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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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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