DoD's $29M R&D contract for platform integration awarded to Integration Innovation Inc. shows fair value

Contract Overview

Contract Amount: $29,030,076 ($29.0M)

Contractor: Integration Innovation Inc

Awarding Agency: Department of Defense

Start Date: 2018-09-27

End Date: 2024-11-30

Contract Duration: 2,256 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: THE PLATFORM INTEGRATION FUNCTION OF THE WEAPONS DEVELOPMENT AND INTEGRATION DIRECTORATE (WDID), AVIATION AND MISSILE RESEARCH, DEVELOPMENT AND ENGINEERING CENTER (AMRDEC)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $29.0 million to INTEGRATION INNOVATION INC for work described as: THE PLATFORM INTEGRATION FUNCTION OF THE WEAPONS DEVELOPMENT AND INTEGRATION DIRECTORATE (WDID), AVIATION AND MISSILE RESEARCH, DEVELOPMENT AND ENGINEERING CENTER (AMRDEC) Key points: 1. Contract value appears reasonable given the specialized R&D nature and duration. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include performance overruns due to the R&D focus. 4. Contract duration of over 6 years indicates a long-term project. 5. Positioned within the Defense sector's R&D and engineering services. 6. No small business set-aside, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract's total value of approximately $29 million over six years for R&D services suggests a moderate annual spend. Benchmarking against similar complex R&D integration projects is challenging due to their unique nature. However, the Time and Materials pricing structure, while common in R&D, requires careful monitoring to ensure cost efficiency. The value appears fair for the specialized services provided to the Weapons Development and Integration Directorate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders (implied by 'full and open') generally fosters price discovery and can lead to more competitive pricing. The specific number of bidders is not provided, but the competition type suggests a robust process.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for specialized research and development services, potentially driving down costs compared to a sole-source award.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Aviation and Missile Research, Development and Engineering Center (AMRDEC), which receives critical platform integration services. The services delivered are essential for advancing weapons development and integration capabilities. The contract has a geographic impact primarily in Alabama, where the contractor is located and likely where much of the work will be performed. Workforce implications include the potential for highly skilled engineering and technical jobs in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

R&D projects inherently carry a risk of cost overruns and schedule delays due to the exploratory nature of the work.
The Time and Materials (T&M) contract type can lead to increased costs if not managed diligently, as it reimburses actual labor and material costs plus a fee.
The long duration of the contract (over 6 years) increases the potential for scope creep or changes in technological requirements.

Positive Signals

Awarded under full and open competition, suggesting a competitive environment that should drive value.
The contractor, Integration Innovation Inc., is likely selected based on demonstrated technical expertise in R&D and integration.
The contract supports critical defense research and development, aligning with national security objectives.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541712. This sector is characterized by innovation and specialized scientific expertise. Spending in this area is crucial for maintaining technological superiority in defense. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of platform integration for specific weapon systems, but significant government investment is typical for advanced R&D.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. This suggests that the scope and complexity of the R&D services required were likely better suited for larger, established prime contractors with the necessary resources and expertise. There is no direct indication of subcontracting plans for small businesses within the provided data, but prime contractors in defense R&D often engage small businesses for specialized components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting and program management offices within AMRDEC. Accountability measures would include performance reviews, milestone tracking, and adherence to the contract's terms and conditions. Transparency is generally maintained through contract databases and reporting requirements, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Weapons System Development
Missile Research
Platform Integration Services
Defense Research and Development
Aviation Systems Engineering
Advanced Technology Development

Risk Flags

Potential for Cost Overruns (T&M Contract Type)
Risk of Technological Obsolescence (Long Duration)
Complexity of R&D Scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.0 million to INTEGRATION INNOVATION INC. THE PLATFORM INTEGRATION FUNCTION OF THE WEAPONS DEVELOPMENT AND INTEGRATION DIRECTORATE (WDID), AVIATION AND MISSILE RESEARCH, DEVELOPMENT AND ENGINEERING CENTER (AMRDEC)

Who is the contractor on this award?

The obligated recipient is INTEGRATION INNOVATION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.0 million.

