DoD Awards $22.9M Contract to SRI International for PENRAD 6.5 Radar Upgrade at Yuma Proving Grounds

Contract Overview

Contract Amount: $22,875,775 ($22.9M)

Contractor: SRI International

Awarding Agency: Department of Defense

Start Date: 2008-02-11

End Date: 2009-09-30

Contract Duration: 597 days

Daily Burn Rate: $38.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROGRAM MANAGEMENT, PROJECT ENGINEERING, SYSTEMS ENGINEERING, PROCUREMENT, FABRICATION, MANUFACTURING, INSTALLATION, INTEGRATION AND TESTING OF ALL MODIFICATIONS, INSTALLATIONS AND EQUIPMENT AS IT RELATES TO INCREASING THE PENRAD 6.5 RADAR CAPABILITY TO 7.0 AT YUMA PROVING GROUNDS (YPG)

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to SRI INTERNATIONAL for work described as: PROGRAM MANAGEMENT, PROJECT ENGINEERING, SYSTEMS ENGINEERING, PROCUREMENT, FABRICATION, MANUFACTURING, INSTALLATION, INTEGRATION AND TESTING OF ALL MODIFICATIONS, INSTALLATIONS AND EQUIPMENT AS IT RELATES TO INCREASING THE PENRAD 6.5 RADAR CAPABILITY TO 7.0 AT YUMA PROVING GROUND… Key points: 1. The contract focuses on upgrading radar capabilities, a critical component for testing and evaluation. 2. SRI International, a research institute, is the sole awardee, raising questions about competition. 3. The upgrade aims to enhance the PENRAD 6.5 radar system to version 7.0. 4. The project duration is approximately 20 months, indicating a focused, short-term effort.

Value Assessment

Rating: fair

The contract value of $22.9 million for a radar system upgrade appears reasonable given the scope of engineering, procurement, and installation services. However, without specific benchmarks for similar radar modernization projects, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had vied for the contract.

Public Impact

Enhances critical testing infrastructure at Yuma Proving Grounds, supporting defense research and development. Potential for improved accuracy and capabilities in radar systems used for military evaluations. The sole-source nature of the award warrants scrutiny to ensure fair pricing and value for taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Lack of small business participation noted.

Positive Signals

Addresses a specific, critical need for radar capability enhancement.
SRI International has relevant research and development expertise.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to defense systems modernization. Spending in this area is often driven by technological advancements and the need to maintain a competitive edge in military capabilities.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of subcontracting opportunities for small businesses in the provided data. This represents a missed opportunity to support small business growth within the defense sector.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The sole-source nature necessitates robust oversight to ensure the contractor meets all performance requirements and cost objectives.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition.
Cost-plus contract type may lead to cost overruns.
No small business participation.
Potential for reduced contractor incentive to control costs.
Lack of transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to SRI INTERNATIONAL. PROGRAM MANAGEMENT, PROJECT ENGINEERING, SYSTEMS ENGINEERING, PROCUREMENT, FABRICATION, MANUFACTURING, INSTALLATION, INTEGRATION AND TESTING OF ALL MODIFICATIONS, INSTALLATIONS AND EQUIPMENT AS IT RELATES TO INCREASING THE PENRAD 6.5 RADAR CAPABILITY TO 7.0 AT YUMA PROVING GROUNDS (YPG)

Who is the contractor on this award?

The obligated recipient is SRI INTERNATIONAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2008-02-11. End: 2009-09-30.

What is the justification for the sole-source award, and was a market research conducted to confirm the absence of other capable sources?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent requirements where only one source can fulfill the need. Without specific documentation, it's presumed the agency determined SRI International possessed unique qualifications or that competition was not feasible or cost-effective at the time of award. Further review would be needed to confirm the thoroughness of market research.

How does the cost-plus-fixed-fee (CPFF) contract type impact cost control and contractor incentive for efficiency in this sole-source scenario?

A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While the fixed fee incentivizes completion, the cost-reimbursement nature can reduce the contractor's incentive to control costs rigorously, especially in a sole-source situation where competitive pressure is absent. This structure requires strong government oversight to manage expenditures effectively.

What are the specific performance metrics and testing procedures to validate the successful upgrade of the PENRAD radar system to version 7.0?

Detailed performance metrics and testing procedures are crucial for validating the upgrade's success. These would typically include specifications for improved range, accuracy, resolution, and signal processing capabilities. Comprehensive testing protocols, likely involving simulated and real-world scenarios at Yuma Proving Grounds, would be necessary to confirm the system meets or exceeds the new version 7.0 requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 90

Business Categories: Category Business, Corporate Entity Tax Exempt, Federally Funded Research and Development Corp, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,022,906

Exercised Options: $23,022,906

Current Obligation: $22,875,775

Contract Characteristics

Cost or Pricing Data: YES

Timeline