DoD's $40.7M IMEA Software contract for WMD attack planning shows fair value but limited competition

Contract Overview

Contract Amount: $40,720,014 ($40.7M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-10-01

End Date: 2011-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IMEA SOFTWARE IS AN INTELLIGENCE AND PLANNING TOOL THAT: A. COMBINES ALL RELEVANT INTELLIGENCE ON A PARTICULAR TARGET, AND B. PREDICTS THE DAMAGE TO TARGETS CAUSED BY WEAPON ATTACKS. WHEN COMBINED WITH THE HAZARD PREDICTION ASSESSMENT CAPABILITY (HPAC) COLLATERAL AFFECTS TOOL, IMEA PREDICTS THE QUANTITIES OF WEAPONS OF MASS DESTRUCTION MATERIALS THAT MIGHT BE RELEASED FROM AN ATTACK. IMEA ALLOWS THE INTELLIGENCE COMMUNITY TO SUCCINCTLY COMBINE ALL ACTIONABLE INTELLIGENCE IN A SINLE MODEL AND IT ALLOWS THE WARFIGHTER TO PLAN ATTACKS ON WMD-RELATED TARGETS WHILE FACILITATING TRADE-OFF ANALYSES OF DAMAGE VERSUS COLLATERAL EFFECTS.

Place of Performance

Location: RALEIGH, WAKE County, NORTH CAROLINA, 27615

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $40.7 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: IMEA SOFTWARE IS AN INTELLIGENCE AND PLANNING TOOL THAT: A. COMBINES ALL RELEVANT INTELLIGENCE ON A PARTICULAR TARGET, AND B. PREDICTS THE DAMAGE TO TARGETS CAUSED BY WEAPON ATTACKS. WHEN COMBINED WITH THE HAZARD PREDICTION ASSESSMENT CAPABILITY (HPAC) COLLATERAL AFFECTS T… Key points: 1. The contract supports critical intelligence and planning functions for WMD target analysis and weapon attack prediction. 2. Applied Research Associates, Inc. secured this contract through full and open competition. 3. The duration of the contract (5 years) suggests a long-term need for this specialized intelligence tool. 4. The cost-plus-fixed-fee contract type allows for flexibility but requires careful oversight of costs. 5. The software's ability to predict damage and WMD material release is a significant capability for warfighters. 6. The contract's value of over $40 million indicates a substantial investment in advanced defense technology.

Value Assessment

Rating: fair

The total contract value of $40.7 million over five years averages to approximately $8.14 million annually. Benchmarking this against similar R&D contracts for specialized intelligence software is challenging due to the unique nature of IMEA. However, the cost-plus-fixed-fee structure necessitates close monitoring to ensure costs remain reasonable and do not escalate beyond initial projections. The fixed fee component provides some cost control, but the overall value proposition depends heavily on the effectiveness and continued relevance of the software.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 5 bids suggests a reasonable level of competition for this specialized R&D requirement. While full and open competition is generally preferred for ensuring fair pricing and access to the best solutions, the specific number of bidders (5) in relation to the highly specialized nature of the software may warrant further investigation into whether the market truly supported broader participation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a competitive environment that can lead to more favorable pricing and innovative solutions, maximizing the value of taxpayer dollars.

Public Impact

The primary beneficiaries are the warfighters and intelligence community within the Department of Defense, who gain enhanced capabilities for planning and executing missions. The software delivers critical services by combining intelligence, predicting damage from weapon attacks, and assessing collateral effects, particularly concerning WMD targets. The geographic impact is global, supporting U.S. military operations and national security interests worldwide. Workforce implications include the need for skilled personnel to operate, maintain, and potentially develop the IMEA software, likely within specialized intelligence and military units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed diligently.
The specialized nature of the software might limit the pool of potential future competitors or sustainment providers.
Reliance on a single contractor for development and sustainment could pose long-term risks if not managed through competitive follow-on efforts.

Positive Signals

Awarded through full and open competition, suggesting a robust initial selection process.
The contract duration of five years indicates a stable, long-term need and commitment from the agency.
The software addresses a critical national security requirement related to WMD threats, indicating high strategic value.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This area often involves significant investment in developing advanced technologies for national security. The market for specialized intelligence and planning software is highly technical and often dominated by a few key players with deep expertise. Comparable spending benchmarks are difficult to establish precisely due to the unique capabilities of IMEA, but significant R&D investments are common in defense.

Small Business Impact

There is no indication that this contract involved small business set-asides, nor is there information on subcontracting plans specifically benefiting small businesses. Given the highly specialized nature of intelligence software development, it is common for prime contractors to possess unique capabilities, potentially limiting subcontracting opportunities for smaller firms unless specific requirements are mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency (DTRA) through contract officers and technical representatives. Accountability measures would be embedded in the contract's performance work statement and milestones. Transparency is generally limited for highly classified intelligence systems, but reporting requirements would be defined within the contract terms. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Intelligence Analysis Tools
Weapons of Mass Destruction Defense Programs
Military Planning Software
Defense Threat Reduction Agency Contracts
Research and Development in Defense

Risk Flags

Cost-plus-fixed-fee contract type requires diligent cost oversight.
Specialized nature of software may limit future competition.
Potential for cost escalation if not managed closely.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.7 million to APPLIED RESEARCH ASSOCIATES, INC.. IMEA SOFTWARE IS AN INTELLIGENCE AND PLANNING TOOL THAT: A. COMBINES ALL RELEVANT INTELLIGENCE ON A PARTICULAR TARGET, AND B. PREDICTS THE DAMAGE TO TARGETS CAUSED BY WEAPON ATTACKS. WHEN COMBINED WITH THE HAZARD PREDICTION ASSESSMENT CAPABILITY (HPAC) COLLATERAL AFFECTS TOOL, IMEA PREDICTS THE QUANTITIES OF WEAPONS OF MASS DESTRUCTION MATERIALS THAT MIGHT BE RELEASED FROM AN ATTACK. IMEA ALLOWS THE INTELLIGENCE COMMUNITY TO SUCCINCTLY COMBINE ALL ACTIONABLE INTELLIGENCE IN A SINLE MODEL

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 $40.7 million.

What is the period of performance?

Start: 2006-10-01. End: 2011-09-30.

What is the specific track record of Applied Research Associates, Inc. in developing and delivering similar intelligence software solutions to the DoD?

Applied Research Associates, Inc. (ARA) has a history of supporting defense and intelligence agencies with advanced research and development, including areas related to threat assessment and simulation. While specific details on prior, directly comparable intelligence software projects to IMEA might be proprietary or not publicly disclosed, ARA's general expertise in scientific and engineering services for the DoD suggests a foundational capability. Their involvement in complex R&D projects indicates an ability to handle sophisticated technical requirements. Further analysis would require delving into ARA's contract history database for specific performance metrics on related projects, focusing on on-time delivery, budget adherence, and technical success rates in areas like modeling and simulation for defense applications.

How does the average annual cost of this contract compare to other DoD R&D contracts for intelligence analysis tools?

The average annual cost of this contract is approximately $8.14 million ($40.7 million / 5 years). Comparing this to other DoD R&D contracts for intelligence analysis tools requires access to a comprehensive database of similar procurements. However, R&D contracts, especially those involving specialized software for critical national security functions like WMD threat assessment, can command significant funding. Annual expenditures in the range of several million dollars are not uncommon for complex systems development. Without specific benchmark data on comparable systems (e.g., software for threat modeling, target analysis, or predictive damage assessment), it's difficult to definitively state if $8.14 million per year is high or low. Factors like the novelty of the technology, the required security clearances, and the depth of analysis influence pricing.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of the IMEA software?

Specific Key Performance Indicators (KPIs) for the IMEA software are not detailed in the provided data. However, typical KPIs for such intelligence and planning tools would likely focus on accuracy, timeliness, and usability. For IMEA, this could include metrics related to the precision of damage prediction compared to actual outcomes (if testable), the speed at which intelligence can be integrated and analyzed, the reduction in planning time for warfighters, and the successful identification and characterization of WMD targets. The contract's success would also be measured against its ability to facilitate trade-off analyses of damage versus collateral effects, as stated in its description. Performance would likely be assessed through user feedback, operational testing, and adherence to technical specifications outlined in the Statement of Work.

What is the historical spending trend for IMEA software or similar intelligence planning tools within the DoD?

The provided data covers a single contract for IMEA software from 2006 to 2011, totaling $40.7 million. This represents a specific period and investment. To understand historical spending trends, one would need to examine spending on IMEA or functionally similar intelligence planning and analysis tools across multiple fiscal years and potentially across different agencies within the DoD. This would involve searching contract databases for prior or subsequent contracts related to IMEA, its predecessors, or competing/alternative systems. Without this broader dataset, it's impossible to establish a trend; we only have a data point for one contract duration.

What are the potential risks associated with the cost-plus-fixed-fee (CPFF) contract type for this R&D project?

The Cost-Plus-Fixed-Fee (CPFF) contract type, used for this IMEA software project, carries inherent risks, primarily related to cost control. While the fixed fee provides the contractor with a defined profit margin, the 'cost-plus' portion means the government reimburses the contractor for allowable costs incurred. This structure can incentivize contractors to incur higher costs, as their fee is a percentage of those costs (though in CPFF, the fee is fixed, but the total price is cost + fee). For the government, the risk is that the total cost could exceed initial estimates if costs are not rigorously monitored and controlled. Effective oversight, detailed cost accounting, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value.

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 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

Financial Breakdown

Contract Ceiling: $46,037,537

Exercised Options: $41,395,986

Current Obligation: $40,720,014

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTRA0103D0014

IDV Type: IDC

Timeline