DoD's $118M R&D Contract with Innovative Technical Solutions Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $11,802,681 ($11.8M)
Contractor: Innovative Technical Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-09-30
End Date: 2009-08-11
Contract Duration: 1,776 days
Daily Burn Rate: $6.6K/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
Place of Performance
Location: HONOLULU, HONOLULU County, HAWAII, 96813
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $11.8 million to INNOVATIVE TECHNICAL SOLUTIONS, INC. for work described as: Key points: 1. The contract awarded to INNOVATIVE TECHNICAL SOLUTIONS, INC. for Research and Development in Physical, Engineering, and Life Sciences is a significant investment. 2. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', raising questions about the extent of true competition. 3. The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. 4. The R&D sector is critical for innovation but often carries inherent risks and uncertainties in outcomes.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure, while allowing flexibility for R&D, necessitates robust oversight to ensure costs remain reasonable and aligned with project goals. Without detailed cost breakdowns and performance metrics, assessing value against similar R&D efforts is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while competition was sought, specific sources were excluded, potentially limiting the pool of bidders and impacting price discovery. This method requires strong justification to ensure fair market prices.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for the R&D services rendered, potentially leading to higher overall costs.
Public Impact
Taxpayers may have overpaid due to restricted competition in a significant R&D contract. The effectiveness of the R&D outcomes is not immediately apparent from the contract data. The long duration of the contract (1776 days) suggests a substantial and potentially complex research effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises value concerns.
- CPFF contract type can inflate costs without strict oversight.
- Lack of clear performance metrics makes value assessment difficult.
Positive Signals
- Contract supports critical R&D in physical, engineering, and life sciences.
- Awarded by the Department of the Navy, indicating strategic importance.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but often involves higher risk and less predictable outcomes compared to procurement of established goods or services.
Small Business Impact
The contract data indicates that this was not awarded to a small business (sb: false). Therefore, there is no direct analysis of small business participation or impact from this specific award.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and the CPFF contract type necessitate strong oversight from the Department of Defense to ensure cost control, adherence to scope, and achievement of R&D objectives. Accountability for R&D outcomes is paramount.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition may have inflated costs.
- CPFF contract type poses cost overrun risks.
- Lack of detailed R&D outcomes makes value assessment difficult.
- Justification for excluding sources requires scrutiny.
- Potential for inefficient resource allocation due to R&D uncertainties.
Tags
research-and-development-in-the-physical, department-of-defense, hi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.8 million to INNOVATIVE TECHNICAL SOLUTIONS, INC.. See the official description on USAspending.
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 $11.8 million.
What is the period of performance?
Start: 2004-09-30. End: 2009-08-11.
What specific R&D objectives were pursued under this contract, and how were they aligned with the Department of the Navy's strategic goals?
The contract focused on Research and Development in the Physical, Engineering, and Life Sciences. While the specific objectives are not detailed here, such R&D typically aims to advance scientific understanding, develop new technologies, or improve existing systems relevant to naval operations and national security. Alignment with strategic goals would involve ensuring the research contributes to future capabilities or addresses emerging threats.
How was the 'exclusion of sources' justified, and what steps were taken to ensure fair pricing despite the limited competition?
Justification for excluding sources typically involves technical uniqueness, proprietary data, or specific capabilities not available elsewhere. To ensure fair pricing, the agency would likely have conducted market research, obtained cost proposals, and performed detailed cost and price analyses. Negotiation and negotiation strategies would be critical to achieving a reasonable price despite the limited bidder pool.
What were the key performance indicators (KPIs) for this contract, and how was the success of the R&D measured and validated?
Key performance indicators for R&D contracts often include technical milestones, prototype development, successful testing, scientific publications, or patent applications. Success validation would involve rigorous technical reviews, peer assessments, and demonstration of the developed technology or scientific findings against predefined requirements and objectives. The CPFF structure necessitates clear metrics to track progress and control costs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
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)
Evaluated Preference: NONE
Contractor Details
Address: 733 BISHOP ST STE 2800, HONOLULU, HI, 01
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $20,735,954
Exercised Options: $712,000
Current Obligation: $11,802,681
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2004-09-30
Current End Date: 2009-08-11
Potential End Date: 2009-08-11 00:00:00
Last Modified: 2008-10-02
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