DoD's $9.28M R&D Contract for FIRES Test Instrumentation Awarded to University of Texas at Austin

Contract Overview

Contract Amount: $9,284,990 ($9.3M)

Contractor: University of Texas AT Austin

Awarding Agency: Department of Defense

Start Date: 2023-03-02

End Date: 2026-09-01

Contract Duration: 1,279 days

Daily Burn Rate: $7.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FIRES TEST AND EVALUATION INSTRUMENTATION - PHASE 2

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78713

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $9.3 million to UNIVERSITY OF TEXAS AT AUSTIN for work described as: FIRES TEST AND EVALUATION INSTRUMENTATION - PHASE 2 Key points: 1. Contract focuses on advanced research and development in physical and engineering sciences. 2. Sole-source award to a university suggests a focus on specialized academic expertise. 3. Long contract duration of over three years indicates a complex, multi-phase project. 4. The contract type (Cost Plus Fixed Fee) is common for R&D where costs are uncertain. 5. Performance is located in Texas, potentially benefiting the local research and tech ecosystem. 6. No small business set-aside or subcontracting was indicated, suggesting direct performance by the prime.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific deliverables or comparable projects. The Cost Plus Fixed Fee structure is typical for research where final costs are difficult to predict, but it can lead to cost overruns if not managed carefully. The fixed fee component provides some cost control, but the overall value will depend on the successful completion of research objectives and the novelty of the outcomes.

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 considered. This approach is often used when a specific entity possesses unique capabilities or intellectual property essential for the project, such as a university with specialized research expertise. The lack of competition means there was no opportunity for price discovery through a bidding process, which could potentially lead to higher costs than if multiple vendors had competed.

Taxpayer Impact: For taxpayers, a sole-source award means the government did not leverage competitive pressures to potentially lower the contract price. While justified for unique expertise, it necessitates robust oversight to ensure fair pricing and efficient use of funds.

Public Impact

The primary beneficiary is the Department of Defense, which will receive advanced instrumentation for testing. The University of Texas at Austin benefits through research funding and the opportunity to advance its scientific capabilities. The contract supports research and development activities within the physical and engineering sciences. The geographic impact is primarily in Texas, where the research and development activities will be conducted. Workforce implications include employment for researchers, engineers, and support staff at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not closely monitored.
Lack of transparency in the sole-source justification requires careful review.
Long contract duration increases the potential for scope creep or changing requirements.
No indication of small business involvement may limit broader economic impact.

Positive Signals

Award to a reputable university suggests access to specialized expertise and cutting-edge research.
Focus on R&D aligns with the DoD's need for technological advancement.
Fixed fee component provides some level of cost predictability for the contractor's effort.
Clear performance period (2023-2026) allows for structured project management.
Specific NAICS code (541712) indicates a focus on relevant scientific and technical research.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is highly specialized, often involving universities and research institutions due to their expertise and facilities. Comparable spending in this sector can vary widely based on the specific research area and technological maturity, but significant government investment is typical for advancing defense capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside, nor is there an indication of small business subcontracting. The award to a large university suggests the primary performer is expected to handle the scope of work directly. This approach may limit opportunities for small businesses to participate in this specific contract, although the university might engage small businesses in other capacities not detailed here.

Oversight & Accountability

Oversight for this sole-source R&D contract will likely be managed by the Department of the Navy's contracting and technical officers. Given the Cost Plus Fixed Fee structure, rigorous monitoring of expenditures against the fixed fee and adherence to research milestones will be crucial. Transparency will depend on the reporting requirements stipulated in the contract and the agency's commitment to making relevant information publicly accessible.

Related Government Programs

Department of Defense Research and Development Programs
University Research Partnerships
Advanced Instrumentation Development
Test and Evaluation Support Services

Risk Flags

Sole-source award requires justification for lack of competition.
Cost Plus Fixed Fee contract necessitates robust cost monitoring.
Long duration increases risk of requirement changes or cost escalation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.3 million to UNIVERSITY OF TEXAS AT AUSTIN. FIRES TEST AND EVALUATION INSTRUMENTATION - PHASE 2

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $9.3 million.

