DoD's $247M contract for aviation and missile R&D shows strong competition but raises questions on value

Contract Overview

Contract Amount: $246,629,971 ($246.6M)

Contractor: Intuitive Research and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2020-06-05

End Date: 2026-02-04

Contract Duration: 2,070 days

Daily Burn Rate: $119.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: TECHNICAL ENGINEERING SUPPORT FOR THE CCDC, AVIATION AND MISSILE CENTER (AVMC), SOFTWARE, SIMULATION, SYSTEMS ENGINEERING, AND INTEGRATION (S3I) DIRECTORATE. THIS TASK ORDER PROVIDES SUPPORT TO THE SOFTWARE MISSION ASSURANCE ASSOCIATE AREA.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $246.6 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION for work described as: TECHNICAL ENGINEERING SUPPORT FOR THE CCDC, AVIATION AND MISSILE CENTER (AVMC), SOFTWARE, SIMULATION, SYSTEMS ENGINEERING, AND INTEGRATION (S3I) DIRECTORATE. THIS TASK ORDER PROVIDES SUPPORT TO THE SOFTWARE MISSION ASSURANCE ASSOCIATE AREA. Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Significant investment in R&D for aviation and missile systems, crucial for national defense. 3. The contract duration of nearly 6 years suggests a long-term need for these specialized services. 4. Focus on software, simulation, and systems engineering highlights the evolving nature of defense technology. 5. Potential for cost efficiencies due to competitive bidding, though value for money requires further scrutiny. 6. Risk indicators are moderate, primarily related to the complexity of R&D and long-term performance.

Value Assessment

Rating: fair

The contract's value of approximately $247 million over nearly six years for specialized R&D services requires careful benchmarking. While the Time and Materials (T&M) pricing structure can offer flexibility, it also presents a higher risk of cost overruns if not managed diligently. Comparing this to similar large-scale R&D contracts within the Department of Defense for aviation and missile systems would be essential to determine if the pricing is competitive and if the expected outcomes justify the investment. Without detailed performance metrics and cost breakdowns, a definitive assessment of value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is a positive indicator for price discovery and achieving competitive pricing. The presence of three bidders suggests a reasonable level of competition for this specialized R&D requirement. A higher number of bidders typically leads to more aggressive pricing and a wider range of technical solutions. However, the specific details of the bidding process, including the technical proposals and final pricing, would provide a clearer picture of how effectively competition drove value.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government receives the best possible value for its investment in critical defense research.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the CCDC Aviation and Missile Center (AVMC), which receives critical support for its software, simulation, systems engineering, and integration efforts. The contract delivers essential research and development services aimed at advancing aviation and missile technologies, contributing to national security. The geographic impact is primarily within Alabama, where the contract is being performed, potentially creating or sustaining high-skilled jobs in the region. Workforce implications include the employment of highly skilled engineers, scientists, and technical personnel specializing in advanced software and systems engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
The long duration of the contract (nearly 6 years) increases the risk of scope creep or evolving requirements impacting final cost.
Complexity of R&D in aviation and missile systems inherently carries technical and performance risks.
Limited public information on specific performance metrics makes it difficult to assess the true value delivered.
Reliance on a single contractor for such a critical and long-term support function could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Focus on critical R&D areas for national defense (aviation and missile systems).
Contract supports a key research directorate (S3I) within the Army.
Long-term nature of the contract indicates a sustained need and potential for stable support.
The contractor, Intuitive Research and Technology Corporation, likely possesses specialized expertise for this domain.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding nanotechnology and biotechnology. The market for defense-related R&D, particularly in aviation and missile systems, is highly specialized and often dominated by a few key contractors with the necessary expertise and security clearances. Spending in this area is driven by national security priorities and the continuous need to modernize military capabilities. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the Department of Defense for similar technological advancements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The nature of advanced R&D in aviation and missile systems often requires highly specialized capabilities that may be concentrated among larger, established firms. Further investigation into the subcontracting plan, if any, would be necessary to understand the potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army and the CCDC Aviation and Missile Center (AVMC). As a delivery order under a larger contract, oversight mechanisms would likely involve program managers, contracting officers, and potentially quality assurance representatives. Transparency is assessed as moderate, given the public availability of contract award data, but detailed performance reports and cost justifications may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Army Aviation and Missile Command Contracts
Software Engineering Support Services
Systems Integration and Simulation Contracts
Advanced Technology Development Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Long contract duration increases risk of scope creep and evolving requirements.
Complexity of R&D in advanced aviation and missile systems.
Limited public data on specific performance metrics and value realization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $246.6 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION. TECHNICAL ENGINEERING SUPPORT FOR THE CCDC, AVIATION AND MISSILE CENTER (AVMC), SOFTWARE, SIMULATION, SYSTEMS ENGINEERING, AND INTEGRATION (S3I) DIRECTORATE. THIS TASK ORDER PROVIDES SUPPORT TO THE SOFTWARE MISSION ASSURANCE ASSOCIATE AREA.

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $246.6 million.

What is the period of performance?

Start: 2020-06-05. End: 2026-02-04.

What is the track record of Intuitive Research and Technology Corporation with the Department of Defense, particularly on similar R&D contracts?

Intuitive Research and Technology Corporation (IRTC) has a history of working with the Department of Defense, including significant contracts related to engineering, technical, and programmatic support. For the CCDC Aviation and Missile Center (AVMC), IRTC has been a consistent provider of services. Their experience often spans areas like systems engineering, software development, simulation, and test and evaluation. Analyzing their past performance on similar contracts, including any past performance reviews or awards, would provide insight into their reliability and capability in delivering complex R&D solutions. While specific details on past performance metrics for this particular contract are not publicly detailed, IRTC's sustained engagement with DoD suggests a level of established capability and trust within the defense sector.

How does the per-unit cost or overall value of this contract compare to similar R&D efforts in aviation and missile systems?

Benchmarking the value of this $247 million contract against similar R&D efforts in aviation and missile systems is challenging without access to detailed cost breakdowns and performance metrics. However, the contract's duration of nearly six years and its focus on specialized areas like software, simulation, and systems engineering suggest a significant investment. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs compared to fixed-price contracts if not managed effectively. To assess value, comparisons would need to be made with other large-scale, long-term R&D contracts awarded by DoD for comparable technological advancements, considering factors like the scope of work, complexity, and the maturity of the technologies being developed. The competitive nature of the award (full and open with 3 bidders) suggests an attempt to achieve competitive pricing, but the ultimate value depends on the successful delivery of advanced capabilities.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include technical risks inherent in advanced R&D, potential cost overruns due to the Time and Materials (T&M) pricing structure, and performance risks over the long contract duration (nearly six years). Technical risks involve the possibility of not achieving desired technological advancements or encountering unforeseen engineering challenges in developing sophisticated software, simulation, and integration solutions for aviation and missile systems. Cost overruns are a concern with T&M contracts if labor hours and material costs are not meticulously tracked and controlled. Performance risks stem from the possibility of the contractor not meeting performance expectations or delivering subpar results over the extended period. Mitigation strategies likely involve robust project management, regular performance reviews, stringent oversight by the CCDC AVMC, and potentially the use of cost-control measures within the T&M framework, such as established labor rates and ceilings.

How effective is the competition level (3 bidders) in ensuring optimal pricing and innovation for this specialized R&D requirement?

A competition level of three bidders for a specialized R&D requirement like this is generally considered moderate. While it indicates that the requirement was not restricted and attracted multiple interested parties, a higher number of bidders (e.g., five or more) typically fosters more intense price competition and a broader range of innovative solutions. With three bidders, there is a reasonable chance that competitive pressures influenced pricing and technical approaches. However, the effectiveness hinges on the specific capabilities and proposals submitted by each bidder. If the three bidders represented the primary pool of qualified entities capable of performing such complex work, then the competition may have been as robust as practically possible. Further analysis of the bid proposals and the final awarded price relative to initial estimates would provide a clearer picture of the actual impact on pricing and innovation.

What is the historical spending pattern for similar R&D support services at the CCDC Aviation and Missile Center (AVMC)?

Historical spending patterns for similar R&D support services at the CCDC Aviation and Missile Center (AVMC) would likely show a consistent need for specialized expertise in areas such as software development, simulation, systems engineering, and integration. AVMC, being a critical hub for aviation and missile technology development, relies heavily on external contractors to augment its organic capabilities. Spending in these areas can fluctuate based on specific program priorities, technological advancements, and budget allocations. Analyzing past contracts awarded by AVMC for similar services, including their duration, value, and the types of contractors involved, would reveal trends in investment. This particular $247 million contract, spanning nearly six years, represents a significant, long-term commitment, suggesting a sustained strategic focus on these R&D capabilities within AVMC.

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: 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: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $823,301,557

Exercised Options: $246,799,675

Current Obligation: $246,629,971

Actual Outlays: $22,788,923

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $131,059,255

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA20D0022

IDV Type: FSS

Timeline