DoD Awards $14.1M for Fuel Research to Southwest Research Institute, Lacking Competition

Contract Overview

Contract Amount: $14,094,119 ($14.1M)

Contractor: Southwest Research Institute

Awarding Agency: Department of Defense

Start Date: 2021-01-04

End Date: 2026-11-12

Contract Duration: 2,138 days

Daily Burn Rate: $6.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE GOVERNMENT WILL SATISFY REQUIREMENTS BY WORK DIRECTIVES TO BE PERFORMED WITHIN THE FOLLOWING AREAS: BASIC RESEARCH, EXPLORATORY DEVELOPMENT, ADVANCED DEVELOPMENT, AND ENGINEERING IN THE FIELD OF FUELS AND FUEL COMBUSTION.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78238

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to SOUTHWEST RESEARCH INSTITUTE for work described as: THE GOVERNMENT WILL SATISFY REQUIREMENTS BY WORK DIRECTIVES TO BE PERFORMED WITHIN THE FOLLOWING AREAS: BASIC RESEARCH, EXPLORATORY DEVELOPMENT, ADVANCED DEVELOPMENT, AND ENGINEERING IN THE FIELD OF FUELS AND FUEL COMBUSTION. Key points: 1. Significant award for R&D in fuels and combustion. 2. Sole-source award raises questions about price discovery. 3. Potential for higher costs due to limited competition. 4. Focus on basic, exploratory, advanced development, and engineering.

Value Assessment

Rating: questionable

The contract value of $14.1 million for R&D services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar research contracts. Benchmarking is challenging due to the specialized nature of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to a higher cost for the government as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for these research and development services.

Public Impact

Advances in fuel technology could have broad applications. Research may lead to more efficient and cleaner energy solutions. Investment in scientific advancement supports national energy security. Potential for spin-off technologies benefiting the private sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Research and Development sector, specifically NAICS code 541715. Federal spending in this area supports innovation and technological advancement. Benchmarks for R&D contracts vary widely based on scope and complexity.

Small Business Impact

This contract was awarded to Southwest Research Institute, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The Department of Defense is responsible for oversight. The cost-plus-fixed-fee structure requires careful monitoring of costs and performance to ensure value for money and prevent cost overruns.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, tx, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to SOUTHWEST RESEARCH INSTITUTE. THE GOVERNMENT WILL SATISFY REQUIREMENTS BY WORK DIRECTIVES TO BE PERFORMED WITHIN THE FOLLOWING AREAS: BASIC RESEARCH, EXPLORATORY DEVELOPMENT, ADVANCED DEVELOPMENT, AND ENGINEERING IN THE FIELD OF FUELS AND FUEL COMBUSTION.

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 $14.1 million.

What is the period of performance?

Start: 2021-01-04. End: 2026-11-12.

What is the justification for awarding this contract on a sole-source basis?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation would be required to understand the specific rationale behind this decision.

How will the government ensure cost control with a Cost Plus Fixed Fee (CPFF) contract for R&D?

With a CPFF contract, the government reimburses the contractor for allowable costs plus a fixed fee representing profit. Oversight will involve rigorous review of incurred costs, ensuring they are reasonable, allocable, and allowable. The fixed fee provides some incentive for the contractor to manage costs efficiently, as it does not increase with actual costs.

What are the potential risks associated with a long-duration R&D contract without competition?

A long duration (over 5 years) R&D contract without competition carries risks of cost escalation, potential for scope creep, and the possibility that the contractor's approach may become outdated. Without competitive pressure, there's also a reduced incentive for maximum efficiency and innovation throughout the contract's life.

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

Solicitation ID: W56HZV21R0002

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: $19,126,455

Exercised Options: $14,094,119

Current Obligation: $14,094,119

Actual Outlays: $306,894

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $1,693,041

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2021-01-04

Current End Date: 2026-11-12

Potential End Date: 2026-11-12 12:11:00

Last Modified: 2025-12-30

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