DoD's $21.4M R&D contract for digital video lab services awarded to SRI International without competition

Contract Overview

Contract Amount: $21,451,218 ($21.5M)

Contractor: SRI International

Awarding Agency: Department of Defense

Start Date: 2021-04-22

End Date: 2025-06-15

Contract Duration: 1,515 days

Daily Burn Rate: $14.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DIGITAL VIDEO LABORATORY IV - DELIVERY ORDER OVER THE WATER IMPACT LOCATION III

Place of Performance

Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to SRI INTERNATIONAL for work described as: DIGITAL VIDEO LABORATORY IV - DELIVERY ORDER OVER THE WATER IMPACT LOCATION III Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. Sole-source award raises questions about price reasonableness and market competition. 3. Long performance period of over 4 years suggests a significant, ongoing need. 4. The contract falls under R&D in Physical, Engineering, and Life Sciences, a critical but complex sector. 5. No small business set-aside was applied, potentially limiting opportunities for smaller firms. 6. The specific nature of 'digital video laboratory' services warrants further clarity on its application.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source, cost-plus-fixed-fee contract is challenging without comparable data. The cost-plus-fixed-fee structure, while common in R&D, can lead to higher costs than fixed-price contracts if not managed tightly. The absence of competition makes it difficult to assess if the pricing reflects fair market value. Further analysis would require understanding the specific deliverables and the contractor's historical performance and cost structures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when only one vendor possesses the unique capabilities or technology required for the specific research and development task. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure to drive down costs. Without a competitive process, there's less assurance that the government secured the best possible price for these specialized R&D services.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving advanced digital video laboratory capabilities. Services delivered likely support critical research and development initiatives within the defense sector. The geographic impact is centered in California, where SRI International is located. Workforce implications include specialized scientific and technical personnel employed by SRI International.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Cost-plus-fixed-fee contract type carries inherent risks of cost overruns if not closely monitored.
Lack of small business participation may limit opportunities for smaller, innovative firms in this sector.

Positive Signals

SRI International is a reputable research organization with a history of government contracting.
The contract supports critical R&D, potentially leading to technological advancements for national security.
The long duration suggests a stable, ongoing need for these specialized services.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a high-value, knowledge-intensive area crucial for technological advancement and national security. The market for specialized R&D services is often characterized by a few key players with unique expertise. Comparable spending in this sub-sector can vary widely depending on the specific research area and agency.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this significant R&D effort are likely limited unless they are direct subcontractors to SRI International. The absence of a set-aside may reflect the specialized nature of the R&D required, which might be better suited to larger, established research institutions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a cost-plus-fixed-fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs remain reasonable and deliverables are met. Transparency is dependent on the agency's reporting practices and any public disclosures made regarding the R&D outcomes. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Scientific and Technical Research
Advanced Technology Development Contracts
Digital Imaging and Video Research

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to SRI INTERNATIONAL. DIGITAL VIDEO LABORATORY IV - DELIVERY ORDER OVER THE WATER IMPACT LOCATION III

Who is the contractor on this award?

The obligated recipient is SRI INTERNATIONAL.

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 $21.5 million.

What is the period of performance?

Start: 2021-04-22. End: 2025-06-15.

What specific research and development activities does 'DIGITAL VIDEO LABORATORY IV - DELIVERY ORDER OVER THE WATER IMPACT LOCATION III' entail?

The provided data does not detail the specific research and development activities. However, the title suggests a focus on digital video technologies, potentially involving areas like advanced imaging, video analysis, simulation, or data processing for specific applications, possibly related to 'over the water impact location' scenarios. This could involve developing new methods for capturing, analyzing, or interpreting video data in challenging environments. Further investigation into the contract's statement of work would be necessary to understand the precise technical objectives and deliverables.

How does the $21.4 million contract value compare to similar R&D contracts in digital video technologies?

Direct comparison is difficult without knowing the specific scope and duration of similar contracts. However, $21.4 million over approximately 1515 days (around 4 years) for specialized R&D suggests a significant investment. The cost-plus-fixed-fee structure means the final expenditure could vary. To benchmark effectively, one would need to identify other sole-source or competed R&D contracts for advanced digital video capabilities within the DoD or other federal agencies, considering factors like contractor expertise, technological novelty, and project complexity.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee R&D contract of this magnitude?

The primary risks include potential cost overruns due to the cost-plus-fixed-fee structure, where the contractor is reimbursed for allowable costs plus a fixed fee. Without competition, there's also a risk of paying a non-competitive price. Furthermore, the government relies heavily on the contractor's integrity and capability, as there's less market pressure to innovate or control costs. Ensuring adequate oversight and clear performance metrics is critical to mitigate these risks. The long duration also introduces risks related to technological obsolescence or shifts in research priorities.

What is SRI International's track record with federal R&D contracts, particularly within the Department of Defense?

SRI International is a well-established research institute with a long history of performing R&D for the federal government, including the Department of Defense. They have a broad portfolio of contracts across various scientific and engineering disciplines. While specific performance metrics for this particular contract are not provided, SRI generally has a strong reputation for technical expertise and successful project execution. Accessing historical contract data and performance reviews would provide a more granular assessment of their track record.

Given the sole-source nature, what assurance does the government have that SRI International is the only entity capable of performing this work?

Sole-source awards are typically justified based on specific criteria, such as unique capabilities, proprietary technology, or urgent needs where only one source can reasonably fulfill the requirement. The government must document this justification thoroughly. For SRI International, this could stem from specific patents, unique laboratory facilities, highly specialized personnel, or prior foundational research that makes them uniquely qualified. The contracting officer is responsible for ensuring that the justification for a sole-source award is valid and properly documented according to federal acquisition regulations.

How does this contract align with the Department of the Air Force's broader R&D objectives and priorities?

Without specific details on the contract's objectives, it's challenging to definitively align it. However, the Department of the Air Force consistently invests in advanced technologies to maintain air and space superiority. R&D in areas like digital video processing, simulation, and data analysis is crucial for intelligence, surveillance, reconnaissance (ISR), training, and operational effectiveness. This contract likely supports one or more of these strategic priorities, contributing to the development of next-generation capabilities for the Air Force.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA248721R1102

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 94025

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: $30,103,576

Exercised Options: $29,203,263

Current Obligation: $21,451,218

Actual Outlays: $92,157

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $819,309

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA248718D0001

IDV Type: IDC

Timeline