DoD's $25.8M R&D contract for weapons of mass destruction defense saw limited competition and fair value

Contract Overview

Contract Amount: $25,844,034 ($25.8M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-01-25

End Date: 2014-04-30

Contract Duration: 2,287 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NONPERSONAL SERVICES TD-WEAPONS OF MASS

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: NONPERSONAL SERVICES TD-WEAPONS OF MASS Key points: 1. The contract focused on applied research and development, a critical area for national security. 2. Competition was limited, suggesting potential for higher costs or less innovation. 3. The contract duration was substantial, indicating a long-term need for these specialized services. 4. Value for money appears fair, given the specialized nature of the work and the contractor's performance. 5. The contract was awarded under full and open competition, but only one bid was received. 6. The contractor has a history of performing similar R&D services for the government.

Value Assessment

Rating: fair

The contract's total value of $25.8 million over approximately 6.3 years suggests a fair price for specialized R&D services. While direct comparisons are difficult due to the niche nature of weapons of mass destruction defense, the cost-plus-fixed-fee structure allowed for flexibility while managing overall expenditure. The final award amount was within the estimated range, indicating reasonable cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was advertised under full and open competition, which is the preferred method for ensuring broad market access. However, only one offer was received, which is a significant indicator of limited competition. This could be due to the highly specialized nature of the R&D required, the specific expertise of the incumbent contractor, or a lack of market awareness among potential bidders.

Taxpayer Impact: Limited competition, especially when only one bid is submitted, can potentially lead to higher prices for taxpayers as the government may have less leverage to negotiate favorable terms. It also raises questions about whether the full spectrum of available innovation and cost-saving solutions was explored.

Public Impact

The primary beneficiaries are the Department of Defense and its agencies, which receive advanced research and development capabilities to counter weapons of mass destruction threats. The services delivered include research, development, and analysis related to defense against WMD agents and proliferation. The geographic impact is primarily national, focusing on enhancing U.S. security, though the research could have global implications for threat reduction. Workforce implications include supporting highly skilled scientists, engineers, and researchers in specialized fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and missed opportunities for innovative solutions from a broader market.
The long contract duration could indicate a lack of agile acquisition strategies or a dependence on a single provider for critical capabilities.

Positive Signals

The contract was awarded to a contractor with demonstrated experience in R&D, suggesting a higher likelihood of successful project completion.
The focus on R&D for WMD defense addresses a critical national security need, indicating strategic alignment with government priorities.
The use of full and open competition, even with limited bids, adheres to procurement best practices.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on defense applications related to weapons of mass destruction. The R&D services market is characterized by high specialization, significant intellectual property considerations, and often long development cycles. Comparable spending benchmarks in this niche area are difficult to establish due to the sensitive and unique nature of the work, but government investment in defense R&D is substantial, with a significant portion allocated to advanced technologies and threat mitigation.

Small Business Impact

This contract does not appear to have included specific small business set-aside provisions, as indicated by 'sb': false. The nature of the specialized R&D work may lend itself to larger, more established firms with extensive resources and specific expertise. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in critical defense research.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Threat Reduction Agency (DTRA) and the Department of Defense's contracting and program management offices. The cost-plus-fixed-fee structure necessitates close monitoring of costs and performance to ensure adherence to the fixed fee and overall budget. Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is generally limited for defense R&D contracts due to national security sensitivities.

Related Government Programs

DoD Research and Development Programs
Chemical, Biological, Radiological, and Nuclear (CBRN) Defense Programs
Advanced Technology Development Contracts
Threat Reduction Initiatives

Risk Flags

Limited competition (one bid received)
Potential for cost escalation due to limited competition
Long contract duration may not align with rapidly evolving threats

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to APPLIED RESEARCH ASSOCIATES, INC.. NONPERSONAL SERVICES TD-WEAPONS OF MASS

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 $25.8 million.

What is the period of performance?

Start: 2008-01-25. End: 2014-04-30.

What was the specific nature of the 'Weapons of Mass Destruction' R&D conducted under this contract?

The contract data indicates the work falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' and the description is 'NONPERSONAL SERVICES TD-WEAPONS OF MASS'. While specific project details are often classified or sensitive for national security reasons, this generally implies research into technologies, methodologies, or systems designed to detect, prevent, mitigate, or respond to threats posed by chemical, biological, radiological, or nuclear weapons. This could range from developing new sensor technologies to creating advanced protective equipment or improving response protocols.

How does the contractor's performance history compare to similar R&D contracts?

Applied Research Associates, Inc. (ARA) has a documented history of performing R&D services for various government agencies, including the Department of Defense. Their expertise often lies in areas such as advanced materials, energetic materials, and defense technologies. While specific performance metrics for this particular contract are not detailed in the provided data, ARA's sustained engagement in similar government R&D efforts suggests a level of competence and reliability. A deeper dive into past performance reviews and contract close-out reports would provide a more granular comparison.

What are the risks associated with a sole bid under full and open competition for this type of R&D?

The primary risk of receiving only one bid under full and open competition is the potential lack of robust price competition, which could lead to the government paying a higher price than if multiple bids were received. It also suggests that the market may not be sufficiently robust or that potential competitors lacked the specific capabilities or interest. This can limit the government's options and potentially stifle innovation by not exposing the project to a wider range of ideas and approaches. Furthermore, it raises questions about the effectiveness of the solicitation process in attracting a competitive field.

How does the contract's duration (2287 days) impact its overall value and risk?

The contract's duration of approximately 2287 days (over 6 years) indicates a long-term commitment to a specific R&D objective. While this allows for sustained focus and development, it also carries risks. Long durations can sometimes lead to cost overruns if not managed tightly, and the technology or threat landscape might evolve significantly during that period, potentially rendering the research less relevant. However, for complex R&D requiring deep investigation and iterative development, such durations can be necessary to achieve meaningful breakthroughs. The value is realized if the end product meets evolving needs and provides a lasting capability.

What is the significance of the 'NONPERSONAL SERVICES TD-WEAPONS OF MASS' designation?

The designation 'NONPERSONAL SERVICES TD-WEAPONS OF MASS' signifies that the contract is for services rather than the procurement of goods or equipment. 'Nonpersonal services' means the contractor will not be in an employer-employee relationship with the government, and the government will not supervise the contractor's employees' hours of work or performance methods. 'TD' likely refers to Threat Defense or a similar categorization within the agency. 'WEAPONS OF MASS' clearly indicates the subject matter relates to WMD threats, defining the critical national security domain this R&D addresses.

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: $37,430,643

Exercised Options: $26,018,710

Current Obligation: $25,844,034

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTRA0103D0014

IDV Type: IDC

Timeline