DoD Awards $7.2M for Engineering Services to Southwest Research Institute, Lacking Competition
Contract Overview
Contract Amount: $7,241,565 ($7.2M)
Contractor: Southwest Research Institute
Awarding Agency: Department of Defense
Start Date: 2023-06-18
End Date: 2026-03-14
Contract Duration: 1,000 days
Daily Burn Rate: $7.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ENGINEERING SERVICES
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78238
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $7.2 million to SOUTHWEST RESEARCH INSTITUTE for work described as: ENGINEERING SERVICES Key points: 1. Significant award for specialized engineering services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on R&D in physical, engineering, and life sciences. 4. Contract duration extends into 2026, indicating a long-term need.
Value Assessment
Rating: fair
The contract value of $7.2M is a significant investment. Without competitive bids, it's difficult to assess if this price is optimal compared to similar R&D engineering services contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs than if multiple vendors had bid.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible value for these engineering services.
Public Impact
Award supports critical research and development for the Defense Threat Reduction Agency. Long-term contract (through March 2026) suggests ongoing program support. Potential for innovation in physical, engineering, and life sciences.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Cost-plus fixed fee contract type
Positive Signals
- Supports critical defense agency
- Long-term engagement
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had opportunities to participate.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure proper justification and that the government obtained fair and reasonable pricing.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Cost-plus contract type
- No small business participation indicated
Tags
research-and-development-in-the-physical, department-of-defense, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.2 million to SOUTHWEST RESEARCH INSTITUTE. ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is SOUTHWEST RESEARCH INSTITUTE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $7.2 million.
What is the period of performance?
Start: 2023-06-18. End: 2026-03-14.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. Without this information, it's impossible to fully assess the necessity of bypassing the competitive bidding process and its potential impact on cost-effectiveness.
How does the cost-plus fixed fee structure impact overall cost control for this R&D contract?
Cost-plus fixed fee contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. While it incentivizes cost control to some extent, it can also lead to cost overruns if not closely monitored. The fixed fee component is negotiated upfront, but the total cost can still escalate.
What are the specific deliverables and expected outcomes for these engineering services?
Understanding the specific deliverables and expected outcomes is crucial for evaluating the effectiveness of this contract. Without knowing the precise goals, it's challenging to determine if the $7.2M investment will yield the desired technological advancements or solutions for the Defense Threat Reduction Agency.
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
Solicitation ID: HDTRA118R0004
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6220 CULEBRA RD, SAN ANTONIO, TX, 78238
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: $17,054,884
Exercised Options: $10,418,980
Current Obligation: $7,241,565
Actual Outlays: $1,125,977
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA118D0002
IDV Type: IDC
Timeline
Start Date: 2023-06-18
Current End Date: 2026-03-14
Potential End Date: 2028-06-17 00:00:00
Last Modified: 2026-01-13
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