DOE Awards $13.5M Contract to Southwest Research Institute for Nuclear Nonproliferation Apex Development

Contract Overview

Contract Amount: $13,500,000 ($13.5M)

Contractor: Southwest Research Institute

Awarding Agency: Department of Energy

Start Date: 2024-08-01

End Date: 2026-07-31

Contract Duration: 729 days

Daily Burn Rate: $18.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: APEX DEVELOPMENT, DESIGN, FABRICATION, TESTING AND INSTALLATION FOR THE OFFICE OF DEFENSE NUCLEAR NONPROLIFERATION

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78238

State: Texas Government Spending

Plain-Language Summary

Department of Energy obligated $13.5 million to SOUTHWEST RESEARCH INSTITUTE for work described as: APEX DEVELOPMENT, DESIGN, FABRICATION, TESTING AND INSTALLATION FOR THE OFFICE OF DEFENSE NUCLEAR NONPROLIFERATION Key points: 1. The contract focuses on critical defense nuclear nonproliferation activities. 2. Southwest Research Institute, a large business, is the sole awardee. 3. The contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 4. The sector is Engineering Services, with a significant value for this specific project.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee structure allows for flexibility but requires careful oversight to manage costs. Benchmarking against similar complex R&D and engineering services contracts is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. Without competition, there is a reduced incentive for the contractor to offer the lowest possible price, and price discovery is limited to negotiation.

Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive bidding, potentially leading to a higher overall cost than if multiple vendors had vied for the contract.

Public Impact

Supports national security through nuclear nonproliferation efforts. Funds advanced engineering and fabrication services. Potential for technological advancements in a specialized field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector that supports various government initiatives, including defense and research. Spending in this sector can vary widely based on project complexity and duration.

Small Business Impact

This contract was awarded to a large business and does not appear to include specific provisions or set-asides for small businesses.

Oversight & Accountability

As a sole-source, cost-plus contract, robust oversight from the Department of Energy will be crucial to ensure cost control, adherence to scope, and effective performance throughout the contract duration.

Related Government Programs

Risk Flags

Tags

engineering-services, department-of-energy, tx, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $13.5 million to SOUTHWEST RESEARCH INSTITUTE. APEX DEVELOPMENT, DESIGN, FABRICATION, TESTING AND INSTALLATION FOR THE OFFICE OF DEFENSE NUCLEAR NONPROLIFERATION

Who is the contractor on this award?

The obligated recipient is SOUTHWEST RESEARCH INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2024-08-01. End: 2026-07-31.

What is the specific technical objective of the 'Apex Development' and how does it contribute to nuclear nonproliferation?

The 'Apex Development' likely refers to a specific technological or system advancement critical for the Office of Defense Nuclear Nonproliferation's mission. This could involve enhanced detection, verification, or mitigation capabilities related to nuclear materials or proliferation threats. Understanding the precise objective is key to assessing the value and necessity of this significant investment.

Given the sole-source nature, what mechanisms are in place to ensure the fixed fee is reasonable and reflects fair market value?

For sole-source contracts, agencies typically rely on detailed cost proposals, forward pricing rates, and potentially independent government cost estimates to establish a reasonable fixed fee. The agency's contracting officers and technical evaluators scrutinize the contractor's proposed costs and profit margins to ensure they align with industry standards and the complexity of the work.

How will the effectiveness of the developed Apex system be measured, and what are the key performance indicators (KPIs) for this contract?

Effectiveness will likely be measured through a combination of technical performance tests, operational demonstrations, and user acceptance trials during the fabrication, testing, and installation phases. Key performance indicators might include system accuracy, reliability, response time, integration capabilities with existing infrastructure, and successful completion of defined mission objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $116,942,397

Exercised Options: $30,706,751

Current Obligation: $13,500,000

Actual Outlays: $8,345,051

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $493,821

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2024-08-01

Current End Date: 2026-07-31

Potential End Date: 2034-07-31 00:00:00

Last Modified: 2026-02-24

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