DARPA awards $6.85M for Chemical and Biological Warfare Defense R&D to National Strategic Research Institute

Contract Overview

Contract Amount: $6,852,461 ($6.9M)

Contractor: National Strategic Research Institute

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2026-04-29

Contract Duration: 1,672 days

Daily Burn Rate: $4.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CHEMICAL AND BIOLOGICAL WARFARE DEFENSE RESEARCH AND DEVELOPMENT, TEST AND EVALUATION SUPPORT FOR DEFENSE ADVANCED RESEARCH PROJECTS AGENCY (DARPA)

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $6.9 million to NATIONAL STRATEGIC RESEARCH INSTITUTE for work described as: CHEMICAL AND BIOLOGICAL WARFARE DEFENSE RESEARCH AND DEVELOPMENT, TEST AND EVALUATION SUPPORT FOR DEFENSE ADVANCED RESEARCH PROJECTS AGENCY (DARPA) Key points: 1. Contract supports critical research and development in chemical and biological warfare defense. 2. National Strategic Research Institute selected for specialized expertise in this sensitive area. 3. Contract duration extends over five years, indicating a long-term need for these services. 4. Research and Development in Physical, Engineering, and Life Sciences is a key sector for national security. 5. The contract type (Cost Plus Fixed Fee) suggests a need for flexibility in research projects. 6. No small business set-aside was applied, indicating the nature of the specialized services required.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specialized nature and sole-source award. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility in research and development, but can sometimes lead to higher costs if not managed carefully. Without competitive bids, it's difficult to assess if the fixed fee represents optimal value for the government. Further analysis would require understanding the specific deliverables and the institute's unique capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This typically occurs when a contractor possesses unique capabilities, specialized knowledge, or is the only responsible source capable of meeting the government's requirements. The lack of competition means that price discovery through market forces was not utilized, potentially leading to a higher cost than if multiple bids were received.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the best possible pricing, which can result in less favorable value for taxpayer funds.

Public Impact

The primary beneficiary is the Defense Advanced Research Projects Agency (DARPA), which will receive critical R&D support. Services delivered will advance the nation's capabilities in chemical and biological warfare defense. The geographic impact is national, as the research contributes to overall U.S. security. Workforce implications include specialized scientific and research personnel employed by the National Strategic Research Institute.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Cost Plus Fixed Fee contracts can incentivize cost overruns if not rigorously monitored.
Lack of competition may reduce the incentive for the contractor to innovate on cost-efficiency.

Positive Signals

Award to a specialized institute suggests access to unique and critical expertise.
Long-term contract duration indicates a sustained and important requirement for the services.
Focus on R&D in a critical defense area aligns with national security priorities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is characterized by high specialization, significant government investment, and often involves unique, non-commercial technologies. Comparable spending benchmarks are difficult to establish due to the niche nature of chemical and biological warfare defense, but overall federal R&D spending is substantial, with defense R&D being a significant portion.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have significant subcontracting requirements for small businesses. The specialized nature of chemical and biological warfare defense research likely necessitates a prime contractor with highly specific, advanced capabilities that are typically found in larger research institutions or specialized entities rather than small businesses. This focus on specialized expertise means the direct impact on the small business ecosystem is minimal for this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Advanced Research Projects Agency (DARPA) program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring will be crucial to ensure costs remain within the fixed fee parameters and that research objectives are met. Transparency may be limited due to the sensitive nature of the research, but standard government contracting oversight mechanisms and reporting requirements would apply.

Related Government Programs

DARPA Research and Development Programs
Chemical and Biological Defense Program
Department of Defense Science and Technology
National Security Research Initiatives

Risk Flags

Sole-source award
Cost-plus contract type
Research and Development focus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.9 million to NATIONAL STRATEGIC RESEARCH INSTITUTE. CHEMICAL AND BIOLOGICAL WARFARE DEFENSE RESEARCH AND DEVELOPMENT, TEST AND EVALUATION SUPPORT FOR DEFENSE ADVANCED RESEARCH PROJECTS AGENCY (DARPA)

Who is the contractor on this award?

