DoD's $149M R&D Contract with IIT Research Institute: A Deep Dive into Technical Area Tasks
Contract Overview
Contract Amount: $14,914,133 ($14.9M)
Contractor: IIT Research Institute
Awarding Agency: Department of Defense
Start Date: 2009-09-28
End Date: 2013-03-22
Contract Duration: 1,271 days
Daily Burn Rate: $11.7K/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 $14.9 million to IIT RESEARCH INSTITUTE for work described as: TECHNICAL AREA TASKS Key points: 1. The contract, valued at $149.14 million, focuses on Research and Development in Physical, Engineering, and Life Sciences. 2. Awarded under Full and Open Competition, it suggests a competitive bidding process for the services. 3. The contract duration of 1271 days indicates a significant, long-term engagement. 4. The Cost Plus Fixed Fee (CPFF) pricing structure may present cost control challenges. 5. The absence of small business participation warrants further investigation.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to costs exceeding initial estimates if not managed carefully. Benchmarking CPFF contracts in R&D is complex due to the inherent uncertainty in research outcomes.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under Full and Open Competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently, though the CPFF structure requires diligent oversight to control costs.
Public Impact
Significant investment in R&D by the Department of the Air Force, potentially leading to technological advancements. The contract's duration suggests a sustained effort in a critical research area. Lack of small business involvement may limit opportunities for smaller, innovative firms in this sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) pricing structure
- No small business participation reported
- Long contract duration
Positive Signals
- Full and Open Competition awarded
- Significant investment in R&D
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for national security and technological advancement, with benchmarks varying widely based on the specific research domain.
Small Business Impact
The contract did not report any small business participation. This is a missed opportunity to engage smaller, potentially innovative businesses in critical research and development efforts, and may indicate a need for better outreach or set-aside strategies.
Oversight & Accountability
The Cost Plus Fixed Fee (CPFF) structure necessitates robust oversight from the Department of the Air Force to ensure costs remain reasonable and that the research objectives are met efficiently. Tracking progress and expenditures is key to accountability.
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 (CPFF) pricing can lead to cost overruns.
- No small business participation reported.
- Long contract duration may indicate potential for scope creep or evolving requirements.
- Specific R&D outcomes and their value are not detailed.
- Potential for contractor inefficiency due to fixed fee structure without strict cost controls.
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 $14.9 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 $14.9 million.
What is the period of performance?
Start: 2009-09-28. End: 2013-03-22.
What specific R&D advancements or deliverables were achieved under this contract, and how do they align with the initial objectives and taxpayer investment?
Assessing the specific R&D advancements requires access to detailed project reports and performance metrics. The value to taxpayers hinges on the successful development of technologies or knowledge that provide a tangible benefit, whether through improved defense capabilities, economic impact, or scientific understanding. Without these details, it's difficult to definitively state the return on investment.
Given the CPFF structure and lack of small business participation, what are the primary risks to cost control and innovation?
The primary risk to cost control with CPFF is the potential for cost overruns if the contractor's spending is not closely monitored and justified. Innovation risk stems from the potential for larger, established contractors to dominate, possibly crowding out more agile small businesses that might offer novel approaches. Ensuring rigorous oversight and exploring avenues for small business subcontracting can mitigate these risks.
How effective was the 'Full and Open Competition' in ensuring the best possible price and technical solution for the Department of Defense?
Full and Open Competition is generally effective in driving competitive pricing and allowing the government to select the most capable vendor. However, the effectiveness is contingent on the quality of the solicitation, the number and caliber of bidders, and the government's ability to accurately evaluate proposals. The CPFF structure means that while competition may have secured a capable vendor, ongoing cost management remains critical.
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: $33,816,378
Exercised Options: $33,816,378
Current Obligation: $14,914,133
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: 2009-09-28
Current End Date: 2013-03-22
Potential End Date: 2013-03-22 00:00:00
Last Modified: 2021-04-01
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