NRC awards $1.74M contract for nuclear waste research and analysis to Southwest Research Institute
Contract Overview
Contract Amount: $1,740,005 ($1.7M)
Contractor: Southwest Research Institute
Awarding Agency: Nuclear Regulatory Commission
Start Date: 2023-03-30
End Date: 2027-04-30
Contract Duration: 1,492 days
Daily Burn Rate: $1.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CENTER FOR NUCLEAR WASTE REGULATORY ANALYSES (CNWRA) MANAGEMENT AND INFRASTRUCTURE-RELATED ACTIVITIES (MINIMUM GUARANTEE)
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78238
State: Texas Government Spending
Plain-Language Summary
Nuclear Regulatory Commission obligated $1.7 million to SOUTHWEST RESEARCH INSTITUTE for work described as: CENTER FOR NUCLEAR WASTE REGULATORY ANALYSES (CNWRA) MANAGEMENT AND INFRASTRUCTURE-RELATED ACTIVITIES (MINIMUM GUARANTEE) Key points: 1. Contract focuses on management and infrastructure-related activities for nuclear waste regulation. 2. Sole-source award to Southwest Research Institute, raising questions about competition. 3. Long contract duration of nearly 5 years suggests a need for sustained expertise. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical but specialized sector. 5. Potential for cost overruns given the Cost Plus Fixed Fee contract type. 6. Geographic concentration in Texas for this critical federal function.
Value Assessment
Rating: fair
The contract value of $1.74 million over nearly five years appears reasonable for specialized R&D services. However, without comparable sole-source contracts or detailed cost breakdowns, a precise value-for-money assessment is difficult. The Cost Plus Fixed Fee structure introduces some risk of costs exceeding initial estimates if not closely managed. Benchmarking against similar R&D support contracts for regulatory bodies would provide further insight into pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to Southwest Research Institute. This indicates that the agency identified a unique capability or necessity that only this contractor could fulfill, or that a competitive process was deemed impractical or not in the government's best interest. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple bids were solicited.
Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the agency did not explore alternative offers. This approach can be justified if the contractor possesses unique, indispensable expertise, but it warrants scrutiny to ensure fair pricing.
Public Impact
The primary beneficiary is the Nuclear Regulatory Commission (NRC), which receives essential analytical support for its regulatory functions. Services delivered include management and infrastructure-related activities crucial for nuclear waste regulation. The geographic impact is concentrated in Texas, where the Southwest Research Institute is located. Workforce implications include the utilization of specialized researchers and analysts within the R&D sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing benefits for taxpayers.
- Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
- Long contract duration requires robust oversight to ensure continued value.
- Lack of transparency in the justification for sole-source award.
Positive Signals
- Award to a known entity (Southwest Research Institute) suggests established expertise.
- Focus on critical nuclear waste regulation indicates high-priority government function.
- Contract duration aligns with the long-term nature of nuclear waste management.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding nanotechnology and biotechnology. The nuclear regulatory field requires highly specialized scientific and engineering expertise. Spending in this niche area is often characterized by long-term engagements with a limited number of qualified research institutions. Comparable spending benchmarks would likely involve other government agencies contracting for similar scientific advisory and analytical support services.
Small Business Impact
This contract does not appear to involve a small business set-aside, as the awardee is Southwest Research Institute, a large research organization. There is no explicit mention of subcontracting requirements for small businesses. The impact on the small business ecosystem is likely minimal, as the focus is on specialized R&D services typically provided by larger, established institutions.
Oversight & Accountability
Oversight for this contract would primarily reside with the Nuclear Regulatory Commission's contracting officers and program managers. Accountability measures would be tied to the performance metrics outlined in the contract and the Cost Plus Fixed Fee structure, which requires detailed financial reporting. Transparency could be enhanced by publicly detailing the justification for the sole-source award and the specific deliverables expected. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Nuclear Energy Research Programs
- Environmental Remediation Services
- Scientific and Technical Consulting Services
- Government Research and Development Contracts
Risk Flags
- Sole-source award lacks competitive justification.
- Cost Plus Fixed Fee contract type increases cost risk.
- Long contract duration requires sustained oversight.
- Limited transparency on sole-source rationale.
Tags
nuclear-regulatory-commission, southwest-research-institute, research-and-development, nuclear-waste, sole-source, cost-plus-fixed-fee, delivery-order, texas, federal-contract, r&d-services, infrastructure-management
Frequently Asked Questions
What is this federal contract paying for?
