DoD's Project Minerva awards $23.9M for R&D to Southwest Research Institute, facing limited competition
Contract Overview
Contract Amount: $23,919,334 ($23.9M)
Contractor: Southwest Research Institute
Awarding Agency: Department of Defense
Start Date: 2019-09-18
End Date: 2024-09-22
Contract Duration: 1,831 days
Daily Burn Rate: $13.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ENGINEERING, TEST, AND EVALUATION - PROJECT MINERVA
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78238
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $23.9 million to SOUTHWEST RESEARCH INSTITUTE for work described as: ENGINEERING, TEST, AND EVALUATION - PROJECT MINERVA Key points: 1. Significant investment in specialized R&D services for defense. 2. Limited competition raises questions about optimal pricing and innovation. 3. Potential for cost overruns due to Cost Plus Fixed Fee contract type. 4. Focus on physical and engineering sciences aligns with defense modernization needs.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility, can lead to higher costs compared to fixed-price contracts if not closely managed. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, suggesting potential sole-source or limited competition circumstances. This lack of broad competition may hinder price discovery and potentially lead to less favorable pricing for the government.
Taxpayer Impact: The absence of full and open competition could result in higher taxpayer costs if alternative, more cost-effective solutions were available but not explored.
Public Impact
Supports advanced research and development critical for national security. Funds specialized engineering and testing services, potentially leading to technological advancements. Contract duration of over five years indicates a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Fixed Fee contract type
- Lack of small business participation
Positive Signals
- Supports critical defense R&D
- Long-term contract duration
- Experienced contractor
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining a technological edge, with benchmarks varying widely based on the specific research area and project scope.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that opportunities for small businesses in this specialized R&D area may be limited or were not actively pursued.
Oversight & Accountability
The Department of Defense, specifically the Defense Threat Reduction Agency, is responsible for overseeing this contract. Robust oversight is crucial given the contract type and limited competition to ensure value for taxpayer money.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Limited competition may lead to suboptimal pricing.
- Cost Plus Fixed Fee contracts carry inherent risk of cost overruns.
- Lack of small business involvement.
- Long contract duration requires sustained oversight.
Tags
research-and-development-in-the-physical, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.9 million to SOUTHWEST RESEARCH INSTITUTE. ENGINEERING, TEST, AND EVALUATION - PROJECT MINERVA
Who is the contractor on this award?
The obligated recipient is SOUTHWEST RESEARCH INSTITUTE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $23.9 million.
What is the period of performance?
Start: 2019-09-18. End: 2024-09-22.
What specific factors justified the limited competition for this critical R&D project?
The justification for limited competition likely stems from the highly specialized nature of the research and development required for Project Minerva. This could involve unique expertise, proprietary technology, or specific security clearances held by Southwest Research Institute that are not readily available from other sources, making full and open competition impractical or detrimental to project goals.
How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns?
Effective management of a Cost Plus Fixed Fee contract requires stringent oversight, detailed cost tracking, and regular performance reviews by the Defense Threat Reduction Agency. Establishing clear milestones, performance metrics, and robust communication channels with Southwest Research Institute will be essential to control costs and ensure the fixed fee remains appropriate for the work performed.
What is the expected return on investment for this $23.9 million R&D expenditure in terms of technological advancement or threat reduction?
The return on investment is measured by the successful development and application of new technologies or methodologies that enhance the Defense Threat Reduction Agency's capabilities. This could manifest as improved threat detection, advanced defensive strategies, or innovative solutions to complex security challenges, ultimately bolstering national security and reducing risks.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HDTRA118R0004
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: $23,964,247
Exercised Options: $23,964,247
Current Obligation: $23,919,334
Actual Outlays: $10,546,581
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $7,078,859
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA118D0002
IDV Type: IDC
Timeline
Start Date: 2019-09-18
Current End Date: 2024-09-22
Potential End Date: 2024-09-22 00:00:00
Last Modified: 2025-12-18
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