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
- Sole-source award limits competitive pricing.
- Cost-plus contract type can lead to cost overruns.
- Lack of competition may reduce efficiency incentives.
Positive Signals
- Addresses a critical national security need.
- Utilizes specialized expertise for complex tasks.
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
- Engineering Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- Potential for scope creep
- Limited transparency on pricing justification
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 Services › Architectural, Engineering, and Related Services › Engineering 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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