DoD's $10.7M R&D contract with SRI International for physical sciences research shows fair value and strong competition

Contract Overview

Contract Amount: $10,720,189 ($10.7M)

Contractor: SRI International

Awarding Agency: Department of Defense

Start Date: 2007-07-18

End Date: 2011-10-31

Contract Duration: 1,566 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 50

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BASE PERIOD

Place of Performance

Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $10.7 million to SRI INTERNATIONAL for work described as: BASE PERIOD Key points: 1. The contract demonstrates a commitment to advancing physical sciences research through a competitive bidding process. 2. SRI International's selection suggests a strong technical capability and competitive pricing for specialized R&D services. 3. The cost-plus-fixed-fee structure indicates a focus on managing research expenses while incentivizing efficient completion. 4. Performance context is crucial for understanding the long-term impact of this foundational research. 5. This contract positions the Defense Threat Reduction Agency within the broader landscape of federal R&D investment. 6. The duration of the contract suggests a significant, multi-year research effort.

Value Assessment

Rating: good

The contract's value of approximately $10.7 million over its base period appears reasonable for specialized research and development services in the physical sciences. Benchmarking against similar contracts for advanced R&D projects would provide a more precise assessment, but the competitive award suggests SRI International offered a compelling value proposition. The cost-plus-fixed-fee (CPFF) pricing structure is common for R&D where exact costs are uncertain, allowing for flexibility while providing a fixed fee incentive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit proposals. The award to SRI International suggests they were the most advantageous offer, likely based on a combination of technical merit, past performance, and price. The presence of robust competition at the outset is a positive indicator for price discovery and ensures the government receives the best possible value.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, benefiting taxpayers by ensuring funds are used efficiently for high-quality research.

Public Impact

The primary beneficiaries are the Department of Defense and potentially national security, through advancements in physical sciences relevant to threat reduction. The services delivered involve cutting-edge research and development in the physical, engineering, and life sciences. The geographic impact is primarily centered around SRI International's facilities in California, but the research outcomes have national implications. The contract supports a highly skilled workforce of scientists and researchers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
The long duration of the contract could lead to scope creep if not managed effectively.
Ensuring the research remains aligned with evolving threat landscapes requires continuous oversight.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
SRI International is a reputable research institution with a strong track record.
The contract supports critical research and development for national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences. The North American Industry Classification System (NAICS) code 541710 covers Research and Development in the Physical, Engineering, and Life Sciences. Federal spending in this area is crucial for maintaining technological superiority and addressing emerging threats. Comparable spending benchmarks would involve analyzing other DoD R&D contracts awarded to similar institutions for advanced scientific research.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by `ss` being false and `sb` being false. SRI International is a large research organization. There is no explicit information regarding subcontracting plans for small businesses within the provided data, which could be a missed opportunity for engaging the small business ecosystem in specialized R&D.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. Accountability measures would be embedded in the contract's milestones, deliverables, and reporting requirements. Transparency is generally maintained through contract award databases and public reporting, though specific research details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Defense Threat Reduction Agency Contracts
Advanced Scientific Research Initiatives
Physical Sciences Research Grants

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Long contract duration necessitates ongoing monitoring for scope alignment and relevance.
Research and Development outcomes can be inherently uncertain, impacting predictability of results.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.7 million to SRI INTERNATIONAL. BASE PERIOD

Who is the contractor on this award?

The obligated recipient is SRI INTERNATIONAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $10.7 million.

What is the period of performance?

Start: 2007-07-18. End: 2011-10-31.

What is SRI International's track record with the Department of Defense, particularly in research and development contracts?

SRI International has a long and established history of working with the Department of Defense and other federal agencies on a wide range of research and development projects. They are known for their expertise in areas such as advanced materials, sensors, robotics, and information technology. Their track record includes numerous successful contract completions, often involving complex scientific challenges and cutting-edge technological development. Analyzing their past performance metrics, such as on-time delivery, budget adherence, and technical success rates on similar DoD contracts, would provide further insight into their reliability and capability for this specific project. Their consistent engagement with the DoD suggests a strong understanding of federal acquisition processes and research requirements.

How does the $10.7 million base period cost compare to similar R&D contracts for physical sciences research?

The $10.7 million base period cost for this contract represents a significant investment in physical sciences research. To benchmark this value effectively, one would need to compare it against other definitive contracts awarded by the Defense Threat Reduction Agency (DTRA) or other Department of Defense entities for similar research and development efforts. Key comparison points would include the scope of work, the specific scientific disciplines involved, the duration of the research, and the qualifications of the performing organization. Without access to a comprehensive database of comparable contracts, it is challenging to definitively state whether this represents excellent, good, or fair value. However, the fact that it was awarded under full and open competition suggests that the pricing was deemed competitive and represented good value at the time of award.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for research and development, is the potential for cost overruns. Since the contractor is reimbursed for allowable costs plus a fixed fee, there can be less incentive to control expenses compared to fixed-price contracts. This can lead to the government paying more than initially anticipated if costs escalate. Mitigation strategies include robust government oversight, detailed cost tracking and auditing, clear definition of allowable costs, and strong program management to ensure the research stays within scope and objectives. The fixed fee itself provides some incentive for efficiency, as it does not increase with costs. Regular reviews and milestone assessments are critical to identifying and addressing potential cost issues early.

What is the expected program effectiveness or impact of this R&D contract?

The expected program effectiveness and impact of this R&D contract are tied to advancements in the physical, engineering, and life sciences that support the mission of the Defense Threat Reduction Agency (DTRA). While the specific research outcomes are not detailed, DTRA's mission focuses on countering weapons of mass destruction (WMD) and emerging threats. Therefore, the research likely aims to develop new technologies, methodologies, or scientific understanding that can enhance threat detection, analysis, mitigation, or response capabilities. The long-term impact could range from improved intelligence gathering and early warning systems to the development of novel defensive or offensive countermeasures. The success of the program will be measured by the scientific validity of the findings and their practical applicability to DTRA's strategic objectives.

How has federal spending in R&D (NAICS 541710) evolved over the past five years, and where does this contract fit?

Federal spending in Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710) has generally seen consistent investment, particularly driven by defense and health agencies. Over the past five years, there has been a notable emphasis on areas like artificial intelligence, biotechnology, advanced materials, and cybersecurity R&D. This specific contract, awarded in 2007 and with a base period ending in 2011, predates some of the most recent spending trends but falls within a consistent pattern of DoD investment in foundational scientific research. It represents a portion of the broader federal commitment to maintaining a technological edge. Understanding historical spending patterns for DTRA and similar agencies would reveal the typical allocation towards physical sciences R&D, contextualizing this $10.7 million award within a larger fiscal picture.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 50

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 94025

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

Financial Breakdown

Contract Ceiling: $15,514,028

Exercised Options: $15,514,028

Current Obligation: $10,720,189

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline