DoD's $23.9M contract with Southwest Research Institute for R&D services awarded without competition
Contract Overview
Contract Amount: $23,945,359 ($23.9M)
Contractor: Southwest Research Institute
Awarding Agency: Department of Defense
Start Date: 1999-12-01
End Date: 2010-02-28
Contract Duration: 3,742 days
Daily Burn Rate: $6.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78238, UNITED STATES OF AMERICA
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $23.9 million to SOUTHWEST RESEARCH INSTITUTE for work described as: Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price efficiencies. 2. Long contract duration of over 10 years suggests a sustained need for specialized services. 3. The cost-plus-fixed-fee structure may incentivize cost overruns if not closely monitored. 4. Awarded by the Department of the Army, indicating a focus on defense-related research and development. 5. The absence of competition limits opportunities for market-driven innovation and cost reduction. 6. Contractor has a long-standing relationship with the agency, potentially indicating specialized expertise.
Value Assessment
Rating: questionable
Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging due to its sole-source nature and long duration. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value. The CPFF structure, while allowing for flexibility in research, can lead to higher costs if not managed with stringent oversight. Comparing this to similar sole-source R&D contracts would be necessary to provide a more precise value assessment, but the lack of competition inherently limits the potential for cost savings.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source justification, meaning it was not competed. This approach is typically used when only one source is capable of meeting the agency's needs, often due to unique capabilities, intellectual property, or urgent requirements. The lack of competition means that taxpayers did not benefit from the price discovery that typically occurs in a competitive bidding process, potentially leading to higher costs than if multiple vendors had vied for the contract.
Taxpayer Impact: The absence of competition means that the Department of the Army did not leverage market forces to secure the best possible price. This can result in taxpayer funds being used less efficiently compared to a scenario with multiple bidders.
Public Impact
The primary beneficiaries are likely the Department of Defense and its research initiatives, receiving specialized R&D support. Services delivered include research and development activities crucial for advancing defense technologies. The geographic impact is centered in Texas, where Southwest Research Institute is located, but the ultimate impact is national defense. Workforce implications include employment for scientists, engineers, and support staff at Southwest Research Institute.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potential cost savings for taxpayers.
- Cost-plus-fixed-fee contract type can incentivize higher spending if not rigorously managed.
- Long contract duration (over 10 years) increases the risk of cost escalation and potential for scope creep without adequate oversight.
Positive Signals
- Award to a single, established research institute suggests specialized expertise and potentially high-quality research outcomes.
- Long-term contract indicates a stable and ongoing need for the services, suggesting critical importance to the agency's mission.
- The contractor's long tenure with the agency may signify a proven track record of successful delivery.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically supporting defense-related innovation. The R&D sector is characterized by significant investment in new technologies and scientific exploration. Comparable spending benchmarks in defense R&D are substantial, with agencies like the Department of Defense being major investors. This contract represents a portion of that investment, focused on specific technological advancements.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'ss' being false. Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, Southwest Research Institute, is expected to perform the majority of the work internally. Consequently, the direct impact on the small business ecosystem through this specific contract is likely minimal, though the prime contractor may engage small businesses in other capacities.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Given the sole-source nature and CPFF structure, rigorous oversight is crucial to ensure cost control and adherence to research objectives. Transparency might be limited due to the lack of competitive bidding, but contract performance reviews and financial audits would be standard accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Research and Development
- Advanced Technology Development
- Applied Research Services
- Engineering and Technical Services
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Long contract duration
Tags
defense, department-of-defense, department-of-the-army, research-and-development, sole-source, cost-plus-fixed-fee, large-contract, texas, southwest-research-institute, long-duration
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.9 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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $23.9 million.
What is the period of performance?
Start: 1999-12-01. End: 2010-02-28.
What is the track record of Southwest Research Institute with the Department of Defense for similar R&D contracts?
Southwest Research Institute (SwRI) has a long history of working with the Department of Defense (DoD) and various government agencies on research and development projects. Their expertise spans numerous scientific and engineering disciplines. While specific details on past contract values and performance metrics for similar R&D efforts would require deeper data analysis, SwRI's sustained engagement with the DoD suggests a generally positive track record and a capacity to meet complex research requirements. Their extensive portfolio often includes work on advanced materials, systems engineering, and testing services, aligning with the nature of defense-focused R&D.
How does the $23.9 million total award value compare to other sole-source R&D contracts within the Department of the Army?
The $23.9 million total award value for this sole-source R&D contract with Southwest Research Institute is a significant, but not exceptionally large, sum within the context of the Department of the Army's overall R&D spending. The Army procures numerous R&D services, with contract values ranging from small, specialized studies to multi-billion dollar programs. Sole-source awards of this magnitude are typically justified by unique technical capabilities or critical national security needs that cannot be met through competition. Without direct comparison data on other sole-source R&D contracts of similar scope and duration, it's difficult to definitively benchmark this specific award, but it represents a substantial investment in a particular area of research.
What are the primary risks associated with a sole-source, cost-plus-fixed-fee R&D contract of this duration?
The primary risks associated with this contract include potential cost overruns due to the cost-plus-fixed-fee (CPFF) structure, where the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond initial projections, the total price paid by the government could be significantly higher than anticipated. The sole-source nature eliminates competitive pressure, potentially leading to less favorable pricing. The long duration (over 10 years) increases the risk of scope creep, technological obsolescence, and the need for contract modifications, all of which can further drive up costs and complicate oversight. Ensuring robust government oversight, clear performance metrics, and strict cost controls are critical to mitigating these risks.
What specific R&D areas does this contract likely cover, given the contractor and agency?
Given that the contract is with the Department of the Army and awarded to Southwest Research Institute (SwRI), a multi-disciplinary research organization, the R&D areas are likely diverse but focused on defense applications. SwRI has expertise in areas such as advanced materials, autonomous systems, sensor technology, aerospace engineering, survivability, and electronic warfare. The Army's needs often involve developing next-generation soldier systems, improving vehicle protection, enhancing communication networks, and advancing intelligence, surveillance, and reconnaissance (ISR) capabilities. Therefore, this contract could encompass research into any of these critical defense technology domains.
How has historical spending on R&D contracts with Southwest Research Institute by the Department of the Army trended over time?
Analyzing historical spending trends with Southwest Research Institute (SwRI) by the Department of the Army (DoA) requires access to historical contract databases. However, SwRI's consistent engagement with government agencies, including the DoD, suggests a pattern of ongoing, substantial investment in their research capabilities. The fact that this particular contract spans nearly a decade and was awarded without competition implies a history of successful performance and a recognized need for SwRI's specialized services. Without specific historical data, it's presumed that spending has been consistent with the agency's R&D priorities and SwRI's demonstrated capacity to fulfill them.
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 6220 CULEBRA RD, SAN ANTONIO, TX, 78238
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1999-12-01
Current End Date: 2010-02-28
Potential End Date: 2010-02-28 00:00:00
Last Modified: 2015-03-28
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