DoD Awards $13.8M for Technical Areas (TAS) Software Development to Applied Research Associates

Contract Overview

Contract Amount: $13,837,659 ($13.8M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-05-02

End Date: 2010-09-30

Contract Duration: 1,247 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: NEW DELIVERY ORDER FOR TECHNICAL AREAS (TAS) TO INCLUDE SSGS 7.0.19 AND 7.0.20

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32403

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: NEW DELIVERY ORDER FOR TECHNICAL AREAS (TAS) TO INCLUDE SSGS 7.0.19 AND 7.0.20 Key points: 1. Spending focuses on R&D for advanced software, specifically SSGS 7.0.19 and 7.0.20. 2. Contract awarded to Applied Research Associates, Inc., a single entity. 3. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. This falls under the Research and Development sector, specifically NAICS 541710.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure can lead to cost overruns if not managed tightly. Benchmarking is difficult without specific deliverables and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may not yield the most competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for advanced R&D, with potential for innovation but also risk of inefficient spending due to limited competition.

Public Impact

Investment in advanced software development for potential defense applications. Supports technological advancement within the Department of the Air Force. Potential for long-term benefits if the software proves effective and critical.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition raises concerns about price optimization.
  • Cost Plus Award Fee contracts require diligent oversight to control costs.

Positive Signals

  • Focus on critical R&D for the Air Force.
  • Potential for significant technological advancement.

Sector Analysis

This contract falls within the Research and Development sector, characterized by high innovation potential but also inherent risks. Spending benchmarks for specific software development projects like this can vary widely based on complexity and novelty.

Small Business Impact

The data does not indicate any specific allocation or consideration for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The 'Department of the Air Force' is the awarding agency, implying internal oversight mechanisms. However, the 'Cost Plus Award Fee' structure necessitates robust program management and financial oversight to ensure value for money.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Limited competition may lead to higher costs.
  • Cost Plus Award Fee contracts require stringent oversight.
  • Lack of detailed technical scope makes value assessment difficult.
  • Potential for cost overruns if performance metrics are not well-defined.

Tags

research-and-development-in-the-physical, department-of-defense, fl, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to APPLIED RESEARCH ASSOCIATES, INC.. NEW DELIVERY ORDER FOR TECHNICAL AREAS (TAS) TO INCLUDE SSGS 7.0.19 AND 7.0.20

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2007-05-02. End: 2010-09-30.

What specific technical areas (TAS) and functionalities do SSGS 7.0.19 and 7.0.20 encompass, and how do they align with current Air Force needs?

The specific functionalities of SSGS 7.0.19 and 7.0.20 are not detailed in the provided data. Understanding the precise technical areas and their alignment with Air Force strategic objectives is crucial for assessing the value and necessity of this $13.8 million investment. Without this context, it's difficult to determine if the spending directly addresses critical operational or developmental requirements.

What was the rationale for excluding other sources, and how was the 'limited competition' justified to ensure fair pricing?

The justification for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is key to understanding the competitive landscape. Typically, this implies that only one or a few sources were deemed capable of meeting the requirement. The agency must have documented why other sources were excluded. Assessing whether this exclusion was valid and if the resulting price reflects fair market value requires reviewing the agency's justification and potentially comparing it to similar R&D contracts.

How will the 'Award Fee' component be assessed, and what metrics will determine contractor performance and bonus payouts?

The 'Cost Plus Award Fee' (CPAF) structure means the contractor receives cost reimbursement plus a fee that can be adjusted based on performance. Understanding the specific performance standards, evaluation criteria, and the range of potential award fees is essential for assessing effectiveness. Without these details, it's impossible to gauge how well contractor performance will be incentivized and whether the government will achieve optimal outcomes for its investment.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTOTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 4300 SAN MATEO BLVD NE STE A220, ALBUQUERQUE, NM, 01

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $14,443,735

Exercised Options: $14,443,735

Current Obligation: $13,837,659

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA481907D0001

IDV Type: IDC

Timeline

Start Date: 2007-05-02

Current End Date: 2010-09-30

Potential End Date: 2010-09-30 00:00:00

Last Modified: 2010-09-27

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