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

Positive Signals

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

Risk Flags

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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (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

More Contracts from Southwest Research Institute

View all Southwest Research Institute federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending