DARPA awards $41.7M contract to SRI International for R&D in physical, engineering, and life sciences

Contract Overview

Contract Amount: $41,671,827 ($41.7M)

Contractor: SRI International

Awarding Agency: Department of Defense

Start Date: 2005-11-14

End Date: 2011-03-31

Contract Duration: 1,963 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200602!600018!9700!HR0011!DARPA CONTRACT MANAGEMENT DIR. !HR001106C0023 !A!N! !N! ! !20051114!20061031!009232752!009232752!009232752!N!SRI INTERNATIONAL !333 RAVENSWOOD AVE !MENLO PARK !CA!94025!46870!081!06!MENLO PARK !SAN MATEO !CALIFORNIA!+000008679000!N!N!000073387902!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!002!E! !Z!Y!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $41.7 million to SRI INTERNATIONAL for work described as: 200602!600018!9700!HR0011!DARPA CONTRACT MANAGEMENT DIR. !HR001106C0023 !A!N! !N! ! !20051114!20061031!009232752!009232752!009232752!N!SRI INTERNATIONAL !333 RAVENSWOOD AVE !MENLO PARK !CA!94025!46870!081!06!MENLO PARK !SAN … Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. SRI International has a significant track record, indicated by the contract's substantial value. 4. The work falls under Research and Development, a critical area for technological advancement. 5. The contract duration is over 5 years, implying a long-term project with potential for sustained impact. 6. The geographic location of the contractor is in California, a hub for R&D and technology.

Value Assessment

Rating: good

The contract value of $41.7 million over approximately 5.5 years suggests a significant investment in R&D. While specific benchmarks for this particular R&D area are difficult to ascertain without more detail on the project's scope, the award to a well-established entity like SRI International indicates a perceived value for the services. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's costs plus a fixed fee, which can be efficient if costs are well-managed, but requires careful oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple bidders were likely considered. The presence of two bids suggests a degree of competition, which is generally positive for price discovery and ensuring the government receives competitive offers. However, the 'exclusion of sources' clause warrants further investigation to understand if specific capabilities or technologies limited the pool of potential bidders.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging innovation among bidders.

Public Impact

SRI International, the contractor, is a major beneficiary, receiving significant funding for its research capabilities. The contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies and solutions. The geographic impact is primarily centered around SRI International's facilities in Menlo Park, California, and its associated research ecosystem. The contract likely supports a workforce of scientists, engineers, and technical staff involved in cutting-edge research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns and ensure the fixed fee remains appropriate.
The 'exclusion of sources' in the competition type could indicate a specialized need that may have limited the number of viable bidders.
The long duration of the contract (over 5 years) necessitates ongoing performance monitoring to ensure objectives are met.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
SRI International is a reputable research institution with a strong track record.
The contract supports critical R&D in advanced scientific and engineering fields.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a high-value sector characterized by innovation and long-term investment. The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' covers a broad range of scientific inquiry. Comparable spending in this sector often involves significant government investment through agencies like DARPA, NSF, and NIH, aimed at pushing technological frontiers.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. SRI International is a large research institution. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in this summary. The primary focus appears to be on the capabilities of the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Advanced Research Projects Agency (DARPA), a component of the Department of Defense. DARPA is known for its rigorous program management and oversight of high-risk, high-reward research projects. Accountability measures would include regular progress reports, milestone reviews, and financial audits, especially given the Cost Plus Fixed Fee contract type. Transparency is generally maintained through contract award announcements and program descriptions, though specific project details may be sensitive.

Related Government Programs

DARPA Research and Development Programs
Department of Defense Applied Research
Advanced Technology Development Contracts
Scientific Research Services Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition indicated by 'exclusion of sources' clause.
Complexity of R&D may lead to scope creep or unforeseen challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.7 million to SRI INTERNATIONAL. 200602!600018!9700!HR0011!DARPA CONTRACT MANAGEMENT DIR. !HR001106C0023 !A!N! !N! ! !20051114!20061031!009232752!009232752!009232752!N!SRI INTERNATIONAL !333 RAVENSWOOD AVE !MENLO PARK !CA!94025!46870!081!06!MENLO PARK !SAN MATEO !CALIFORNIA!+000008679000!N!N!000073387902!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is SRI INTERNATIONAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $41.7 million.

What is the period of performance?

Start: 2005-11-14. End: 2011-03-31.

What is SRI International's track record with DARPA and similar R&D contracts?

SRI International is a well-established research institute with a long history of supporting government R&D efforts, including numerous contracts with DARPA and other defense agencies. Their work spans a wide array of scientific and technological domains. The substantial value of this particular contract ($41.7 million) suggests a significant level of trust and a proven ability to deliver on complex research objectives. Historical data would likely show a pattern of successful project completion and innovation across various technical areas, making them a frequent and reliable partner for advanced research initiatives.

How does the $41.7 million contract value compare to typical DARPA R&D awards in this domain?

The $41.7 million contract value is a significant award, but within the typical range for major R&D initiatives managed by DARPA. DARPA often funds ambitious, high-risk, high-reward projects that require substantial investment over several years. Contracts can range from a few million dollars for exploratory research to tens or even hundreds of millions for large-scale, multi-year programs. This award suggests a project of considerable scope and importance, likely involving multiple research thrusts or a complex technological development pathway, aligning with DARPA's mission to prevent technological surprise.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks with a CPFF contract for R&D, especially in advanced fields, revolve around cost control and defining the 'fixed fee' appropriately. While the fee is fixed, the 'cost' portion is reimbursable, meaning the contractor is incentivized to incur costs to perform the work. If the scope of work is not precisely defined or if unforeseen technical challenges arise, costs can escalate beyond initial projections, potentially making the fixed fee less reflective of the actual effort. For the government, the risk lies in ensuring that the contractor is efficient and that the fixed fee represents fair compensation for the expected effort, requiring robust oversight and clear performance metrics.

How effective is full and open competition in ensuring value for taxpayer money in specialized R&D contracts?

Full and open competition is generally the most effective method for ensuring value for taxpayer money, even in specialized R&D. It allows a broad range of qualified entities to propose solutions, fostering innovation and driving down prices through market forces. In specialized R&D, however, the 'full and open' aspect might be tempered by specific technical requirements or security clearances that naturally limit the pool of eligible bidders. The 'after exclusion of sources' clause in this contract indicates such a limitation. While competition is still present, its breadth might be narrower than in less specialized procurements, making the evaluation of proposals and the negotiation of terms even more critical to ensure optimal value.

What is the historical spending trend for DARPA in the 'Research and Development in the Physical, Engineering, and Life Sciences' category?

DARPA's historical spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category has consistently been substantial, reflecting its core mission. The agency is known for investing in cutting-edge technologies that often push the boundaries of current scientific understanding. Annual outlays for R&D within this broad domain typically run into the billions of dollars across numerous projects and contracts. Spending patterns can fluctuate based on national security priorities, emerging technological opportunities, and the lifecycle of specific research programs. This $41.7 million award represents one component of DARPA's broader R&D portfolio in these critical scientific areas.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 94025

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline