Air Force awards $16.8M contract for MUTES control processors, citing sole-source justification
Contract Overview
Contract Amount: $16,835,703 ($16.8M)
Contractor: Southwest Research Institute
Awarding Agency: Department of Defense
Start Date: 2024-09-16
End Date: 2026-09-15
Contract Duration: 729 days
Daily Burn Rate: $23.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRODUCTION OF THE REENGINEERED MULTIPLE THREAT EMITTER SYSTEM (MUTES) CONTROL PROCESSOR (MCP) / REMOTE EMITTER UNIT (REU) CONTROL PROCESSOR (RCP)
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78238
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $16.8 million to SOUTHWEST RESEARCH INSTITUTE for work described as: PRODUCTION OF THE REENGINEERED MULTIPLE THREAT EMITTER SYSTEM (MUTES) CONTROL PROCESSOR (MCP) / REMOTE EMITTER UNIT (REU) CONTROL PROCESSOR (RCP) Key points: 1. Contract awarded to Southwest Research Institute for specialized electronic computer manufacturing. 2. The contract duration is 729 days, ending in September 2026. 3. This is a definitive contract with a firm fixed price, indicating clear cost expectations. 4. The North American Industry Classification System (NAICS) code 334111 points to electronic computer manufacturing. 5. The contract is not competed, raising questions about potential cost efficiencies and market alternatives. 6. The award value of $16.8 million is for the production of MUTES control processors.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging without competitive bids. The firm fixed price structure suggests cost certainty for the government, but the lack of competition means there's no direct market comparison to assess if the price is optimal. Without knowing the specific technical requirements and the unique capabilities of Southwest Research Institute, it's difficult to definitively state if the $16.8 million represents excellent value. However, the absence of competition inherently limits the ability to ensure the best possible price.
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. This typically occurs when only one vendor possesses the necessary unique capabilities, technology, or intellectual property to fulfill the requirement. The lack of competition means that the government did not solicit bids from multiple potential suppliers, which can limit price discovery and potentially lead to higher costs than if the contract had been competed.
Taxpayer Impact: Sole-source awards mean taxpayers may not be benefiting from the most competitive pricing available in the market. The government relies on the contractor's proposed pricing without the leverage of competing offers to drive down costs.
Public Impact
The Department of the Air Force benefits from the production of critical control processors for the MUTES system. This contract supports the manufacturing of specialized electronic components essential for defense systems. The primary beneficiaries are likely military personnel and operations that rely on the MUTES system's functionality. The contract's impact on the workforce is likely concentrated within Southwest Research Institute's manufacturing and engineering teams in Texas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- Sole-source awards can reduce transparency in pricing.
- Potential for vendor lock-in if unique capabilities are not transferable.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Award to an established entity (Southwest Research Institute) may indicate reliability.
- Specific system requirement likely necessitates specialized expertise.
Sector Analysis
The contract falls within the Electronic Computer Manufacturing sector, a critical component of the broader defense industrial base. This sector is characterized by high barriers to entry due to specialized knowledge, intellectual property, and manufacturing processes. The market size for such specialized defense electronics is significant, driven by ongoing modernization and sustainment needs of military systems. This contract for MUTES control processors is a niche but vital part of this ecosystem, ensuring the operational readiness of specific defense platforms.
Small Business Impact
This contract does not appear to involve a small business set-aside. Given the sole-source nature and the specialized manufacturing requirements, it is unlikely that subcontracting opportunities for small businesses would be a primary consideration or mandated. The focus is on the prime contractor's unique capabilities rather than broad market participation.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed price structure, which holds the contractor responsible for delivering the specified goods within the agreed-upon cost. Transparency is limited due to the sole-source nature, but contract details and performance should be available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Electronics Manufacturing
- Avionics Systems
- Electronic Warfare Systems
- Military Computer Systems
- Threat Emitter Systems
Risk Flags
- Sole-source award limits price competition.
- Lack of transparency in pricing justification.
- Potential for higher costs compared to a competed contract.
