DoD's $13.8M R&D Contract with UT Austin: Long Duration, Fixed Fee, Limited Competition

Contract Overview

Contract Amount: $13,807,690 ($13.8M)

Contractor: University of Texas AT Austin

Awarding Agency: Department of Defense

Start Date: 2009-02-26

End Date: 2013-12-31

Contract Duration: 1,769 days

Daily Burn Rate: $7.8K/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 $13.8 million to UNIVERSITY OF TEXAS AT AUSTIN for work described as: RESEARCH & DEV. Key points: 1. Significant investment in physical, engineering, and life sciences R&D. 2. Sole source award to a major research institution. 3. Long contract duration (1769 days) raises questions about flexibility and evolving needs. 4. Fixed-fee structure may offer less incentive for cost efficiency compared to other contract types.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

Awarded as sole-source, indicating a lack of competition. This limits price discovery and potentially leads to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayer funds are committed without competitive bidding, potentially reducing the overall value for money achieved.

Public Impact

Advancement of scientific knowledge and technological capabilities in critical areas. Potential for breakthroughs that could have long-term national security or economic benefits. Investment in academic research infrastructure and talent development.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

  • Lack of competition
  • Cost Plus Fixed Fee contract type
  • Long contract duration

Positive Signals

  • Supports critical R&D for the Department of the Navy
  • Partnership with a reputable research institution

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for innovation but can be highly variable and difficult to benchmark due to the unique nature of research projects.

Small Business Impact

This contract was awarded to a university, not a small business. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The long duration and sole-source nature of this contract warrant close oversight to ensure objectives are met efficiently and taxpayer funds are used appropriately. Regular reviews of progress and cost performance are essential.

Related Government Programs

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

Risk Flags

  • Lack of competition may lead to inflated costs.
  • Cost Plus Fixed Fee can incentivize higher spending if not closely monitored.
  • Long contract duration might not adapt to evolving research needs.
  • Limited transparency on specific research outcomes and their impact.

Tags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 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 $13.8 million.

What is the period of performance?

Start: 2009-02-26. End: 2013-12-31.

What specific research objectives were pursued under this contract, and how did they align with the Department of the Navy's strategic goals?

The contract focused on Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). While specific objectives are not detailed here, such R&D typically aims to advance scientific understanding and develop new technologies relevant to defense applications, potentially including materials science, advanced computing, or biomedical research to enhance warfighter capabilities or operational effectiveness.

Given the sole-source nature, what justification was provided for not seeking competitive bids, and how was the fixed fee determined to ensure fairness?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For a fixed fee, the government and contractor negotiate a price that is not subject to adjustment based on the contractor's cost experience. The determination of fairness would rely on pre-award cost and price analysis, potentially using historical data or industry benchmarks for similar research efforts.

How was the effectiveness of the research outcomes measured, and what tangible benefits or advancements resulted from this $13.8 million investment?

Effectiveness is typically measured against predefined research milestones and deliverables outlined in the contract. Tangible benefits could include published research, patents, prototypes, or new methodologies. Without access to the contract's specific deliverables and final reports, it's impossible to quantify the exact outcomes or assess the return on investment for this particular R&D effort.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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 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: $13,807,690

Exercised Options: $13,807,690

Current Obligation: $13,807,690

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002407D6200

IDV Type: IDC

Timeline

Start Date: 2009-02-26

Current End Date: 2013-12-31

Potential End Date: 2013-12-31 00:00:00

Last Modified: 2014-06-13

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