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
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of specific performance data makes value assessment difficult.
- Long contract duration may increase risk of scope creep or changing requirements.
Positive Signals
- Awarded through full and open competition.
- Significant investment in critical R&D area.
- Contract awarded to a specialized research institute.
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
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of detailed performance metrics.
- Potential for cost overruns.
- Long contract duration.
- Limited information on specific research goals.
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 Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER 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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