What is the period of performance?

Start: 2018-09-27. End: 2024-11-30.

What is the track record of Integration Innovation Inc. with the Department of Defense, particularly in R&D contracts?

Integration Innovation Inc. (i3) has a significant history of working with the Department of Defense, particularly within the Army's Aviation and Missile Command (AMCOM) and NASA. They specialize in advanced technology research, development, and prototyping. Their portfolio often includes work on missile systems, aviation technologies, and complex system integration. While specific performance metrics for past contracts are not detailed here, their repeated awards suggest a satisfactory performance history and a recognized capability in the specialized R&D and engineering services they provide. Their focus on innovation and rapid prototyping aligns well with the needs of entities like AMRDEC.

How does the $29 million contract value compare to similar platform integration R&D efforts within the DoD?

Directly comparing the $29 million value for this specific platform integration R&D contract is challenging due to the highly specialized and often unique nature of such projects within the defense sector. Platform integration for advanced weapon systems involves complex engineering, software development, and testing, making each contract distinct. However, R&D contracts of this magnitude, spanning over six years, are not uncommon for critical defense capabilities. Annual spending averages around $4.8 million ($29M / 6 years), which is within the typical range for significant, multi-year research initiatives requiring specialized expertise and long-term development cycles. The value appears commensurate with the scope and duration.

What are the primary risks associated with this Time and Materials (T&M) contract type for R&D?

The primary risk with a Time and Materials (T&M) contract, especially for R&D, is the potential for cost escalation. Unlike fixed-price contracts, T&M reimburses the contractor for direct labor hours at specified hourly rates, plus the cost of materials, and includes a fixed fee or profit. If project scope is not tightly managed, or if development proves more complex or time-consuming than initially anticipated, costs can significantly exceed initial estimates. For R&D, where outcomes are inherently uncertain, this risk is amplified. Effective oversight, detailed work breakdown structures, and regular progress reviews are crucial to mitigate these cost risks and ensure the government receives good value.

How effective is the 'full and open competition' approach likely to be in ensuring value for this specialized R&D contract?

Full and open competition is generally the most effective method for ensuring value, as it allows the widest possible pool of qualified contractors to bid, fostering a competitive environment that drives down prices and encourages innovation. For specialized R&D like platform integration, this approach is beneficial if there are indeed multiple capable firms. It allows the government to select not only based on price but also on technical merit and past performance. However, the effectiveness hinges on the government clearly defining requirements and evaluation criteria. If the R&D is highly niche, the pool of truly competitive bidders might be limited, potentially reducing the competitive pressure compared to more common service contracts.

What are the historical spending patterns for platform integration R&D within the Department of the Army or AMRDEC?

Historical spending patterns for platform integration R&D within the Department of the Army and AMRDEC show a consistent and significant investment in advanced capabilities. AMRDEC, as a key research, development, and engineering center, manages numerous contracts focused on developing and integrating new technologies for aviation and missile systems. Spending in this area fluctuates based on strategic priorities, technological advancements, and specific program needs, but it typically involves multi-year, high-value contracts. The total annual spending can range from hundreds of millions to billions of dollars across various R&D categories, with platform integration being a critical component. This $29 million contract represents a specific, focused investment within that broader R&D landscape.

What are the implications of the contract duration (over 6 years) on project management and potential obsolescence?

A contract duration exceeding six years for an R&D project presents both opportunities and challenges. On the positive side, it allows for sustained focus and deep development of complex technologies, crucial for cutting-edge R&D. It provides stability for the contractor and allows for long-term planning. However, it also increases the risk of technological obsolescence, as the pace of innovation, particularly in defense, is rapid. Project management must be agile, incorporating mechanisms for adapting to evolving requirements and technologies. Furthermore, the extended timeline can make it harder to maintain consistent oversight and control over costs and performance, requiring robust program management throughout the contract's life.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $87,081,257

Exercised Options: $29,030,076

Current Obligation: $29,030,076

Actual Outlays: $276,522

Subaward Activity

Number of Subawards: 444

Total Subaward Amount: $773,890,236

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F210CA

IDV Type: FSS

Timeline