SRI INTERNATIONAL awarded $22.6M for R&D in Physical, Engineering, and Life Sciences by Department of the Interior

Contract Overview

Contract Amount: $22,576,679 ($22.6M)

Contractor: SRI International

Awarding Agency: Department of the Interior

Start Date: 2003-05-15

End Date: 2004-02-03

Contract Duration: 264 days

Daily Burn Rate: $85.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $22.6 million to SRI INTERNATIONAL for work described as: Key points: 1. Contract value represents a significant investment in specialized research and development. 2. Competition dynamics suggest a robust market for these scientific services. 3. Performance duration of 264 days indicates a focused, short-term project scope. 4. The contract's focus on R&D aligns with the agency's strategic goals for innovation. 5. SRI INTERNATIONAL's award highlights its established position in the scientific research sector. 6. The cost-plus-fixed-fee structure incentivizes efficient project completion within defined parameters.

Value Assessment

Rating: good

The contract value of $22.6 million for a 264-day research and development effort appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in physical, engineering, and life sciences is challenging without more specific project details. However, the fixed-fee component suggests an effort to control costs and ensure value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 6 bidders suggests a healthy level of competition for this type of specialized research. 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 encouraging multiple vendors to offer their best terms and pricing to secure the contract.

Public Impact

Benefits the Department of the Interior by advancing scientific knowledge and capabilities. Delivers research and development services in physical, engineering, and life sciences. Geographic impact is likely concentrated around SRI INTERNATIONAL's research facilities, primarily in California. Workforce implications include employment for scientists, engineers, and research support staff.

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 could increase costs and extend timelines beyond initial projections.
Reliance on a single contractor for specialized R&D may limit future competitive options if knowledge is not effectively transferred.

Positive Signals

Awarded through full and open competition, ensuring a competitive selection process.
Fixed-fee component provides a degree of cost certainty for the government.
SRI INTERNATIONAL is a reputable research institution with a track record in R&D.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, specialized expertise, and often long-term investments. Comparable spending benchmarks would depend on the specific sub-field of R&D, but government investment in scientific research is a consistent area of expenditure across various agencies.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor are there explicit subcontracting requirements mentioned. The award to SRI INTERNATIONAL, a large research organization, suggests that the primary focus was on specialized capabilities rather than small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. Accountability measures are embedded in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract award databases, though specific project details may be proprietary.

Related Government Programs

Department of the Interior Research and Development Programs
Federal Scientific Research Grants
National Science Foundation (NSF) Funding
Department of Energy (DOE) Research Initiatives

Risk Flags

Cost-Plus-Fixed-Fee contract type requires diligent oversight to manage costs.
Research and Development projects inherently carry uncertainty in outcomes and final costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $22.6 million to SRI INTERNATIONAL. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SRI INTERNATIONAL.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $22.6 million.

What is the period of performance?

Start: 2003-05-15. End: 2004-02-03.

What is SRI INTERNATIONAL's track record with federal R&D contracts?

SRI INTERNATIONAL has a long and distinguished history of performing research and development for various U.S. federal agencies. They are known for their work in areas such as advanced materials, robotics, artificial intelligence, and biomedical research. Their extensive experience includes numerous contracts with agencies like the Department of Defense, NASA, and the National Institutes of Health, among others. This specific contract with the Department of the Interior for R&D in physical, engineering, and life sciences aligns with their core competencies and established expertise in scientific innovation and problem-solving for government needs.

How does the $22.6 million value compare to similar R&D contracts?

The $22.6 million award for a 264-day R&D project is substantial, reflecting the specialized and potentially complex nature of the research. Without knowing the exact scientific domain, direct comparisons are difficult. However, federal R&D contracts can range from a few million dollars for focused studies to hundreds of millions for large-scale, multi-year initiatives. Given the duration, this contract appears to be for a significant, but not exceptionally large, research undertaking. The cost-plus-fixed-fee structure is common for R&D where exact costs are hard to predict, but it necessitates careful oversight to ensure value.

What are the primary risks associated with this cost-plus-fixed-fee contract?

The primary risks with a Cost-Plus-Fixed-Fee (CPFF) contract, like this one, revolve around cost control and potential for scope creep. While the fixed fee provides a defined profit margin for the contractor, the 'cost' portion means the government bears the risk of actual expenses incurred. If the contractor's costs exceed estimates, the government pays them, potentially leading to higher-than-anticipated total spending. Effective risk mitigation requires robust oversight, detailed cost tracking, and clear definition of project milestones and deliverables to prevent the scope from expanding without corresponding adjustments to the fee or timeline.

How effective is full and open competition in securing value for this type of R&D?

Full and open competition is generally considered the most effective method for securing value in federal contracting, including for R&D. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. For specialized R&D, it ensures that the government can identify and select the contractor with the most suitable technical capabilities and the best value proposition. The fact that six bidders participated in this procurement suggests that the market for these services is competitive, increasing the likelihood that the Department of the Interior received a strong proposal.

What is the historical spending pattern for R&D in physical, engineering, and life sciences by the Department of the Interior?

The Department of the Interior (DOI) historically invests in research and development across various scientific disciplines to support its mission, which includes managing natural resources, protecting ecosystems, and ensuring the sustainable use of land and water. Spending on R&D in physical, engineering, and life sciences is crucial for areas like geological surveys, environmental monitoring, climate change research, and wildlife management. While specific annual figures fluctuate based on agency priorities and budget allocations, DOI consistently allocates significant funds to scientific research. This $22.6 million award represents a portion of that ongoing commitment to advancing scientific understanding relevant to its broad mandate.

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

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 94025

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

Financial Breakdown

Contract Ceiling: $22,576,679

Exercised Options: $22,576,679

Current Obligation: $22,576,679

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: IND03PC60083

IDV Type: IDC

Timeline