DoD's $60.3M SRI International R&D Contract Raises Questions on Competition and Value
Contract Overview
Contract Amount: $60,318,946 ($60.3M)
Contractor: SRI International
Awarding Agency: Department of Defense
Start Date: 2021-02-01
End Date: 2026-04-30
Contract Duration: 1,914 days
Daily Burn Rate: $31.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: OT8507954814SPE7L121F172DP00002
Place of Performance
Location: PRINCETON, MERCER County, NEW JERSEY, 08540
Plain-Language Summary
Department of Defense obligated $60.3 million to SRI INTERNATIONAL for work described as: OT8507954814SPE7L121F172DP00002 Key points: 1. Significant R&D investment with SRI International, a known entity in research. 2. Lack of competition raises concerns about potential overpayment and limited innovation. 3. Contract duration extends over 5 years, impacting long-term value assessment. 4. Focus on physical, engineering, and life sciences R&D, a critical but complex sector.
Value Assessment
Rating: questionable
The contract value of $60.3 million for a 5-year R&D effort is substantial. Without competitive bidding, it's difficult to benchmark against similar contracts to ensure fair pricing and optimal value for taxpayer funds.
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 excludes innovative solutions from other capable contractors, impacting overall value.
Taxpayer Impact: The lack of competition may lead to higher costs for taxpayers compared to a competitively awarded contract, potentially reducing the overall return on investment for this R&D.
Public Impact
Taxpayers may be paying a premium for R&D services due to the absence of competitive pressure. Potential for missed opportunities to leverage diverse research capabilities from a wider pool of contractors. The long contract duration could lock the government into a specific research path, limiting flexibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Award to established research institution
- Focus on critical R&D area
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but requires careful oversight due to its complexity and often specialized nature.
Small Business Impact
The contract was awarded to SRI International, a large research organization. There is no indication of small business participation in this specific award, suggesting missed opportunities for small business engagement in this R&D effort.
Oversight & Accountability
The sole-source nature of this award warrants close scrutiny from oversight bodies to ensure the justification for non-competition is robust and that the pricing reflects fair value, despite the lack of competitive bids.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited innovation due to sole-source award
- Long contract duration may reduce flexibility
- No clear small business participation
Tags
research-and-development-in-the-physical, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.3 million to SRI INTERNATIONAL. OT8507954814SPE7L121F172DP00002
Who is the contractor on this award?
The obligated recipient is SRI INTERNATIONAL.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $60.3 million.
What is the period of performance?
Start: 2021-02-01. End: 2026-04-30.
What specific justification was provided for awarding this significant R&D contract on a sole-source basis, and how does it align with federal procurement regulations for non-competitive procurements?
Federal regulations permit sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. The justification would need to detail why SRI International was uniquely capable and why no other sources could fulfill the requirement, potentially due to specialized knowledge, existing infrastructure, or prior research investment.
How will the Defense Logistics Agency ensure that the $60.3 million allocated for this R&D effort represents a fair and reasonable price, given the absence of competitive bidding?
The agency will likely rely on detailed cost analysis, including reviewing SRI International's proposed costs, historical pricing data, and industry benchmarks for similar R&D projects. Independent cost estimates and negotiations will be crucial to validate the reasonableness of the price and ensure taxpayer value.
What are the key performance indicators (KPIs) and milestones for this R&D contract, and how will their achievement be measured to ensure the effectiveness of the research and the ultimate value deliv
Effective R&D contracts typically include clearly defined technical objectives, measurable milestones, and deliverables. The agency should establish specific KPIs related to research outcomes, technological advancements, or prototype development. Regular progress reviews and technical evaluations will be essential to monitor performance and ensure the research is on track to deliver intended value.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 94025
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: $60,318,946
Exercised Options: $60,318,946
Current Obligation: $60,318,946
Actual Outlays: $17,111,496
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $5,077,530
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE7MX21D0032
IDV Type: IDC
Timeline
Start Date: 2021-02-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-09-25
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