DoD's $33.2M R&D contract for physical sciences research awarded to IIT Research Institute
Contract Overview
Contract Amount: $33,220,149 ($33.2M)
Contractor: IIT Research Institute
Awarding Agency: Department of Defense
Start Date: 2009-09-29
End Date: 2013-03-31
Contract Duration: 1,279 days
Daily Burn Rate: $26.0K/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 $33.2 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. Duration of 1279 days indicates a long-term research and development effort. 4. The North American Industry Classification System (NAICS) code 541710 points to significant R&D activity. 5. The contract was awarded as a Delivery Order, a common method for tasking within a larger contract vehicle. 6. The contract was not set aside for small businesses, indicating larger prime contractors were likely involved.
Value Assessment
Rating: fair
Benchmarking the value of this $33.2 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, carries inherent risks of cost escalation compared to fixed-price contracts. The absence of detailed cost breakdowns or performance against objectives makes a definitive value assessment difficult. However, the duration suggests a substantial scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specific award. While competition is generally positive, the exact number of potential bidders and the intensity of the competition are not detailed, which could impact price discovery.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a more competitive environment, which can lead to better pricing and innovation. However, the ultimate value realized depends on the specific terms and performance of the contract.
Public Impact
The primary beneficiary is the Department of Defense, which receives advanced research and development in physical sciences. The contract supports research activities crucial for national security and technological advancement. The geographic impact is centered in Illinois, where IIT Research Institute is located. The contract likely supports a specialized workforce of scientists, engineers, and researchers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to higher costs if not closely managed.
- Limited transparency on specific research outcomes and their direct impact on defense capabilities.
- The duration of the contract may present challenges in adapting to rapidly evolving technological landscapes.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- The contract supports critical research and development for the Department of Defense.
- The long duration allows for in-depth research and development efforts.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541710, which covers physical, engineering, and life sciences. This is a critical area for defense modernization and technological superiority. Spending in this sector is highly competitive and driven by innovation. Comparable spending benchmarks would typically involve other large-scale R&D contracts awarded by defense agencies for similar scientific endeavors.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the prime contract was likely awarded to a large business or research institution capable of handling the scope and complexity of the R&D effort. There is no direct information on subcontracting plans for small businesses, which is a common avenue for their participation in larger federal contracts.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting agency (Department of the Air Force) and potentially the Department of Defense's Inspector General. The CPFF contract type necessitates rigorous oversight to ensure costs are reasonable and allocable to the contract. Transparency would be limited to what is publicly reported through contract databases and agency disclosures.
Related Government Programs
- Department of Defense Research and Development Contracts
- Physical Sciences Research
- Cost Plus Fixed Fee Contracts
- Air Force Science and Technology Programs
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
- Lack of detailed performance metrics makes value assessment challenging.
- Limited public information on specific research outcomes.
Tags
department-of-defense, research-and-development, physical-sciences, iit-research-institute, cost-plus-fixed-fee, full-and-open-competition, delivery-order, illinois, air-force, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.2 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 $33.2 million.
What is the period of performance?
Start: 2009-09-29. End: 2013-03-31.
What is the specific nature of the 'Physical, Engineering, and Life Sciences' research conducted under this contract?
The provided data identifies the technical area as 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) and the contract description as 'TECHNICAL AREA TASKS'. However, the specific research topics, objectives, and deliverables are not detailed in the provided summary. This level of detail is typically found in the contract's statement of work (SOW) or task orders, which are not publicly available in this format. Understanding the precise research focus would require accessing the full contract documentation or agency reports detailing the program's goals and outcomes.
How does the $33.2 million cost compare to similar R&D contracts in physical sciences for the Department of Defense?
Directly comparing the $33.2 million cost without knowing the specific research scope, duration, and complexity makes a precise benchmark difficult. However, R&D contracts for the Department of Defense in specialized scientific fields can range from a few million to hundreds of millions of dollars. This contract's value appears to be moderate for a multi-year R&D effort. To provide a more accurate comparison, one would need to analyze contracts with similar NAICS codes, contract types (like CPFF), and research objectives awarded around the same period to assess if the pricing is competitive for the scope of work.
What are the key performance indicators (KPIs) or milestones associated with this contract, and how was performance measured?
The provided data does not include specific Key Performance Indicators (KPIs) or milestones for this contract. For Cost Plus Fixed Fee contracts, performance is typically measured against the achievement of research objectives outlined in the Statement of Work (SOW). This often involves technical reviews, progress reports, and the delivery of research findings or prototypes. The 'DELIVERY ORDER' award type suggests tasks were defined and completed sequentially or in phases. Without access to the SOW or performance reports, it's impossible to assess how effectively IIT Research Institute met its contractual obligations.
What is the track record of IIT Research Institute in performing similar R&D contracts for the Department of Defense?
IIT Research Institute (IITRI) has a long history of performing research and development for various government agencies, including the Department of Defense. While specific performance metrics for this particular $33.2 million contract are not detailed here, IITRI is generally recognized as a capable research organization. A comprehensive assessment of their track record would involve reviewing their past performance evaluations on similar contracts, any awards or penalties received, and their success in delivering on complex scientific and engineering projects for the DoD.
What is the potential for cost overruns given the Cost Plus Fixed Fee (CPFF) contract type?
The Cost Plus Fixed Fee (CPFF) contract type, used here, means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure can incentivize contractors to incur costs, as their fee remains constant regardless of the total cost. The risk of cost overruns is present if the actual costs exceed initial estimates significantly. Effective oversight by the contracting agency is crucial to manage these costs, ensuring that all expenditures are reasonable, allocable, and necessary for contract performance. Without detailed cost reports and oversight documentation, the precise risk level is difficult to quantify.
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: $33,222,955
Exercised Options: $33,222,955
Current Obligation: $33,220,149
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: 2009-09-29
Current End Date: 2013-03-31
Potential End Date: 2013-03-31 00:00:00
Last Modified: 2021-04-01
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