DoD's $82.6M R&D contract for strike systems engineering awarded to Intuitive Research and Technology Corporation

Contract Overview

Contract Amount: $82,570,847 ($82.6M)

Contractor: Intuitive Research and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2024-12-19

End Date: 2027-12-19

Contract Duration: 1,095 days

Daily Burn Rate: $75.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: STRIKE SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $82.6 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION for work described as: STRIKE SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT SERVICES Key points: 1. Contract focuses on critical research and development for strike systems, indicating a need for advanced technological solutions. 2. The awardee, Intuitive Research and Technology Corporation, has a track record in engineering and technical services. 3. A Cost Plus Fixed Fee contract type suggests potential for cost overruns if not managed diligently. 4. The contract duration of 1095 days allows for sustained development and integration efforts. 5. The geographic location in Alabama may indicate a concentration of defense-related R&D activities in the region. 6. The contract's value places it as a significant investment in the defense R&D sector.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns. However, the $82.6 million award over three years for specialized R&D in strike systems engineering suggests a substantial investment. Comparisons to similar R&D contracts within the Department of Defense would be necessary to fully assess value for money, but the scope appears to align with complex defense technology development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources were excluded. The number of bidders is not specified, but this procurement method suggests a potentially limited competitive landscape compared to unrestricted full and open competition. This could impact price negotiation and the range of innovative solutions considered.

Taxpayer Impact: The limited competition may mean taxpayers are not benefiting from the lowest possible price achievable through broader market engagement.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the warfighter, who will receive advanced strike systems. Services delivered include research, development, engineering, and technical assistance for strike systems. The geographic impact is primarily in Alabama, where the contractor is located, potentially creating or sustaining high-skilled jobs. Workforce implications include the need for specialized engineers, scientists, and technical personnel within Intuitive Research and Technology Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not closely monitored.
The 'after exclusion of sources' clause in the competition type warrants scrutiny to ensure fair opportunity was provided.
The specific nature of 'strike systems' development carries inherent risks related to technological feasibility and evolving threats.

Positive Signals

The contract is awarded to a company with stated expertise in research and technology, suggesting capability.
The multi-year duration indicates a commitment to a specific technological path, allowing for focused development.
The Department of the Army's investment signifies a strategic priority in enhancing strike capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on defense technologies. The market for defense R&D is characterized by significant government investment, long development cycles, and a need for highly specialized expertise. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the DoD for advanced weapon systems or related technologies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on the technical capabilities of the prime contractor, and the impact on the small business ecosystem may be indirect, potentially through opportunities with the prime or its larger subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is typically facilitated through contract award databases and reporting, though detailed cost and performance data may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Weapon Systems Development
Strike Capability Modernization
Engineering and Technical Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited competition ('after exclusion of sources') may impact price discovery.
R&D contracts inherently carry technical and programmatic risks.
Specific details on contractor's past performance for 'strike systems' are not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.6 million to INTUITIVE RESEARCH AND TECHNOLOGY CORPORATION. STRIKE SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT SERVICES

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 $82.6 million.

What is the period of performance?

Start: 2024-12-19. End: 2027-12-19.

What is Intuitive Research and Technology Corporation's specific experience with strike systems or similar defense technologies?

Intuitive Research and Technology Corporation (IRTC) positions itself as a provider of advanced engineering and technical services. While the specific details of their past performance on 'strike systems' are not publicly detailed in this award notice, their core business involves supporting complex defense programs. They often engage in areas such as systems engineering, software development, and advanced manufacturing for aerospace and defense clients. To fully assess their suitability, a deeper dive into their contract history, particularly with the Department of the Army or other branches of the DoD, would be required to identify direct experience with weapon system development, integration, and testing relevant to strike capabilities.

How does the $82.6 million value compare to similar R&D contracts for strike systems?

Directly comparing the $82.6 million value to 'similar' strike systems R&D contracts is challenging without access to a comprehensive database of classified or sensitive defense R&D procurements. However, this value represents a significant investment over three years. Large-scale defense R&D programs, especially those involving advanced weapon systems, often run into hundreds of millions or even billions of dollars over their lifecycle. This particular contract appears to be a substantial, but perhaps not the largest, component of a broader strike systems modernization effort. Benchmarking would require analyzing contracts with similar technical scope, duration, and agency focus within the defense sector.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

Cost Plus Fixed Fee (CPFF) contracts, while common in R&D where exact costs are uncertain, carry inherent risks. The primary risk for the government is that the contractor is reimbursed for all allowable costs plus a fixed fee, which represents their profit. If the contractor's costs escalate beyond initial estimates, the government pays more. This structure can potentially disincentivize cost control if the fixed fee is substantial relative to the total estimated cost. Effective oversight, stringent cost accounting standards, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee remains profitable.

What does 'Full and Open Competition After Exclusion of Sources' mean for price and innovation?

The 'Full and Open Competition After Exclusion of Sources' procurement method suggests that the agency initially intended to compete the contract broadly but then excluded specific sources for reasons that must be justified (e.g., unique capabilities, national security concerns, or prior development efforts). While it implies some level of competition, the exclusion of sources inherently limits the pool of potential bidders. This limitation can potentially reduce price competition compared to unrestricted full and open competition, as fewer companies are vying for the contract. It may also limit the diversity of innovative approaches considered, as the excluded sources might have offered alternative solutions. The justification for exclusion is critical to understanding the impact on price discovery and technological advancement.

What are the potential long-term implications of this contract on strike system capabilities?

This contract signifies a commitment by the Department of the Army to advancing its strike system capabilities through dedicated R&D. The long-term implications depend heavily on the success of the research and the subsequent integration of developed technologies into operational systems. If successful, it could lead to more effective, precise, or survivable strike platforms, enhancing the military's overall effectiveness. Conversely, if the R&D encounters significant technical hurdles or the resulting technologies do not meet operational needs, the investment may yield limited returns. The sustained effort over three years suggests a focus on foundational or developmental aspects that could shape future strike capabilities for years to come.

How does the geographic concentration in Alabama impact the broader defense R&D landscape?

The concentration of this significant R&D contract in Alabama, where Intuitive Research and Technology Corporation is based, highlights the state's role as a hub for defense-related activities. This can foster a local ecosystem of specialized talent, research institutions, and supporting industries. Such geographic concentration can lead to efficiencies through proximity and established relationships but may also concentrate risk. From a national perspective, it raises questions about the equitable distribution of defense R&D investments across different regions and the potential benefits of broader geographic competition to tap into diverse talent pools nationwide.

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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

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: $248,533,450

Exercised Options: $82,570,847

Current Obligation: $82,570,847

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $28,956,903

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS606

IDV Type: IDC

Timeline