DoD awards $58.5M R&D contract to Intuitive Research and Technology Corporation for prototype installation

Contract Overview

Contract Amount: $58,515,293 ($58.5M)

Contractor: Intuitive Research and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2023-03-31

End Date: 2024-12-31

Contract Duration: 641 days

Daily Burn Rate: $91.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT OF PROTOTYPE INSTALL

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $58.5 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION for work described as: RESEARCH AND DEVELOPMENT OF PROTOTYPE INSTALL Key points: 1. Contract value represents a significant investment in advanced research and development. 2. Sole-source award raises questions about potential cost efficiencies and market competition. 3. Contract duration of over 21 months suggests a complex and potentially high-risk project. 4. The specific nature of the 'prototype installation' requires further clarification to assess its impact. 5. This contract falls within the broad 'Research and Development' sector, indicating a focus on innovation.

Value Assessment

Rating: questionable

The contract value of $58.5 million for a 21-month R&D project requires careful benchmarking against similar prototype development efforts. Without more specific details on the deliverables and the nature of the 'prototype installation,' it is difficult to definitively assess value for money. The sole-source nature of the award also limits the ability to compare pricing against competitive bids, potentially leading to a less favorable price for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Intuitive Research and Technology Corporation, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple companies vying for the contract. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they generally result in less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution. Without competitive pressure, the awarded price may be higher than what could have been achieved through a bidding process.

Public Impact

The primary beneficiary is the Department of Defense, which will receive the developed prototype. The contract aims to deliver advancements in prototype installation technology. The geographic impact is currently limited to Alabama, where the contractor is based. Workforce implications may include specialized R&D roles within Intuitive Research and Technology Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of detailed public information on the 'prototype installation' hinders a full understanding of the project's scope and value.
The extended contract duration could indicate unforeseen complexities or risks in the R&D process.

Positive Signals

Contract awarded to a single entity suggests specialized expertise in the required R&D area.
Fixed-price contract type provides some cost certainty for the government, assuming the scope is well-defined.
The contract supports critical research and development efforts within the defense sector.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541715. This is a broad category encompassing a wide range of scientific and technical innovation. The defense sector heavily relies on R&D to maintain technological superiority. Comparable spending in this sector can vary widely depending on the specific technological focus, but significant government investment is typical for advanced defense capabilities.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting plans for small businesses. The award to Intuitive Research and Technology Corporation, a single entity, suggests a focus on specialized capabilities that may not be readily available from smaller firms. This could limit opportunities for small businesses to participate in this specific project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency, which awarded the contract. Accountability measures will be tied to the contract's performance metrics and deliverables. Transparency is limited due to the sole-source nature and the proprietary R&D focus. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Defense Logistics Agency Procurement
Prototype Development Contracts
Advanced Technology Research

Risk Flags

Sole-source award
Lack of detailed scope definition
Potential for cost overruns in R&D

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.5 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION. RESEARCH AND DEVELOPMENT OF PROTOTYPE INSTALL

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 (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $58.5 million.

What is the period of performance?

Start: 2023-03-31. End: 2024-12-31.

What is the specific nature of the 'prototype installation' being researched and developed?

The provided data does not specify the exact nature of the 'prototype installation.' This term is broad and could refer to a physical installation of a new system, a software installation prototype, or a conceptual installation process. Further details from the contract's statement of work or associated documentation would be necessary to understand the specific technology, its intended application, and the expected outcomes. Without this clarity, assessing the project's technical merit, potential risks, and ultimate value is challenging. The R&D focus suggests innovation in how systems or technologies are deployed or integrated.

How does the $58.5 million contract value compare to similar R&D prototype installations within the DoD?

Benchmarking this $58.5 million contract requires access to detailed cost data for comparable R&D prototype installations within the DoD, which is not publicly available in this dataset. However, R&D contracts, especially those involving novel technologies or complex installations, can range significantly in cost. Factors influencing cost include the technology's maturity, the scope of development, testing requirements, and the duration of the project. Given the 21-month duration and sole-source nature, this award suggests a specialized and potentially high-risk/high-reward endeavor. A comprehensive comparison would necessitate analyzing the specific technical objectives and deliverables against other classified or unclassified R&D efforts in similar domains.

What are the potential risks associated with a sole-source R&D contract of this magnitude?

The primary risk of a sole-source R&D contract is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for the contractor to innovate efficiently. Without competing bids, the government may overpay for the services or technology. Furthermore, sole-source awards can sometimes indicate a lack of available qualified vendors or a reliance on a single source with unique, proprietary technology, which creates dependency. For R&D, risks also include technical feasibility challenges, potential cost overruns if the scope is not well-defined, and the possibility that the developed prototype may not meet the intended operational requirements, leading to sunk costs.

What is Intuitive Research and Technology Corporation's track record with similar DoD R&D contracts?

Information regarding Intuitive Research and Technology Corporation's specific track record with similar DoD R&D contracts is not detailed in the provided data. However, the award of a sole-source $58.5 million contract suggests the Department of Defense perceives the company as having unique capabilities or expertise essential for this particular 'prototype installation' R&D. To fully assess their track record, one would need to examine past performance reviews, previous contract awards in R&D, and their history of delivering complex technical solutions to the government. Their ability to secure such a significant sole-source award implies a level of trust and established relationship with the awarding agency.

What are the expected performance metrics and deliverables for this contract?

The provided data does not specify the expected performance metrics or detailed deliverables for this 'research and development of prototype installation' contract. Typically, R&D contracts outline specific milestones, technical reports, prototype testing results, and potentially a functional prototype as key deliverables. Performance metrics would likely focus on achieving defined technical objectives, adhering to project timelines, and managing costs within the awarded amount. The fixed-price nature of the contract suggests that the contractor is responsible for delivering the agreed-upon scope within the budget, but the precise definition of that scope and its associated metrics are crucial for effective oversight and evaluation.

Industry Classification

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

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SPRRA223R0041

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5030 BRADFORD DR NW BLDG 2 STE 205, HUNTSVILLE, AL, 35805

Business Categories: Category Business, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $58,515,293

Exercised Options: $58,515,293

Current Obligation: $58,515,293

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $53,495,533

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline