DoD's $15.7M contract for EXCIS FSA SUPPORT awarded to University of Texas at Austin shows potential value concerns

Contract Overview

Contract Amount: $15,671,370 ($15.7M)

Contractor: University of Texas AT Austin

Awarding Agency: Department of Defense

Start Date: 2010-01-13

End Date: 2015-06-30

Contract Duration: 1,994 days

Daily Burn Rate: $7.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EXCIS FSA SUPPORT

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78713

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to UNIVERSITY OF TEXAS AT AUSTIN for work described as: EXCIS FSA SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Duration of 1,994 days (over 5 years) suggests a long-term need, but competition was not sought. 3. The contract's fixed-price nature offers some cost certainty, but without competition, benchmarks are difficult. 4. Performance context is limited due to the lack of competitive bids to establish a performance baseline. 5. Sector positioning within 'All Other Professional, Scientific, and Technical Services' is broad, making direct comparisons challenging. 6. Risk indicators include the sole-source award and the extended duration without competitive re-evaluation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the broad service category. Without competitive bids, it's difficult to assess if the $15.7 million price represents a fair market value or if alternative, more cost-effective solutions were overlooked. The University of Texas at Austin is a reputable institution, but the lack of competition raises questions about whether the government secured the best possible price and value for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning competition was not solicited. This approach bypasses the standard procurement process designed to encourage multiple bids and identify the most advantageous offer for the government. While sole-source awards can be justified under specific circumstances, the absence of competition here limits the government's ability to leverage market forces for better pricing and innovation.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the lack of competitive pressure to drive down costs. The absence of multiple bids means there was no direct comparison to gauge the reasonableness of the price offered.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Army, receiving professional, scientific, and technical services. The services delivered are categorized broadly as 'All Other Professional, Scientific, and Technical Services,' indicating a wide range of potential support functions. The geographic impact is centered in Texas, where the University of Texas at Austin is located, suggesting local or regional service delivery. Workforce implications would involve personnel from the University of Texas at Austin contributing to defense-related technical and scientific endeavors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for cost savings.
Extended contract duration without re-competition raises concerns about sustained value.
Broad service category makes it difficult to assess specific performance and value.
Lack of transparency in the justification for sole-source award.

Positive Signals

Award to a reputable academic institution suggests potential for high-quality service delivery.
Fixed-price contract provides some cost predictability for the government.
Long duration may indicate a stable, ongoing requirement met by the contractor.

Sector Analysis

This contract falls within the broad 'Professional, Scientific, and Technical Services' sector, which is a significant area of federal spending. This sector encompasses a wide array of services, from research and development to specialized consulting and technical support. Federal spending in this area often supports agency missions by providing expertise that may not be available in-house. Benchmarking is difficult due to the 'other' classification, but overall federal spending on professional services is in the hundreds of billions annually.

Small Business Impact

This contract does not appear to have involved small business set-asides, as indicated by the 'sb' field being false. The sole-source nature of the award further suggests that opportunities for small businesses to participate, either as prime contractors or subcontractors, were likely limited unless specifically included in the university's own subcontracting plans. The impact on the small business ecosystem is therefore minimal for this specific award.

Oversight & Accountability

Oversight mechanisms for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to the terms and conditions of the definitive contract, including performance standards and payment schedules. Transparency is limited due to the sole-source nature, with less public information available compared to competed contracts. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Professional Services Contracts
Research and Development Services
Scientific and Technical Support
University Research Contracts
Department of Defense Support Services

Risk Flags

Sole-source award
Lack of competitive bidding
Broad service category
Extended contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to UNIVERSITY OF TEXAS AT AUSTIN. EXCIS FSA SUPPORT

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 Army).

What is the total obligated amount?

The obligated amount is $15.7 million.

What is the period of performance?

Start: 2010-01-13. End: 2015-06-30.

What specific services were provided under the EXCIS FSA SUPPORT contract?

The contract description 'EXCIS FSA SUPPORT' and the North American Industry Classification System (NAICS) code '541990' (All Other Professional, Scientific, and Technical Services) indicate a broad range of support functions. While specific details are not provided in the data, these services likely encompassed technical analysis, research, scientific consulting, or other specialized professional support critical to the Department of the Army's mission. The University of Texas at Austin, as a research institution, would typically provide expertise in areas aligned with its academic strengths, potentially including data analysis, modeling, simulation, or specialized scientific research relevant to defense operations.

Why was this contract awarded on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of providing the required service. This could be due to unique capabilities, proprietary knowledge, or specific circumstances where competition is not feasible or not in the government's best interest. Without further documentation, it is impossible to definitively state the rationale, but it represents a departure from competitive procurement processes.

How does the $15.7 million contract value compare to similar services provided to the DoD?

Direct comparison of the $15.7 million contract value is difficult without knowing the precise services rendered and the contract's duration relative to its scope. However, the contract ran for approximately 1,994 days (over 5 years), making the annual value around $3 million. This figure is not exceptionally high for specialized professional services supporting a major agency like the Department of Defense, especially when considering the potential for long-term research or technical support needs. The primary concern regarding value stems not from the absolute dollar amount, but from the lack of competitive bidding to ensure the best possible price.

What is the track record of the University of Texas at Austin as a federal contractor?

The University of Texas at Austin, as a major research university, has a significant history of receiving federal funding and contracts, particularly from agencies like the Department of Defense, National Science Foundation, and National Institutes of Health. Its track record generally reflects a capacity to perform complex research and technical services. While specific performance metrics for this particular 'EXCIS FSA SUPPORT' contract are not detailed, universities are typically evaluated on their ability to meet research objectives, deliver findings, and manage project resources effectively. Their extensive experience in research and development suggests a strong foundation for fulfilling federal requirements.

What are the potential risks associated with a sole-source contract of this duration?

Sole-source contracts, especially those with a long duration like this 1,994-day award, carry inherent risks. Firstly, the absence of competition means the government may not be receiving the most cost-effective solution, potentially leading to overpayment. Secondly, without periodic re-competition, there's less incentive for the contractor to innovate or improve efficiency over time. Thirdly, the government's flexibility is reduced; if needs change or better solutions emerge, switching contractors can be difficult and costly. Finally, the justification for sole-source awards must be robust to ensure public funds are used appropriately and that the government isn't foregoing potential benefits from a competitive market.

How does the NAICS code 541990 inform our understanding of this contract?

The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' signifies that this contract does not fit neatly into more specific categories like engineering, computer systems design, or research and development in specific fields. This broad classification suggests the services provided could be diverse, potentially encompassing a mix of analytical, consulting, or technical support functions that are not easily categorized elsewhere. While it indicates a professional service engagement, the lack of specificity makes it challenging to benchmark against industry standards or identify precise performance metrics without additional contract details.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: University of Texas System (UEI: 042000273)

Address: 101 E 27TH STE 4308, AUSTIN, TX, 78712

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,896,165

Exercised Options: $15,896,165

Current Obligation: $15,671,370

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline