DoD's $31.3M R&D contract with SRI International for physical sciences research shows fair value

Contract Overview

Contract Amount: $31,372,004 ($31.4M)

Contractor: SRI International

Awarding Agency: Department of Defense

Start Date: 2008-04-10

End Date: 2009-07-31

Contract Duration: 477 days

Daily Burn Rate: $65.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PAL

Place of Performance

Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $31.4 million to SRI INTERNATIONAL for work described as: PAL Key points: 1. The contract was awarded on a full and open competition basis, suggesting a competitive pricing environment. 2. SRI International, a reputable research institution, was selected, indicating a focus on established expertise. 3. The contract duration of 477 days is reasonable for the scope of R&D work. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 5. The award was made to a single entity, SRI International, for a specific research area. 6. The contract falls under the R&D sector, which often involves inherent uncertainties and evolving requirements.

Value Assessment

Rating: good

The contract's value of $31.3 million for research and development in physical sciences appears reasonable given the scope and duration. Benchmarking against similar R&D contracts is challenging due to the specialized nature of the work. However, SRI International is a well-regarded research organization, suggesting that the pricing reflects their expertise and the complexity of the research. The fixed fee component provides some cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. This competitive process is expected to drive fair market pricing and ensure the government receives the best value. The specific number of bidders is not provided, but the designation suggests a robust competition.

Taxpayer Impact: A full and open competition ensures that taxpayer funds are used efficiently by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

The primary beneficiary is the Department of Defense, which gains access to advanced research in physical sciences. The services delivered include research and development, contributing to technological advancements. The geographic impact is primarily within California, where SRI International is located, but the research outcomes can have national implications. The contract supports a specialized workforce in research and development, fostering innovation and expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, requiring diligent oversight to manage expenditures.
The specialized nature of R&D means that outcomes can be uncertain, potentially impacting the return on investment.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded fair pricing.
SRI International is a known entity in research and development, implying a level of established capability and reliability.
The contract duration is defined, providing a clear timeframe for the research activities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This sector is characterized by innovation, specialized expertise, and often long-term projects. The market size for R&D services is substantial, with significant government investment aimed at maintaining technological superiority and addressing national security challenges. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of R&D projects, but government investment in this area is consistently high.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary focus was on securing specialized research capabilities from a larger, established entity. The impact on the small business ecosystem is likely minimal for this specific contract.

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 inherent in the contract terms, including deliverables and reporting requirements. Transparency is facilitated through contract awards databases, though specific research details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Physical Sciences Research Grants
Advanced Technology Development Programs

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Research and Development projects inherently carry uncertainty regarding outcomes and timelines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.4 million to SRI INTERNATIONAL. PAL

Who is the contractor on this award?

The obligated recipient is SRI INTERNATIONAL.

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 $31.4 million.

What is the period of performance?

Start: 2008-04-10. End: 2009-07-31.

What is SRI International's track record with the Department of Defense for similar R&D contracts?

SRI International has a long-standing history of performing research and development for the Department of Defense across various scientific and engineering disciplines. They have been involved in numerous contracts, ranging from basic research to applied technology development. Their expertise spans areas like materials science, artificial intelligence, robotics, and advanced sensors. While specific details of past performance on contracts similar to this one would require deeper database analysis, SRI's general reputation and extensive portfolio with DoD suggest a strong track record in delivering complex R&D solutions. Their ability to secure multiple contracts over the years indicates a consistent level of performance and client satisfaction within the defense research community.

How does the $31.3 million value compare to other R&D contracts in physical sciences awarded by the Air Force?

The $31.3 million value for this contract is within a common range for specialized R&D projects awarded by the Air Force. Larger, multi-year programs can easily exceed hundreds of millions, while smaller, more focused research efforts might be in the single-digit millions. Contracts for physical sciences R&D are highly variable, depending on the specific field (e.g., advanced materials, quantum physics, energy storage), the scope of work, and the duration. Given that this contract lasted approximately 16 months (477 days), the annual expenditure is roughly $20 million, which is substantial but not extraordinary for cutting-edge research. Without access to a comprehensive database of all comparable Air Force R&D contracts, a precise benchmark is difficult, but the award amount suggests a significant but not unprecedented investment in a specific research area.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, especially for Research and Development (R&D), is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the R&D project encounters unforeseen technical challenges or requires more resources than initially estimated, the total cost to the government can escalate significantly beyond initial projections. While the fixed fee provides some predictability for the contractor's profit, it does not cap the total project cost. This necessitates robust government oversight, including detailed cost monitoring, regular progress reviews, and stringent change control processes, to manage expenditures effectively and ensure the project remains within a reasonable overall budget framework.

What is the expected effectiveness or outcome of R&D in physical sciences for the Department of the Air Force?

The expected effectiveness of R&D in physical sciences for the Department of the Air Force is multifaceted, aiming to enhance national security through technological superiority. Outcomes can range from the development of novel materials with improved strength, durability, or stealth properties, to advancements in energy systems for more efficient and resilient platforms. Research in physics and engineering can lead to breakthroughs in sensor technology, communication systems, propulsion, and directed energy weapons. Ultimately, the goal is to translate scientific discoveries into practical applications that provide a decisive advantage to military operations, improve the performance and survivability of air and space assets, and potentially create dual-use technologies with broader economic benefits. The effectiveness is measured by the successful transition of research findings into prototypes, operational systems, or foundational knowledge that informs future development.

How has the Air Force's spending on R&D in physical sciences evolved over the past five years?

Analyzing the evolution of Air Force spending on R&D in physical sciences over the past five years requires access to detailed historical budget data and contract award information. Generally, R&D spending by the Department of Defense, including the Air Force, tends to fluctuate based on strategic priorities, emerging threats, and technological advancements. There has been a consistent emphasis on areas like hypersonics, artificial intelligence, cyber capabilities, and advanced materials, all of which fall under or intersect with physical sciences. While specific figures for 'physical sciences R&D' as a distinct category can be challenging to isolate from broader R&D budgets, overall defense R&D investment has seen significant focus, particularly in areas deemed critical for maintaining a competitive edge. Budgetary pressures, geopolitical shifts, and the rapid pace of technological change likely influence year-to-year spending patterns within this domain.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 90

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

Financial Breakdown

Contract Ceiling: $31,524,385

Exercised Options: $31,524,385

Current Obligation: $31,372,004

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA875007D0185

IDV Type: IDC

Timeline