SRI INTERNATIONAL awarded $10.5M for R&D in Physical, Engineering, and Life Sciences by Dept. of Interior

Contract Overview

Contract Amount: $10,471,062 ($10.5M)

Contractor: SRI International

Awarding Agency: Department of the Interior

Start Date: 2004-11-04

End Date: 2006-06-30

Contract Duration: 603 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SRI INTERNATIONAL

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $10.5 million to SRI INTERNATIONAL for work described as: SRI INTERNATIONAL Key points: 1. Contract value appears reasonable for specialized R&D services. 2. Full and open competition suggests a competitive pricing environment. 3. Contract duration of 603 days indicates a medium-term project. 4. Performance in California aligns with known R&D hubs. 5. Research and Development sector is critical for innovation and future growth.

Value Assessment

Rating: good

The contract value of approximately $10.5 million for a 603-day period suggests a moderate investment in research and development. Without specific deliverables or comparable projects, a precise value-for-money assessment is challenging. However, given the nature of R&D, costs can fluctuate based on unforeseen challenges and discoveries. The fixed-fee component aims to control costs, but the cost-plus aspect allows for flexibility in addressing research complexities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 6 bidders suggests a healthy level of interest and competition for this research and development opportunity. This competitive process is expected to drive more favorable pricing and innovative solutions for the Department of the Interior.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that likely resulted in a more cost-effective award compared to a sole-source or limited competition scenario.

Public Impact

Benefits the Department of the Interior by advancing research in physical, engineering, and life sciences. Services delivered include research and development activities. Geographic impact is primarily in California, a known hub for technological and scientific advancement. Workforce implications include employment for researchers, scientists, and support staff at SRI International.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Contract includes a fixed-fee component, providing some cost certainty.
SRI International is a reputable research organization with a history of government contracts.

Sector Analysis

The contract falls within the Research and Development sector, specifically NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is characterized by innovation, intellectual property generation, and often long-term investment cycles. Spending in this area by government agencies is crucial for national competitiveness and addressing complex scientific and technological challenges. Comparable spending benchmarks would typically involve analyzing other R&D contracts awarded by the Department of the Interior or similar agencies for scientific research.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. SRI International is a large research organization. The absence of small business participation requirements means that opportunities for small businesses to engage in subcontracting on this specific award are not explicitly mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of expenses. Transparency is facilitated through contract award databases, though specific research methodologies and findings may be proprietary or subject to security classifications.

Related Government Programs

Department of the Interior Research Contracts
Federal Research and Development Spending
Scientific Research Grants
Engineering and Physical Sciences Research

Risk Flags

Research Uncertainty
Potential for Cost Overruns
Schedule Delays

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $10.5 million to SRI INTERNATIONAL. SRI INTERNATIONAL

Who is the contractor on this award?

The obligated recipient is SRI INTERNATIONAL.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2004-11-04. End: 2006-06-30.

What is SRI International's track record with federal R&D contracts?

SRI International has a substantial track record of securing and executing federal research and development contracts across various agencies, including the Department of Defense, National Science Foundation, and NASA, in addition to the Department of the Interior. Their expertise spans a wide range of scientific and technical disciplines. Analyzing their past performance on similar cost-plus-fixed-fee contracts would provide insight into their ability to manage budgets, adhere to timelines, and deliver on research objectives. Historical data suggests they are a frequent recipient of federal R&D funding, indicating a strong capability and established relationships within the government contracting ecosystem.

How does the $10.5 million contract value compare to similar R&D projects?

Assessing the $10.5 million contract value requires context regarding the scope, duration, and specific research objectives. For a 603-day (approximately 20-month) R&D project in specialized fields like physical, engineering, and life sciences, this figure represents a moderate investment. Larger, multi-year foundational research programs can easily exceed tens or hundreds of millions of dollars. Conversely, smaller, highly focused feasibility studies might cost significantly less. Benchmarking against other contracts awarded by the Department of the Interior or agencies like the National Institutes of Health (NIH) for similar scientific domains would provide a more precise comparison. The cost-plus-fixed-fee structure also implies that the final cost could vary, making direct comparisons with fixed-price contracts less straightforward.

What are the primary risks associated with this type of R&D contract?

The primary risks associated with this cost-plus-fixed-fee R&D contract include research uncertainty, cost overruns, and potential delays. R&D inherently involves exploring the unknown, meaning that objectives may not be met, or unforeseen technical challenges could significantly increase costs and extend timelines beyond initial estimates. The 'cost-plus' element means the government bears the risk of cost increases, provided they are reasonable and allocable to the contract. Another risk is the potential for scope creep, where the research objectives expand beyond the original intent without adequate adjustments to cost and schedule. Ensuring rigorous oversight and clear communication channels is crucial to mitigate these risks.

How effective is the 'Cost Plus Fixed Fee' contract type for R&D?

The Cost Plus Fixed Fee (CPFF) contract type is often employed for R&D due to the inherent uncertainties in research outcomes and costs. It provides flexibility for the contractor to incur necessary costs while offering the government a degree of cost control through the fixed fee, which is negotiated upfront and represents the contractor's profit. This structure incentivizes the contractor to control costs to maximize their fee, but it also places the primary cost risk on the government. For R&D where the scope is not precisely defined or technical challenges are anticipated, CPFF can be effective in allowing research to proceed while managing financial expectations. However, it requires robust oversight to ensure costs are reasonable and allocable.

What is the historical spending pattern for SRI International with the Department of the Interior?

Analyzing historical spending patterns between SRI International and the Department of the Interior (DOI) would reveal the frequency, value, and types of contracts awarded over time. A review of federal procurement data would indicate if this $10.5 million award is an outlier or part of a consistent engagement. Understanding this history can provide context on the agency's reliance on SRI International for specific research capabilities and whether spending has been increasing or decreasing. It also helps in assessing the long-term relationship and potential for future awards, contributing to a broader understanding of the agency's R&D investment strategy.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 90

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,514,146

Exercised Options: $10,514,146

Current Obligation: $10,471,062

Parent Contract

Parent Award PIID: IND03PC60083

IDV Type: IDC

Timeline