DARPA invests $26.4M in Southwest Research Institute for advanced physical, engineering, and life sciences R&D

Contract Overview

Contract Amount: $26,410,476 ($26.4M)

Contractor: Southwest Research Institute

Awarding Agency: Department of Defense

Start Date: 2023-06-20

End Date: 2027-02-13

Contract Duration: 1,334 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DARPA RESEARCH PROGRAM

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78238

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to SOUTHWEST RESEARCH INSTITUTE for work described as: DARPA RESEARCH PROGRAM Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these specialized R&D services. 2. The cost-plus-fixed-fee structure incentivizes efficient cost management while allowing for flexibility in research scope. 3. A contract duration of over three years indicates a significant, long-term research objective. 4. The R&D focus aligns with DARPA's mission to foster technological surprise for national security. 5. Geographic concentration in Texas may indicate regional expertise or existing infrastructure for this type of research.

Value Assessment

Rating: good

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and the inherent uncertainties in research outcomes. However, the contract's value appears reasonable given the scope and duration. The cost-plus-fixed-fee (CPFF) pricing structure is common for R&D where exact costs are difficult to predict, and it allows for flexibility. The fixed fee component provides a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified offerors had the opportunity to bid. The presence of 10 bids suggests a healthy competitive environment for this specialized research area. This level of competition is generally favorable for price discovery and ensures the government receives proposals from a range of capable entities.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing and a wider array of innovative solutions for taxpayers. It reduces the risk of overpaying and ensures that taxpayer funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of Defense and national security, through advancements in physical, engineering, and life sciences. The contract will deliver cutting-edge research and development outcomes with potential applications in various defense technologies. The geographic impact is centered in Texas, potentially fostering local economic activity and specialized employment within the state. Workforce implications include the employment of highly skilled scientists, engineers, and researchers at Southwest Research Institute.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by high innovation, significant government investment, and long development cycles. Comparable spending benchmarks are difficult to establish due to the unique nature of DARPA projects, but overall federal R&D spending is substantial, with a significant portion allocated to defense-related research.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). However, the prime contractor, Southwest Research Institute, may engage small businesses as subcontractors to fulfill specific aspects of the research. The extent of small business participation will depend on the subcontracting plan developed by the prime contractor.

Oversight & Accountability

Oversight for this contract will be managed by the Defense Advanced Research Projects Agency (DARPA), a component of the Department of Defense. Accountability measures will likely include regular progress reports, milestone reviews, and financial audits, consistent with the terms of the Cost Plus Fixed Fee contract. Transparency is generally maintained through contract awards databases and public reporting, though specific research details may be classified.

Related Government Programs

Risk Flags

Tags

r&d, department-of-defense, darpa, definitive-contract, large-contract, full-and-open-competition, cost-plus-fixed-fee, texas, research-and-development-in-the-physical-engineering-and-life-sciences-except-nanotechnology-and-biotechnology, southwest-research-institute

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to SOUTHWEST RESEARCH INSTITUTE. DARPA RESEARCH PROGRAM

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 Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2023-06-20. End: 2027-02-13.

What is the historical spending pattern of DARPA with Southwest Research Institute?

Analyzing historical spending patterns between DARPA and Southwest Research Institute (SwRI) requires access to detailed contract databases. However, SwRI is a well-established independent, nonprofit research and development organization with a long history of supporting government agencies, including the Department of Defense. Their extensive experience suggests a pattern of successful contract performance across various research domains. Without specific historical data, it's presumed that SwRI has secured numerous contracts with DARPA and other defense entities over the years, reflecting their recognized expertise and capability in advanced research. The nature of these past contracts would likely vary in scope, duration, and funding, but the continued awarding of significant contracts like this one indicates a sustained and positive working relationship.

How does the pricing structure (Cost Plus Fixed Fee) compare to other R&D contracts?

The Cost Plus Fixed Fee (CPFF) pricing structure is a common and often preferred method for research and development contracts where the scope of work is not precisely defined at the outset, or where unforeseen technical challenges are anticipated. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This contrasts with fixed-price contracts, where the price is set upfront, and cost-reimbursement contracts (like Cost Plus Incentive Fee or Cost Plus Award Fee) which may have variable fees based on performance. For R&D, CPFF offers flexibility, allowing the project to adapt to new discoveries or challenges without constant renegotiation of the base price. The fixed fee provides the government with a degree of cost certainty regarding the contractor's profit margin, while the contractor is incentivized to control costs to maximize their overall return within the fixed fee.

What are the key performance indicators (KPIs) likely used to evaluate the success of this research?

Evaluating the success of a DARPA research contract, especially one focused on advanced R&D in physical, engineering, and life sciences, involves a multi-faceted approach. Key performance indicators (KPIs) are unlikely to be solely based on traditional metrics like on-time delivery or budget adherence, although these are important. Instead, success will likely be measured by the achievement of specific technical milestones, the demonstration of novel concepts or technologies, and the potential for future application or transition to operational systems. This could include metrics related to the performance of prototypes, the accuracy of scientific models, the successful completion of experimental phases, or the generation of new intellectual property. DARPA's unique mission often emphasizes 'technological surprise,' so KPIs might also reflect the degree of innovation and the potential disruption to existing paradigms. Regular technical reviews and peer assessments will be crucial in gauging progress against these R&D-specific objectives.

What is the typical duration and funding level for similar DARPA research contracts?

The typical duration and funding level for DARPA research contracts can vary significantly depending on the specific program, the technological domain, and the complexity of the research objectives. However, this contract's duration of approximately 3.5 years (from June 2023 to February 2027) and its value of $26.4 million are within a common range for significant DARPA initiatives. DARPA often funds projects that require substantial time for exploration, experimentation, and development, leading to multi-year awards. Funding levels can range from a few million dollars for exploratory research to tens or even hundreds of millions for large-scale, multi-phase programs. Contracts like this one, which focus on advanced R&D in core scientific and engineering fields, often represent substantial investments aimed at achieving breakthrough capabilities. The $26.4M award suggests a project of considerable scope and importance within DARPA's portfolio.

What are the potential risks associated with this specific contract, beyond standard R&D uncertainties?

Beyond the inherent risks of R&D, such as technical feasibility and achieving desired outcomes, this contract carries specific considerations. The Cost Plus Fixed Fee (CPFF) structure, while flexible, requires diligent oversight to prevent scope creep and ensure cost efficiency. If not managed carefully, costs could escalate beyond initial projections, even with a fixed fee. Another potential risk relates to the specialized nature of the research; if the chosen scientific or engineering path proves unproductive, significant time and resources could be expended with limited tangible results. Furthermore, the transition of research findings into practical applications is often a major hurdle. There's a risk that the developed technologies may not be easily integrated into existing defense systems or may face challenges in scaling up for broader use. Finally, the long duration increases the potential for shifts in strategic priorities or technological landscapes, which could impact the relevance or continued funding of the research.

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 DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HR001123S0014

Offers Received: 10

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: $52,542,204

Exercised Options: $38,490,128

Current Obligation: $26,410,476

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $7,476,945

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-06-20

Current End Date: 2027-02-13

Potential End Date: 2027-02-13 00:00:00

Last Modified: 2025-11-12

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