DoD awards $118.8M for R&D technical services to Intuitive Research and Technology Corporation, with 3 bids received

Contract Overview

Contract Amount: $118,824,305 ($118.8M)

Contractor: Intuitive Research and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2023-07-27

End Date: 2027-01-08

Contract Duration: 1,261 days

Daily Burn Rate: $94.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: TECHNICAL SERVICES FOR PROGRAMMATIC SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $118.8 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION for work described as: TECHNICAL SERVICES FOR PROGRAMMATIC SUPPORT Key points: 1. Contract value of $118.8 million over its period of performance. 2. Competition dynamics indicate a moderate level of interest with 3 bids. 3. Risk indicators include the Time and Materials pricing structure. 4. Performance context is R&D technical services for the Department of the Army. 5. Sector positioning is within Research and Development, specifically physical and engineering sciences. 6. Contract awarded via full and open competition. 7. The contract is a delivery order under a larger contract vehicle.

Value Assessment

Rating: fair

The contract value of $118.8 million for R&D technical services appears within a reasonable range for specialized support, though direct comparisons are difficult without more specific service details. The Time and Materials (T&M) pricing structure, while common for R&D, can present challenges in cost control and predictability compared to fixed-price contracts. Benchmarking the per-unit cost is not feasible with the provided data, but the overall award size suggests a significant scope of work.

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. With three bids received, the competition level suggests a moderate interest from potential contractors. This level of competition is generally sufficient to promote price discovery and encourage competitive pricing, though a higher number of bidders could potentially drive prices lower.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers, as it increases the likelihood of receiving a fair market price for the specialized R&D technical services required.

Public Impact

The Department of the Army benefits from specialized technical support for its research and development programs. Services delivered are likely to include engineering analysis, scientific research support, and program management assistance. The contract is geographically focused on Alabama (AL), where Intuitive Research and Technology Corporation is located. The contract supports a workforce skilled in research, engineering, and technical analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not closely managed.
The limited number of bidders (3) might indicate a niche market or high barriers to entry, potentially limiting future competition.
The contract is a delivery order, meaning its scope and final cost could evolve significantly from the initial award.

Positive Signals

Awarded through full and open competition, ensuring a broad search for qualified contractors.
The contractor, Intuitive Research and Technology Corporation, is likely experienced in this specialized R&D domain.
The contract duration extends into 2027, suggesting a need for sustained, long-term support.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers physical, engineering, and life sciences R&D. This sector is critical for technological advancement and national security. Spending in this area often involves highly specialized expertise and can be characterized by long project cycles and evolving requirements. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the R&D, but large government R&D contracts often range from tens to hundreds of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors on this award. However, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the specific technical requirements of the work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are inherent in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction may apply if fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development Contracts
Technical Support Services
Engineering and Scientific Services
Army R&D Programs

Risk Flags

Time and Materials Pricing Structure
Limited Number of Bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $118.8 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION. TECHNICAL SERVICES FOR PROGRAMMATIC SUPPORT

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 $118.8 million.

What is the period of performance?

Start: 2023-07-27. End: 2027-01-08.

What is the track record of Intuitive Research and Technology Corporation with the Department of Defense?

Intuitive Research and Technology Corporation (IRTC) has a history of performing contracts with the Department of Defense (DoD). While specific details of past performance are not provided in this data snippet, their ability to secure a contract of this magnitude suggests a demonstrated capability and a positive track record with the government. Further analysis would involve reviewing their contract history, past performance evaluations, and any reported issues or successes on previous DoD engagements. Companies in the R&D and technical services space often build long-term relationships with agencies based on successful project delivery and technical expertise.

How does the value of this contract compare to similar R&D technical support contracts?

The $118.8 million value for this R&D technical support contract is substantial, placing it in the mid-to-large tier for such services. Without specific details on the exact nature of the R&D and technical support, direct comparisons are challenging. However, contracts for specialized engineering, scientific, and programmatic support within the DoD can easily reach these figures, especially when spanning several years and involving complex projects. The number of bids (3) suggests that while the field may be specialized, there are multiple capable firms. Benchmarking against contracts with similar NAICS codes (541715) and agencies (DoD) would provide a more precise context for value assessment.

What are the primary risks associated with this contract?

The primary risks associated with this contract include the Time and Materials (T&M) pricing structure, which can lead to cost uncertainty and potential overruns if not rigorously managed. Scope creep is another risk, common in R&D projects where requirements can evolve. The limited number of bidders (3) might indicate a specialized market, potentially reducing future competitive pressure. Additionally, the contractor's ability to consistently deliver high-quality technical support aligned with evolving DoD research objectives is a performance risk. Ensuring effective oversight and clear communication channels will be crucial to mitigating these risks.

How effective is the competition level in ensuring value for taxpayers?

The competition level, with three bids received under a full and open solicitation, is moderately effective in ensuring value for taxpayers. This number of bidders suggests that the market is not overly concentrated, allowing for some price discovery and competition. However, a higher number of bidders (e.g., 5+) often leads to more aggressive pricing. The effectiveness also depends on the quality of the bids received and the government's negotiation strategy. For highly specialized R&D services, three competitive bids can still yield a fair and reasonable price, especially if the bidders possess unique capabilities.

What is the historical spending trend for similar R&D technical services by the Department of the Army?

Historical spending trends for similar R&D technical services by the Department of the Army (DoA) generally show significant and consistent investment. The DoD, including the Army, allocates substantial budgets towards research and development to maintain technological superiority. Spending in NAICS code 541715, which covers physical, engineering, and life sciences R&D, typically fluctuates based on strategic priorities and budget cycles but remains a core area of expenditure. Analyzing past years' spending on technical support services for Army R&D programs would reveal patterns of investment, identify key contractors, and provide context for the current $118.8 million award.

What are the implications of the Time and Materials (T&M) contract type for cost control?

The Time and Materials (T&M) contract type implies that the government will pay the contractor for the actual labor hours expended at specified hourly rates, plus the cost of materials used. This structure offers flexibility, which is often beneficial for R&D projects where the scope and duration of tasks can be uncertain. However, it presents a significant risk for cost control, as the total cost is not fixed upfront. Without robust oversight, including detailed tracking of labor hours, verification of material costs, and potentially cost ceilings, T&M contracts can lead to higher-than-expected expenditures. Effective management requires diligent monitoring and reporting by both the contractor and the government.

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: $204,729,936

Exercised Options: $118,824,305

Current Obligation: $118,824,305

Actual Outlays: $132,329

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $38,123,349

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA20D0022

IDV Type: FSS

Timeline