services by the Naval Research Laboratory prior to this award?

Analyzing historical spending patterns for the Naval Research Laboratory (NRL) prior to this award would involve examining contract databases for similar R&D services, particularly those under NAICS code 541712 or related scientific research categories. This would reveal the typical contract values, durations, and types of contractors favored by the NRL. Understanding past investment levels in these research areas can provide context for the $11.1 million award, indicating whether it represents a continuation of established funding levels, an increase, or a shift in research priorities. It would also highlight trends in competition and contracting approaches used by the NRL.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 1100 ALAKEA STREET, HONOLULU, HI, 01

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline