Naval Sea Systems Command awarded $15.6M R&D contract to University of Texas at Austin for electronics and communication

Contract Overview

Contract Amount: $15,639,373 ($15.6M)

Contractor: University of Texas AT Austin

Awarding Agency: Department of Defense

Start Date: 2002-03-28

End Date: 2010-12-30

Contract Duration: 3,199 days

Daily Burn Rate: $4.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200206!021945!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002401D6600 !A!N! !N!0048 !20020328!20060327!127688380!042000273!042000273!N!THE UNIVERSITY OF TEXAS AT AUS!10000 BURNET ROAD !AUSTIN !TX!78758!05000!453!48!AUSTIN !TRAVIS !TEXAS !+000000583000!N!N!000000000000!AC35!RDTE/SHIPS-ENG/MANUF DEVELOP !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !5!B!S!A! !B!20060327!B! ! !N!B!D!N!U!1!001!N!3A!Z!N!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78758

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to UNIVERSITY OF TEXAS AT AUSTIN for work described as: 200206!021945!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002401D6600 !A!N! !N!0048 !20020328!20060327!127688380!042000273!042000273!N!THE UNIVERSITY OF TEXAS AT AUS!10000 BURNET ROAD !AUSTIN !TX!78758!05000!453!48!AUSTIN !TRAVI… Key points: 1. Contract focused on research and development for ship electronics and communication systems. 2. Sole-source award to a university suggests specialized research capabilities. 3. Contract duration of nearly 8 years indicates a long-term research objective. 4. The contract was awarded as a Cost Plus Fixed Fee type, common for R&D where costs are uncertain. 5. The geographic location in Austin, TX, places the work within a region with a growing tech and research presence.

Value Assessment

Rating: fair

The contract value of $15.6 million over nearly 8 years for R&D is difficult to benchmark without more specific details on the research scope. However, for a sole-source award to a university for specialized research, the pricing structure (Cost Plus Fixed Fee) is typical. The value proposition hinges on the unique research capabilities of the University of Texas at Austin in the specified domain.

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. This typically occurs when a specific entity possesses unique capabilities or expertise essential for the contract's requirements. In this case, the University of Texas at Austin was likely selected for its specialized research in electronics and communication relevant to naval systems.

Taxpayer Impact: Sole-source awards can limit opportunities for other vendors and may not always result in the most competitive pricing for taxpayers, as there was no open competition to drive down costs.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive advancements in ship electronics and communication technology. The contract supports research and development activities, potentially leading to improved naval capabilities. The geographic impact is primarily in Austin, Texas, where the University of Texas at Austin is located, supporting local research infrastructure and personnel. Workforce implications include employment for researchers, engineers, and support staff at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing or suboptimal solutions.
The long contract duration could lead to scope creep or a misalignment with evolving technological needs if not managed carefully.
Limited transparency due to sole-source nature makes it harder to assess true value for money.

Positive Signals

Award to a university suggests a focus on cutting-edge, potentially foundational research.
The specific NAICS code (541710) indicates a focus on specialized R&D services.
The contract is for research and development, which can lead to significant long-term technological advantages.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The Department of Defense, and particularly the Navy, is a significant investor in R&D to maintain technological superiority. Comparable spending in this sector involves significant investment in areas like advanced materials, artificial intelligence, cybersecurity, and specialized engineering, often through contracts with universities and research institutions.

Small Business Impact

As a sole-source award to a university, there is no indication of small business set-aside or subcontracting requirements. The focus is on the specialized research capabilities of the academic institution rather than broad market participation.

Oversight & Accountability

Oversight would typically be managed by the Naval Sea Systems Command (NAVSEA) through contract officers and technical representatives. Accountability measures would be tied to research milestones and deliverables outlined in the contract. Transparency is limited due to the sole-source nature, but progress reports and final research outcomes would be reviewed.

