DoD's $30.6M R&D contract for physical, engineering, and life sciences research awarded to IIT Research Institute
Contract Overview
Contract Amount: $30,650,137 ($30.7M)
Contractor: IIT Research Institute
Awarding Agency: Department of Defense
Start Date: 2009-08-18
End Date: 2013-02-17
Contract Duration: 1,279 days
Daily Burn Rate: $24.0K/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 $30.7 million to IIT RESEARCH INSTITUTE for work described as: TECHNICAL AREA TASKS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. 3. Performance period spans over 3 years, indicating a significant, long-term research effort. 4. The North American Industry Classification System (NAICS) code 541710 points to a focus on R&D services. 5. The contract was awarded by the Department of the Air Force, a major component of the DoD. 6. The contract was awarded as a Delivery Order, implying it's part of a larger contract vehicle.
Value Assessment
Rating: fair
Benchmarking the value of this specific $30.6 million contract is challenging without more detailed task breakdowns and comparable contract data. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation if not managed tightly. The fixed fee component provides some incentive for the contractor to control costs, but the government bears the majority of the cost risk. Further analysis would require comparing the contractor's performance and final costs against similar R&D efforts within the Air Force or DoD.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders (no: 2) suggests some level of competition, but the exact number of proposals received and the evaluation process details are not provided. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services received.
Public Impact
The primary beneficiary is the Department of the Air Force, which receives advanced research and development services. The contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies and capabilities. The geographic impact is centered in Illinois (IL), where the contractor IIT Research Institute is located. Workforce implications include employment opportunities for researchers, scientists, and support staff at IIT Research Institute.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
- Limited information on the specific R&D tasks makes it difficult to assess true value for money.
- The duration of the contract (1279 days) requires sustained oversight to ensure progress and alignment with objectives.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- The contractor, IIT Research Institute, is likely experienced in R&D, given the nature of the contract.
- The contract supports critical research and development for the Department of the Air Force.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D sector is crucial for technological advancement and national security, with significant government investment. Comparable spending benchmarks would involve analyzing other DoD R&D contracts awarded under NAICS code 541710, looking at average award values, contract types, and competition levels to contextualize this $30.6 million award.
Small Business Impact
There is no indication that this contract included a small business set-aside. As a large R&D contract awarded to IIT Research Institute, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the contract's statement of work. The primary focus appears to be on the prime contractor's capabilities.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed cost reporting and progress reviews. Transparency is facilitated by the contract award data being publicly available, though specific performance details and cost breakdowns may be restricted. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- DoD Research and Development Programs
- Air Force Science and Technology Investments
- Federal R&D Contracts
- NAICS 541710 - Research and Development in the Physical, Engineering, and Life Sciences
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Limited number of bidders may reduce competitive pricing pressure.
- Lack of detailed task information hinders precise value assessment.
Tags
department-of-defense, department-of-the-air-force, research-and-development, physical-engineering-life-sciences, cost-plus-fixed-fee, full-and-open-competition, delivery-order, illinois, iit-research-institute, naics-541710
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.7 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 $30.7 million.
What is the period of performance?
Start: 2009-08-18. End: 2013-02-17.
What is the specific nature of the 'Research and Development in the Physical, Engineering, and Life Sciences' being conducted under this contract?
The provided data indicates the contract falls under NAICS code 541710, which covers R&D in physical, engineering, and life sciences. However, the specific technical area tasks ('d') are not detailed in the provided data. To understand the precise nature of the research, one would need to consult the contract's Statement of Work (SOW) or Performance Work Statement (PWS). This document would outline the specific objectives, methodologies, deliverables, and scientific domains (e.g., materials science, aerospace engineering, biotechnology, etc.) that IIT Research Institute is contracted to investigate for the Department of the Air Force.
How does the $30.6 million award value compare to typical R&D contracts of this nature within the Department of Defense?
The $30.6 million award value for a 1279-day (approximately 3.5 year) R&D contract is substantial but not extraordinary within the context of large federal R&D investments. The Department of Defense frequently awards contracts in the tens to hundreds of millions of dollars for advanced research. To provide a precise comparison, one would need to analyze historical DoD contract awards for NAICS 541710, filtering by agency (Air Force), contract type (CPFF), and duration. This would reveal the median and average award values for similar projects, allowing for a more robust assessment of whether this specific contract represents a particularly high or low investment relative to its peers.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?
The primary risk with a CPFF contract is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee provides some incentive for cost control, the government bears the majority of the cost risk. If the R&D effort encounters unforeseen technical challenges or requires more resources than initially estimated, the total cost to the government can significantly exceed initial projections. Effective oversight, rigorous cost monitoring, and clear performance metrics are crucial to mitigate these risks and ensure the government receives value for its investment. The CPFF structure is often used when the scope of work is not precisely defined, common in R&D, but requires diligent management.
What is the track record of IIT Research Institute in performing similar R&D contracts for the federal government?
IIT Research Institute (IITRI) has a long history of performing research and development for various government agencies, including the Department of Defense. While specific details of their past performance on contracts identical to this one are not provided in the summary data, IITRI is generally recognized for its expertise in scientific research, engineering, and technology development. A comprehensive assessment would involve reviewing their contract performance history, including past performance evaluations, any reported issues or successes, and the types of R&D projects they have undertaken. This information is typically available through federal procurement databases and past performance repositories.
How does the competition level (2 bidders) impact the potential value and pricing for this contract?
Having only two bidders in a 'full and open competition' scenario suggests a moderate level of competition. While competition is generally beneficial, a lower number of bidders can sometimes result in less aggressive pricing compared to scenarios with numerous proposals. The government's ability to negotiate favorable terms and pricing may be somewhat constrained with only two offers. The evaluation criteria and the perceived capabilities of the two competing entities would heavily influence the final price and overall value. Without knowing the specifics of the proposals or the evaluation process, it's difficult to definitively state the impact, but fewer bidders generally imply less downward pressure on 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 › 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: $32,469,127
Exercised Options: $32,469,127
Current Obligation: $30,650,137
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: 2009-08-18
Current End Date: 2013-02-17
Potential End Date: 2013-02-17 00:00:00
Last Modified: 2021-04-01
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