DoD's $19.6M WMD Defeat SE&I contract awarded to Applied Research Associates, Inc. for R&D support

Contract Overview

Contract Amount: $19,590,102 ($19.6M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-11-12

End Date: 2014-04-30

Contract Duration: 1,630 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: HARD TARGET AND WEAPONS OF MASS DESTRUCTION (WMD) DEFEAT SYSTEMS ENGINEERING & INTEGRATION (SE&I) SUPPORT

Place of Performance

Location: NICEVILLE, OKALOOSA County, FLORIDA, 32578

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $19.6 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: HARD TARGET AND WEAPONS OF MASS DESTRUCTION (WMD) DEFEAT SYSTEMS ENGINEERING & INTEGRATION (SE&I) SUPPORT Key points: 1. Contract focused on critical WMD defeat systems engineering and integration, indicating a high-priority national security need. 2. Full and open competition suggests a robust market for these specialized services, potentially driving competitive pricing. 3. The contract duration of 1630 days (approx. 4.5 years) allowed for sustained support and development. 4. Awarded as a delivery order under a larger contract, suggesting a phased approach to fulfilling requirements. 5. The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor efficiency while managing cost uncertainty. 6. The contractor, Applied Research Associates, Inc., has a track record in defense-related research and development.

Value Assessment

Rating: good

Benchmarking the value of this specific $19.6 million contract is challenging without direct comparisons for similar WMD defeat SE&I support. However, the CPFF structure aims to provide a fixed profit margin, which can be reasonable if the contractor manages costs effectively. The competitive award process suggests that pricing was likely scrutinized against market rates and other proposals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This approach typically fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions to secure the award. The presence of 5 bids suggests a healthy level of interest and competition for this specialized defense support.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting price discovery and potentially leading to lower overall costs compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of Defense and its agencies, specifically the Defense Threat Reduction Agency, receiving critical systems engineering and integration support for WMD defeat capabilities. The services delivered are essential for enhancing national security by improving the effectiveness and reliability of systems designed to counter weapons of mass destruction. The contract's geographic impact is centered in Florida, where the contractor is located, suggesting a concentration of specialized defense R&D activity in that region. The contract supports a highly specialized workforce of engineers and scientists with expertise in WMD defense technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored, though the fixed fee component aims to cap profit.
The specialized nature of WMD defeat systems means that scope creep or unforeseen technical challenges could impact timelines and costs.
Reliance on a single contractor for critical SE&I support, even if competitively awarded, carries inherent risks if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potentially favorable pricing.
The contract duration allowed for sustained focus and development on complex WMD defeat systems.
The contractor, Applied Research Associates, Inc., likely possesses specialized expertise crucial for this mission.
Delivery order structure suggests a well-defined project within a broader framework, potentially indicating good planning.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on defense applications related to physical, engineering, and life sciences. The market for defense SE&I support is highly specialized, driven by government procurement. Comparable spending benchmarks would typically involve other large, complex R&D contracts awarded by agencies like the DoD for advanced technology development and integration.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, its direct impact on small businesses is likely limited to potential subcontracting opportunities, which are not detailed here. The primary award went to a larger entity, Applied Research Associates, Inc.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is generally maintained through contract award databases and public reporting, though specific technical details of WMD defeat systems remain classified.

Related Government Programs

Defense Threat Reduction Agency (DTRA) Research and Development Support
Department of Defense Systems Engineering and Integration Contracts
Weapons of Mass Destruction (WMD) Counter-Proliferation Programs
Advanced Technology Development Contracts
National Security Research and Development

Risk Flags

Contract type (CPFF) requires diligent oversight to manage costs.
Specialized nature of WMD defeat systems may present unforeseen technical challenges.
Potential for scope creep in R&D contracts.
Reliance on contractor's specialized expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.6 million to APPLIED RESEARCH ASSOCIATES, INC.. HARD TARGET AND WEAPONS OF MASS DESTRUCTION (WMD) DEFEAT SYSTEMS ENGINEERING & INTEGRATION (SE&I) 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 $19.6 million.

What is the period of performance?

Start: 2009-11-12. End: 2014-04-30.

What is the specific nature of the 'HARD TARGET AND WEAPONS OF MASS DESTRUCTION (WMD) DEFEAT SYSTEMS ENGINEERING & INTEGRATION (SE&I) SUPPORT' provided under this contract?

This contract provided critical systems engineering and integration (SE&I) support for technologies and strategies aimed at defeating hard targets and neutralizing Weapons of Mass Destruction (WMD). SE&I involves the complex process of defining requirements, designing systems, integrating various components, testing, and ensuring the overall system functions as intended to achieve mission objectives. For WMD defeat, this could encompass analysis, modeling, simulation, and technical expertise related to offensive and defensive capabilities against chemical, biological, radiological, nuclear, or explosive threats.

How does the Cost Plus Fixed Fee (CPFF) contract type influence contractor behavior and cost control for this R&D project?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This structure is often used when the scope of work is not precisely defined, as is common in R&D. It incentivizes the contractor to control costs, as their profit (the fixed fee) remains constant regardless of the final cost. However, it requires robust government oversight to ensure costs are reasonable and allocable to the contract. If costs escalate significantly, the government still pays the actual costs plus the fixed fee, but the contractor has less incentive to cut corners on quality to save money compared to a fixed-price contract.

What is the significance of this contract being awarded as a 'Delivery Order'?

Being awarded as a 'Delivery Order' implies that this contract was likely issued under a larger, pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar master agreement. This approach allows agencies to procure services or supplies incrementally as needed, often with streamlined ordering processes. For the Defense Threat Reduction Agency (DTRA), it suggests that this specific WMD defeat SE&I support was one of several taskings or phases planned under a broader contract vehicle, allowing for flexibility in funding and execution over time.

What does the number of bids (5) suggest about the market for WMD defeat SE&I services?

Receiving 5 bids for this specialized contract indicates a moderately competitive market for Weapons of Mass Destruction (WMD) defeat Systems Engineering and Integration (SE&I) support. While not an exceptionally large number, it suggests that there are at least a handful of companies possessing the requisite technical expertise and security clearances to compete for such sensitive defense contracts. This level of competition is generally sufficient to provide the government with a range of options and encourage reasonable pricing, avoiding the pitfalls of a sole-source award.

Can we assess the contractor's track record with Applied Research Associates, Inc. based on this award?

This award to Applied Research Associates, Inc. (ARA) for WMD defeat SE&I support highlights their involvement in critical national security R&D. ARA is known for its work in areas like advanced materials, energetic materials, and defense systems. Securing a contract of this nature, especially through full and open competition, suggests they possess the specialized technical capabilities and potentially the security infrastructure required by the Defense Threat Reduction Agency (DTRA). Further assessment would involve examining their past performance on similar government contracts, including project success rates, adherence to schedule and budget, and client satisfaction.

What are the potential risks associated with the 'FL' (Florida) location for this contract?

The 'FL' designation indicates the contract's performance or the contractor's primary location is in Florida. For this specific contract, the primary risk associated with the location might relate to the concentration of specialized talent. Florida has a significant defense industry presence, which can be an advantage for recruitment. However, it could also mean increased competition for skilled personnel or potential disruptions if regional economic factors or natural disasters (like hurricanes) impact operations. For a contract focused on WMD defeat, ensuring continuity of operations and robust security protocols at the performance site is paramount, regardless of location.

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

Solicitation ID: DTRA0103R0010

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: $24,200,829

Exercised Options: $19,590,112

Current Obligation: $19,590,102

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTRA0103D0014

IDV Type: IDC

Timeline