DoD's $2.67M Project Siren R&D Support Contract Raises Questions on Competition and Value

Contract Overview

Contract Amount: $2,674,022 ($2.7M)

Contractor: Southwest Research Institute

Awarding Agency: Department of Defense

Start Date: 2025-04-15

End Date: 2026-04-14

Contract Duration: 364 days

Daily Burn Rate: $7.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE PURPOSE FOR THIS REQUIREMENT IS TO PROVIDE ENGINEERING AND TECHNICAL SUPPORT TO PROCURE, DESIGN, DEVELOP AND HOST TEST ARTICLES THAT WILL AIDE IN THE VERIFICATION AND VALIDATION OF RESEARCH AND DEVELOPMENT CAPABILITIES FOR PROJECT SIREN.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78238

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $2.7 million to SOUTHWEST RESEARCH INSTITUTE for work described as: THE PURPOSE FOR THIS REQUIREMENT IS TO PROVIDE ENGINEERING AND TECHNICAL SUPPORT TO PROCURE, DESIGN, DEVELOP AND HOST TEST ARTICLES THAT WILL AIDE IN THE VERIFICATION AND VALIDATION OF RESEARCH AND DEVELOPMENT CAPABILITIES FOR PROJECT SIREN. Key points: 1. The contract aims to support R&D for Project Siren, focusing on verification and validation of capabilities. 2. Southwest Research Institute is the sole awardee, raising concerns about limited competition. 3. The 'Not Competed' status and Cost Plus Fixed Fee structure warrant scrutiny for potential cost overruns. 4. The R&D sector is critical, but oversight is needed to ensure taxpayer funds are used effectively.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type, combined with a 'Not Competed' award, makes it difficult to assess pricing against market benchmarks. Without competitive bidding, there's a risk of inflated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Southwest Research Institute. This limits price discovery and potentially leads to higher costs than a competitive process would yield.

Taxpayer Impact: The lack of competition raises concerns about whether the government secured the best possible price for these critical R&D engineering and technical support services.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The specific R&D capabilities being developed are not detailed, limiting public understanding of the investment. The contract duration of one year (with potential for extensions) suggests ongoing needs for these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Cost Plus Fixed Fee contract type
  • Lack of transparency on specific R&D outcomes

Positive Signals

  • Supports critical R&D capabilities
  • Awarded to a known entity in the research field

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences category (NAICS 541715). Spending in this sector is crucial for innovation but requires rigorous oversight to ensure efficient use of funds.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The 'Not Competed' status necessitates strong oversight from the Defense Threat Reduction Agency to ensure the contractor is meeting all performance requirements and that costs are reasonable and allocable.

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

  • Potential for overpayment due to sole-source award.
  • Lack of transparency regarding specific R&D deliverables.
  • Cost Plus Fixed Fee structure can incentivize higher spending.
  • No clear indication of small business participation.
  • Limited public information on the necessity of a sole-source approach.

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 $2.7 million to SOUTHWEST RESEARCH INSTITUTE. THE PURPOSE FOR THIS REQUIREMENT IS TO PROVIDE ENGINEERING AND TECHNICAL SUPPORT TO PROCURE, DESIGN, DEVELOP AND HOST TEST ARTICLES THAT WILL AIDE IN THE VERIFICATION AND VALIDATION OF RESEARCH AND DEVELOPMENT CAPABILITIES FOR PROJECT SIREN.

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 $2.7 million.

What is the period of performance?

Start: 2025-04-15. End: 2026-04-14.

What specific R&D capabilities are being developed under Project Siren, and how do they align with national security objectives?

The provided data does not specify the exact R&D capabilities. The purpose is to 'procure, design, develop and host test articles that will aide in the verification and validation of research and development capabilities.' Further details would be needed to understand their alignment with national security objectives, but the context of the Defense Threat Reduction Agency suggests a focus on defense-related advancements.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for the sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. Steps to ensure fair and reasonable pricing would normally involve cost analysis, but this is challenging without a competitive baseline.

How will the effectiveness and impact of the developed test articles and R&D capabilities be measured and validated?

The contract explicitly states the purpose is to 'aide in the verification and validation of research and development capabilities.' While this indicates a focus on validation, the specific metrics, methodologies, and success criteria for measuring the effectiveness of the test articles and the resulting R&D capabilities are not detailed in the provided information.

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: HDTRA125RE010

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: $8,514,000

Exercised Options: $2,674,022

Current Obligation: $2,674,022

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $334,420

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: 2025-04-15

Current End Date: 2026-04-14

Potential End Date: 2029-04-14 00:00:00

Last Modified: 2026-01-06

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