DoD's $310M R&D Contract for Technical Area Tasks Awarded to IIT Research Institute

Contract Overview

Contract Amount: $31,007,866 ($31.0M)

Contractor: IIT Research Institute

Awarding Agency: Department of Defense

Start Date: 2009-08-10

End Date: 2012-08-09

Contract Duration: 1,095 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TECHNICAL AREA TASKS

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60616

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $31.0 million to IIT RESEARCH INSTITUTE for work described as: TECHNICAL AREA TASKS Key points: 1. Significant investment in R&D, specifically in physical, engineering, and life sciences. 2. Full and open competition suggests a robust market for these services. 3. Potential for high-value innovation given the R&D focus. 4. Contract duration of 3 years indicates a substantial project scope.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without specific performance metrics or comparable contract data, assessing value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes fair pricing and allows the government to select the best value offer.

Taxpayer Impact: Taxpayer funds are being used for research and development, which can yield long-term benefits but also carries inherent risks if the research does not lead to successful outcomes.

Public Impact

Supports advancements in physical, engineering, and life sciences, potentially leading to new technologies. The large contract value suggests a significant project with potential for broad scientific impact. Funding R&D is crucial for national security and technological competitiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Research and Development sector, specifically NAICS code 541710. Spending in this sector is vital for innovation and national security, with benchmarks varying widely based on the specific research area and agency.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight would typically be managed by the Department of the Air Force, ensuring adherence to contract terms and performance standards. The Cost Plus Fixed Fee structure necessitates diligent monitoring to control costs.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, il, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to IIT RESEARCH INSTITUTE. TECHNICAL AREA TASKS

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 Air Force).

What is the total obligated amount?

The obligated amount is $31.0 million.

What is the period of performance?

Start: 2009-08-10. End: 2012-08-09.

What specific research outcomes are expected from this $310 million contract, and how will their success be measured to ensure value for taxpayer money?

The contract focuses on 'Technical Area Tasks' within physical, engineering, and life sciences R&D. Specific outcomes are not detailed in the provided data. Success measurement would likely involve milestones, deliverables, and technical reviews defined in the contract's statement of work. Without these details, assessing the precise value realization is challenging, but the competitive award suggests a perceived potential for valuable outcomes.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient use of funds?

Cost Plus Fixed Fee contracts require robust government oversight to manage costs effectively. Mechanisms typically include detailed audits, regular progress reviews, and strict adherence to the defined scope of work. The contracting agency, Department of the Air Force, is responsible for monitoring expenditures against the fixed fee and ensuring that costs remain reasonable and allocable to the contract objectives.

How does this contract contribute to the Department of Defense's broader research and development objectives, and what is the potential long-term impact?

This contract supports the DoD's objective of advancing scientific and technological capabilities in critical areas. The R&D focus suggests an aim to develop new technologies or enhance existing ones for defense applications. The long-term impact could range from improved military effectiveness to breakthroughs with dual-use applications, fostering innovation and maintaining a technological edge.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENTOTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 10 WEST 35TH STREET, CHICAGO, IL, 60616

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $32,678,765

Exercised Options: $32,678,765

Current Obligation: $31,007,866

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: 2009-08-10

Current End Date: 2012-08-09

Potential End Date: 2012-08-09 00:00:00

Last Modified: 2021-04-01

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