What is the period of performance?

Start: 2023-03-02. End: 2026-09-01.

What specific FIRES test and evaluation instrumentation is being developed under this contract?

The contract details refer to 'FIRES TEST AND EVALUATION INSTRUMENTATION - PHASE 2,' suggesting this is a follow-on effort building upon previous work. While the specific nature of the instrumentation is not detailed in the provided data, it likely pertains to systems or equipment used for testing and evaluating fire-related technologies or systems within a defense context. This could range from sensors and data acquisition systems to simulation tools or physical testing apparatus designed to replicate extreme conditions relevant to defense applications. Further details would typically be found in the contract's statement of work.

How does the $9.28 million cost compare to similar R&D contracts for instrumentation?

Benchmarking this $9.28 million contract against similar R&D efforts is challenging without more specific details on the instrumentation's complexity, technological novelty, and intended application. However, for specialized defense R&D, particularly involving advanced instrumentation and conducted by a leading research institution like the University of Texas at Austin, this figure appears within a plausible range. Contracts for developing unique testing equipment or advanced sensor suites can easily reach millions of dollars, especially when factoring in the extensive research, design, prototyping, and testing phases required. The sole-source nature, however, means direct cost comparisons with competitive bids are not possible.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks with a CPFF contract, especially in R&D, revolve around cost control and potential overruns. While the 'fixed fee' provides a defined profit margin for the contractor, the 'cost plus' portion means the government reimburses the contractor's allowable costs. If the R&D effort proves more complex or requires more resources than initially estimated, the total cost to the government can escalate significantly beyond initial projections. Effective risk mitigation requires stringent oversight of incurred costs, clear definition of allowable expenses, and robust monitoring of project progress against milestones to ensure the contractor is operating efficiently and effectively towards the research objectives.

What is the significance of awarding this contract to the University of Texas at Austin?

Awarding this contract to the University of Texas at Austin signifies the Department of the Navy's recognition of the university's specialized expertise and capabilities in the relevant field of physical and engineering sciences. Universities are often chosen for R&D contracts due to their access to leading researchers, state-of-the-art facilities, and a pipeline of innovative ideas. This specific award suggests that UT Austin likely possesses unique intellectual property, research infrastructure, or a proven track record in developing advanced instrumentation pertinent to the 'FIRES' program, making them the most suitable, or perhaps only, entity capable of fulfilling the requirement.

What are the potential long-term benefits of this R&D investment for the Department of Defense?

The long-term benefits of this R&D investment for the Department of Defense are centered on enhancing its testing and evaluation capabilities, which directly impacts readiness and technological superiority. By developing advanced instrumentation, the DoD can more accurately and efficiently assess the performance of new weapon systems, materials, or technologies under realistic conditions. This leads to better-informed acquisition decisions, improved system reliability, and potentially faster development cycles for critical defense capabilities. Ultimately, this investment aims to ensure that military assets are rigorously tested and validated, contributing to mission success and the safety of personnel.

How does the contract's duration (1279 days) impact project management and oversight?

The contract's duration of approximately 3.5 years (1279 days) necessitates a phased approach to project management and sustained oversight. For the contractor, it allows for a comprehensive development lifecycle, from initial research and design through prototyping, testing, and refinement. For the government, it requires consistent engagement from contracting officers and technical monitors to ensure progress aligns with objectives, manage potential scope changes, and control costs throughout the extended period. Regular reviews, milestone tracking, and performance assessments are critical to maintaining accountability and ensuring the project stays on track and within budget over this long timeframe.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $9,285,000

Exercised Options: $9,285,000

Current Obligation: $9,284,990

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002417D6421

IDV Type: IDC

Timeline