DoD's $20.8M R&D contract for TWAC analysis support awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $20,852,793 ($20.9M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-04-25

End Date: 2019-04-30

Contract Duration: 1,831 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CT::IGF TWAC ANALYSIS SUPPORT - R425

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: IGF::CT::IGF TWAC ANALYSIS SUPPORT - R425 Key points: 1. Contract awarded through 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 is over 1800 days, indicating a long-term need for these services. 4. The contract was awarded by the Defense Threat Reduction Agency, highlighting its strategic importance. 5. The North American Industry Classification System (NAICS) code 541712 points to specialized R&D services. 6. The contract value is substantial, reflecting the complexity and criticality of the TWAC analysis support.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to the specialized nature of TWAC analysis support. The Cost Plus Fixed Fee (CPFF) contract type means the final cost is not fixed upfront, making direct price comparisons difficult without detailed cost breakdowns. However, the contract value of approximately $20.8 million over five years suggests a significant investment in this capability. Further analysis would require understanding the scope of work and comparing it to similar R&D efforts within the defense sector.

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 number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The agency sought proposals from a wide range of qualified contractors, aiming to secure the best value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages a broader pool of contractors to participate, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the Department of Defense and its agencies, which receive critical TWAC analysis support. The services delivered are specialized research and development, likely contributing to national security and threat assessment. The geographic impact is primarily within the United States, where the contractor is based and services are performed. Workforce implications include employment for highly skilled researchers and analysts in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not rigorously monitored.
The long duration of the contract could lead to scope creep or misalignment with evolving defense needs.
The specialized nature of the R&D may limit the number of qualified bidders, potentially impacting competition.
Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contractor, Applied Research Associates, Inc., is likely experienced in specialized R&D, indicating a degree of capability.
The contract supports critical defense functions, aligning with national security objectives.
The fixed fee component of the CPFF contract provides some level of cost predictability for the government.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The defense R&D market is characterized by significant government investment, driven by national security imperatives. Companies like Applied Research Associates, Inc. operate in a niche requiring specialized scientific and technical expertise. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the Department of Defense or other federal agencies for similar scientific support services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified in the contract's statement of work. The focus is on specialized R&D capabilities typically held by larger, established firms. The impact on the small business ecosystem would be minimal, as the primary awardee is a large business.

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 costs and performance to ensure value for money and prevent overruns. Transparency is generally maintained through contract reporting mechanisms, though detailed cost breakdowns may be proprietary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Defense Threat Reduction Agency Programs
Scientific and Technical Support Services
Advanced Research Projects Agency (ARPA) Contracts
National Security Research Initiatives

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Alignment with Evolving Threats
Performance Measurement Difficulty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to APPLIED RESEARCH ASSOCIATES, INC.. IGF::CT::IGF TWAC ANALYSIS SUPPORT - R425

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 $20.9 million.

What is the period of performance?

Start: 2014-04-25. End: 2019-04-30.

What is the specific nature of the TWAC analysis support provided under this contract?

TWAC analysis support likely refers to Threat, Warning, and Assessment Capabilities. This specialized R&D contract with Applied Research Associates, Inc. by the Defense Threat Reduction Agency (DTRA) would involve developing, refining, or applying analytical methodologies and tools to assess potential threats, predict warning indicators, and evaluate the effectiveness of countermeasures or response strategies. This could encompass areas such as WMD proliferation, emerging technologies, or adversarial tactics. The specific deliverables would be detailed in the contract's Statement of Work, potentially including reports, simulations, software, or expert consultations, all aimed at enhancing DTRA's intelligence and operational planning capabilities.

How does the Cost Plus Fixed Fee (CPFF) contract structure impact cost control and value for money?

The Cost Plus Fixed Fee (CPFF) contract structure involves the government reimbursing the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used for R&D or services where the scope is not precisely defined at the outset, allowing flexibility. However, it carries a risk of cost escalation if the contractor's costs exceed projections, as the government bears the brunt of cost overruns. Value for money is contingent on robust government oversight, clear performance metrics, and effective negotiation of the fixed fee. Without stringent cost controls and performance monitoring, CPFF contracts can be less cost-effective than fixed-price arrangements.

What is the track record of Applied Research Associates, Inc. in similar defense R&D contracts?

Applied Research Associates, Inc. (ARA) has a history of performing complex R&D for various government agencies, including the Department of Defense. Their expertise often lies in areas such as advanced materials, energetic materials, simulation and modeling, and threat assessment. While specific details on past TWAC-related contracts would require deeper database analysis, ARA's sustained presence and awards in defense R&D suggest a proven capability to meet stringent government requirements. Their track record generally indicates a capacity for innovation and technical problem-solving within specialized scientific domains, making them a plausible choice for this type of contract.

Are there any comparable contracts that could serve as benchmarks for this $20.8M award?

Directly comparable contracts are difficult to identify without knowing the precise technical scope of 'TWAC analysis support.' However, one could look at other large R&D contracts awarded by DTRA or similar defense agencies (e.g., DARPA, Army Research Lab) for scientific and technical support in areas like threat intelligence, WMD defense, or advanced simulation. For instance, contracts for developing advanced modeling and simulation tools, conducting specialized scientific research, or providing expert analysis on emerging threats could offer some comparative context. Benchmarking would involve comparing contract values, durations, and the types of services rendered, while acknowledging the unique nature of TWAC analysis.

What are the potential risks associated with the long duration (over 1800 days) of this contract?

The extended duration of this contract presents several risks. Firstly, the threat landscape and technological requirements within defense can evolve rapidly; a five-year contract might become misaligned with current needs by its end. Secondly, long contracts can sometimes lead to complacency or reduced urgency from the contractor if not managed proactively. Thirdly, there's a risk of 'scope creep,' where the project's objectives expand over time without corresponding adjustments to cost or schedule, potentially leading to inefficiencies. Finally, maintaining consistent oversight and engagement from the government over such a long period requires sustained resources and focus.

How does the NAICS code 541712 (R&D in Physical, Engineering, and Life Sciences) inform the understanding of this contract's purpose?

The NAICS code 541712 signifies that the contract is for research and development activities in the physical sciences (e.g., physics, chemistry), engineering (e.g., mechanical, electrical), and life sciences (excluding biotechnology). This broad classification indicates that the work performed by Applied Research Associates, Inc. involves scientific inquiry and experimentation aimed at discovering or improving knowledge and understanding, and then applying that knowledge to create new or significantly improved products, processes, or services. For this specific contract, it suggests the TWAC analysis support involves advanced scientific and engineering principles, likely contributing to defense technologies, threat assessment methodologies, or related operational capabilities.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HDTRA112R0016

Offers Received: 1

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: $25,742,415

Exercised Options: $21,577,281

Current Obligation: $20,852,793

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA114D0003

IDV Type: IDC

Timeline