Related Government Programs

Naval Research Programs
Defense Advanced Research Projects Agency (DARPA) Contracts
University Research Partnerships
Ship Systems Development

Risk Flags

Sole-source award limits transparency and competitive pricing.
Long contract duration may increase risk of scope creep and technological obsolescence.
Cost Plus Fixed Fee structure requires diligent oversight to manage costs effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to UNIVERSITY OF TEXAS AT AUSTIN. 200206!021945!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002401D6600 !A!N! !N!0048 !20020328!20060327!127688380!042000273!042000273!N!THE UNIVERSITY OF TEXAS AT AUS!10000 BURNET ROAD !AUSTIN !TX!78758!05000!453!48!AUSTIN !TRAVIS !TEXAS !+000000583000!N!N!000000000000!AC35!RDTE/SHIPS-ENG/MANUF DEVELOP !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !5!B!S!A! !B!20060327!B

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF TEXAS AT AUSTIN.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.6 million.

What is the period of performance?

Start: 2002-03-28. End: 2010-12-30.

What specific research advancements were expected or achieved under this contract for naval electronics and communication?

The contract data indicates a focus on 'RDTE/SHIPS-ENG/MANUF DEVELOP' with a specific classification of 'ELECTRONICS AND COMMUNICATION'. While the raw data doesn't detail specific research outcomes, the objective was likely to advance technologies related to naval ship systems, potentially including areas like radar, sonar, communication systems, electronic warfare, or integrated combat systems. The University of Texas at Austin's expertise in these fields would have been leveraged to explore novel solutions, improve existing technologies, or develop new prototypes. The long duration suggests a commitment to exploring complex or foundational research questions rather than immediate product development.

How does the Cost Plus Fixed Fee (CPFF) pricing structure impact the value for money in this R&D contract?

The Cost Plus Fixed Fee (CPFF) structure is common for R&D contracts where the scope of work and associated costs can be uncertain. The government agrees to pay the contractor's actual allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. For taxpayers, the value depends on the effectiveness of the oversight in monitoring costs and ensuring that the research objectives are met efficiently. While it allows for flexibility in R&D, it carries a risk of cost overruns if not managed diligently, compared to fixed-price contracts.

What is the significance of awarding this contract to the University of Texas at Austin on a sole-source basis?

A sole-source award to a university like the University of Texas at Austin suggests that the Naval Sea Systems Command identified the institution as possessing unique, specialized knowledge, facilities, or personnel essential for the specific research and development required. Universities often engage in fundamental research that may not be readily available in the private sector. This approach allows the Navy to tap into academic expertise for potentially groundbreaking advancements in electronics and communication for naval applications, bypassing the standard competitive process when a specific capability is deemed indispensable.

What are the potential risks associated with a sole-source R&D contract of this duration?

Sole-source R&D contracts, especially those spanning nearly eight years, carry several risks. Firstly, the lack of competition means there's no market pressure to ensure the most cost-effective approach or the best available technology. Secondly, the long duration increases the risk of technological obsolescence; the research focus might become outdated before completion. Thirdly, managing scope creep and ensuring continued alignment with evolving naval requirements can be challenging without the regular re-evaluation inherent in competitive bidding. Finally, ensuring accountability and performance can be more complex without the direct comparison points that competition provides.

How does this contract fit into the broader landscape of defense R&D spending?

This contract represents a small but specific investment within the vast landscape of defense R&D. The Department of Defense allocates billions annually to research and development across various domains, including naval technology. Contracts with universities are a crucial component, fostering innovation and exploring cutting-edge science that may not be pursued by private industry due to higher risk or longer timelines. This particular award highlights the Navy's strategic focus on enhancing its electronic and communication capabilities, essential for modern naval operations, intelligence gathering, and network-centric warfare.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › C – 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

Parent Company: University of Texas System (UEI: 042000273)

Address: 10000 BURNET RD, AUSTIN, TX, 90

Business Categories: Category Business, Educational Institution, Government, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002401D6600

IDV Type: IDC

Timeline