The obligated recipient is NATIONAL STRATEGIC RESEARCH INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $6.9 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-04-29.

What is the track record of the National Strategic Research Institute in performing similar R&D for the government?

The National Strategic Research Institute (NSRI) is a non-profit organization affiliated with the University of Nebraska. Its mission is to advance national security through research and development. While specific contract performance details are not publicly available in this summary, NSRI has a history of engaging in research relevant to defense, including areas like chemical, biological, radiological, and nuclear (CBRN) defense. They often collaborate with government agencies and industry partners on complex R&D challenges. Assessing their specific track record would require a deeper dive into past performance evaluations and project outcomes related to DARPA or similar defense research contracts.

How does the pricing structure (Cost Plus Fixed Fee) compare to other R&D contracts in this specialized field?

Cost Plus Fixed Fee (CPFF) is a common contract type for research and development where the scope of work may evolve or is not precisely defined at the outset. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While CPFF provides flexibility, it can be more expensive than fixed-price contracts if costs escalate significantly. Benchmarking CPFF rates for specialized R&D like CBRN defense is complex, as it depends heavily on the unique expertise, facilities, and personnel required. Without competitive bids, it's difficult to ascertain if the fixed fee here is optimal. However, for highly specialized, non-commercial R&D, CPFF is often considered a necessary structure to attract capable contractors.

What are the primary risks associated with this sole-source R&D contract?

The primary risks associated with this sole-source R&D contract include: 1. **Cost Overruns:** The CPFF structure, combined with the inherent uncertainties of R&D, increases the risk of costs exceeding initial estimates. 2. **Limited Innovation in Cost Management:** The lack of competition may reduce the contractor's incentive to aggressively manage costs or find the most economical solutions. 3. **Scope Creep:** The flexible nature of R&D can lead to the scope of work expanding, potentially increasing costs and extending timelines beyond initial projections. 4. **Dependency on a Single Source:** The government becomes reliant on the National Strategic Research Institute's capabilities, making it difficult to switch contractors if performance issues arise. 5. **Potential for Suboptimal Value:** Without competitive pressure, there's a risk that the government may not be receiving the best possible value for its investment.

How effective is DARPA in managing sole-source R&D contracts to ensure program success?

DARPA is generally recognized for its effectiveness in managing high-risk, high-reward R&D programs, often leveraging unique approaches. For sole-source contracts, DARPA typically relies on rigorous program management, strong technical oversight, and clear milestone definitions. Their success often hinges on selecting contractors with exceptional technical merit and a proven ability to innovate. While sole-sourcing bypasses traditional price competition, DARPA's focus is often on achieving breakthrough technological capabilities rather than solely on minimizing cost. Effective management involves close collaboration with the contractor, regular performance reviews, and adaptive planning to navigate the uncertainties inherent in cutting-edge research.

What is the historical spending trend for chemical and biological warfare defense R&D within the Department of Defense?

The Department of Defense (DoD) consistently invests significant resources into chemical and biological defense R&D, driven by evolving threats and the need for advanced countermeasures. Historical spending in this area has fluctuated based on geopolitical events, perceived threats, and technological advancements. While specific annual figures for 'Chemical and Biological Warfare Defense R&D' can vary, it represents a critical component of the DoD's overall R&D budget. Agencies like DARPA, DTRA (Defense Threat Reduction Agency), and various military service branches contribute to this spending. The trend generally shows a sustained commitment to maintaining and advancing capabilities in this domain, reflecting its enduring national security importance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3835 HOLDREGE ST, LINCOLN, NE, 68503

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,579,021

Exercised Options: $9,545,358

Current Obligation: $6,852,461

Actual Outlays: $1,037,676

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $556,028

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA460020D0003

IDV Type: IDC

Timeline