DoD's $61M R&D Contract for IMEA/VAPO Support Awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $61,256,234 ($61.3M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-05-05

End Date: 2019-05-03

Contract Duration: 1,824 days

Daily Burn Rate: $33.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF IMEA/VAPO SUPPORT

Place of Performance

Location: RALEIGH, WAKE County, NORTH CAROLINA, 27615

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $61.3 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: IGF::OT::IGF IMEA/VAPO SUPPORT Key points: 1. Contract awarded to a single vendor, Applied Research Associates, Inc. 2. Significant spending on Research and Development in Physical, Engineering, and Life Sciences. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. Contract duration of 1824 days indicates a long-term commitment.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts in R&D is challenging due to unique project scopes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific impact on price discovery for this specialized R&D service is not detailed.

Taxpayer Impact: Taxpayer funds are being utilized for advanced research and development, with the expectation of technological advancements and national security benefits.

Public Impact

Supports the Department of Defense's research and development initiatives. Focuses on specialized areas within physical, engineering, and life sciences. Contract duration suggests a sustained need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost growth in CPFF contracts.
  • Lack of specific performance metrics makes value assessment difficult.
  • Limited information on the specific R&D outcomes.

Positive Signals

  • Awarded through full and open competition.
  • Supports critical defense research.
  • Long-term contract indicates sustained need.

Sector Analysis

This contract falls under the Research and Development sector, specifically NAICS code 541712. Spending in this sector is crucial for innovation and maintaining technological superiority, particularly within defense applications.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. This contract was awarded to a single entity, and further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight would typically be managed by the Defense Threat Reduction Agency (DTRA) to ensure contract compliance and effective utilization of funds. The IG's involvement suggests ongoing scrutiny.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Defense Threat Reduction Agency Programs

Risk Flags

  • Cost Plus Fixed Fee structure.
  • Long contract duration.
  • Lack of specific performance metrics.
  • Limited detail on R&D outcomes.

Tags

research-and-development-in-the-physical, department-of-defense, nc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.3 million to APPLIED RESEARCH ASSOCIATES, INC.. IGF::OT::IGF IMEA/VAPO SUPPORT

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 $61.3 million.

What is the period of performance?

Start: 2014-05-05. End: 2019-05-03.

What specific technological advancements or capabilities are expected to result from this $61 million R&D investment?

The contract's objective is to provide IMEA/VAPO support, which likely pertains to specialized research and development within the Department of Defense's threat reduction programs. Specific outcomes are not detailed in the provided data, but typically such investments aim to enhance national security through advanced scientific and engineering solutions, potentially leading to new technologies or improved existing ones for defense applications.

How does the Cost Plus Fixed Fee structure mitigate risks associated with R&D projects where outcomes can be uncertain?

The CPFF structure aims to provide a fixed profit margin for the contractor while allowing for the reimbursement of actual costs incurred. For R&D, this can incentivize innovation by covering necessary expenses. However, it also carries a risk of cost escalation if the scope or complexity of the research expands beyond initial estimates, requiring robust oversight to manage expenditures effectively.

What is the long-term strategic value of this contract for the Defense Threat Reduction Agency?

This contract likely supports the DTRA's mission to counter weapons of mass destruction threats. The sustained funding over 1824 days suggests a critical, ongoing need for the specialized research and development services provided by Applied Research Associates, Inc. The value lies in maintaining and advancing the agency's capabilities in this vital area of national security.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

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: $71,503,475

Exercised Options: $61,564,162

Current Obligation: $61,256,234

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $1,871,172

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA114D0003

IDV Type: IDC

Timeline

Start Date: 2014-05-05

Current End Date: 2019-05-03

Potential End Date: 2019-05-03 00:00:00

Last Modified: 2025-07-14

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