DoD's $29M Applied Research contract for IMEA support shows mixed value and limited competition

Contract Overview

Contract Amount: $29,079,702 ($29.1M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-10-01

End Date: 2014-04-30

Contract Duration: 942 days

Daily Burn Rate: $30.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: VAPO AND IMEA SUPPORT

Place of Performance

Location: RALEIGH, WAKE County, NORTH CAROLINA, 27615

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $29.1 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: VAPO AND IMEA SUPPORT Key points: 1. The contract's value proposition is unclear due to a lack of detailed performance metrics and benchmarking against similar services. 2. Competition was limited, raising concerns about potential overpricing and reduced innovation. 3. The contractor, Applied Research Associates, Inc., has a track record with the Department of Defense, but specific performance on this contract requires further scrutiny. 4. The contract duration of 942 days suggests a significant, ongoing need for the services provided. 5. The cost-plus-fixed-fee pricing structure can incentivize cost overruns if not closely monitored. 6. The lack of small business involvement is noted, with no set-aside or subcontracting requirements.

Value Assessment

Rating: fair

Benchmarking this $29 million contract against similar Department of Defense contracts for technical support and research is challenging without more granular performance data. The cost-plus-fixed-fee structure, while common for R&D, carries inherent risks of cost escalation if not managed rigorously. The provided data does not offer sufficient detail to definitively assess value for money, but the limited competition suggests potential for less favorable pricing than might be achieved in a more robustly contested market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, the number of bidders is not specified, which is crucial for understanding the actual level of competition. A single bidder or a small number of bidders, even under full and open procedures, can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Limited competition, even if technically 'full and open,' can mean taxpayers may not be getting the best possible price for these services, as the government's negotiating leverage is reduced.

Public Impact

The primary beneficiaries are likely components within the Department of Defense requiring specialized support for Improvised Explosive Device (IED) Defeat and related research. The services delivered are critical for enhancing national security by addressing threats related to explosive devices. The geographic impact is primarily within the United States, supporting defense research facilities, but the implications of the research could extend globally. Workforce implications include the employment of scientists, engineers, and technical specialists within Applied Research Associates, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts require diligent oversight to prevent cost overruns.
Limited competition, even under full and open, can lead to suboptimal pricing.
Lack of specific performance metrics makes value assessment difficult.
No indication of small business participation or subcontracting.

Positive Signals

Awarded under full and open competition, allowing for broad market participation.
Contract addresses a critical national security need (IED Defeat).
Contractor has experience within the defense sector.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks are difficult to establish without more specific details on the technical scope, but R&D contracts of this magnitude are common within the DoD, particularly for specialized threat mitigation.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no explicit mention of subcontracting goals. This suggests that small businesses may not have directly benefited from this specific award, nor is there a clear mechanism for them to participate in the delivery of these services. Further investigation into subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

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 tied to the performance requirements outlined in the contract's statement of work and the cost-plus-fixed-fee structure. Transparency is generally maintained through contract award databases, but detailed performance and cost breakdowns are often considered sensitive.

Related Government Programs

Department of Defense Research and Development
Threat Reduction Programs
Improvised Explosive Device (IED) Defeat Initiatives
Applied Research Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited effective competition may impact price.
Lack of performance metrics hinders value assessment.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.1 million to APPLIED RESEARCH ASSOCIATES, INC.. VAPO AND IMEA 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 $29.1 million.

What is the period of performance?

Start: 2011-10-01. End: 2014-04-30.

What specific technical capabilities does Applied Research Associates, Inc. bring to the VAPO AND IMEA SUPPORT contract?

Applied Research Associates, Inc. (ARA) is a private company specializing in research and development, engineering, and scientific services. For the VAPO AND IMEA SUPPORT contract, ARA likely provided expertise in areas related to the analysis, development, and testing of technologies and methodologies for defeating improvised explosive devices (IEDs) and other threats. Their capabilities would typically encompass areas such as materials science, explosives detection, counter-IED technologies, and potentially simulation and modeling. The specific technical deliverables would be detailed in the contract's statement of work, but ARA's general focus suggests a role in advancing the scientific and technical understanding of threats and developing effective countermeasures for the Department of Defense.

How does the $29 million contract value compare to similar R&D contracts for threat reduction support within the DoD?

Comparing the $29 million contract value requires context on the specific services rendered under VAPO AND IMEA SUPPORT. Contracts for R&D in threat reduction can vary significantly based on scope, duration, and complexity. For instance, contracts focused on basic research might be smaller, while those involving advanced prototype development, extensive testing, and system integration could easily reach tens or hundreds of millions of dollars. Without a detailed breakdown of the services provided by Applied Research Associates, Inc. (e.g., number of personnel, hours, specific research areas), a direct comparison is difficult. However, $29 million over approximately three years (based on the start and end dates) represents a substantial investment, suggesting a significant scope of work within the specialized field of IMEA support.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of R&D work?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Applied Research Associates, Inc., is the potential for cost overruns. While the 'fixed fee' component provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the project scope expands, unforeseen technical challenges arise, or contractor inefficiencies exist, the total cost to the government can increase significantly beyond initial estimates. This necessitates robust government oversight to scrutinize costs, ensure efficiency, and manage scope creep effectively. For R&D, where the path to success is often uncertain, CPFF contracts are common but require diligent management to control expenditures.

What does the competition level (Full and Open) imply for the effectiveness and cost of the services provided?

Awarding a contract under 'Full and Open Competition' theoretically allows any responsible source to bid, maximizing the potential pool of offerors. This broad competition is intended to drive down prices, encourage innovation, and ensure the government receives the best value. However, the effectiveness and cost implications are heavily influenced by the *actual* number of bids received and the specific requirements of the solicitation. If only a few companies possessed the highly specialized expertise required for VAPO AND IMEA SUPPORT, the 'full and open' nature might not translate into robust price competition. In such cases, the government might still face higher costs than in a market with numerous qualified competitors. Therefore, while the process is designed for optimal outcomes, the realized benefits depend on market dynamics and the specific solicitation.

What is the historical spending pattern for VAPO AND IMEA SUPPORT or similar services by the Defense Threat Reduction Agency?

Analyzing historical spending patterns for 'VAPO AND IMEA SUPPORT' specifically requires access to detailed contract databases beyond the provided summary. The Defense Threat Reduction Agency (DTRA) is known to invest significantly in research and development related to weapons of mass destruction, counter-terrorism, and threat reduction technologies. Spending in these areas can fluctuate based on evolving threats, technological advancements, and budgetary priorities. Contracts similar to this one, focusing on specialized R&D for threat mitigation, are a core function of DTRA. Without specific historical data for this exact contract name or closely related service codes, it's difficult to establish a precise spending trend. However, it is reasonable to assume DTRA consistently allocates substantial resources to R&D efforts aimed at countering diverse and evolving threats.

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

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: $35,001,434

Exercised Options: $31,141,033

Current Obligation: $29,079,702

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $80,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTRA0103D0014

IDV Type: IDC

Timeline