DoD's $54M engineering services contract to IIT Research Institute shows strong competition and long-term performance
Contract Overview
Contract Amount: $29,798,445 ($29.8M)
Contractor: IIT Research Institute
Awarding Agency: Department of Defense
Start Date: 2003-09-26
End Date: 2007-06-01
Contract Duration: 1,344 days
Daily Burn Rate: $22.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Sector: R&D
Official Description: 200312!000574!1700!A8301 !NAVAL AIR WARFARE CNETER TRAININ!N6133903D0300 !A!N! !N!0113 !20030926!20060923!005447826!005447826!005447826!N!IIT RESEARCH INSTITUTE !10 WEST 35TH STREET !CHICAGO !IL!60616!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000000075000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !5!A!S! ! ! !99990909!B! ! !A! !A!U!U!2!002!A! !Z!N!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $29.8 million to IIT RESEARCH INSTITUTE for work described as: 200312!000574!1700!A8301 !NAVAL AIR WARFARE CNETER TRAININ!N6133903D0300 !A!N! !N!0113 !20030926!20060923!005447826!005447826!005447826!N!IIT RESEARCH INSTITUTE !10 WEST 35TH STREET !CHICAGO !IL!60616!01000!510!51!ALEXANDRIA !ALEXA… Key points: 1. Contract awarded through full and open competition, indicating a robust market. 2. Long contract duration of over 3 years suggests sustained need for services. 3. Multiple delivery orders indicate ongoing project execution and potential for task order growth. 4. The contract's focus on engineering and technical services aligns with critical defense research needs. 5. Small business participation was not a primary focus, with no set-aside noted. 6. The contract value of $54M over its period represents a significant investment in specialized R&D.
Value Assessment
Rating: good
The total award amount of $54,478,260 over approximately three years for engineering and technical services appears reasonable given the specialized nature of the work and the contractor's demonstrated performance. Benchmarking against similar R&D contracts in the defense sector suggests that pricing is likely competitive, especially considering the full and open competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple capable vendors were invited to bid. The presence of two delivery orders indicates that the initial competition likely resulted in a strong pool of qualified offerors, leading to a competitive price discovery process for the government.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value from a wide range of potential providers.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Naval Air Warfare Center Training Systems Division, which receives critical engineering and technical support. Services delivered include specialized engineering and technical support, crucial for maintaining and advancing training systems. The contract's geographic impact is centered around the contractor's location in Chicago, Illinois, and the Naval Air Warfare Center's operations. Workforce implications include employment for skilled engineers and technical staff at IIT Research Institute.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if not managed tightly due to the long duration and multiple delivery orders.
- Reliance on a single contractor for specialized services could pose a risk if performance degrades significantly.
Positive Signals
- Awarded via full and open competition, suggesting a competitive environment and likely fair pricing.
- Contractor has a track record of performance, indicated by the issuance of delivery orders.
- Long-term nature of the contract suggests a stable and ongoing requirement, providing continuity for critical support.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on engineering and technical services for defense applications. The market for such specialized services is often characterized by a limited number of highly qualified contractors. The $54M award is a significant but not extraordinary sum for a multi-year R&D effort within the defense industry, reflecting the specialized expertise required.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the most capable large business or research institution for the specialized engineering services, potentially limiting direct opportunities for small businesses within this specific contract's structure.
Oversight & Accountability
Oversight for this contract would typically be managed by the Naval Air Warfare Center Training Systems Division, with contract officers and technical monitors ensuring performance and compliance. The issuance of multiple delivery orders suggests active oversight. Transparency is generally maintained through contract databases, though specific performance metrics are not publicly detailed.
Related Government Programs
- Naval Air Warfare Center Training Systems Division Contracts
- Department of Defense Research and Development Contracts
- Engineering and Technical Services Contracts
- Defense Training Systems Support
Risk Flags
- Long contract duration
- Multiple delivery orders issued
- Specialized R&D services
Tags
department-of-defense, department-of-the-navy, naval-air-warfare-center-training-systems-division, iit-research-institute, engineering-services, research-and-development, full-and-open-competition, delivery-order, chicago-illinois, defense-training, technical-services, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.8 million to IIT RESEARCH INSTITUTE. 200312!000574!1700!A8301 !NAVAL AIR WARFARE CNETER TRAININ!N6133903D0300 !A!N! !N!0113 !20030926!20060923!005447826!005447826!005447826!N!IIT RESEARCH INSTITUTE !10 WEST 35TH STREET !CHICAGO !IL!60616!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000000075000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !5!A!S! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is IIT RESEARCH INSTITUTE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $29.8 million.
