DoD awards $55.6M to Carnegie Mellon SEI for R&D, raising questions on competition and value
Contract Overview
Contract Amount: $55,613,003 ($55.6M)
Contractor: Carnegie Mellon University
Awarding Agency: Department of Defense
Start Date: 2021-09-28
End Date: 2030-06-29
Contract Duration: 3,196 days
Daily Burn Rate: $17.4K/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 $55.6 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 award to Carnegie Mellon University's SEI. 3. Long contract duration (2021-2030) with substantial funding. 4. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The contract's value is substantial, but without competitive bidding, it's difficult to assess if the pricing represents fair market value. Benchmarking against similar FFRDC contracts or independent research grants would be necessary.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Carnegie Mellon University's Software Engineering Institute (SEI). This limits price discovery and potentially reduces the incentive for cost efficiency.
Taxpayer Impact: Taxpayer funds are committed without a competitive process to ensure the best possible price for the research and development services.
Public Impact
Potential for advanced technological development benefiting national security. Funding directed to a single, established research institution. Lack of transparency in the procurement process due to sole-source nature. Long-term commitment of resources for specialized research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Award to a reputable research institution (SEI)
- Focus on critical R&D areas
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Federally Funded Research and Development Centers (FFRDCs) like the SEI are unique entities established to meet long-term research needs of the government, often with specialized expertise.
Small Business Impact
The contract is awarded to Carnegie Mellon University, a large research institution, and there is no indication of subcontracting opportunities for small businesses within this data. The nature of FFRDC work often involves highly specialized research that may not lend itself to typical small business involvement.
Oversight & Accountability
As a sole-source award to an FFRDC, oversight would typically focus on performance metrics, adherence to research objectives, and responsible financial management. The long duration necessitates consistent monitoring to ensure continued value and alignment with evolving DoD needs.
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 limits price validation.
- Long contract duration may reduce flexibility.
- Sole-source award raises concerns about market competition.
- Potential for cost overruns without competitive pressure.
- Limited transparency in the procurement process.
Tags
research-and-development-in-the-physical, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.6 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 $55.6 million.
What is the period of performance?
Start: 2021-09-28. End: 2030-06-29.
What specific R&D objectives does this contract aim to achieve, and how do they align with current Department of Defense priorities?
The contract supports Research and Development in Physical, Engineering, and Life Sciences. While the specific objectives are not detailed here, SEI's mission typically involves advancing software engineering capabilities, cybersecurity, and systems engineering critical for modern defense platforms. Alignment with DoD priorities would be assessed through program reviews and strategic planning documents.
What is the justification for awarding this contract on a sole-source basis, and what alternatives were considered?
Sole-source awards for FFRDCs are common due to their unique capabilities and long-term strategic relationship with the government. The justification likely stems from SEI's established expertise and infrastructure, making it the only entity capable of fulfilling specific, long-term research needs. Alternatives might include other FFRDCs or specific research teams, but SEI's comprehensive scope is often the deciding factor.
How will the effectiveness and value of the research conducted under this contract be measured and evaluated over its 9-year duration?
Effectiveness and value are typically measured through milestone achievements, technical reports, prototype demonstrations, and the successful transition of research findings into operational systems or improved processes. Regular program reviews, independent assessments, and user feedback from the Department of the Air Force will be crucial for evaluating the ongoing impact and return on investment.
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: $88,074,483
Exercised Options: $78,731,483
Current Obligation: $55,613,003
Actual Outlays: $2,338,918
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: 2021-09-28
Current End Date: 2030-06-29
Potential End Date: 2030-06-29 00:00:00
Last Modified: 2025-09-17
More Contracts from Carnegie Mellon University
- Continuation Contract and Funding Obligation — $649.8M (Department of Defense)
- 200510!000208!5700!fa8721!esc/Xpk !FA872105C0003 !A!N! !Y! ! !20050705!20100630!189570740!189570740!052184116!n!carnegie Mellon University !4500 5TH AVE !pittsburgh !pa!15213!61000!003!42!pittsburgh !allegheny !penn !+000000750000!n!n!000411105411!az12!rdte/Other Research&development-Applied Researc !S1 !services !000 !* !541511!E! !3! ! ! ! ! !20200930!B! ! !n!z!c!u!s!1!001!n!3a!z!y!d! ! !N!V!N! ! ! ! ! !a!a!000!a!c!n! ! ! !Y! ! !0001! ! — $402.5M (Department of Defense)
- Carnegie Mellon University Software Engineering Institute Ffrdc Research and Development — $380.8M (Department of Defense)
- Task Order 0001 for Cmu-Sei Non-Severable Projects — $255.7M (Department of Defense)
- 200012!5700!000063!GV58 !esc/Dik !F1962800C0003 !A!*!* !20000616!20050630!052184116!052184116!052184116!n!97668!carnegie Mellon University (IN!5000 Forbes AVE !pittsburgh !pa!15213!61000!003!42!pittsburgh !allegheny !penn !0001!+000011775000!n!n!000000000000!az13!rdte/Other Research & Development-Adv Tech DEV !S1 !services !3000!NOT Discernable or Classified !8731!3!c!s!*!b!n!z!c !n!s!1!001!n!1b!z!n!d!* !* !n!z!*!*!*!a!a!a!a!* !*!n!a!c!n!*!*!*!*!*! — $248.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)