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
- Cost Plus Fixed Fee (CPFF) pricing can incentivize contractor to increase costs.
- Long contract duration (5 years) increases exposure to potential scope creep or changing requirements.
- No specific small business participation noted.
Positive Signals
- Awarded via full and open competition, maximizing potential for competitive pricing.
- Contract supports critical environmental and public health regulations.
- Experienced contractor with a history of providing similar services.
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
- Engineering Services
- Environmental Protection Agency Contracting
- Environmental Protection Agency Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost overruns.
- Lack of small business participation noted.
- Long contract duration may increase risk of scope creep or requirement changes.
- Potential for contractor to prioritize fee over cost efficiency in CPFF structure.
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 Services › Architectural, Engineering, and Related Services › Engineering 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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