DOE awards $7.8M consulting contract to Southwest Research Institute, raising questions about competition and value
Contract Overview
Contract Amount: $7,825,901 ($7.8M)
Contractor: Southwest Research Institute
Awarding Agency: Department of Energy
Start Date: 2022-04-07
End Date: 2027-04-06
Contract Duration: 1,825 days
Daily Burn Rate: $4.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BASE IDIQ
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78238
State: Texas Government Spending
Plain-Language Summary
Department of Energy obligated $7.8 million to SOUTHWEST RESEARCH INSTITUTE for work described as: BASE IDIQ Key points: 1. Contract awarded via a sole-source justification, limiting potential cost savings from a competitive bidding process. 2. The contract's duration of five years suggests a long-term need for administrative and management consulting services. 3. Fixed-price contract type aims to control costs, but the lack of competition may inflate the final price. 4. The contractor, Southwest Research Institute, has a history of receiving federal contracts, indicating established performance. 5. The services procured fall under administrative management, a broad category that requires careful oversight to ensure effectiveness. 6. Geographic location of the contractor in Texas may have implications for local economic impact and workforce development.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to the lack of publicly available comparable sole-source awards for similar administrative management consulting services. The firm-fixed-price structure provides some cost certainty, but without competitive bids, it's difficult to ascertain if the pricing reflects fair market value. Further analysis of the specific deliverables and the contractor's historical performance on similar contracts would be needed to provide a more definitive assessment of value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source justification, meaning that the Department of Energy did not conduct a competitive bidding process. This approach is typically used when only one responsible source is available or authorized by statute. The lack of competition means that potential cost savings that could arise from multiple bidders vying for the contract were not realized. This can sometimes lead to higher prices than might be achieved in a fully competitive environment.
Taxpayer Impact: Taxpayers may not be receiving the best possible price for these consulting services due to the absence of a competitive bidding process. The government's ability to negotiate favorable terms is also reduced in a sole-source scenario.
Public Impact
The Department of Energy is the primary beneficiary, receiving administrative and management consulting services to support its operations. The contract is expected to deliver expertise in areas such as general management and administrative support. The geographic impact is primarily centered in Texas, where the contractor, Southwest Research Institute, is located. Workforce implications may include the utilization of specialized consultants and potential support roles within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers.
- Lack of transparency in the justification for sole-source award requires further scrutiny.
- Broad scope of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not tightly managed.
- Long contract duration (5 years) increases the risk of the services becoming outdated or less effective over time without regular re-evaluation.
Positive Signals
- Firm-fixed-price contract type provides cost certainty for the government.
- Contractor has a history of federal contracting, suggesting familiarity with government processes and requirements.
- Department of Energy is the awarding agency, indicating a focus on energy sector-related administrative needs.
Sector Analysis
The administrative management and general management consulting services sector is a significant part of the federal procurement landscape, supporting a wide array of government functions. Spending in this category often reflects the need for specialized expertise that agencies may not possess internally. Comparable spending benchmarks are difficult to establish precisely due to the varied nature of consulting services and the specific needs of each agency. However, the Department of Energy's reliance on such services suggests a need for strategic planning, operational efficiency improvements, or specialized project management.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. Furthermore, the 'ss' field is also false, meaning it was not awarded under the small business status. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, and there is no indication of specific efforts to engage small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of Energy's contracting officers and program managers. Accountability measures will be tied to the performance metrics and deliverables outlined in the contract. Transparency regarding the sole-source justification and the specific services rendered will be crucial for public assessment. While no specific Inspector General jurisdiction is mentioned, the DOE's Office of Inspector General typically has oversight over agency contracts to ensure efficiency and prevent fraud, waste, and abuse.
Related Government Programs
- Management and Consulting Services
- Administrative Support Services
- Professional Services Contracts
- Department of Energy Operations Support
Risk Flags
- Sole-source award raises concerns about competition and potential cost overruns.
- Lack of detailed justification for sole-source award requires further transparency.
- Broad service category may lead to scope creep if not managed effectively.
- Long contract duration increases the risk of service obsolescence or performance degradation.
