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
- Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed diligently.
- The long duration of the contract requires ongoing oversight to ensure continued alignment with evolving research needs.
- Reliance on a single awardee for this significant R&D effort warrants close monitoring of performance and deliverables.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- The contractor, Southwest Research Institute, is a reputable research organization with relevant expertise.
- The contract supports critical modernization efforts for the U.S. Army's ground vehicle systems.
- The fixed fee component provides a level of cost predictability for the government.
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
- Autonomous Vehicle Research
- Ground Vehicle Systems Development
- Army Combat Capabilities Development Command
- Defense Research and Development
- Advanced Robotics Research
Risk Flags
- Contract type is Cost Plus Fixed Fee, requiring careful monitoring of costs.
- Long contract duration necessitates ongoing performance evaluation and potential scope adjustments.
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 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: 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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