DoD Awards $10.2M for Project Ares R&D to Southwest Research Institute
Contract Overview
Contract Amount: $10,222,953 ($10.2M)
Contractor: Southwest Research Institute
Awarding Agency: Department of Defense
Start Date: 2024-08-23
End Date: 2026-08-22
Contract Duration: 729 days
Daily Burn Rate: $14.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ENGINEERING, TEST, AND EVALUATION - PROJECT ARES
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78238
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $10.2 million to SOUTHWEST RESEARCH INSTITUTE for work described as: ENGINEERING, TEST, AND EVALUATION - PROJECT ARES Key points: 1. The contract focuses on Research and Development in Physical, Engineering, and Life Sciences. 2. Southwest Research Institute is the sole awardee, raising questions about competition. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The award is for a 729-day period, ending in August 2026.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, while common for R&D, offers less price certainty than fixed-price contracts. Benchmarking is difficult without more specific cost breakdowns.
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.
Taxpayer Impact: The lack of competition for this $10.2M award means taxpayers may not have received the best possible price.
Public Impact
Defense Threat Reduction Agency (DTRA) is funding critical R&D. Project Ares aims to advance capabilities in physical, engineering, and life sciences. The contract duration spans two years, ensuring sustained effort. The awardee, Southwest Research Institute, is a significant research organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type carries inherent cost risk.
- Lack of detailed cost breakdown for benchmarking.
Positive Signals
- Award to established research institution.
- Supports critical R&D for national security.
Sector Analysis
This award falls under the Research and Development sector, specifically NAICS code 541715. Spending in this sector is crucial for innovation but requires careful oversight due to its inherent uncertainties and potential for cost growth.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, which is common for highly specialized R&D contracts awarded to large research institutions.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the R&D objectives are being met efficiently.
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
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
- Limited transparency on specific R&D objectives
- Potential for cost overruns
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 $10.2 million to SOUTHWEST RESEARCH INSTITUTE. ENGINEERING, TEST, AND EVALUATION - PROJECT ARES
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 $10.2 million.
What is the period of performance?
Start: 2024-08-23. End: 2026-08-22.
What specific R&D objectives does Project Ares aim to achieve, and how will their successful completion be measured?
Project Ares focuses on Research and Development in Physical, Engineering, and Life Sciences, as indicated by NAICS code 541715. Specific objectives and success metrics are not detailed in the provided data. However, given the awarding agency (DTRA), the R&D likely pertains to defense threat reduction technologies or methodologies. Further documentation would be needed to ascertain precise goals and evaluation criteria.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award is not provided in the data. Typically, such justifications involve unique capabilities, urgent needs, or lack of other responsible sources. For a Cost Plus Fixed Fee contract, fair and reasonable pricing is assessed through various means, including historical data, cost realism analysis, and comparison to similar R&D efforts, though specific details are absent here.
How does the Cost Plus Fixed Fee structure impact the government's ability to control costs and ensure efficient execution of the R&D?
The Cost Plus Fixed Fee (CPFF) structure reimburses the contractor for allowable costs plus a predetermined fixed fee. While the fixed fee provides some incentive for cost control, the government bears the risk of cost overruns. Effective oversight, clear performance metrics, and robust cost monitoring are crucial to ensure efficient execution and prevent excessive spending under a CPFF contract.
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 › C – National Defense R&D Services
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: $24,584,365
Exercised Options: $13,502,421
Current Obligation: $10,222,953
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $3,135,745
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: 2024-08-23
Current End Date: 2026-08-22
Potential End Date: 2028-12-22 00:00:00
Last Modified: 2026-01-13
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