DoD's $54.4M SOF technology contract awarded to Southwest Research Institute shows strong R&D focus

Contract Overview

Contract Amount: $54,398,141 ($54.4M)

Contractor: Southwest Research Institute

Awarding Agency: Department of Defense

Start Date: 2020-12-07

End Date: 2026-05-31

Contract Duration: 2,001 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH, DEVELOPMENT, TEST, EVALUATION (RDT&E), AND PRODUCTION ENGINEERING OF SPECIAL OPERATIONS FORCES (SOF)-PECULIAR DISMOUNTED MANEUVER AND ENGAGEMENT TECHNOLOGIES FOR JOINT SPECIAL OPERATIONS COMMAND

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $54.4 million to SOUTHWEST RESEARCH INSTITUTE for work described as: RESEARCH, DEVELOPMENT, TEST, EVALUATION (RDT&E), AND PRODUCTION ENGINEERING OF SPECIAL OPERATIONS FORCES (SOF)-PECULIAR DISMOUNTED MANEUVER AND ENGAGEMENT TECHNOLOGIES FOR JOINT SPECIAL OPERATIONS COMMAND Key points: 1. Contract focuses on critical RDT&E for dismounted maneuver and engagement technologies, enhancing Special Operations Forces capabilities. 2. Awarded via full and open competition, suggesting a robust market for these specialized technologies. 3. The contract duration of approximately 6.7 years indicates a long-term investment in technological advancement. 4. Southwest Research Institute, a non-profit, brings a strong research and development background to this specialized area. 5. The contract type (Cost Plus Fixed Fee) is common for R&D where scope may evolve, balancing contractor incentive with cost control. 6. This award aligns with broader DoD efforts to modernize and equip SOF for complex operational environments.

Value Assessment

Rating: good

The contract value of $54.4 million over its period of performance appears reasonable for specialized RDT&E in the defense sector. Benchmarking against similar contracts for SOF-peculiar technologies is challenging due to their unique nature. However, the Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility in R&D, requires careful oversight to ensure costs remain controlled and aligned with the fixed fee. The award to a single entity, Southwest Research Institute, suggests they possess the specific expertise required for this niche.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple capable vendors had the opportunity to bid. The presence of 3 bidders suggests a competitive landscape for these specialized SOF technologies. This level of competition is generally favorable for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

Directly benefits U.S. Special Operations Forces by providing advanced dismounted maneuver and engagement technologies. Enhances the operational effectiveness and safety of SOF personnel in complex environments. Supports technological innovation within the defense R&D sector. The contract is managed by the Department of the Air Force but serves joint SOF requirements, indicating cross-service benefit.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on defense technologies for Special Operations Forces. The market for SOF-peculiar technologies is highly specialized, often involving unique requirements that necessitate tailored R&D efforts. Spending in this area is driven by the need to maintain a technological edge for elite military units. Comparable spending benchmarks are difficult to establish due to the niche nature of the technologies, but RDT&E contracts of this magnitude are typical for developing advanced defense capabilities.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor, Southwest Research Institute, is a large research organization, there may be opportunities for small businesses to participate as subcontractors, particularly in specialized areas of research or component development. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Air Force, which awarded it on behalf of the Joint Special Operations Command. As a Cost Plus Fixed Fee contract, rigorous financial and performance oversight is crucial to manage costs and ensure deliverables meet requirements. Transparency is typically maintained through contract reporting mechanisms and potential reviews by the Government Accountability Office (GAO) or the Inspector General.

Related Government Programs

Risk Flags

Tags

research-and-development, department-of-defense, special-operations-forces, air-force, full-and-open-competition, cost-plus-fixed-fee, technology-development, dismounted-operations, non-profit-contractor, indiana

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.4 million to SOUTHWEST RESEARCH INSTITUTE. RESEARCH, DEVELOPMENT, TEST, EVALUATION (RDT&E), AND PRODUCTION ENGINEERING OF SPECIAL OPERATIONS FORCES (SOF)-PECULIAR DISMOUNTED MANEUVER AND ENGAGEMENT TECHNOLOGIES FOR JOINT SPECIAL OPERATIONS COMMAND

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 $54.4 million.

