Defense Threat Reduction Agency contract for applied research awarded to Applied Research Associates, Inc. for over $97.9 million

Contract Overview

Contract Amount: $31,705,077 ($31.7M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-09-30

End Date: 2006-10-31

Contract Duration: 1,127 days

Daily Burn Rate: $28.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: 200312!001053!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0103D0014 !A!N! !N!0001 !20030930!20060930!097967608!097967608!097967608!N!APPLIED RESEARCH ASSOCIATES, I!4300 SAN MATEO BLVD NE, SU!ALBUQUERQUE !NM!87110!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000002123894!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !541511!A!A!5!B!S! ! !D!20060930!B! ! !A! !A!U!R!1!002!B! !Z!N!Z! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: RALEIGH, WAKE County, NORTH CAROLINA, 27615

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $31.7 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: 200312!001053!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0103D0014 !A!N! !N!0001 !20030930!20060930!097967608!097967608!097967608!N!APPLIED RESEARCH ASSOCIATES, I!4300 SAN MATEO BLVD NE, SU!ALBUQUERQUE !NM!87110!02000!001!35!ALBUQUERQUE !BERNA… Key points: 1. Contract awarded for applied research and development in physical, engineering, and life sciences. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 4. The contract duration was over three years, suggesting a significant project scope. 5. The primary contractor, Applied Research Associates, Inc., is based in New Mexico. 6. The contract falls under the Research and Development in Physical, Engineering, and Life Sciences NAICS code.

Value Assessment

Rating: fair

The total award amount for this contract was over $97.9 million. Without specific benchmarks for similar applied research contracts within the Department of Defense, it is difficult to definitively assess value for money. The Cost Plus Award Fee (CPAF) contract type suggests that performance incentives were in place, which can lead to better outcomes but also potentially higher costs if award fees are consistently met. Further analysis would require comparing the delivered research outcomes and their impact against the total cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The data indicates there were 5 bids received. This level of competition is generally positive for price discovery and can lead to more favorable pricing for the government. The presence of multiple bidders suggests a healthy market for these types of applied research services.

Taxpayer Impact: The full and open competition indicates that taxpayers benefited from a process designed to solicit the best possible offers, likely resulting in a more competitive price than a sole-source award.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Threat Reduction Agency, which receives advanced research capabilities. The services delivered are in the domain of applied research, likely contributing to national security and threat reduction strategies. The geographic impact is centered around the contractor's location in Albuquerque, New Mexico, and potentially extends to research facilities and personnel involved. Workforce implications include employment for scientists, engineers, and support staff at Applied Research Associates, Inc. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee structure can lead to higher costs if award fees are consistently achieved, potentially exceeding initial cost estimates.
The specific nature of 'applied research' can make it challenging to define clear, measurable deliverables upfront, potentially leading to scope creep or performance issues.
The duration of the contract (over 3 years) increases the risk of market shifts or technological obsolescence impacting the relevance of the research.

Positive Signals

Awarded under full and open competition with 5 bids, suggesting a competitive environment that should drive value.
The Cost Plus Award Fee structure incentivizes contractor performance, aiming for higher quality research outcomes.
The contract is for applied research, which is critical for advancing defense capabilities and addressing emerging threats.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation and the pursuit of new knowledge and technologies. Comparable spending benchmarks would involve analyzing other R&D contracts awarded by the Department of Defense and other federal agencies for similar applied research efforts. The market size for defense-related R&D is substantial, driven by the need for technological superiority and threat mitigation.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. The primary contractor, Applied Research Associates, Inc., is a large business. There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited, though large prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. Accountability measures are embedded within the Cost Plus Award Fee structure, which links contractor compensation to performance. Transparency is generally maintained through contract awards databases, though specific research details might be classified or proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Research and Development
Applied Scientific Research
Threat Reduction Programs
Advanced Technology Development
Federal R&D Spending

Risk Flags

Potential for cost overruns due to CPAF structure
Difficulty in defining and measuring performance for award fees in R&D
Risk of research becoming obsolete due to rapid technological change
Contract duration may not align with evolving threat landscapes

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.7 million to APPLIED RESEARCH ASSOCIATES, INC.. 200312!001053!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0103D0014 !A!N! !N!0001 !20030930!20060930!097967608!097967608!097967608!N!APPLIED RESEARCH ASSOCIATES, I!4300 SAN MATEO BLVD NE, SU!ALBUQUERQUE !NM!87110!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000002123894!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !541511!A!A!5!B!S! ! !D!20060930!B

Who is the contractor on this award?

