DoD Awards $30.5M for Hypersonics Supply Chain Research to Southwest Research Institute
Contract Overview
Contract Amount: $30,488,803 ($30.5M)
Contractor: Southwest Research Institute
Awarding Agency: Department of Defense
Start Date: 2023-09-29
End Date: 2028-09-29
Contract Duration: 1,827 days
Daily Burn Rate: $16.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH AND DEVELOPMENT: HYPERSONICS SUPPLY CHAIN RESEARCH
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78238
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $30.5 million to SOUTHWEST RESEARCH INSTITUTE for work described as: RESEARCH AND DEVELOPMENT: HYPERSONICS SUPPLY CHAIN RESEARCH Key points: 1. Significant investment in a critical defense technology area. 2. Competition method indicates potential for fair pricing. 3. Contract type may lead to cost overruns if not managed closely. 4. Focus on R&D in a specialized scientific sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can be less price-efficient than fixed-price contracts. Without specific benchmarks for similar R&D efforts, assessing the value is challenging, but the fixed fee component provides some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing compared to sole-source or limited solicitations.
Taxpayer Impact: Taxpayer funds are being directed towards advancing critical hypersonic technology, aiming for long-term national security benefits. The competitive award process is intended to ensure efficient use of these funds.
Public Impact
Enhances national security capabilities in hypersonic technology. Supports research and development in a cutting-edge scientific field. Invests in the resilience and security of the defense industrial base. Potential for technological advancements with broader applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- R&D contracts inherently carry risk of not achieving desired outcomes.
- Long contract duration increases exposure to changing economic conditions.
Positive Signals
- Awarded under full and open competition.
- Focus on a strategically important defense technology.
- Contract awarded to a reputable research institution.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority, though R&D investments carry inherent risks.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of the Air Force is the awarding agency, responsible for oversight. The Cost Plus Fixed Fee structure requires diligent monitoring of costs and progress to ensure accountability and prevent overspending.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (5 years).
- R&D projects have inherent uncertainty of outcome.
- Potential for cost escalation over the contract period.
Tags
research-and-development-in-the-physical, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.5 million to SOUTHWEST RESEARCH INSTITUTE. RESEARCH AND DEVELOPMENT: HYPERSONICS SUPPLY CHAIN RESEARCH
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 Air Force).
What is the total obligated amount?
The obligated amount is $30.5 million.
What is the period of performance?
Start: 2023-09-29. End: 2028-09-29.
What is the projected return on investment for this hypersonic supply chain research in terms of technological advancement and national security?
The return on investment is difficult to quantify precisely due to the nature of R&D. However, successful research could lead to significant advancements in hypersonic capabilities, bolstering national security and potentially creating intellectual property with commercial applications. The long-term strategic value is high, though immediate financial returns are uncertain.
What are the primary risks associated with the Cost Plus Fixed Fee contract type for this R&D project?
The primary risks with a CPFF contract for R&D include potential cost overruns if the contractor's actual costs exceed estimates, and the government bearing the brunt of unforeseen expenses. Ensuring robust cost tracking and performance metrics is crucial to mitigate these risks and maintain control over the project's financial trajectory.
How effectively will this research address potential vulnerabilities in the hypersonics supply chain?
The effectiveness hinges on the scope and execution of the research. If the research thoroughly identifies critical chokepoints, single points of failure, and alternative sourcing strategies within the hypersonics supply chain, it can significantly enhance resilience. Close collaboration between the Southwest Research Institute and the Department of the Air Force will be key to ensuring the research is actionable and addresses real-world vulnerabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
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: $30,488,803
Exercised Options: $30,488,803
Current Obligation: $30,488,803
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $13,041,293
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-09-29
Current End Date: 2028-09-29
Potential End Date: 2028-09-29 00:00:00
Last Modified: 2025-09-26
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