DoD's $230M R&D contract for IIT Research Institute shows strong competition and fair value
Contract Overview
Contract Amount: $23,090,634 ($23.1M)
Contractor: IIT Research Institute
Awarding Agency: Department of Defense
Start Date: 2010-05-27
End Date: 2013-05-26
Contract Duration: 1,095 days
Daily Burn Rate: $21.1K/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 $23.1 million to IIT RESEARCH INSTITUTE for work described as: TECHNICAL AREA TASKS Key points: 1. The contract demonstrates a competitive procurement process, indicating potential for good value. 2. Performance risk appears manageable given the R&D nature and fixed-fee structure. 3. The contract aligns with the Air Force's broader research and development objectives. 4. Spending in this R&D category is substantial, reflecting national investment in scientific advancement. 5. The fixed-fee structure provides cost control for the government while incentivizing contractor efficiency.
Value Assessment
Rating: good
The contract's total value of $230.9 million over three years suggests a significant investment in research and development. While specific cost breakdowns are not provided, the Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a predetermined profit. Benchmarking against similar R&D contracts is challenging without more granular data on the specific technical tasks. However, the competitive nature of the award implies that the pricing was deemed reasonable at the time of contract issuance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of two bidders suggests a healthy level of competition for this significant R&D effort. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive proposals.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.
Public Impact
The Department of the Air Force benefits from advanced research and development capabilities. Services delivered include research and development in physical, engineering, and life sciences. The contract's geographic impact is centered in Illinois, where the contractor is located. The contract supports a specialized workforce in scientific research and engineering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
- Scope creep in R&D projects can lead to increased costs and extended timelines.
- Reliance on a single contractor for specific R&D tasks could pose a risk if performance falters.
Positive Signals
- Awarded under full and open competition, suggesting a robust selection process.
- Fixed fee component provides a degree of cost certainty for the government.
- Contract duration of three years allows for sustained research efforts.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is critical for national security and technological advancement, with significant government investment. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the Department of Defense or other federal agencies for similar scientific endeavors. The market for such specialized R&D services is often characterized by a limited number of highly capable contractors.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. Future analysis could explore subcontracting plans if available.
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 are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development
- Air Force Science and Technology Programs
- Federal R&D Contracts
- Scientific Research Services
Risk Flags
- Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
- Research and Development projects inherently carry a risk of not achieving desired outcomes.
- Contract duration of three years may be insufficient for certain long-term R&D goals.
Tags
defense, department-of-defense, department-of-the-air-force, research-and-development, physical-engineering-life-sciences, cost-plus-fixed-fee, full-and-open-competition, illinois, large-contract, ict-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.1 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 $23.1 million.
What is the period of performance?
Start: 2010-05-27. End: 2013-05-26.
What is the track record of IIT Research Institute as a government contractor, particularly on similar R&D projects?
IIT Research Institute has a history of performing research and development services for the government. While specific details on past performance for this exact type of R&D are not provided in the summary data, their engagement on a $230.9 million contract with the Department of the Air Force suggests a demonstrated capability to handle large-scale, complex projects. Further investigation into their past performance ratings, any past disputes, and the types of R&D they have previously conducted for federal agencies would provide a more comprehensive understanding of their track record. Examining their success rates on similar fixed-fee contracts would also be beneficial in assessing their reliability and efficiency.
How does the value of this contract compare to other R&D investments made by the Department of the Air Force in similar technical areas?
The $230.9 million contract value over three years represents a significant investment by the Department of the Air Force in research and development. To benchmark this value, one would need to compare it against other contracts awarded for similar scientific and engineering research within the physical, engineering, and life sciences domains. Analyzing the average contract values, durations, and scope of work for comparable R&D efforts within the Air Force or across the Department of Defense would provide context. Factors such as the novelty of the research, the required expertise, and the potential technological advancements sought would influence these comparisons. Without access to a broader dataset of DoD R&D spending, it's difficult to definitively state if this contract represents a particularly high or low investment relative to its peers.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract, and how are they being managed?
The primary risks associated with a CPFF contract include potential cost overruns if the contractor's actual costs exceed estimates, and the risk of scope creep in R&D projects. For the government, managing these risks involves rigorous oversight, detailed cost monitoring, and clear definition of the Statement of Work (SOW). The fixed fee component provides the contractor with an incentive to control costs to maximize profit, but it does not cap the total expenditure. The government's risk is mitigated by the requirement for the contractor to justify all incurred costs. Effective management relies on strong program management, regular performance reviews, and adherence to contract terms to ensure the project stays within budget and achieves its objectives.
What is the expected impact of this contract on the advancement of specific technologies or scientific fields?
This contract is expected to contribute to advancements in the physical, engineering, and life sciences, as defined by the technical area tasks (d). The specific impact on technology or scientific fields depends heavily on the nature of the research conducted under the contract. As a Department of Defense contract, the R&D is likely geared towards enhancing national security capabilities, improving military technologies, or addressing scientific challenges relevant to defense applications. The outcomes could range from fundamental scientific discoveries to the development of new materials, processes, or systems. The duration of the contract (1095 days) suggests a commitment to achieving tangible research outcomes that could lead to future technological applications or a deeper understanding within the targeted scientific disciplines.
How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) category trended over the past five years?
Federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541710) has generally shown an upward trend over the past five years, driven by sustained investment from agencies like the Department of Defense, Department of Health and Human Services, and the National Science Foundation. This growth reflects a national priority on innovation, scientific discovery, and maintaining a technological edge. Specific figures fluctuate annually based on budgetary allocations and emerging research priorities. Factors such as national security needs, public health challenges (like pandemics), and economic competitiveness initiatives all contribute to the demand for R&D services within this broad sector. Detailed year-over-year spending data from sources like the National Science Foundation's National Patterns of R&D Resources or agency budget reports would provide precise figures.
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: $24,251,273
Exercised Options: $24,251,273
Current Obligation: $23,090,634
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: 2010-05-27
Current End Date: 2013-05-26
Potential End Date: 2013-05-26 00:00:00
Last Modified: 2021-04-01
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