DoD's $10.7M R&D contract for advanced threat reduction technology awarded to Southwest Research Institute

Contract Overview

Contract Amount: $10,724,945 ($10.7M)

Contractor: Southwest Research Institute

Awarding Agency: Department of Defense

Start Date: 2007-09-25

End Date: 2010-11-30

Contract Duration: 1,162 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PHASE 001-07-1B, FINISH FIRST UNIT-TEST

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78238

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $10.7 million to SOUTHWEST RESEARCH INSTITUTE for work described as: PHASE 001-07-1B, FINISH FIRST UNIT-TEST Key points: 1. Contract awarded for specialized research and development services. 2. Performance period spans over three years, indicating a significant project scope. 3. The contract type suggests a focus on managing costs while achieving specific deliverables. 4. Awarded by the Defense Threat Reduction Agency, highlighting its strategic importance. 5. Geographic location of performance is Texas. 6. The contractor has a history of performing federal contracts.

Value Assessment

Rating: good

The contract's value of $10.7 million for over three years of R&D appears reasonable for specialized defense technology. Benchmarking against similar R&D contracts in the defense sector would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure aims to control costs while incentivizing efficient completion, which is a common and generally effective pricing model for research-intensive projects where exact costs can be unpredictable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific circumstances led to the exclusion of certain potential bidders. The exact reasons for exclusion are not detailed, but this approach can sometimes limit the pool of offerors, potentially impacting price discovery compared to a truly unrestricted full and open competition.

Taxpayer Impact: While the competition was not fully unrestricted, the 'after exclusion of sources' clause suggests an effort to ensure a competitive process. Taxpayers benefit from the agency's attempt to solicit from multiple qualified sources, even if the final pool was narrowed.

Public Impact

The primary beneficiaries are the Department of Defense and its agencies, receiving advanced technological solutions for threat reduction. The services delivered are critical research and development efforts aimed at enhancing national security capabilities. The geographic impact is primarily within Texas, where the contractor is located and performance is expected. Workforce implications include specialized scientific and engineering roles at Southwest Research Institute.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense R&D market is characterized by significant government investment, driven by national security imperatives. Comparable spending benchmarks would involve looking at other contracts awarded by agencies like DTRA or DARPA for similar advanced technology development, often involving specialized scientific expertise and long development cycles.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem appears minimal based on this award alone. Further analysis of the contractor's subcontracting plan, if applicable, would be needed to assess any indirect effects.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency's contracting officers and program managers. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and adherence to the contract's statement of work. Transparency is generally maintained through contract award databases, though specific project details might be sensitive due to national security implications.

Related Government Programs

Risk Flags

Tags

department-of-defense, defense-threat-reduction-agency, research-and-development, cost-plus-fixed-fee, limited-competition, southwest-research-institute, advanced-technology, threat-reduction, texas, federal-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.7 million to SOUTHWEST RESEARCH INSTITUTE. PHASE 001-07-1B, FINISH FIRST UNIT-TEST

Who is the contractor on this award?

The obligated recipient is SOUTHWEST RESEARCH INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $10.7 million.

What is the period of performance?

Start: 2007-09-25. End: 2010-11-30.

What is the track record of Southwest Research Institute with federal contracts, particularly with the Department of Defense?

Southwest Research Institute (SwRI) has a substantial track record of performing federal contracts, including numerous awards from the Department of Defense and its various agencies. Their work often spans complex research and development initiatives, engineering services, and testing. SwRI is known for its multidisciplinary approach and has been a consistent recipient of government funding for projects related to defense, space, energy, and transportation. A review of federal procurement data would reveal a pattern of successful contract completions and a broad range of technical capabilities demonstrated across various agencies, indicating a reliable performance history.

How does the $10.7 million value of this contract compare to similar R&D efforts in threat reduction technology?

The $10.7 million value for this specific R&D contract, spanning over three years, appears to be within a moderate range for specialized defense technology development. However, a precise comparison requires benchmarking against contracts with similar technical scopes, durations, and agency objectives. Contracts for advanced threat reduction can vary significantly in cost depending on the complexity of the threat addressed, the novelty of the required technology, and the maturity of the research. Generally, R&D contracts of this magnitude are substantial enough to fund significant research efforts but may be smaller than large-scale system development or procurement contracts. Further analysis would involve identifying comparable DTRA or DoD R&D awards in related technological areas.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for R&D?

The primary risks associated with a CPFF contract for R&D, like this one, revolve around cost control and scope management. While the fixed fee provides an incentive for the contractor to control costs efficiently, the government bears the risk of actual costs exceeding estimates. If the research proves more complex or time-consuming than initially anticipated, the government may incur higher-than-expected expenses. Effective oversight is crucial to monitor expenditures, ensure that costs are reasonable and allocable, and prevent scope creep. The contractor's risk is primarily related to managing their performance to achieve the fixed fee without incurring excessive unallowable costs.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for the procurement process and potential savings?

The designation 'Full and Open Competition After Exclusion of Sources' implies a procurement process that began with the intent to solicit offers from all responsible sources, but specific circumstances led to the exclusion of certain potential offerors before the final award. This could be due to reasons such as prior performance issues with excluded entities, specific technical requirements that only a limited number of firms could meet, or national security considerations. While it aims for broader competition than a sole-source award, it is less competitive than unrestricted full and open competition. This narrowed competition might result in less aggressive pricing compared to a scenario with a larger pool of bidders, potentially impacting taxpayer savings.

What is the historical spending pattern for threat reduction R&D by the Defense Threat Reduction Agency?

The Defense Threat Reduction Agency (DTRA) consistently allocates significant funding towards research and development to counter weapons of mass destruction and emerging threats. Historical spending patterns show a strong emphasis on advanced technologies, scientific research, and innovative solutions. DTRA's budget typically includes substantial line items for R&D across various domains, including chemical, biological, radiological, nuclear, and explosives (CBRNE) defense, as well as counter-proliferation and threat reduction initiatives. The agency frequently engages in contracts with research institutions and defense contractors to develop and mature technologies that enhance U.S. and allied security. Analyzing DTRA's historical budgets and contract awards would reveal a sustained commitment to R&D investment in these critical areas.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HDTRA107R0007

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6220 CULEBRA RD, SAN ANTONIO, TX, 78238

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,722,410

Exercised Options: $10,724,945

Current Obligation: $10,724,945

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA107D0011

IDV Type: IDC

Timeline

Start Date: 2007-09-25

Current End Date: 2010-11-30

Potential End Date: 2010-11-30 00:00:00

Last Modified: 2017-03-22

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