DoD's $17.6M R&D contract with UT Austin shows long-term investment in physical sciences

Contract Overview

Contract Amount: $17,612,387 ($17.6M)

Contractor: University of Texas AT Austin

Awarding Agency: Department of Defense

Start Date: 2007-02-20

End Date: 2011-03-19

Contract Duration: 1,488 days

Daily Burn Rate: $11.8K/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 $17.6 million to UNIVERSITY OF TEXAS AT AUSTIN for work described as: RESEARCH & DEV. Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Long duration of nearly 4 years suggests a complex and potentially high-impact research project. 3. Sole-source award indicates a specific need or unique capability possessed by the contractor. 4. Focus on R&D aligns with strategic investments in scientific advancement. 5. Geographic concentration in Texas may point to regional research strengths or partnerships.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and sole-source award. The $17.6 million over approximately four years represents a significant investment, but without comparable projects or detailed cost breakdowns, assessing value for money is difficult. The 'COST PLUS FIXED FEE' structure suggests that while the fee is fixed, the costs incurred could fluctuate, requiring careful oversight to ensure efficiency.

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 among multiple vendors. This typically occurs when a specific entity possesses unique qualifications, capabilities, or intellectual property essential for the research. While it ensures the use of specialized expertise, it limits the potential for price competition and may result in higher costs than if multiple bids were solicited.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from competitive bidding, potentially leading to higher overall expenditure for the research conducted.

Public Impact

The University of Texas at Austin, a leading research institution, benefits from this funding to advance scientific knowledge. The research conducted is expected to contribute to advancements in physical, engineering, and life sciences. The geographic impact is concentrated in Texas, potentially fostering local scientific talent and infrastructure. The contract supports academic researchers and potentially graduate students, contributing to the scientific workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus contract type can lead to cost overruns if not managed tightly.
Long contract duration requires sustained oversight to ensure progress and relevance.

Positive Signals

Award to a reputable university suggests a focus on high-quality research.
Investment in R&D aligns with long-term national security and technological advancement goals.
Specific research area (physical, engineering, life sciences) indicates targeted scientific pursuit.

Sector Analysis

This contract falls within the Research & Development sector, specifically focusing on physical, engineering, and life sciences. The federal government is a significant investor in R&D, particularly through agencies like the Department of Defense, to maintain technological superiority and address complex challenges. Comparable spending benchmarks are difficult to establish for highly specialized R&D, but this award represents a substantial commitment to a particular research area.

Small Business Impact

This contract does not appear to involve small business set-asides, as it was awarded to a large university. There is no explicit information regarding subcontracting plans for small businesses. The focus on academic research may limit direct opportunities for small businesses unless they are specialized research partners or suppliers.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy, a component of the Department of Defense. The 'COST PLUS FIXED FEE' structure necessitates diligent financial oversight to monitor expenditures against the approved budget and ensure the fixed fee is justified. Transparency would be enhanced through regular progress reports and potential reviews by the agency's Inspector General, especially concerning the use of federal funds.

Related Government Programs

Department of Defense Research and Development Programs
University Research Grants
Physical Sciences Research Funding
Engineering Research Initiatives
Life Sciences Research Contracts

Risk Flags

Sole-source award may limit price competition.
Cost-plus contract type requires diligent cost oversight.
Long contract duration necessitates sustained monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 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 $17.6 million.

What is the period of performance?

Start: 2007-02-20. End: 2011-03-19.

What specific research objectives were outlined in this contract, and how do they align with the Department of the Navy's strategic goals?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710). While the specific objectives are not detailed, R&D contracts from the Department of the Navy typically aim to advance scientific understanding and develop technologies relevant to naval operations, national security, and defense capabilities. This could encompass areas like materials science, advanced propulsion, sensor technology, or biomedical research pertinent to military personnel. The long duration and significant funding suggest a project of strategic importance, likely contributing to future technological advantages or solutions for identified defense challenges.

How does the $17.6 million cost compare to similar R&D contracts awarded by the Department of Defense for physical, engineering, and life sciences research?

Directly comparing this $17.6 million contract to 'similar' R&D contracts is challenging without more specific details on the research scope and the 'COST PLUS FIXED FEE' (CPFF) structure's specifics. However, federal R&D spending is substantial, with the DoD being a major contributor. Contracts in this domain can range from tens of thousands for small-scale studies to billions for large-scale development programs. A $17.6 million award over nearly four years for a university-led project in specialized sciences is a significant but not extraordinary investment. CPFF contracts are common in R&D where the final costs are uncertain, but they require robust oversight to ensure the 'fixed fee' remains reasonable relative to the effort and the total costs are managed effectively.

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

Several risks are associated with this contract type. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to a higher price than if multiple bids were considered. Secondly, the 'Cost Plus Fixed Fee' (CPFF) structure, while common in R&D, carries the risk of cost escalation if the contractor's actual expenses exceed initial estimates, even though the fee is fixed. This necessitates stringent monitoring of expenditures. Thirdly, the long duration (nearly 4 years) increases the risk of research becoming outdated, shifting priorities, or encountering unforeseen scientific or technical hurdles. Finally, ensuring the contractor, the University of Texas at Austin, maintains focus and delivers on the research objectives throughout the contract period requires proactive program management and oversight.

What is the track record of the University of Texas at Austin in managing large federal R&D contracts, particularly with the Department of Defense?

The University of Texas at Austin has a well-established and extensive track record of securing and managing large federal research grants and contracts across various scientific disciplines, including those funded by the Department of Defense. As a major research university, it possesses significant infrastructure, experienced principal investigators, and administrative support systems designed for handling complex, multi-year federal awards. While specific performance metrics for past DoD contracts are not detailed here, UT Austin consistently ranks among top universities for federal research expenditures, indicating a high level of success in competing for and executing government-funded research projects. Their experience likely includes navigating federal acquisition regulations, managing budgets, and producing impactful research outcomes.

How does the $11,836 'br' value relate to the overall contract value and its potential implications?

The 'br' value of $11,836 is not a standard or readily interpretable metric within federal contract data without further context or a specific data dictionary. It does not appear to represent a raw dollar amount, a percentage, or a common contract identifier. It's possible this is an internal code, a specific project metric, or a placeholder value. Without clarification from the data source, its relation to the $17.6 million contract value and its implications remain unknown. Standard contract metrics typically include obligated amounts, ceiling amounts, task order values, or performance-based milestones, none of which this 'br' value clearly represents.

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 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

Financial Breakdown

Contract Ceiling: $17,612,387

Exercised Options: $17,612,387

Current Obligation: $17,612,387

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002401D6600

IDV Type: IDC

Timeline