THE REGENTS OF THE UNIVERSITY OF CALIFORNIA

# Vendor Assessment: The Regents of the University of California

## Executive Summary

The Regents of the University of California demonstrates extreme agency concentration risk with 99.6% of total obligated value ($93.8B) derived from the Department of Energy across four awards. This singular dependency creates substantial vulnerability to policy shifts, budget reductions, or contract terminations within a single agency.

## Key Risk Metrics

Agency Concentration: DOE represents nearly the entire portfolio, while NASA ($393.1M) and Commerce ($184K) provide minimal diversification. The 3-agency spread offers negligible risk mitigation.

Contract Expiry Exposure: Only $61K expires within 18 months, indicating substantial contract stability in the near term. However, this low expiration figure suggests most DOE awards have extended durations, concentrating renewal risk into future periods.

NAICS Diversification: Four NAICS codes provide modest operational diversity, with R&D in physical/engineering sciences (3 awards) dominating. The portfolio spans research, manufacturing, and educational services, though revenue concentration remains problematic.

## Strategic Outlook

The Regents' position reflects its role as a premier research institution, but the 99.6% DOE dependency creates critical vulnerability. Recommended actions include: (1) actively pursuing NASA and Commerce expansion opportunities, (2) monitoring DOE budget cycles closely, and (3) leveraging existing research capabilities to diversify into Defense Department contracts. The organization's substantial award value ($94.2B) provides negotiating leverage, but portfolio rebalancing is essential for long-term stability.