What is the period of performance?
Start: 2003-09-26. End: 2007-06-01.
What is the historical spending pattern for engineering and technical services by the Naval Air Warfare Center Training Systems Division?
Analyzing historical spending for engineering and technical services by the Naval Air Warfare Center Training Systems Division (NAWCTSD) requires access to detailed procurement data beyond this single contract. However, this $54M award from 2003-2007 indicates a significant investment in specialized R&D and support functions. Typically, such spending fluctuates based on defense priorities, technological advancements, and specific platform needs. NAWCTSD, being a key entity for training systems, would likely have consistent, albeit variable, spending in this area to maintain and upgrade simulation and training technologies. Comparing this contract's value to the division's overall budget or other similar contracts awarded during that period would provide a clearer picture of its relative significance and the division's sustained commitment to R&D services.
How does the performance of IIT Research Institute on this contract compare to its other federal contracts?
Assessing IIT Research Institute's performance on this specific $54M contract requires a deep dive into performance reviews, past performance questionnaires, and any documented issues or commendations. Without that granular data, a direct comparison is difficult. However, the fact that the contract was awarded under full and open competition and saw the issuance of multiple delivery orders suggests a level of satisfactory performance that met the government's needs over its duration (2003-2007). To compare with other federal contracts, one would need to examine their award types, durations, values, and any available performance ratings. IIT Research Institute, as a research institute, likely holds numerous contracts across various agencies, and its overall track record would be a composite of these engagements, reflecting its capabilities in R&D and technical services.
What are the key risks associated with long-duration engineering services contracts like this one?
Long-duration engineering services contracts, such as this $54M award to IIT Research Institute, carry several inherent risks. One primary risk is technological obsolescence; the technologies or systems being supported may evolve rapidly, rendering the original scope of work less relevant or requiring significant adaptation. Another risk is contractor performance degradation over time, where initial high performance may wane due to factors like staff turnover, burnout, or shifting priorities within the contractor's organization. Cost overruns can also be a concern, especially if contract terms are not tightly defined or if unforeseen technical challenges arise. Furthermore, a prolonged reliance on a single contractor can reduce flexibility and potentially stifle innovation if alternative solutions are not explored. Effective risk mitigation involves robust contract management, regular performance reviews, and clear mechanisms for addressing scope changes or performance issues.
What is the typical market size for engineering and technical services within the Department of Defense?
The market size for engineering and technical services within the Department of Defense (DoD) is substantial and multifaceted, encompassing a wide array of specialized support across all branches and agencies. While a precise, consolidated figure is difficult to pinpoint due to the diverse nature of these services (ranging from R&D and systems engineering to logistics support and cybersecurity), annual DoD spending on such services routinely runs into the tens of billions of dollars. This contract, valued at $54M over its period, represents a small fraction of the overall DoD expenditure in this domain. The market is characterized by a mix of large aerospace and defense prime contractors, specialized engineering firms, and research institutions, all competing for contracts that support the development, maintenance, and modernization of military platforms and systems.
How does the competition level (full and open) impact the value received by the government for R&D services?
A full and open competition environment for Research and Development (R&D) services generally enhances the value received by the government. It allows a broad range of potential offerors, including established players and potentially innovative smaller firms, to submit proposals. This wider net increases the likelihood of discovering unique technical solutions and competitive pricing. When multiple bidders vie for a contract, they are incentivized to offer their best technical approach and most competitive pricing to win the award. This competitive pressure can lead to lower overall costs, better technical performance, and a wider array of innovative solutions compared to sole-source or limited competition scenarios. For R&D, this means the government is more likely to secure cutting-edge research and development at a fair market price.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Contractor Details
Address: 10 WEST 35TH STREET, CHICAGO, IL, 60616
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6133903D0300
IDV Type: IDC
Timeline
Start Date: 2003-09-26
Current End Date: 2007-06-01
Potential End Date: 2007-06-01 00:00:00
Last Modified: 2021-04-01
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