The obligated recipient is APPLIED RESEARCH ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $31.7 million.

What is the period of performance?

Start: 2003-09-30. End: 2006-10-31.

What specific areas of applied research did this contract cover, and what were the key objectives?

The contract data indicates the NAICS code 541710, which covers 'Research and Development in the Physical, Engineering, and Life Sciences.' While the specific research objectives are not detailed in the provided summary data, contracts under this code typically involve scientific inquiry and experimentation aimed at discovering or developing new knowledge and capabilities. For the Defense Threat Reduction Agency (DTRA), these objectives likely relate to understanding and countering existing and emerging threats, potentially including areas like weapons of mass destruction, advanced materials, or novel defense technologies. The 'Applied Research Associates, Inc.' name suggests a focus on practical applications of scientific findings.

How does the $97.9 million award amount compare to other DTRA applied research contracts?

To provide a precise comparison, a detailed analysis of DTRA's historical contract awards for applied research within the physical, engineering, and life sciences would be necessary. However, $97.9 million is a substantial sum, indicating a significant project or a series of related research efforts over the contract's duration. DTRA's budget for research, development, testing, and evaluation (RDT&E) is in the billions annually. This contract represents a notable portion of that RDT&E spending, suggesting it addressed a high-priority area for the agency. Without access to a comprehensive database of DTRA's applied research contracts, a direct benchmark is difficult, but it is likely a mid-to-large-sized award within its category.

What are the potential risks associated with a Cost Plus Award Fee (CPAF) contract for applied research?

CPAF contracts, while incentivizing performance, carry inherent risks. For applied research, a key risk is the difficulty in objectively defining and measuring 'performance' to determine award fees. This can lead to disputes between the government and the contractor over whether objectives were met. Another risk is that the contractor may focus on achieving award fee criteria rather than the most critical research outcomes, or conversely, the government may set overly ambitious award fee targets that are unattainable. Furthermore, the 'cost plus' nature means the government reimbursesthe contractor for allowable costs, plus a fee that includes a base fee and an award fee. If not managed tightly, costs can escalate, and the award fee component can significantly increase the total contract value beyond initial projections, especially if the contractor consistently meets or exceeds performance expectations.

What is the significance of Applied Research Associates, Inc. being based in Albuquerque, New Mexico, for this contract?

The location of Applied Research Associates, Inc. in Albuquerque, New Mexico, is significant primarily from a logistical and economic perspective. It indicates that a portion of the federal R&D spending is directed towards businesses in this region, potentially creating jobs and stimulating the local economy. Albuquerque has a history of supporting scientific and technological endeavors, partly due to the presence of national laboratories like Sandia and Los Alamos. For DTRA, awarding a contract to a New Mexico-based firm might leverage existing regional expertise or infrastructure. However, the core value of the contract lies in the research outcomes, regardless of the contractor's physical location, assuming effective remote collaboration or necessary on-site work is managed.

How does the contract's end date of October 31, 2006, reflect the typical lifecycle of applied research projects?

The contract's duration, spanning from September 30, 2003, to October 31, 2006 (approximately three years and one month), is a reasonable timeframe for many applied research projects. Applied research aims to solve practical problems or develop new applications based on existing knowledge. Such projects often involve iterative processes of experimentation, analysis, and refinement. A multi-year duration allows for in-depth investigation, development of prototypes, and testing of concepts. However, the pace of technological advancement means that research initiated over three years ago might already be facing challenges from newer discoveries or evolving threat landscapes by its completion date. The effectiveness of the research would depend on its adaptability and the relevance of its findings at the time of completion and beyond.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 4300 SAN MATEO BLVD NE STE A220, ALBUQUERQUE, NM, 87110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTRA0103D0014

IDV Type: IDC

Timeline