DoD's $10.3M R&D contract with UT Austin shows limited competition and fair value

Contract Overview

Contract Amount: $10,344,889 ($10.3M)

Contractor: University of Texas AT Austin

Awarding Agency: Department of Defense

Start Date: 2007-12-26

End Date: 2010-12-25

Contract Duration: 1,095 days

Daily Burn Rate: $9.4K/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 $10.3 million to UNIVERSITY OF TEXAS AT AUSTIN for work described as: RESEARCH & DEV. Key points: 1. Contract awarded on a non-competitive basis, raising questions about price discovery. 2. Value for money appears fair, with a benchmarked cost per unit. 3. Risk indicators are moderate, primarily due to the lack of competition. 4. Performance context is within the physical, engineering, and life sciences R&D sector. 5. Sector positioning is in advanced research and development for defense applications. 6. The contract duration of 1095 days suggests a substantial research effort.

Value Assessment

Rating: fair

The contract's value for money is assessed as fair. While specific benchmarks for this exact research are difficult to ascertain, the provided data suggests a reasonable allocation of funds for the scope of work. The cost-plus-fixed-fee structure allows for flexibility in research but requires careful oversight to manage costs effectively. Compared to similar large-scale R&D efforts, the overall award amount is within a typical range for university-led research projects of this complexity.

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 intellectual property essential for the project. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that could have resulted from a competitive bidding process. This approach can be justified for highly specialized research but warrants scrutiny.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most competitive pricing. Without a bidding process, there's less pressure on the contractor to offer the lowest possible cost, potentially leading to higher overall expenditure.

Public Impact

The University of Texas at Austin benefits through research funding and academic advancement. Services delivered include advanced research and development in physical, engineering, and life sciences. Geographic impact is primarily within Texas, where the university is located. Workforce implications include support for researchers, faculty, and students involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing for taxpayers.
Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed tightly.
The specific R&D outcomes and their direct applicability to defense needs require ongoing assessment.

Positive Signals

Award to a reputable academic institution suggests a focus on high-quality research.
The contract supports critical research and development in specialized scientific fields.
The fixed-fee component provides some cost certainty for the government.

Sector Analysis

This contract falls within the Research & Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, requiring specialized expertise often found in academic institutions. The market for such specialized R&D is characterized by high barriers to entry and a limited number of highly qualified performers. Comparable spending benchmarks in this niche are difficult to establish precisely due to the unique nature of each research project, but significant government investment is typical for cutting-edge defense science.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to a large university typically means the primary performer is well-equipped to handle the entire scope of work internally. This limits direct opportunities for small businesses to participate in this specific contract, though they may be involved in the broader research ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a cost-plus-fixed-fee contract, rigorous financial oversight is crucial to ensure costs are reasonable and allocable to the contract. Transparency is generally maintained through contract reporting mechanisms, but specific details of research progress and expenditures may be subject to proprietary or national security considerations.

Related Government Programs

Department of Defense Research and Development Programs
Navy Science and Technology Programs
University Research Partnerships
Advanced Scientific Research Contracts

Risk Flags

Sole-source award limits competitive pricing.
Cost-plus-fixed-fee structure requires robust oversight to control costs.
R&D outcomes are inherently uncertain.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.3 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 $10.3 million.

What is the period of performance?

Start: 2007-12-26. End: 2010-12-25.

What is the track record of the University of Texas at Austin in securing and executing federal research contracts, particularly with the Department of Defense?

The University of Texas at Austin has a strong track record in securing and executing federal research contracts. As a major research university, it consistently receives significant funding from various federal agencies, including the Department of Defense (DoD). Its research output spans numerous disciplines relevant to national security and technological advancement. While specific performance metrics for individual contracts are not publicly detailed, the university's sustained engagement with federal R&D funding indicates a capacity to meet the rigorous requirements of government research grants and contracts. Its ability to attract top talent and manage complex projects positions it as a reliable partner for federal agencies seeking specialized research capabilities.

How does the $10.3 million award compare to other similar R&D contracts awarded by the Department of the Navy for physical, engineering, and life sciences research?

The $10.3 million award to the University of Texas at Austin for R&D in physical, engineering, and life sciences is a substantial but not exceptionally large sum within the context of major federal research contracts. The Department of the Navy, like other DoD branches, frequently awards contracts in the tens to hundreds of millions of dollars for large-scale, multi-year research initiatives. This particular contract's value suggests a focused, significant research effort rather than a broad, foundational program. When compared to other university-led R&D contracts in similar scientific domains, $10.3 million falls within a common range for projects requiring specialized equipment, dedicated research teams, and extended investigation periods. However, the 'sole-source' nature of this award means direct price comparisons with competitively bid contracts are less meaningful.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee R&D contract of this magnitude?

The primary risks associated with a sole-source, cost-plus-fixed-fee (CPFF) R&D contract of this magnitude include potential cost overruns and a lack of competitive pressure on pricing. Since the contract was not competed, the government may not have secured the most cost-effective solution. The CPFF structure, while providing flexibility for research that may encounter unforeseen challenges, can incentivize higher spending if not meticulously managed, as the contractor is reimbursed for allowable costs plus a fixed fee. There's also a risk that the research objectives might not be fully met or that the outcomes may not be as impactful as anticipated, especially in R&D where outcomes are inherently uncertain. Effective oversight and clear performance metrics are critical to mitigate these risks.

What is the expected impact of this contract on the advancement of physical, engineering, and life sciences relevant to defense applications?

This contract is expected to contribute to the advancement of physical, engineering, and life sciences specifically tailored for defense applications. The research conducted under this award could lead to breakthroughs in areas such as materials science, advanced engineering designs, or novel biological countermeasures, all of which have direct implications for national security. By funding specialized research at a leading academic institution, the Department of the Navy aims to foster innovation that can provide a technological edge. The specific impact will depend on the research outcomes, but the investment signals a commitment to exploring cutting-edge science with the potential to enhance military capabilities, improve soldier performance, or develop new defense technologies.

How has federal spending in the R&D sector, particularly for defense-related research at universities, trended over the past decade?

Federal spending in the R&D sector, particularly for defense-related research at universities, has generally seen fluctuations but maintained a significant presence over the past decade. While overall federal budgets face constraints, R&D, especially in areas deemed critical for national security, often receives consistent or increasing investment. Agencies like the Department of Defense prioritize funding for research that can lead to technological superiority. University research remains a cornerstone of this effort due to the specialized expertise and infrastructure academic institutions provide. Trends show a continued reliance on universities for basic and applied research, with funding often channeled through grants and contracts similar to the one awarded to the University of Texas at Austin. Specific allocations can shift based on geopolitical priorities and emerging technological needs.

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, 90

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

Financial Breakdown

Contract Ceiling: $10,344,889

Exercised Options: $10,344,889

Current Obligation: $10,344,889

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002407D6200

IDV Type: IDC

Timeline