DoD's $20.7M autonomous vehicle R&D contract awarded to Southwest Research Institute shows strong competition

Contract Overview

Contract Amount: $20,771,293 ($20.8M)

Contractor: Southwest Research Institute

Awarding Agency: Department of Defense

Start Date: 2021-05-31

End Date: 2026-06-08

Contract Duration: 1,834 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AUTONOMOUS & GROUND VEHICLE RESEARCH & DEVELOPMENT (R&D) SERVICES FOR UNITED STATES ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND (CCDC), GROUND VEHICLES SYSTEMS CENTER (GVSC)

Place of Performance

Location: LANSING, INGHAM County, MICHIGAN, 48937

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to SOUTHWEST RESEARCH INSTITUTE for work described as: AUTONOMOUS & GROUND VEHICLE RESEARCH & DEVELOPMENT (R&D) SERVICES FOR UNITED STATES ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND (CCDC), GROUND VEHICLES SYSTEMS CENTER (GVSC) Key points: 1. Contract focuses on critical R&D for autonomous and ground vehicles, aligning with Army modernization goals. 2. Strong competition indicates potential for competitive pricing and innovation. 3. The contract duration of over 5 years suggests a long-term need for these specialized services. 4. Cost-plus-fixed-fee contract type allows for flexibility while managing costs. 5. Geographic concentration in Michigan highlights a key hub for ground vehicle research. 6. The awardee, Southwest Research Institute, has a significant track record in R&D services.

Value Assessment

Rating: good

The contract value of $20.7 million over approximately 5 years for R&D services is within a reasonable range for specialized defense research. Benchmarking against similar contracts for autonomous systems development suggests that the pricing structure, while a cost-plus-fixed-fee, is competitive given the complexity and novelty of the research. The fixed fee component provides a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bids received. This level of competition is a positive indicator, suggesting that multiple capable contractors vied for the work. The presence of five bidders implies a healthy market for these specialized R&D services and likely contributed to achieving a fair market price.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by fostering a competitive environment that drives down costs and encourages innovative solutions.

Public Impact

The U.S. Army Combat Capabilities Development Command (CCDC) Ground Vehicle Systems Center (GVSC) is the primary beneficiary, advancing its research capabilities. Services delivered will focus on research and development for autonomous and ground vehicle technologies. The contract's impact is primarily within the defense sector, enhancing military ground vehicle capabilities. Workforce implications include specialized engineering and research roles, likely concentrated in Michigan.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the broader Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for autonomous vehicle technology is rapidly expanding, driven by both commercial and defense applications. Comparable spending in defense R&D for advanced vehicle systems can range from millions to billions, depending on the scope and maturity of the technology. This contract represents a significant investment in a specific niche of defense R&D.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, though larger prime contractors often engage small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Defense, specifically the contracting officers and program managers within the CCDC GVSC. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements, though specific research details may be sensitive.

Related Government Programs

Risk Flags

Tags

defense, department-of-defense, army, research-and-development, autonomous-vehicles, ground-vehicles, cost-plus-fixed-fee, full-and-open-competition, southwest-research-institute, michigan, systems-development, technology-research

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to SOUTHWEST RESEARCH INSTITUTE. AUTONOMOUS & GROUND VEHICLE RESEARCH & DEVELOPMENT (R&D) SERVICES FOR UNITED STATES ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND (CCDC), GROUND VEHICLES SYSTEMS CENTER (GVSC)

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 $20.8 million.

What is the period of performance?

Start: 2021-05-31. End: 2026-06-08.

What is Southwest Research Institute's track record with similar Department of Defense R&D contracts?

Southwest Research Institute (SwRI) has a substantial history of performing research and development services for the Department of Defense across various agencies and programs. They are known for their expertise in areas such as advanced materials, propulsion systems, robotics, and autonomous systems. SwRI has consistently secured and successfully executed complex R&D contracts, often involving cutting-edge technologies and rigorous testing requirements. Their experience includes work on vehicle platforms, sensor integration, and artificial intelligence applications relevant to defense needs. This extensive background suggests a strong capability to manage and deliver on the objectives of the current autonomous and ground vehicle R&D contract.

How does the $20.7 million value compare to other autonomous vehicle R&D contracts within the DoD?

The $20.7 million contract value for autonomous and ground vehicle R&D services awarded to Southwest Research Institute is a significant but not exceptionally large sum within the context of major DoD research initiatives. Larger, more comprehensive programs focused on developing entirely new vehicle platforms or advanced AI systems can easily reach hundreds of millions or even billions of dollars over their lifecycle. However, for a focused R&D effort concentrating on specific aspects of autonomous capabilities or ground vehicle systems, $20.7 million over approximately five years represents a substantial investment. It suggests a project of considerable scope and technical depth, likely involving advanced simulation, prototyping, and testing, placing it in the mid-to-high range for specialized R&D task orders or smaller programs.

What are the primary risks associated with this type of R&D contract?

The primary risks associated with this type of R&D contract include technical risks, where the research objectives may prove unattainable or require significant modifications due to unforeseen scientific or engineering challenges. Schedule risks are also present, as R&D projects are inherently uncertain, and timelines can slip. Cost risks exist, particularly with cost-plus contracts, where actual costs might exceed initial estimates if not managed effectively, although the fixed fee component aims to mitigate this. Furthermore, there's a risk of obsolescence if the technology developed is surpassed by advancements elsewhere before deployment, or a risk that the developed technology may not integrate seamlessly with existing military systems. Finally, contractor performance risk, while mitigated by the awardee's reputation, always exists in complex R&D endeavors.

How effective is the 'full and open competition' approach for specialized R&D like this?

The 'full and open competition' approach is generally considered highly effective for specialized R&D contracts, as it maximizes the pool of potential offerors, thereby increasing the likelihood of finding the most innovative and cost-effective solutions. For advanced fields like autonomous and ground vehicle R&D, this approach allows the government to solicit proposals from a wide range of research institutions and companies, including universities, established defense contractors, and specialized technology firms. This broad competition can drive down prices, foster technological advancements through diverse approaches, and ensure that the government selects the contractor best suited to meet complex technical requirements. The receipt of five bids in this instance supports the effectiveness of this method in attracting qualified participants.

What are the historical spending patterns for autonomous and ground vehicle R&D within the DoD?

Historical spending patterns for autonomous and ground vehicle R&D within the DoD show a consistent and increasing trend over the past decade. Driven by the need for enhanced soldier safety, operational efficiency, and maintaining technological superiority, significant investments have been channeled into areas such as unmanned ground vehicles (UGVs), robotic systems, advanced driver-assistance systems (ADAS), and the underlying artificial intelligence and sensor technologies. Budgets allocated to programs under entities like the CCDC GVSC, DARPA, and various service-specific research commands reflect this priority. While specific figures fluctuate annually based on strategic priorities and budget cycles, the overall trajectory indicates a sustained commitment to advancing these capabilities, with multi-million dollar awards for research, development, testing, and prototyping being common.

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: 5

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: $34,014,278

Exercised Options: $34,014,278

Current Obligation: $20,771,293

Actual Outlays: $867,498

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $294,515

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: 2021-05-31

Current End Date: 2026-06-08

Potential End Date: 2026-06-08 00:00:00

Last Modified: 2025-09-03

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