Tags
defense, air-force, sole-source, firm-fixed-price, electronic-computer-manufacturing, texas, southwest-research-institute, mutes, control-processor, definitive-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to SOUTHWEST RESEARCH INSTITUTE. PRODUCTION OF THE REENGINEERED MULTIPLE THREAT EMITTER SYSTEM (MUTES) CONTROL PROCESSOR (MCP) / REMOTE EMITTER UNIT (REU) CONTROL PROCESSOR (RCP)
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 $16.8 million.
What is the period of performance?
Start: 2024-09-16. End: 2026-09-15.
What is the specific function and importance of the MUTES Control Processor (MCP) / Remote Emitter Unit (REU) Control Processor (RCP)?
The MUTES (Multiple Threat Emitter System) Control Processor (MCP) and Remote Emitter Unit (REU) Control Processor (RCP) are critical components within a sophisticated electronic warfare or simulation system. The MCP likely serves as the central processing unit, managing the overall operation, data flow, and command execution for the MUTES. The REU Control Processor would manage the functions of individual remote emitter units, which are responsible for generating specific threat signals. Together, these processors enable the system to accurately simulate or counter various threats, playing a vital role in training, testing, and electronic warfare capabilities for the Air Force. Their importance lies in ensuring the fidelity and effectiveness of the simulation or countermeasures.
Why was this contract awarded on a sole-source basis instead of being competed?
The sole-source award suggests that Southwest Research Institute (SwRI) possesses unique, proprietary technology, specialized manufacturing capabilities, or critical intellectual property essential for producing the MUTES Control Processor (MCP) and Remote Emitter Unit (REU) Control Processor (RCP). The Department of the Air Force likely determined that no other vendor could meet the stringent technical requirements or provide the necessary expertise within the required timeframe. Sole-sourcing is typically justified when competition is not feasible due to factors such as patent protection, unique research and development outcomes, or highly specialized production processes that only one entity masters. This avoids the risk of delays or substandard performance associated with trying to develop or qualify a new source for such critical components.
What is Southwest Research Institute's track record with similar defense contracts?
Southwest Research Institute (SwRI) has a long-standing and extensive track record of supporting defense and aerospace programs. They are known for their expertise in research, development, and advanced engineering across a wide range of disciplines, including electronics, systems engineering, and simulation. SwRI has historically been involved in numerous complex projects for various branches of the U.S. military, often involving specialized hardware and software development. While specific details on MUTES-related contracts may be proprietary, their general reputation and history indicate a strong capability to handle sophisticated defense manufacturing requirements like the production of control processors.
How does the firm fixed price (FFP) contract structure benefit the government in this sole-source scenario?
A Firm Fixed Price (FFP) contract structure is highly beneficial for the government, especially in a sole-source situation, as it shifts the majority of the cost risk to the contractor. Under an FFP agreement, the price is set and not subject to adjustment based on the contractor's actual costs. This provides the government with cost certainty and predictability for the $16.8 million award. While the lack of competition means the initial price might not be the absolute lowest possible, the FFP structure prevents cost overruns from the contractor's side, ensuring the total expenditure remains within the contracted amount. It simplifies financial management and budgeting for the Air Force.
What are the potential risks associated with a sole-source award for critical defense components?
The primary risk associated with a sole-source award for critical defense components like the MUTES control processors is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may pay more than necessary. Another risk is vendor lock-in, where the reliance on a single supplier for specialized technology can make it difficult and costly to switch providers in the future, potentially hindering innovation or future procurement flexibility. Furthermore, a sole-source award can reduce transparency in the pricing and cost structure, making it harder to scrutinize the value received. Finally, there's a risk if the sole-source provider experiences financial difficulties or operational issues, as there are no immediate alternative suppliers.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA821024R5001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $16,835,703
Exercised Options: $16,835,703
Current Obligation: $16,835,703
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $8,249,436
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-16
Current End Date: 2026-09-15
Potential End Date: 2026-09-15 00:00:00
Last Modified: 2025-09-15
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