DoD spent over $32M on fuels and lubes research, with Southwest Research Institute performing the work

Contract Overview

Contract Amount: $32,117,108 ($32.1M)

Contractor: Southwest Research Institute

Awarding Agency: Department of Defense

Start Date: 2009-02-06

End Date: 2017-01-30

Contract Duration: 2,915 days

Daily Burn Rate: $11.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FUELS AND LUBES RESEARCH CONTRACT

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78238

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $32.1 million to SOUTHWEST RESEARCH INSTITUTE for work described as: FUELS AND LUBES RESEARCH CONTRACT Key points: 1. The contract value of $32.1 million over nearly 8 years suggests a significant investment in specialized research. 2. The sole-source nature of this award warrants scrutiny regarding the justification for not seeking broader competition. 3. Performance dates spanning from 2009 to 2017 indicate a long-term research effort. 4. The 'Research and Development in Biotechnology' NAICS code, while specific, may not fully capture the scope of 'Fuels and Lubes Research'. 5. The contract type 'Cost Plus Fixed Fee' can lead to cost overruns if not carefully managed. 6. The absence of small business participation raises questions about opportunities for smaller entities in this research area.

Value Assessment

Rating: fair

Benchmarking the value of this $32.1 million contract is challenging without specific deliverables or comparable research projects. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation. Without detailed performance metrics or independent cost analysis, it's difficult to definitively assess value for money. The duration of nearly 8 years suggests a substantial and potentially complex research undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Defense did not conduct a competitive bidding process. The justification for this approach is not provided in the data. Sole-source awards can sometimes be necessary for highly specialized research or when only one contractor possesses the required expertise, but they limit the potential for price discovery and innovation that competition can foster.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition, as there was no incentive for multiple firms to bid down the price. This also means less assurance that the most cost-effective solution was secured.

Public Impact

The Department of Defense benefits from specialized research into fuels and lubricants, potentially leading to improved performance and efficiency of military equipment. The research conducted likely supports advancements in material science and engineering related to energy and propulsion systems. The geographic impact is primarily within Texas, where Southwest Research Institute is located, though the research findings could have national implications for military readiness. The workforce implications include employment for researchers, scientists, and support staff 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 materials science related to fuels and lubricants. The market for such specialized research is often concentrated among a few institutions with unique capabilities. The $32.1 million expenditure over nearly 8 years represents a significant, albeit niche, investment within the broader federal R&D landscape. Comparable spending benchmarks would require identifying other contracts for similar advanced materials research for defense applications.

Small Business Impact

This contract does not appear to have included a small business set-aside. The sole-source nature of the award further suggests that opportunities for small businesses to participate, either as prime contractors or subcontractors, were likely limited. This contract does not seem to have directly contributed to the small business ecosystem in this specialized research area.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates rigorous oversight to monitor costs and ensure that the fixed fee remains appropriate. Transparency regarding the justification for the sole-source award and detailed reporting on research progress would be key accountability measures. Inspector General involvement would be contingent on specific allegations of fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

defense, department-of-defense, department-of-the-army, research-and-development, fuels-and-lubricants, southwest-research-institute, cost-plus-fixed-fee, definitive-contract, sole-source, texas, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.1 million to SOUTHWEST RESEARCH INSTITUTE. FUELS AND LUBES RESEARCH CONTRACT

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 Army).

What is the total obligated amount?

The obligated amount is $32.1 million.

What is the period of performance?

Start: 2009-02-06. End: 2017-01-30.

What was the specific justification for awarding this contract on a sole-source basis to Southwest Research Institute?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique technical expertise, proprietary data, or urgent requirements where a competitive process would cause unacceptable delays or costs. Without the official justification document (e.g., a Justification for Other Than Full and Open Competition - JOFOC), it is impossible to verify the rationale. This lack of transparency is a common concern with sole-source awards, as it limits the ability to assess whether competition was truly not feasible or if it was simply deemed less convenient.

How does the $32.1 million contract value compare to other federal spending on fuels and lubricants research?

Directly comparing this $32.1 million contract to other federal spending on fuels and lubricants research is difficult without a comprehensive database of similar R&D contracts. However, the duration of nearly 8 years suggests a substantial, long-term investment. Federal spending on R&D is vast, and this amount, while significant for a single contract, represents a fraction of the overall defense R&D budget. To provide a meaningful comparison, one would need to identify contracts with similar objectives (e.g., advanced fuel development, lubricant performance enhancement) across different agencies and timeframes, and analyze their scope, deliverables, and total value.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type used for this research?

The Cost Plus Fixed Fee (CPFF) contract type, while common for research and development where the scope may evolve, carries inherent risks. The primary risk is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize cost overruns, as the contractor has less direct financial incentive to control costs compared to fixed-price contracts. The government bears the risk of cost increases. Effective oversight is crucial to manage this risk, ensuring that costs are reasonable, allocable, and allowable, and that the fixed fee remains fair for the effort expended. Without stringent monitoring, CPFF contracts can exceed their estimated cost ceilings.

What was the overall effectiveness or outcome of the fuels and lubes research conducted under this contract?

The provided data does not contain information on the effectiveness or specific outcomes of the research conducted under this contract. Contract data typically focuses on administrative details like value, duration, contractor, and award type, not the technical results or impact. To assess effectiveness, one would need to review research reports, technical evaluations, or program performance reviews associated with the contract. Without access to these deliverables or subsequent program assessments, it's impossible to determine if the $32.1 million investment yielded the desired advancements in fuels and lubricants technology for the Department of Defense.

What is Southwest Research Institute's track record with federal R&D contracts, particularly in the fuels and lubricants domain?

Southwest Research Institute (SwRI) is a well-established independent, nonprofit applied research and development organization. They have a long history of performing research for government agencies, including the Department of Defense, across a wide range of scientific and engineering disciplines. While this specific contract highlights their work in fuels and lubricants, SwRI's broader portfolio likely includes numerous other R&D projects. Their track record generally suggests significant technical expertise and capacity. However, a detailed assessment would require examining their performance history on specific contracts, including client satisfaction, adherence to timelines, and the quality of deliverables, which is beyond the scope of the provided data.

Were there any specific performance metrics or milestones tied to the $32.1 million contract?

The provided data does not specify the performance metrics or milestones associated with this $32.1 million contract. For a Cost Plus Fixed Fee (CPFF) contract, especially one focused on research and development, performance is often measured against the achievement of research objectives, milestones in the research plan, and the delivery of reports or prototypes. The fixed fee is typically earned upon the successful completion of these defined efforts. Without access to the contract's statement of work (SOW) or performance work statement (PWS), it is impossible to detail the specific metrics used to gauge the contractor's performance and determine the basis for earning the fixed fee.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in Biotechnology

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV08R0689

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: $32,117,108

Exercised Options: $32,117,108

Current Obligation: $32,117,108

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2009-02-06

Current End Date: 2017-01-30

Potential End Date: 2017-01-30 00:00:00

Last Modified: 2022-05-26

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