Nuclear Regulatory Commission awarded $1.7 million to SOUTHWEST RESEARCH INSTITUTE. CENTER FOR NUCLEAR WASTE REGULATORY ANALYSES (CNWRA) MANAGEMENT AND INFRASTRUCTURE-RELATED ACTIVITIES (MINIMUM GUARANTEE)
Who is the contractor on this award?
The obligated recipient is SOUTHWEST RESEARCH INSTITUTE.
Which agency awarded this contract?
Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).
What is the total obligated amount?
The obligated amount is $1.7 million.
What is the period of performance?
Start: 2023-03-30. End: 2027-04-30.
What is the specific expertise of Southwest Research Institute that justifies a sole-source award for nuclear waste regulatory analysis?
Southwest Research Institute (SwRI) is a non-profit applied research and development organization with extensive experience in various scientific and engineering disciplines. For nuclear waste regulation, SwRI likely possesses unique capabilities in areas such as materials science, environmental engineering, risk assessment, and regulatory compliance specific to nuclear materials. Their long-standing relationship with the Nuclear Regulatory Commission (NRC) and established infrastructure for handling sensitive research may also be factors. The justification for a sole-source award typically hinges on demonstrating that no other source can meet the government's requirements, often due to proprietary knowledge, unique facilities, or critical past performance that makes transition to another contractor impractical or detrimental to the mission.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for R&D services in terms of risk and value?
The Cost Plus Fixed Fee (CPFF) contract type is common for research and development where the scope of work may evolve or is not precisely defined at the outset. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This structure shifts some of the cost risk to the government, as the final cost can exceed initial estimates if actual costs are higher than anticipated. However, it provides flexibility for complex R&D projects. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government but greater flexibility. Compared to Cost Plus Incentive Fee (CPIF) contracts, the fee is fixed, offering less incentive for the contractor to control costs aggressively, though the government still monitors expenditures.
What are the potential risks associated with the long duration (nearly 5 years) of this contract?
A contract duration of nearly five years for R&D services presents several potential risks. Firstly, the cost of services could escalate over time due to inflation or unforeseen technical challenges, especially with a CPFF structure. Secondly, the relevance of the research or analysis may diminish if scientific understanding or regulatory needs evolve significantly during the contract period. Thirdly, maintaining consistent quality and performance from the contractor over such an extended period requires diligent oversight and performance management. Finally, a long-term sole-source award can create vendor lock-in, making it difficult for the government to adapt to new technologies or alternative solutions that may emerge during the contract's life.
What historical spending patterns exist for nuclear waste regulatory analysis by the NRC?
Analyzing historical spending patterns for nuclear waste regulatory analysis by the NRC is crucial for context. While specific data for this exact contract type and duration isn't provided, the NRC consistently allocates significant resources to ensure the safe management and regulation of nuclear materials and waste. This includes funding for research, technical assessments, and expert consultations. Historically, such specialized R&D support has often been provided through multi-year contracts with established research institutions. Fluctuations in spending may correlate with regulatory changes, advancements in waste management technologies, or the lifecycle stages of nuclear facilities. Understanding past contract values, durations, and awardees can help benchmark current spending and identify trends in the agency's approach to acquiring these critical services.
How does the geographic concentration in Texas impact the NRC's access to diverse expertise in nuclear waste regulation?
The geographic concentration of this contract with Southwest Research Institute in Texas means that a significant portion of the NRC's nuclear waste regulatory analysis is being conducted from a single location. While SwRI is a reputable institution, relying on a single geographic hub may limit the NRC's exposure to a broader range of perspectives and innovative approaches that could emerge from research institutions located elsewhere. It could also pose a risk if unforeseen events (e.g., natural disasters) were to disrupt operations at the primary contractor's site. However, for highly specialized R&D, the concentration may reflect the availability of specific talent pools or facilities necessary for the work.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 31310023R0049
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6220 CULEBRA RD, SAN ANTONIO, TX, 78238
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,415,194
Exercised Options: $1,990,827
Current Obligation: $1,740,005
Actual Outlays: $1,381,481
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 31310023D0004
IDV Type: IDC
Timeline
Start Date: 2023-03-30
Current End Date: 2027-04-30
Potential End Date: 2028-04-30 00:00:00
Last Modified: 2026-04-08
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