DoD's $16.9M R&D contract for threat reduction awarded to Southwest Research Institute

Contract Overview

Contract Amount: $16,896,831 ($16.9M)

Contractor: Southwest Research Institute

Awarding Agency: Department of Defense

Start Date: 2019-06-17

End Date: 2025-09-12

Contract Duration: 2,279 days

Daily Burn Rate: $7.4K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TEST SERIES IN SUPPORT OF MULTIPLE DTRA PROGRAMS ADDRESSING USCENTCOM AND IMPROVISED-THREAT REQUIREMENTS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78238

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to SOUTHWEST RESEARCH INSTITUTE for work described as: TEST SERIES IN SUPPORT OF MULTIPLE DTRA PROGRAMS ADDRESSING USCENTCOM AND IMPROVISED-THREAT REQUIREMENTS Key points: 1. Contract focuses on critical R&D for USCENTCOM and improvised threats. 2. Sole-source award raises questions about potential cost efficiencies. 3. Long duration (2019-2025) suggests complex, ongoing support needs. 4. Contractor has a strong track record in defense R&D. 5. Geographic focus on Texas may indicate specific regional testing or development. 6. Cost-plus-fixed-fee structure requires careful monitoring of expenditures.

Value Assessment

Rating: fair

The contract's value of $16.9 million over its period of performance (2019-2025) appears reasonable for specialized R&D in a critical defense area. However, without comparable sole-source contracts for similar services, a definitive value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) pricing structure necessitates diligent oversight to ensure costs remain within projected bounds and that the fixed fee adequately compensates the contractor for the defined scope.

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 among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a rapid award. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple bids had been solicited.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price through competitive bidding. Oversight is crucial to ensure the government is not overpaying for the services rendered.

Public Impact

The primary beneficiaries are the U.S. military, specifically USCENTCOM, receiving advanced research and development to counter improvised threats. Services delivered include critical research and testing to enhance warfighter capabilities and reduce casualties. The geographic impact is primarily centered in Texas, where the contractor is located, potentially involving local testing facilities and personnel. Workforce implications include specialized R&D roles, likely requiring scientists, engineers, and technical support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is characterized by high specialization, significant government investment, and long development cycles. Comparable spending benchmarks are difficult to establish due to the unique nature of threat reduction research, but overall DoD R&D spending is in the hundreds of billions annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' and 'sb' being false. Southwest Research Institute is a large research organization. There is no explicit information provided regarding subcontracting plans to small businesses, which could be an area for further inquiry to ensure small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Threat Reduction Agency (DTRA) and potentially the Department of Defense's Inspector General. The CPFF structure requires rigorous financial oversight to track expenditures against the fixed fee and ensure compliance with contract terms. Transparency is facilitated through contract reporting requirements, but the sole-source nature limits public visibility into the competitive process.

Related Government Programs

Risk Flags

Tags

defense, department-of-defense, dtra, research-and-development, sole-source, cost-plus-fixed-fee, improvised-threats, uscentcom, texas, large-business, non-small-business, delivery-order

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to SOUTHWEST RESEARCH INSTITUTE. TEST SERIES IN SUPPORT OF MULTIPLE DTRA PROGRAMS ADDRESSING USCENTCOM AND IMPROVISED-THREAT REQUIREMENTS

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 $16.9 million.

What is the period of performance?

Start: 2019-06-17. End: 2025-09-12.

What is Southwest Research Institute's track record with sole-source R&D contracts for the Department of Defense?

Southwest Research Institute (SwRI) has a history of performing research and development for the Department of Defense, often through competitive awards but also occasionally through sole-source or limited competition vehicles when their specialized expertise is required. Their extensive experience in areas like advanced materials, sensor development, and threat analysis makes them a frequent choice for complex, unique R&D challenges. While specific data on their sole-source contract volume isn't readily available in this context, their overall performance record with the DoD is generally strong, marked by successful project completion and technical innovation. The CPFF structure on this particular contract suggests a need for close collaboration and detailed reporting, which SwRI is accustomed to providing.

How does the $16.9 million contract value compare to similar R&D efforts for improvised threat mitigation?

Benchmarking the $16.9 million value for this specific R&D effort is challenging due to the highly specialized and often classified nature of improvised threat mitigation research. Contracts in this domain can vary significantly based on the scope, technology maturity, and specific threats addressed. However, considering the multi-year duration (2019-2025) and the critical national security implications, the investment appears aligned with the complexity and importance of the work. Larger, more comprehensive R&D programs for advanced defense technologies can easily reach hundreds of millions or even billions. This contract likely represents a focused effort on specific aspects of threat reduction, making direct comparisons difficult without more granular detail on the technical objectives.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract for R&D?

The primary risks associated with a sole-source, cost-plus-fixed-fee (CPFF) contract for R&D are twofold. Firstly, the sole-source nature eliminates the competitive pressure that typically drives down costs and encourages innovation. This can lead to the government paying a premium for the services. Secondly, the CPFF structure, while providing flexibility for evolving R&D requirements, carries the risk of cost overruns. If not meticulously managed and overseen, the contractor may have less incentive to control costs, as the government agrees to cover allowable costs plus a predetermined fixed fee. This necessitates robust government oversight of expenditures, progress tracking, and scope management to mitigate these risks and ensure value for taxpayer money.

How effective is the Defense Threat Reduction Agency (DTRA) in managing R&D contracts to ensure program effectiveness?

DTRA generally has a strong reputation for managing complex R&D programs aimed at reducing threats to national security. They employ program managers with deep technical expertise who work closely with contractors to define requirements, monitor progress, and ensure deliverables meet stringent standards. Their oversight mechanisms typically involve regular technical reviews, milestone tracking, and financial audits, especially for CPFF contracts. While specific effectiveness metrics for all DTRA programs are not publicly detailed, the agency's continued funding and its role in addressing critical WMD and emerging threats suggest a high degree of success in guiding R&D efforts towards impactful outcomes. Challenges can arise, as with any large R&D organization, but DTRA's focus on threat reduction provides a clear mission objective.

What are the historical spending patterns for R&D related to improvised threats by the Department of Defense?

The Department of Defense has consistently allocated significant funding towards R&D for countering improvised threats, particularly since the early 2000s due to the prevalence of Improvised Explosive Devices (IEDs) in conflicts. Spending in this area has fluctuated based on operational needs and technological advancements, often exceeding billions of dollars annually across various services and agencies like DTRA, DARPA, and service-specific research labs. Funding typically supports research into detection, defeat, material science, electronic countermeasures, and consequence management. While specific historical figures for 'improvised threats' as a distinct category can be broad, the overall trend shows sustained investment in developing countermeasures and advanced technologies to protect U.S. forces and allies.

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: $43,298,417

Exercised Options: $20,638,269

Current Obligation: $16,896,831

Actual Outlays: $4,912,355

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $5,325,926

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: 2019-06-17

Current End Date: 2025-09-12

Potential End Date: 2025-09-12 00:00:00

Last Modified: 2025-09-15

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