DoD's $26.4M Direct Support Group Contract Awarded to Applied Research Associates, Inc
Contract Overview
Contract Amount: $26,367,405 ($26.4M)
Contractor: Applied Research Associates, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-09-24
End Date: 2008-12-31
Contract Duration: 464 days
Daily Burn Rate: $56.8K/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: DIRECT SUPPORT GROUP (DSG)
Place of Performance
Location: PANAMA CITY, BAY County, FLORIDA, 32403
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $26.4 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: DIRECT SUPPORT GROUP (DSG) Key points: 1. Contract awarded to Applied Research Associates, Inc. for direct support services. 2. The contract falls under the Research and Development sector. 3. The award method was 'Full and Open Competition After Exclusion of Sources'. 4. The contract type is Cost Plus Award Fee. 5. The contract duration was 464 days.
Value Assessment
Rating: fair
The Cost Plus Award Fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'Full and Open Competition After Exclusion of Sources' method suggests a competitive process was initiated, but specific sources were excluded. This could impact price discovery if the excluded sources were significant competitors.
Taxpayer Impact: Taxpayer funds were used for R&D services. The effectiveness of the competition in securing the best value for taxpayers is not fully clear without more information on the exclusion criteria.
Public Impact
This contract supports research and development efforts within the Department of the Air Force. The services provided are crucial for advancing technological capabilities. The contract's value of over $26 million represents a significant investment in specialized R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can incentivize cost growth.
- Exclusion of sources in competition needs clear justification.
- Lack of detailed cost breakdown hinders value assessment.
Positive Signals
- Full and open competition was utilized.
- Contract supports critical R&D for the Air Force.
Sector Analysis
This contract is within the Research and Development sector, specifically NAICS code 541710. Spending in this sector is critical for innovation but can be prone to cost overruns due to the inherent uncertainties in R&D.
Small Business Impact
The data does not indicate any specific involvement or set-aside for small businesses in this contract.
Oversight & Accountability
Oversight would be crucial for a Cost Plus Award Fee contract to ensure performance and control costs. The Department of the Air Force is responsible for this oversight.
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
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Lack of transparency regarding excluded sources in competition.
- Limited insight into specific performance metrics driving award fees.
- Difficulty in benchmarking R&D contract costs.
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 $26.4 million to APPLIED RESEARCH ASSOCIATES, INC.. DIRECT SUPPORT GROUP (DSG)
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 $26.4 million.
What is the period of performance?
Start: 2007-09-24. End: 2008-12-31.
What was the specific justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process?
The justification for excluding sources in this type of competition typically relates to specific technical requirements, proprietary data, or unique capabilities that only a limited number of entities possess. Without the specific documentation, it's difficult to ascertain the exact reasons, but it implies a need for specialized expertise that may not have been universally available or suitable.
How does the Cost Plus Award Fee structure compare to other contract types for similar R&D projects in terms of cost efficiency?
Cost Plus Award Fee contracts aim to incentivize contractor performance by offering award fees based on meeting or exceeding certain objectives. While this can drive innovation, it also carries a risk of cost escalation if the award criteria are not tightly defined or if oversight is insufficient. Fixed-price contracts might offer more cost certainty but could stifle innovation or lead to scope disputes in R&D.
What were the key performance objectives that determined the award fee for Applied Research Associates, Inc. under this contract?
The key performance objectives for the award fee would be detailed within the contract's Performance Work Statement (PWS) and the criteria for the award fee. These typically relate to technical milestones, delivery schedules, quality of deliverables, and overall customer satisfaction. Without access to the contract's specific award fee plan, the precise objectives remain unknown.
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 › OTHER 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: $27,021,284
Exercised Options: $27,021,284
Current Obligation: $26,367,405
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA481907D0001
IDV Type: IDC
Timeline
Start Date: 2007-09-24
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2008-11-21
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