EPA awards $20.7M contract for vehicle/fuel regulation testing to Southwest Research Institute

Contract Overview

Contract Amount: $20,716,607 ($20.7M)

Contractor: Southwest Research Institute

Awarding Agency: Environmental Protection Agency

Start Date: 2015-01-14

End Date: 2020-03-31

Contract Duration: 1,903 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF TESTING AND ANALYTICAL SERVICES FOR REGULATION OF MOTOR VEHICLES, ENGINES, AND FUELS AND FUEL ADDITIVES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78238

State: Texas Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $20.7 million to SOUTHWEST RESEARCH INSTITUTE for work described as: IGF::CL::IGF TESTING AND ANALYTICAL SERVICES FOR REGULATION OF MOTOR VEHICLES, ENGINES, AND FUELS AND FUEL ADDITIVES Key points: 1. Contract awarded via full and open competition, suggesting market availability of services. 2. Southwest Research Institute, a large business, secured the definitive contract. 3. The contract spans over 5 years, indicating a long-term need for these services. 4. Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee. While common for R&D, it carries inherent risk of cost growth if the government doesn't maintain strict oversight. Benchmarking CPFF contracts is challenging due to variability in scope and fee structures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors were likely considered. This method generally promotes competitive pricing and allows the government to select the best value offering.

Taxpayer Impact: Competition generally benefits taxpayers by driving down costs and ensuring value for money. The CPFF structure, however, necessitates robust oversight to mitigate potential cost increases.

Public Impact

Ensures regulatory compliance for motor vehicles, engines, and fuels, impacting public health and environmental quality. Supports the EPA's mission to protect human health and the environment through scientific research and testing. The testing results inform policy decisions and standards affecting the automotive and fuel industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting regulatory functions. Spending in this area is driven by government mandates for safety, environmental protection, and consumer assurance. Benchmarks vary widely based on the specific regulatory domain and complexity of testing required.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee, Southwest Research Institute, is a large business. There is no explicit mention of small business subcontracting goals or achievements within the provided data.

Oversight & Accountability

The CPFF contract type requires diligent government oversight to manage costs and ensure the fixed fee remains appropriate. Regular reviews of contractor performance, cost reports, and adherence to the statement of work are crucial for accountability.

Related Government Programs

Risk Flags

Tags

engineering-services, environmental-protection-agency, tx, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $20.7 million to SOUTHWEST RESEARCH INSTITUTE. IGF::CL::IGF TESTING AND ANALYTICAL SERVICES FOR REGULATION OF MOTOR VEHICLES, ENGINES, AND FUELS AND FUEL ADDITIVES

Who is the contractor on this award?

The obligated recipient is SOUTHWEST RESEARCH INSTITUTE.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2015-01-14. End: 2020-03-31.

What was the rationale for selecting a Cost Plus Fixed Fee (CPFF) contract type for this service, and what measures were in place to control costs?

The CPFF structure is often used when the scope of work is not precisely defined at the outset, common in research and development or complex testing scenarios. To control costs, the EPA would typically implement rigorous oversight, including detailed cost tracking, performance reviews, and strict adherence to the Statement of Work. The fixed fee component provides an incentive for the contractor to complete the work efficiently within the estimated cost.

How did the full and open competition process ensure the best value was achieved, considering the CPFF structure?

Full and open competition allows multiple qualified vendors to bid, fostering a competitive environment that drives down prices and improves service quality. Even with a CPFF structure, competition ensures the government selects a contractor offering the most advantageous combination of technical capability, past performance, and a reasonable fixed fee. The agency would evaluate proposals based on predefined criteria, ensuring the chosen contractor provides the best overall value.

What is the potential long-term impact of this contract on regulatory effectiveness and public health, given the duration and scope?

This contract directly supports the EPA's regulatory mandate for motor vehicles, engines, and fuels, which is critical for public health and environmental protection. The five-year duration suggests a sustained need for these analytical services, ensuring consistent data for policy development and enforcement. The testing conducted under this contract informs emissions standards and fuel quality, ultimately contributing to cleaner air and safer products for the public.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SOL-CI-13-00047

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: $25,000,548

Exercised Options: $23,822,453

Current Obligation: $20,716,607

Actual Outlays: $-2,402

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $484,727

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2015-01-14

Current End Date: 2020-03-31

Potential End Date: 2020-03-31 00:00:00

Last Modified: 2022-11-14

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