DoD's $11.4M Engineering Services Contract Awarded to Southwest Research Institute Faces Scrutiny
Contract Overview
Contract Amount: $11,372,351 ($11.4M)
Contractor: Southwest Research Institute
Awarding Agency: Department of Defense
Start Date: 2024-04-18
End Date: 2029-04-17
Contract Duration: 1,825 days
Daily Burn Rate: $6.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ENGINEERING SERVICES
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78238
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $11.4 million to SOUTHWEST RESEARCH INSTITUTE for work described as: ENGINEERING SERVICES Key points: 1. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 2. Southwest Research Institute, a large business, received the award. 3. The contract was not competed, raising questions about price discovery. 4. The estimated value is $11.4 million over five years.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific deliverables, but the fixed fee component aims to control profit margins.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers compared to a fully competed contract.
Public Impact
Taxpayers may be paying more due to the absence of competitive bidding. The specific R&D outcomes and their impact on national security are not detailed. The five-year duration allows for long-term project development but also extends potential cost risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Awarded to established research institute
- Supports critical defense R&D
Sector Analysis
This contract falls under Research and Development services, specifically within the engineering and physical sciences domain. Government spending in this sector is crucial for innovation but requires careful oversight to ensure value for money.
Small Business Impact
The contract was awarded to Southwest Research Institute, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The non-competitive nature of this award warrants close oversight from the Defense Threat Reduction Agency to ensure the fixed fee is reasonable and costs are controlled throughout the contract's life.
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
- Lack of competitive bidding
- Potential for cost overruns with CPFF
- Limited transparency on R&D objectives
- No clear small business involvement
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 $11.4 million to SOUTHWEST RESEARCH INSTITUTE. ENGINEERING SERVICES
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 $11.4 million.
What is the period of performance?
Start: 2024-04-18. End: 2029-04-17.
What specific R&D objectives does this contract aim to achieve, and how will their success be measured?
The contract details are limited, but it falls under 'Research and Development in the Physical, Engineering, and Life Sciences.' Success measurement would typically involve milestones, technical reports, prototypes, or demonstrated capabilities relevant to the Defense Threat Reduction Agency's mission. Specific objectives require further documentation review.
What is the justification for awarding this contract on a sole-source basis, and were alternatives considered?
The justification for a sole-source award is not provided in the data. Typically, agencies must document why full and open competition is not feasible, citing reasons like unique capabilities, urgent needs, or specific research requirements. Without this documentation, the rationale remains unclear.
How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar R&D services?
Assessing the fixed fee's reasonableness requires comparing it against industry benchmarks for similar R&D efforts, considering the scope, complexity, and risk. Without detailed project information and access to pricing data, a definitive comparison is challenging. However, the agency should have performed this due diligence.
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: $35,032,469
Exercised Options: $35,032,469
Current Obligation: $11,372,351
Actual Outlays: $1,088,113
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $58,200
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: 2024-04-18
Current End Date: 2029-04-17
Potential End Date: 2029-04-17 00:00:00
Last Modified: 2026-01-12
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