DARPA Awards $115M Research Contract to University of Texas for Physical Sciences R&D

Contract Overview

Contract Amount: $11,537,490 ($11.5M)

Contractor: University of Texas AT Austin

Awarding Agency: Department of Defense

Start Date: 2023-09-01

End Date: 2027-04-30

Contract Duration: 1,337 days

Daily Burn Rate: $8.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DARPA RESEARCH PROJECT SUPPORT SERVICES

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78758

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to UNIVERSITY OF TEXAS AT AUSTIN for work described as: DARPA RESEARCH PROJECT SUPPORT SERVICES Key points: 1. Significant investment in advanced research and development. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (1337 days) requires ongoing oversight. 4. Focus on physical sciences R&D aligns with DARPA's mission.

Value Assessment

Rating: questionable

The contract value of $115.37 million for a 1337-day period is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value. Benchmarking against similar R&D contracts is challenging due to the specialized nature of DARPA projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This limits price discovery and potentially leads to higher costs compared to a competitive process. The justification for the sole-source award needs careful review.

Taxpayer Impact: Taxpayer funds are being allocated without the benefit of competitive pricing, potentially resulting in a less efficient use of resources.

Public Impact

Advancement of scientific knowledge in physical sciences. Potential for groundbreaking technological innovations. Long-term commitment to a single research institution. Impact on the broader scientific research community.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Sole-source justification
  • Cost-plus contract type

Positive Signals

  • Supports critical R&D mission
  • Long-term research focus

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for national security and technological advancement, but often involves high risk and uncertainty. Benchmarks are difficult due to the unique nature of DARPA's research.

Small Business Impact

This contract was not awarded to a small business. The focus on specialized research by a large institution like the University of Texas means small businesses are unlikely to be involved as prime contractors.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the contractor is performing effectively and that costs are reasonable. Regular reviews of progress and expenditures are critical for accountability.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Defense Advanced Research Projects Agency Programs

Risk Flags

  • Lack of competitive bidding
  • Sole-source award
  • Cost-plus contract type
  • Long contract duration
  • Potential for cost overruns

Tags

research-and-development-in-the-physical, department-of-defense, tx, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to UNIVERSITY OF TEXAS AT AUSTIN. DARPA RESEARCH PROJECT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF TEXAS AT AUSTIN.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2023-09-01. End: 2027-04-30.

What is the specific justification for awarding this contract on a sole-source basis, and has it been adequately documented and approved?

The justification for a sole-source award typically centers on the unique capabilities of the contractor, the urgency of the requirement, or the lack of adequate competition. For DARPA projects, this often relates to highly specialized expertise or proprietary technology. A thorough review of the official justification documentation is necessary to confirm its validity and ensure it meets regulatory requirements.

How will the agency ensure cost control and prevent potential overruns in this Cost Plus Fixed Fee (CPFF) contract, given the lack of competition?

With a CPFF contract and no competition, oversight is paramount. The agency must implement stringent monitoring of the contractor's costs, performance metrics, and adherence to the fixed fee. Regular audits, detailed progress reports, and clear communication channels are essential to identify and address any potential cost escalations proactively.

What are the key performance indicators (KPIs) for this research project, and how will their achievement be measured to determine the overall effectiveness of the contract?

Effectiveness will be measured against specific, measurable, achievable, relevant, and time-bound (SMART) KPIs defined in the contract. These could include milestones like successful prototype development, publication of research findings, patent applications, or successful demonstration of new technologies. Regular technical reviews will assess progress against these KPIs.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10000 BURNET RD, AUSTIN, TX, 78758

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $16,714,040

Exercised Options: $16,714,040

Current Obligation: $11,537,490

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2023-09-01

Current End Date: 2027-04-30

Potential End Date: 2027-04-30 00:00:00

Last Modified: 2025-12-28

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