DoD's $203M R&D Contract with SRI International: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $20,326,070 ($20.3M)
Contractor: SRI International
Awarding Agency: Department of Defense
Start Date: 2012-11-02
End Date: 2020-04-01
Contract Duration: 2,707 days
Daily Burn Rate: $7.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 15
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: REFORM
Place of Performance
Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025
Plain-Language Summary
Department of Defense obligated $20.3 million to SRI INTERNATIONAL for work described as: REFORM Key points: 1. The contract awarded to SRI International for R&D services represents a significant investment by the Department of the Air Force. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. The R&D sector, particularly in physical, engineering, and life sciences, is critical for technological advancement but carries inherent risks.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure, while allowing for flexibility in R&D, presents a risk of costs exceeding initial estimates. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work, but the awarded amount is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple vendors had the opportunity to bid, fostering a competitive environment. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: Taxpayer funds are being used for critical research and development, with the expectation of technological advancements. The competitive award process aims to ensure efficient use of these funds.
Public Impact
Investment in advanced research and development by the Air Force, potentially leading to new technologies. Contract awarded to a single entity, SRI International, for a significant duration. The research area (541712) is broad and could encompass a wide range of scientific and engineering applications. Potential for long-term technological benefits and national security enhancements.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long contract duration (2012-2020) may lead to scope creep or outdated technology.
- Lack of specific performance metrics makes it hard to assess value for money.
Positive Signals
- Full and open competition utilized.
- Contract supports critical R&D for the Department of Defense.
- SRI International is a reputable research institution.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation but often involves higher risk and longer timelines compared to procurement of established goods or services.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it was awarded to SRI International. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract's long duration and Cost Plus Fixed Fee structure necessitate robust oversight from the Department of the Air Force to ensure cost control and adherence to research objectives. Regular reviews and performance monitoring are essential.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of specific performance metrics in provided data.
- Potential for cost overruns.
- Limited visibility into specific research outcomes.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.3 million to SRI INTERNATIONAL. REFORM
Who is the contractor on this award?
The obligated recipient is SRI INTERNATIONAL.
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 $20.3 million.
What is the period of performance?
Start: 2012-11-02. End: 2020-04-01.
What specific research outcomes or technological advancements were achieved under this contract, and how do they align with the Department of the Air Force's strategic goals?
The contract focused on Research and Development in Physical, Engineering, and Life Sciences. Without specific deliverables or final reports, it's challenging to quantify the exact advancements. However, R&D contracts of this nature typically aim to push technological boundaries, potentially leading to innovations in areas relevant to national security, such as advanced materials, sensor technology, or complex systems engineering, contributing to the Air Force's long-term strategic objectives.
Given the Cost Plus Fixed Fee structure, what mechanisms were in place to mitigate the risk of cost overruns and ensure efficient use of taxpayer funds?
Cost Plus Fixed Fee contracts inherently carry a risk of cost escalation. Effective oversight would involve rigorous monitoring of expenditures, regular audits, and clear communication channels between the contracting agency and SRI International. The 'fixed fee' component provides some incentive for the contractor to manage costs, but the agency must actively manage the 'cost' portion through detailed reviews and potentially by setting cost ceilings or incentivizing efficiency.
How does the $203 million investment in this specific R&D contract compare to overall DoD spending in similar research areas, and what is the anticipated return on investment?
The $203 million represents a significant, but not exceptionally large, portion of the DoD's overall R&D budget, which spans billions annually across numerous projects. Benchmarking requires detailed analysis of comparable R&D efforts. The return on investment for R&D is often long-term and indirect, measured by future technological capabilities, enhanced national security, or economic benefits, rather than immediate financial returns.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 15
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 94025
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: $21,229,513
Exercised Options: $21,229,513
Current Obligation: $20,326,070
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-11-02
Current End Date: 2020-04-01
Potential End Date: 2020-04-01 00:00:00
Last Modified: 2019-12-31
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