DoD's $51.3M R&D contract for technical reachback services awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $51,349,162 ($51.3M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-12-11

End Date: 2020-03-15

Contract Duration: 1,921 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TECHNICAL REACHBACK SERVICES, O&M

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $51.3 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: TECHNICAL REACHBACK SERVICES, O&M Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract (1921 days) indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541712 points to R&D in physical, engineering, and life sciences. 5. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The small business set-aside flag is false, meaning it was not specifically targeted for small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more data on comparable technical reachback services. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. While the total award amount is $51.3 million, the actual final cost could vary based on the fixed fee and the contractor's ability to manage expenses within the defined scope. Further analysis would require comparing the contractor's performance and pricing against similar R&D service contracts within the Department of Defense or other federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the Defense Threat Reduction Agency sought the best value from the widest possible pool of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages innovation among bidders.

Public Impact

The Department of Defense benefits from advanced technical reachback services, enhancing its operational capabilities. Services delivered likely support research and development in physical, engineering, and life sciences, crucial for national security. The geographic impact is primarily within the Department of Defense's operational theaters, though the R&D itself may be conducted at contractor facilities. Workforce implications include employment for scientists, engineers, and technical specialists involved in research and development activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not rigorously monitored.
Lack of specific bidder count limits assessment of true competitive intensity.
The nature of 'technical reachback services' is broad and may require further definition for precise performance evaluation.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified vendors.
Contract duration suggests a sustained need and potential for long-term partnership.
Applied Research Associates, Inc. is a known entity in the defense R&D sector.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This sector is critical for maintaining technological superiority and addressing evolving threats. Spending in this area is often characterized by long-term investments, specialized expertise, and a high degree of innovation. Comparable spending benchmarks would involve analyzing other R&D contracts within defense agencies for similar technical services, considering factors like contract type, duration, and specific scientific disciplines involved.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. This means that opportunities for small businesses to participate in this specific contract are likely limited unless they are prime contractors or choose to subcontract independently. The absence of a small business set-aside suggests the requirement was either too specialized or the pool of large businesses was deemed more capable or cost-effective for this particular need.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). The Cost Plus Fixed Fee structure necessitates close monitoring of allowable costs and the contractor's performance against the fixed fee. Transparency is generally maintained through contract reporting mechanisms, but specific details on public accessibility of performance metrics or cost breakdowns would depend on agency policies and classification levels. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Technical Support Services
Engineering and Scientific Services
Applied Research Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration requires sustained oversight.
Nature of 'technical reachback services' may be broad, requiring clear performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.3 million to APPLIED RESEARCH ASSOCIATES, INC.. TECHNICAL REACHBACK SERVICES, O&M

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 $51.3 million.

What is the period of performance?

Start: 2014-12-11. End: 2020-03-15.

What is the track record of Applied Research Associates, Inc. with the Department of Defense for similar R&D contracts?

Applied Research Associates, Inc. (ARA) has a history of working with the Department of Defense on various research and development projects. While specific details on their track record for 'technical reachback services' under a CPFF contract of this magnitude require deeper database analysis, ARA is generally known for its expertise in areas such as advanced materials, structural engineering, and defense-related research. Their past performance with DoD agencies would be a key factor in assessing their capability to successfully execute this contract. A review of their contract history would reveal the types of projects undertaken, their performance ratings, and any significant issues encountered. This information is crucial for understanding their reliability and effectiveness in delivering complex R&D solutions within the defense sector.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D services in terms of cost control?

The Cost Plus Fixed Fee (CPFF) contract type is often used for R&D where the scope of work is not precisely defined at the outset, allowing for flexibility as the project evolves. However, it presents a higher risk for cost overruns compared to fixed-price contracts. In a CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize contractors to incur more costs, as their fee remains constant regardless of the total project expenditure, unless incentives for cost reduction are explicitly built in. For better cost control in R&D, contracts like Firm-Fixed-Price (FFP) or Fixed-Price Incentive (FPI) are generally preferred, as they place more cost risk on the contractor and provide stronger incentives to manage expenses efficiently. Rigorous oversight and detailed cost tracking are essential for managing CPFF contracts effectively.

What are the potential risks associated with 'technical reachback services' in a defense R&D context?

Potential risks associated with 'technical reachback services' in a defense R&D context are multifaceted. Firstly, there's the risk of scope creep, where the definition of 'reachback' services expands beyond the original intent, leading to increased costs and delays, especially under a CPFF contract. Secondly, data security and intellectual property protection are paramount; ensuring sensitive technical information is transmitted and handled securely across potentially disparate locations poses a significant challenge. Thirdly, the effectiveness of the 'reachback' is dependent on reliable communication infrastructure and timely access to expertise, which can be vulnerable to disruptions. Finally, ensuring the technical advice provided is accurate, actionable, and directly contributes to mission objectives requires robust quality assurance and performance metrics, which can be difficult to establish and measure for highly specialized R&D support.

What is the typical duration for R&D contracts of this nature within the Department of Defense?

The typical duration for R&D contracts of this nature within the Department of Defense can vary significantly based on the complexity, technological maturity, and strategic importance of the research. Contracts can range from short-term feasibility studies lasting a few months to multi-year programs spanning five to ten years or even longer for foundational research or major system development. A contract duration of 1921 days (approximately 5.25 years), as seen in this case, is not uncommon for significant R&D efforts that require iterative development, testing, and refinement. Longer durations often reflect the inherent uncertainties in R&D, the need for sustained effort to achieve breakthroughs, and the phased nature of funding and project milestones common in defense research.

How does the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) align with the contract description 'TECHNICAL REACHBACK SERVICES, O&M'?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' aligns well with the contract description 'TECHNICAL REACHBACK SERVICES, O&M' when considering the broader context of defense operations. 'Technical reachback' implies providing specialized scientific and engineering expertise remotely to support ongoing operations or specific technical challenges. This often involves research, analysis, and problem-solving that falls under physical and engineering sciences. The 'O&M' (Operations and Maintenance) aspect, when coupled with R&D, could refer to the maintenance of specialized research equipment, the operationalization of research findings, or providing ongoing technical support that requires continuous R&D input. Therefore, the R&D code is appropriate as the core function likely involves applying scientific and engineering knowledge to solve technical problems, even if it includes operational support elements.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HDTRA108R0010

Pricing Type: COST PLUS FIXED FEE (U)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,332,215

Exercised Options: $52,308,184

Current Obligation: $51,349,162

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $6,081,732

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA109D0009

IDV Type: IDC

Timeline