Defense Threat Reduction Agency contract awarded to Applied Research Associates, Inc. for $25.96M for applied research

Contract Overview

Contract Amount: $25,959,528 ($26.0M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-05-13

End Date: 2009-11-12

Contract Duration: 2,009 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: R&D

Official Description: 200409!000234!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0103D0014 !A!N! !N!0008 ! !20040513!20070512!097967608!097967608!097967608!N!APPLIED RESEARCH ASSOCIATES, I!4300 SAN MATEO BLVD NE !ALBUQUERQUE !NM!87110!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000001229612!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !000 !* !541710!E! !5!B!M! !A!C!20080430!B! ! !N!Z!A!U!V!2!002!B! !Z!N!Z! ! !N!C!N! ! ! !A!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: 200409!000234!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0103D0014 !A!N! !N!0008 ! !20040513!20070512!097967608!097967608!097967608!N!APPLIED RESEARCH ASSOCIATES, I!4300 SAN MATEO BLVD NE !ALBUQUERQUE !NM!87110!02000!001!35!ALBUQUERQUE !BERN… Key points: 1. Contract awarded for applied research services, indicating a focus on scientific and technical development within the defense sector. 2. The contract was competed on a full and open basis, suggesting a competitive bidding process. 3. The contract type is Cost Plus Incentive Fee (CPIF), which incentivizes the contractor to control costs while meeting performance objectives. 4. The contract duration spans over five years, from May 2004 to November 2009, allowing for sustained research efforts. 5. The primary place of performance is Albuquerque, New Mexico, potentially benefiting the local economy and workforce. 6. The North American Industry Classification System (NAICS) code 541710 points to research and development in physical, engineering, and life sciences.

Value Assessment

Rating: good

The total award amount of $25.96 million over approximately five years suggests a moderate investment in applied research. Benchmarking this against similar contracts for R&D services within the Department of Defense would provide a clearer picture of value for money. The CPIF contract type indicates an effort to manage costs effectively, but the final cost performance depends on the contractor's ability to meet targets.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The data indicates five bids were received, suggesting a healthy level of competition for this applied research requirement. This competitive environment is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: A full and open competition likely resulted in a more competitive pricing structure, potentially saving taxpayer dollars compared to a sole-source award.

Public Impact

The primary beneficiary is the Defense Threat Reduction Agency (DTRA), which receives advanced research to support its mission. Services delivered include applied research in physical, engineering, and life sciences, contributing to technological advancements. The geographic impact is centered in Albuquerque, New Mexico, where the contractor is located and likely where research activities are performed. Workforce implications include employment opportunities for scientists, engineers, and support staff in the Albuquerque area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPIF contracts if performance targets are not met efficiently.
The long duration of the contract could lead to scope creep or evolving research needs that may not be fully captured in the initial award.
Reliance on a single contractor for a specific applied research area could pose a risk if the contractor faces financial or operational difficulties.

Positive Signals

The use of full and open competition suggests a robust process for selecting the most capable and cost-effective offeror.
The CPIF contract structure provides incentives for the contractor to manage costs and achieve performance objectives, aligning contractor and government interests.
The contract's focus on applied research indicates investment in innovation and future capabilities for national security.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on applied research in physical, engineering, and life sciences. The market for defense-related R&D is characterized by specialized expertise and long-term investment. Comparable spending benchmarks would involve analyzing other DTRA contracts or similar R&D procurements by agencies like DARPA or other branches of the Department of Defense.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large contract focused on specialized applied research, it is unlikely to have been set aside for small businesses. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the nature of the research tasks.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for contract administration. Accountability measures are embedded in the CPIF contract type, linking contractor performance and cost control to fee. Transparency is generally provided through contract award databases, though specific research details may be sensitive.

Related Government Programs

Defense Research and Development
Applied Scientific Research
Advanced Technology Development
Department of Defense Research Contracts

Risk Flags

Contract Duration
Contract Type Risk (CPIF)
Performance Definition in R&D

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to APPLIED RESEARCH ASSOCIATES, INC.. 200409!000234!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0103D0014 !A!N! !N!0008 ! !20040513!20070512!097967608!097967608!097967608!N!APPLIED RESEARCH ASSOCIATES, I!4300 SAN MATEO BLVD NE !ALBUQUERQUE !NM!87110!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000001229612!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !000 !* !541710!E! !5!B!M! !A!C!200

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $26.0 million.

What is the period of performance?

Start: 2004-05-13. End: 2009-11-12.

What is the track record of Applied Research Associates, Inc. with government contracts, particularly within the Department of Defense?

Applied Research Associates, Inc. (ARA) has a significant history of performing work for the U.S. government, including various agencies within the Department of Defense. Their expertise often lies in areas such as advanced materials, structural engineering, energetic materials, and specialized research and development. Reviewing ARA's contract history would reveal the types of services they have provided, their performance ratings on past contracts, and their experience with different contract types and agencies. A detailed analysis would involve examining contract award data to identify patterns in their work, such as the value and duration of previous awards, and any reported issues or successes. This information is crucial for assessing their capability and reliability in executing the current contract.

How does the $25.96 million award compare to other applied research contracts awarded by the Defense Threat Reduction Agency (DTRA)?

The $25.96 million award for this applied research contract represents a substantial, but not exceptionally large, investment for DTRA. DTRA's mission involves countering weapons of mass destruction, which often requires significant R&D funding. To benchmark this value, one would compare it to the average and median award values for similar applied research or R&D services procured by DTRA over a comparable period. For instance, if DTRA typically awards contracts in the range of $10 million to $50 million for applied research, then this contract falls within a common range. However, if most of their applied research contracts are significantly larger or smaller, it might indicate this contract is either a flagship project or a more routine procurement. Analyzing the scope and duration relative to the award amount is also key to understanding its relative value.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for applied research?

A Cost Plus Incentive Fee (CPIF) contract, while designed to incentivize cost control and performance, carries inherent risks. For applied research, the primary risk is the difficulty in precisely defining performance targets and cost objectives due to the inherent uncertainty in R&D. If targets are too vague or unrealistic, the incentive structure may not function as intended. There's a risk of cost overruns if the contractor struggles to meet performance goals, leading to higher fees. Conversely, overly aggressive cost targets might incentivize the contractor to cut corners on quality or scope, potentially compromising the research outcomes. Effective management and clear communication are crucial to mitigate these risks, ensuring that the incentive structure aligns with the project's scientific and technical goals.

How effective is full and open competition in ensuring value for money for specialized R&D services like those provided under this contract?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including for specialized R&D services. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. For R&D, this means that multiple firms can propose different technical approaches and pricing structures, allowing the agency to select the best combination of technical merit and cost. The presence of five bidders in this case suggests that the market for these services is sufficiently robust to support competition. However, the effectiveness also depends on the agency's ability to clearly define its requirements and evaluate proposals accurately, ensuring that the lowest price technically acceptable or best value offer truly represents the best use of taxpayer funds.

What are the potential long-term implications of this contract on the technological capabilities of the Defense Threat Reduction Agency?

This contract, focused on applied research, has the potential to significantly enhance DTRA's long-term technological capabilities. Applied research aims to gain knowledge that will be used in developing new or improved products, processes, or services. By investing in this area, DTRA is likely seeking to develop advanced solutions for threat reduction, potentially leading to new technologies for detection, defense, or mitigation. The success of this contract could result in breakthroughs that provide DTRA with a strategic advantage, enabling them to better address evolving national security threats. The knowledge and technologies generated could also have broader applications within the Department of Defense and other government agencies.

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 INCENTIVE FEE (V)

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