Tags
administrative-management-consulting, general-management-consulting, department-of-energy, sole-source, firm-fixed-price, delivery-order, texas, southwest-research-institute, management-services, consulting-services, federal-contract, energy-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $7.8 million to SOUTHWEST RESEARCH INSTITUTE. BASE IDIQ
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 $7.8 million.
What is the period of performance?
Start: 2022-04-07. End: 2027-04-06.
What is the specific justification provided by the Department of Energy for awarding this contract on a sole-source basis?
The provided data indicates the contract was awarded as 'NOT COMPETED,' which typically implies a sole-source justification. While the specific details of the justification are not included in the abbreviated data, common reasons for sole-source awards include the existence of only one responsible source, urgent and compelling needs where competition is not feasible, or specific statutory authority. For this contract, the Department of Energy would have had to document why Southwest Research Institute was the only viable option or why a competitive process was impractical. This documentation is usually made public through sources like SAM.gov, allowing for scrutiny of the agency's rationale and ensuring that taxpayer funds are being used appropriately even in the absence of competition.
How does the $7.8 million contract value compare to typical spending on administrative management consulting services by the Department of Energy?
Determining if $7.8 million is typical for the Department of Energy's administrative management consulting services requires a broader analysis of historical spending patterns and the specific nature of the services procured. The provided data classifies the contract under NAICS code 541611 (Administrative Management and General Management Consulting Services). Without access to the DOE's complete procurement history for this NAICS code, a direct comparison is difficult. However, $7.8 million over a five-year period (1825 days) averages to approximately $1.56 million per year. This figure needs to be evaluated against the scale and complexity of the DOE's operations and the specific consulting needs addressed by this contract. A comprehensive review would involve examining past awards for similar services to establish a baseline and assess whether this award represents an outlier or a standard investment.
What are the key performance indicators (KPIs) or deliverables expected under this contract, and how will their successful completion be measured?
The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. Typically, a contract of this nature, classified under Administrative Management and General Management Consulting Services, would include objectives related to improving organizational efficiency, strategic planning support, process optimization, policy development, or program management assistance. The success of such a contract is usually measured against predefined metrics outlined in the Statement of Work (SOW). These could include timely completion of reports, successful implementation of recommended changes, achievement of efficiency targets, or positive feedback from stakeholders. The Department of Energy's contracting officer and program managers are responsible for monitoring these KPIs and ensuring the contractor meets the agreed-upon standards throughout the contract's duration.
What is Southwest Research Institute's track record with federal contracts, particularly with the Department of Energy?
The data indicates that Southwest Research Institute (SwRI) is the contractor for this award. While the provided data doesn't detail SwRI's entire federal contracting history, the fact that they are awarded contracts suggests they have experience working with government agencies. To assess their track record thoroughly, one would need to examine their past performance on similar contracts, including their history with the Department of Energy. This would involve looking at contract completion records, any past performance evaluations, and whether they have faced any disputes or contract terminations. A positive history with the DOE or other agencies in providing administrative and management consulting services would indicate a lower performance risk for this current contract.
Are there any potential risks associated with the long duration (5 years) of this contract, and how might they be mitigated?
A five-year contract duration, while providing stability, does carry potential risks. One primary risk is that the services or recommendations provided may become outdated or less relevant over time, especially in rapidly evolving fields. Another risk is the potential for complacency or a decrease in the contractor's performance due to the long-term nature of the engagement. Mitigation strategies could include incorporating periodic reviews and re-evaluations of the contract's objectives and performance, building in flexibility to adapt to changing needs, and ensuring robust oversight mechanisms are in place. The Department of Energy should actively manage the contract, seeking opportunities to update requirements and ensure continued value throughout the five-year term, rather than treating it as a static agreement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
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: $11,642,945
Exercised Options: $11,642,945
Current Obligation: $7,825,901
Actual Outlays: $6,230,858
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $79,995
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303019DET000001
IDV Type: IDC
Timeline
Start Date: 2022-04-07
Current End Date: 2027-04-06
Potential End Date: 2027-04-06 00:00:00
Last Modified: 2026-04-09
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