What is the period of performance?

Start: 2020-12-07. End: 2026-05-31.

What is the track record of Southwest Research Institute (SwRI) in performing similar defense R&D contracts?

Southwest Research Institute (SwRI) has a long-standing reputation as a leading independent, nonprofit applied research and development organization. They have a significant history of performing complex R&D for various government agencies, including the Department of Defense. SwRI's expertise spans numerous technical fields relevant to defense, such as advanced materials, sensors, robotics, and systems engineering. While specific contract details are often proprietary, their extensive portfolio suggests a strong capability to manage and execute large-scale, technically challenging research projects like the one for SOF-peculiar technologies. Their non-profit status often aligns well with government R&D objectives focused on innovation and knowledge advancement rather than profit maximization.

How does the value of this contract compare to other RDT&E efforts for SOF-peculiar equipment?

Directly comparing the $54.4 million value of this contract to other SOF-peculiar RDT&E efforts is challenging due to the highly specialized and often classified nature of SOF technologies. However, this value falls within a typical range for significant R&D initiatives aimed at developing unique capabilities for elite forces. Contracts for SOF equipment can vary widely, from smaller, targeted technology insertions to larger, multi-year development programs. Given the focus on 'dismounted maneuver and engagement technologies,' this contract likely addresses critical operational needs that require substantial investment in research, prototyping, and testing. The duration of the contract (approx. 6.7 years) also suggests a comprehensive development lifecycle, justifying the overall funding.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, revolve around cost control and scope creep. While CPFF provides flexibility for evolving R&D requirements and incentivizes the contractor to control costs to maximize their fixed fee, it places a significant oversight burden on the government. There's a risk that costs could escalate beyond initial projections if the research proves more complex or time-consuming than anticipated. The government must diligently monitor expenditures and contractor performance to prevent unnecessary costs. Additionally, defining and managing the 'fixed fee' component requires careful negotiation to ensure it adequately compensates the contractor for their effort and risk without being excessive, especially if the final scope deviates significantly from the initial understanding.

How effective is the full and open competition process in ensuring value for money for specialized defense R&D?

Full and open competition is generally considered the most effective method for ensuring value for money, even in specialized defense R&D. It maximizes the pool of potential offerors, increasing the likelihood of receiving innovative solutions and competitive pricing. For SOF-peculiar technologies, while the pool of truly capable contractors might be smaller than in broader markets, open competition still encourages those with the requisite expertise to propose their best solutions. It allows the government to compare different technical approaches and cost structures, leading to better-informed decisions. The process inherently drives down prices by fostering a competitive environment, and it provides a transparent justification for the chosen contractor and proposed cost, enhancing accountability to taxpayers.

What are the potential implications of this contract on the future development of dismounted SOF technologies?

This contract has significant potential implications for the future development of dismounted SOF technologies. By investing in RDT&E for maneuver and engagement capabilities, the Department of Defense is signaling a commitment to enhancing the effectiveness and survivability of its special operations forces on the battlefield. The technologies developed under this contract could lead to advancements in areas such as soldier mobility, situational awareness, target acquisition, and personal protection. The focus on 'SOF-peculiar' implies the development of highly specialized, potentially cutting-edge solutions tailored to the unique operational requirements of these units. Successful outcomes could set new standards for dismounted operations and influence future procurement decisions across the broader military.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $81,866,826

Exercised Options: $81,866,826

Current Obligation: $54,398,141

Actual Outlays: $8,894,455

Subaward Activity

Number of Subawards: 53

Total Subaward Amount: $20,759,948

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0013

IDV Type: IDC

Timeline

Start Date: 2020-12-07

Current End Date: 2026-05-31

Potential End Date: 2026-05-31 00:00:00

Last Modified: 2025-11-25

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