DoD's $380M R&D Contract with Carnegie Mellon SEI: Limited Competition Raises Oversight Concerns
Contract Overview
Contract Amount: $380,771,627 ($380.8M)
Contractor: Carnegie Mellon University
Awarding Agency: Department of Defense
Start Date: 2020-02-10
End Date: 2030-06-29
Contract Duration: 3,792 days
Daily Burn Rate: $100.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: R&D
Official Description: CARNEGIE MELLON UNIVERSITY SOFTWARE ENGINEERING INSTITUTE FFRDC RESEARCH AND DEVELOPMENT
Place of Performance
Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15213
Plain-Language Summary
Department of Defense obligated $380.8 million to CARNEGIE MELLON UNIVERSITY for work described as: CARNEGIE MELLON UNIVERSITY SOFTWARE ENGINEERING INSTITUTE FFRDC RESEARCH AND DEVELOPMENT Key points: 1. Significant R&D investment in a specialized institute. 2. Sole-source nature limits competitive pricing and innovation. 3. Long contract duration (10 years) warrants close monitoring. 4. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The contract's value is substantial, but without competition, it's difficult to assess if the pricing represents fair market value. Benchmarking against similar FFRDC contracts would be necessary for a more accurate assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This approach bypasses competitive bidding, potentially leading to higher costs and reduced pressure for innovation compared to an open competition.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible value for the significant funds allocated to this R&D effort.
Public Impact
Taxpayers fund critical R&D through a single provider. Potential for missed opportunities in technological advancement due to lack of competition. Ensuring accountability for research outcomes is paramount.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Awarded to a reputable research institute (SEI)
- Focus on critical R&D areas
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Federal spending in this sector is crucial for innovation but requires careful oversight, especially when awarded non-competitively.
Small Business Impact
This contract does not appear to involve small business participation, as it is a sole-source award to a large research institute. Opportunities for small businesses in subcontracting are not evident from the provided data.
Oversight & Accountability
The sole-source nature of this large R&D contract necessitates robust oversight from the Department of Defense to ensure the funds are used effectively and that the research objectives are met. Regular performance reviews and cost audits are critical.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in pricing
- Risk of vendor lock-in
- Ensuring research relevance and impact
Tags
research-and-development-in-the-physical, department-of-defense, pa, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $380.8 million to CARNEGIE MELLON UNIVERSITY. CARNEGIE MELLON UNIVERSITY SOFTWARE ENGINEERING INSTITUTE FFRDC RESEARCH AND DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is CARNEGIE MELLON UNIVERSITY.
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 $380.8 million.
What is the period of performance?
Start: 2020-02-10. End: 2030-06-29.
What is the justification for awarding this significant R&D contract on a sole-source basis?
The justification for a sole-source award typically stems from unique capabilities, specialized knowledge, or the specific nature of the research required, often associated with Federally Funded Research and Development Centers (FFRDCs) like the SEI. However, the specific rationale needs to be documented and reviewed to ensure it aligns with procurement regulations and serves the government's best interest.
How will the Department of Defense ensure cost-effectiveness and value for money given the lack of competition?
To ensure value, the DoD must implement rigorous performance metrics, conduct regular cost reviews, and potentially benchmark against similar FFRDC work. Strong contract management and clear deliverables are essential to hold Carnegie Mellon accountable for research outcomes and efficient use of funds, even without a competitive bidding process.
What mechanisms are in place to track the progress and impact of the R&D conducted under this contract?
Mechanisms should include detailed reporting requirements from Carnegie Mellon, regular progress reviews with DoD program managers, and independent evaluations of research outcomes. Establishing clear milestones and success criteria upfront will allow for effective tracking of the R&D's impact and alignment with strategic defense objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except 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 NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 4500 5TH AVE, PITTSBURGH, PA, 15213
Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $806,924,698
Exercised Options: $805,924,698
Current Obligation: $380,771,627
Actual Outlays: $14,901,177
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA870215D0002
IDV Type: IDC
Timeline
Start Date: 2020-02-10
Current End Date: 2030-06-29
Potential End Date: 2030-06-29 00:00:00
Last Modified: 2026-01-09
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