DARPA CARCOSA contract awarded to Southwest Research Institute for $144.4M for R&D services

Contract Overview

Contract Amount: $14,441,050 ($14.4M)

Contractor: Southwest Research Institute

Awarding Agency: Department of Defense

Start Date: 2023-11-17

End Date: 2027-02-15

Contract Duration: 1,186 days

Daily Burn Rate: $12.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DARPA CARCOSA

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78238

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to SOUTHWEST RESEARCH INSTITUTE for work described as: DARPA CARCOSA Key points: 1. Contract awarded for advanced research and development, indicating a focus on innovation. 2. Sole-source award suggests limited market availability or specific contractor expertise required. 3. Long contract duration of nearly four years implies a complex, multi-phase project. 4. Cost-plus-fixed-fee structure incentivizes cost control while allowing for flexibility. 5. High dollar value signifies a significant investment in a critical research area. 6. No small business set-aside indicates the primary contractor is not a small business.

Value Assessment

Rating: fair

The contract's value of $144.4 million over nearly four years for R&D services requires careful benchmarking against similar complex research efforts. Without specific deliverables or performance metrics, assessing value-for-money is challenging. The cost-plus-fixed-fee (CPFF) structure, while common for R&D, can lead to cost overruns if not rigorously managed. Benchmarking against other DARPA or DoD R&D contracts of similar scope and duration would be necessary for a more definitive value assessment.

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 typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. While this can ensure specialized expertise, it limits price discovery and potentially increases costs for the government compared to a competitive process.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding, potentially leading to higher overall expenditure for this research.

Public Impact

The primary beneficiary is DARPA, which will receive advanced research and development services to advance its mission. The contract supports the development of new technologies and capabilities within the physical, engineering, and life sciences. The geographic impact is primarily centered in Texas, where Southwest Research Institute is located. The contract will likely involve a team of highly skilled researchers and engineers, impacting the scientific workforce.

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 R&D market is characterized by innovation, long development cycles, and significant government investment, particularly through agencies like DARPA. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by DoD or other federal agencies for similar scientific endeavors, often in the hundreds of millions of dollars.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus of the award was on the capabilities of the prime contractor, Southwest Research Institute. Without specific subcontracting plans, the direct impact on the small business ecosystem for this particular contract is likely minimal, though the prime contractor may engage small businesses opportunistically.

Oversight & Accountability

Oversight for this contract would primarily fall under DARPA's program managers and contracting officers, who are responsible for monitoring progress, costs, and adherence to the contract terms. Given the R&D nature and sole-source award, robust oversight is crucial to ensure the funds are used effectively and that the research objectives are met. Transparency may be limited due to the nature of R&D and sole-source procurement, but regular reporting requirements are standard.

Related Government Programs

Risk Flags

Tags

research-and-development, department-of-defense, darpa, southwest-research-institute, definitive-contract, cost-plus-fixed-fee, sole-source, texas, large-contract, physical-engineering-life-sciences

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to SOUTHWEST RESEARCH INSTITUTE. DARPA CARCOSA

Who is the contractor on this award?

The obligated recipient is SOUTHWEST RESEARCH INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2023-11-17. End: 2027-02-15.

What is the specific research area or objective of the DARPA CARCOSA program?

The provided data does not specify the exact research objectives of the DARPA CARCOSA program. However, the contract falls under the NAICS code 541715, which covers Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology). DARPA typically funds high-risk, high-reward research aimed at developing breakthrough technologies for national security. CARCOSA likely relates to a specific advanced capability or system development within these broad scientific domains, requiring specialized expertise from Southwest Research Institute.

How does the $144.4 million contract value compare to other DARPA R&D awards?

A contract value of $144.4 million for a nearly four-year R&D effort is substantial, aligning with the typical scale of major DARPA initiatives. DARPA often awards large contracts to pursue ambitious technological goals. While specific comparisons require access to a comprehensive database of DARPA awards, this figure suggests CARCOSA is a significant program requiring extensive resources and long-term commitment. It is within the range of major research and development efforts funded by the agency to achieve strategic technological advantages.

What are the potential risks associated with a sole-source, cost-plus-fixed-fee R&D contract of this magnitude?

Sole-source awards carry the inherent risk of reduced price competition, potentially leading to higher costs for the government. The cost-plus-fixed-fee (CPFF) structure, while providing flexibility for R&D, can incentivize cost escalation if not rigorously managed, as the contractor is reimbursed for costs plus a fixed fee. For a long-duration contract like this (1186 days), risks include scope creep, technological obsolescence, and potential cost overruns if initial estimates are inaccurate or unforeseen challenges arise during the research process. Effective government oversight is critical to mitigate these risks.

What is Southwest Research Institute's track record with large federal R&D contracts?

Southwest Research Institute (SwRI) is a well-established independent, nonprofit applied research and development organization. They have a long history of successfully managing and executing large, complex R&D contracts for various government agencies, including the Department of Defense, NASA, and the Department of Energy. SwRI is known for its broad range of technical expertise and its ability to transition research into practical applications. Their extensive experience with federal contracts suggests a strong capability to handle the scope and requirements of the DARPA CARCOSA program.

What are the implications of the contract's end date (February 2027) for technology development timelines?

An end date of February 2027 for a contract initiated in November 2023 implies a development timeline of approximately 3 years and 3 months. This duration is typical for complex R&D projects where significant innovation and testing are required. It allows sufficient time for research, prototyping, and initial validation. However, in rapidly evolving technological fields, even this timeframe can be challenging. The end date suggests that the program is focused on achieving specific research milestones within a defined period, rather than immediate deployment, allowing for iterative development.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $16,630,514

Exercised Options: $16,630,514

Current Obligation: $14,441,050

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $5,643,299

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2023-11-17

Current End Date: 2027-02-15

Potential End Date: 2027-02-15 00:00:00

Last Modified: 2025-09-12

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