DoD's $10M+ contract with Southwest Research Institute for R&D services shows long-term engagement
Contract Overview
Contract Amount: $10,089,270 ($10.1M)
Contractor: Southwest Research Institute
Awarding Agency: Department of Defense
Start Date: 2000-08-11
End Date: 2012-09-28
Contract Duration: 4,431 days
Daily Burn Rate: $2.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78238
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $10.1 million to SOUTHWEST RESEARCH INSTITUTE for work described as: Key points: 1. Contract duration of over 12 years suggests a sustained need for the contractor's specialized capabilities. 2. The cost-plus-fixed-fee structure indicates potential for cost overruns, requiring diligent oversight. 3. Full and open competition implies a robust bidding process, likely yielding competitive pricing. 4. The contract's value, while significant, needs benchmarking against similar R&D efforts to assess true value. 5. Performance context is limited without specific details on deliverables and outcomes. 6. Sector positioning within Defense R&D highlights the critical nature of the services provided.
Value Assessment
Rating: fair
The contract's total value of over $10 million spread across more than 12 years suggests a moderate annual spend. Without specific details on the R&D performed, it's challenging to benchmark against similar contracts. The cost-plus-fixed-fee (CPFF) pricing model, while common for R&D where scope can evolve, carries inherent risks of cost escalation. A thorough review of the fixed fee relative to the anticipated effort and the final costs would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive rates. The number of bidders is not specified, but the process itself suggests a market capable of supporting multiple interested parties for this type of R&D work.
Taxpayer Impact: Taxpayers benefit from the competitive nature of the award, which should drive down costs and ensure efficient use of funds for critical research and development.
Public Impact
The primary beneficiaries are likely the Department of Defense, receiving advanced research and development services to support its mission. Services delivered encompass research and development activities, the specifics of which are not detailed but are crucial for technological advancement. The geographic impact is centered in Texas, where Southwest Research Institute is located, potentially supporting local employment and economic activity. Workforce implications include the utilization of highly skilled scientists, engineers, and technicians at Southwest Research Institute.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee structure can lead to costs exceeding initial estimates if not managed carefully.
- Lack of specific performance metrics or deliverables makes it difficult to assess the effectiveness and value of the R&D.
- The long duration of the contract (over 12 years) might indicate a lack of flexibility or a need for more agile contracting approaches for evolving R&D needs.
Positive Signals
- Awarded through full and open competition, suggesting a fair and transparent procurement process.
- Long-term engagement with a single contractor can foster deep expertise and institutional knowledge relevant to the R&D domain.
- Southwest Research Institute is a reputable research organization, implying a high likelihood of competent technical execution.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically supporting defense-related technological advancements. The R&D market within the defense industry is substantial, characterized by long-term investments in innovation. Comparable spending benchmarks would typically involve analyzing other large-scale R&D contracts awarded by the DoD or other federal agencies for similar technological areas, considering factors like contract type and duration.
Small Business Impact
There is no indication that this contract included small business set-asides. Given the nature of advanced R&D, it's possible that the prime contractor, Southwest Research Institute, may engage small businesses as subcontractors for specialized support. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem remains unclear.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor compliance with terms and conditions. Accountability measures would be tied to the contract's performance clauses and financial reporting requirements. Transparency is facilitated through contract databases, though detailed R&D outcomes may be subject to security or proprietary restrictions.
Related Government Programs
- Defense Research and Development
- Advanced Technology Development
- Engineering Services Contracts
- Cost-Plus Contracts
Risk Flags
- Cost-plus contract type may lead to cost overruns.
- Long contract duration could indicate inflexibility.
- Lack of specific performance details limits assessment.
Tags
defense, research-and-development, southwest-research-institute, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, texas, department-of-defense, long-term-contract, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.1 million to SOUTHWEST RESEARCH INSTITUTE. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is SOUTHWEST RESEARCH INSTITUTE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $10.1 million.
What is the period of performance?
Start: 2000-08-11. End: 2012-09-28.
What specific research and development areas did Southwest Research Institute support under this contract?
The provided data does not specify the exact research and development areas supported by Southwest Research Institute under this contract. Contracts of this nature, particularly within the Department of Defense, often involve advanced technological research, prototyping, testing, and analysis across a wide spectrum of defense applications. These could range from materials science and aerospace engineering to cybersecurity and artificial intelligence, depending on the specific needs of the DoD at the time of award and throughout the contract's duration. Further investigation into the contract's statement of work or associated task orders would be necessary to ascertain the precise R&D focus.
How does the total contract value of over $10 million compare to typical R&D spending for similar defense projects?
A total contract value exceeding $10 million over a period of more than 12 years translates to an average annual spend of less than $1 million. This figure, while substantial, might be considered moderate for large-scale defense R&D projects, which can often run into tens or hundreds of millions of dollars. However, the significance of this contract's value is highly dependent on the specific scope and complexity of the R&D undertaken. Smaller, more focused research initiatives or specific phases of larger programs might fall within this value range. Benchmarking requires comparing it to contracts with similar technical objectives, duration, and contractor capabilities within the defense sector.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for R&D is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. If the actual costs significantly exceed estimates, the contractor may face reduced profitability, potentially leading to pressure to cut corners or request contract modifications. Conversely, the government bears the risk of paying more than anticipated if costs escalate beyond initial projections, even though the contractor's fee remains fixed. Effective oversight is crucial to monitor costs and ensure the contractor exercises cost control.
What was the performance history of Southwest Research Institute on this contract, and were there any significant issues?
The provided data does not include specific performance history details, such as performance ratings, delivery timeliness, or any documented issues or disputes related to this contract. Southwest Research Institute is a well-established research organization, suggesting a generally positive track record. However, a comprehensive assessment of performance would require access to contract performance reports, quality assurance reviews, and any historical records of contractor performance evaluations maintained by the contracting agency or DCMA.
How has federal spending in the Defense R&D sector evolved, and where does this contract fit within that trend?
Federal spending in the Defense R&D sector has historically been a significant portion of the overall defense budget, driven by the need for technological superiority. Trends often reflect geopolitical landscapes, emerging threats, and advancements in science and technology. This $10M+ contract, spanning over a decade, represents a sustained investment in a particular R&D capability. While it might not represent a massive surge in spending, its longevity indicates a consistent commitment to the research area it supports, fitting within the broader trend of ongoing, long-term investment in defense innovation rather than short-term, high-volume spending.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 6220 CULEBRA ROAD, SAN ANTONIO, TX, 78228
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $4,301,823
Exercised Options: $4,301,823
Current Obligation: $10,089,270
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2000-08-11
Current End Date: 2012-09-28
Potential End Date: 2012-09-28 00:00:00
Last Modified: 2019-01-28
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