DoD's $24.5M R&D Contract with UT Austin: Long-Term Engagement Raises Oversight Questions

Contract Overview

Contract Amount: $24,492,605 ($24.5M)

Contractor: University of Texas AT Austin

Awarding Agency: Department of Defense

Start Date: 2008-07-18

End Date: 2014-07-15

Contract Duration: 2,188 days

Daily Burn Rate: $11.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH & DEV.

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78758

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to UNIVERSITY OF TEXAS AT AUSTIN for work described as: RESEARCH & DEV. Key points: 1. Significant long-term investment in R&D by the Department of the Navy. 2. Sole-source award to a major research institution highlights potential for limited competition. 3. Cost-plus fixed-fee contract type requires careful monitoring of costs and fee. 4. Focus on physical, engineering, and life sciences R&D.

Value Assessment

Rating: fair

The contract's duration (2008-2014) and cost-plus fixed-fee structure suggest a need for robust oversight to ensure value for money. Benchmarking against similar long-term R&D efforts would be beneficial.

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 may result in higher costs compared to a competitive environment. The rationale for sole-sourcing should be clearly documented.

Taxpayer Impact: Taxpayer funds are committed to a single entity for an extended period, necessitating strong justification for the lack of competition to ensure optimal use of resources.

Public Impact

Long-term federal investment in scientific research at a major university. Potential for groundbreaking discoveries in physical, engineering, and life sciences. Impact on academic research funding and university-industry partnerships.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration without competition
Cost-plus fixed-fee contract type
Lack of clear performance metrics in provided data

Positive Signals

Supports critical R&D mission
Partnership with established research institution

Sector Analysis

This contract falls within the Research & Development sector, specifically focusing on physical, engineering, and life sciences. Federal R&D spending often involves long-term investments in basic and applied research, with significant variation in contract types and competitive landscapes.

Small Business Impact

This contract was awarded to a large university, not a small business. There is no indication of small business subcontracting opportunities within the provided data.

Oversight & Accountability

The long duration and sole-source nature of this contract warrant close oversight to ensure adherence to contract terms, cost control, and achievement of research objectives. Regular reviews and audits are crucial.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for lack of competitive pricing
Risk of cost overruns with cost-plus contract
Extended duration may indicate lack of urgency or evolving requirements
Limited transparency on specific research deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to UNIVERSITY OF TEXAS AT AUSTIN. RESEARCH & DEV.

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 $24.5 million.

What is the period of performance?

Start: 2008-07-18. End: 2014-07-15.

What specific research outcomes were achieved during the contract's six-year period, and how do they align with the Department of the Navy's strategic goals?

The provided data does not detail specific research outcomes. A thorough review would require access to project reports, milestone achievements, and final deliverables. Assessing alignment with strategic goals necessitates comparing the research conducted against the Navy's stated priorities in physical, engineering, and life sciences during the 2008-2014 timeframe.

Given the sole-source award and cost-plus fixed-fee structure, what mechanisms were in place to mitigate potential cost overruns and ensure fair pricing?

Cost-plus fixed-fee contracts inherently carry risk of cost overruns. Mitigation likely involved detailed cost proposals, regular financial reporting, audits, and potentially negotiation of fee adjustments based on performance. The effectiveness of these mechanisms would depend on the rigor of the Navy's oversight and the clarity of the contract's cost accounting standards.

How did the University of Texas at Austin's unique capabilities justify a sole-source award over exploring competitive options for this R&D effort?

A sole-source justification typically requires demonstrating that only one responsible source possesses the unique qualifications, specialized knowledge, or proprietary data necessary for the requirement. For R&D, this could involve specific research facilities, unique expertise, or prior work that makes competition impractical or detrimental to the project's success.

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 › DEFENSE (OTHER) R&D

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 ROAD, AUSTIN, TX, 78758

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

Financial Breakdown

Contract Ceiling: $24,492,605

Exercised Options: $24,492,605

Current Obligation: $24,492,605

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002407D6200

IDV Type: IDC

Timeline