DoD's $24.5M R&D contract for SEMAS, DSGS with travel, labor, and supplies awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $24,472,226 ($24.5M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-12-21

End Date: 2010-07-30

Contract Duration: 586 days

Daily Burn Rate: $41.8K/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: SEMAS, DSGS TO INCLUDE TRAVEL, LABOR AND SUPPLIES

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32403

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: SEMAS, DSGS TO INCLUDE TRAVEL, LABOR AND SUPPLIES Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Significant portion allocated for travel, labor, and supplies, indicating a hands-on research approach. 3. Contract duration of 586 days suggests a focused, medium-term project. 4. Awarded under full and open competition after exclusion of sources, implying a competitive process with specific justifications. 5. Cost Plus Award Fee contract type allows for performance-based incentives. 6. The contract value of over $24 million represents a substantial investment in R&D.

Value Assessment

Rating: fair

The contract value of $24.5 million for a 586-day R&D effort appears within a reasonable range for specialized research. However, without specific details on the deliverables and the nature of the SEMAS and DSGS systems, a precise value-for-money assessment is challenging. The Cost Plus Award Fee structure suggests an intent to incentivize performance, which can lead to better outcomes if managed effectively. Benchmarking against similar R&D contracts for complex systems would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was open, there were specific reasons for excluding certain sources, which were likely documented. The presence of 'full and open' competition generally suggests a robust process aimed at achieving the best value. The number of bidders is not specified, but the designation implies multiple interested parties were considered.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it aims to secure the best possible price and quality for the research and development services, preventing potential overspending associated with less competitive procurements.

Public Impact

The Department of Defense benefits from advancements in SEMAS and DSGS, potentially enhancing operational capabilities. Research and development services are delivered, contributing to technological innovation within the defense sector. The contract's geographic impact is centered in Florida, where Applied Research Associates, Inc. is located. Workforce implications include employment opportunities for researchers, engineers, and support staff involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on SEMAS and DSGS makes it difficult to assess the true scope and potential risks.
Cost Plus Award Fee contracts can sometimes lead to cost overruns if performance metrics are not tightly controlled.
The 'exclusion of sources' clause warrants further investigation to ensure it did not unduly limit competition.

Positive Signals

Awarded through full and open competition, suggesting a competitive environment.
The Cost Plus Award Fee structure incentivizes contractor performance.
The contract is for research and development, indicating investment in future capabilities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is characterized by innovation and the pursuit of new technologies. The contract value of approximately $24.5 million is a significant, though not exceptionally large, investment for a specific R&D project within the defense industry. Comparable spending benchmarks in this area would depend heavily on the specific nature of SEMAS and DSGS, but it represents a notable allocation for applied research.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to Applied Research Associates, Inc., there is potential for subcontracting opportunities for small businesses. However, without specific subcontracting plans or goals outlined in the award details, the direct impact on the small business ecosystem remains unclear. Further analysis of subcontracting reports would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, a component of the Department of Defense. The Cost Plus Award Fee (CPA) structure necessitates robust oversight to ensure performance targets are met and costs are managed effectively. Transparency is facilitated through contract award databases, but detailed project progress and spending reports may be less publicly accessible due to the nature of defense R&D. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Systems Development Contracts
Applied Scientific Research Contracts
Technology Development and Innovation Initiatives

Risk Flags

Potential for cost overruns due to CPA structure.
Risk of scope creep in long-term R&D projects.
Uncertainty regarding the specific technical outcomes of the R&D.
Limited public information on SEMAS and DSGS systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to APPLIED RESEARCH ASSOCIATES, INC.. SEMAS, DSGS TO INCLUDE TRAVEL, LABOR AND SUPPLIES

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 $24.5 million.

What is the period of performance?

Start: 2008-12-21. End: 2010-07-30.

What are SEMAS and DSGS, and what is their intended purpose within the Department of Defense?

SEMAS and DSGS are acronyms for systems or programs that are not immediately identifiable from publicly available information without further context or specific program knowledge. Given the contract's classification under 'Research and Development in the Physical, Engineering, and Life Sciences' and its award to Applied Research Associates, Inc., it is highly probable that SEMAS and DSGS refer to specialized systems, software, or technological capabilities being developed for defense applications. These could range from simulation and modeling environments (like Simulation and Emulation for Mission Assurance Systems) to data gathering or sensor systems (like Sensor Data Gathering Systems). The specific purpose would likely relate to enhancing military operations, intelligence gathering, training, or logistical support, aligning with the DoD's continuous efforts to modernize and improve its technological edge.

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

The Cost Plus Award Fee (CPA) contract type is designed to incentivize contractor performance while covering allowable costs. Under a CPA, the contractor is reimbursed for all legitimate, direct, and indirect costs incurred in performing the contract. In addition to cost reimbursement, the contractor has the potential to earn an award fee, which is a variable amount determined by the government based on its assessment of the contractor's performance against pre-defined criteria. This structure encourages the contractor to not only control costs but also to exceed minimum performance standards to maximize their total compensation. For this R&D project, it means Applied Research Associates, Inc. is motivated to deliver high-quality research and development outcomes that meet or surpass the Air Force's expectations to earn the award fee, while the government retains oversight to ensure costs remain reasonable and performance targets are achieved.

What are the potential risks associated with a 586-day R&D contract that includes travel, labor, and supplies?

A 586-day (approximately 1.6 years) R&D contract involving travel, labor, and supplies carries several potential risks. Firstly, the extended duration increases the risk of scope creep, where the project's objectives may evolve or expand beyond the original intent, potentially leading to cost overruns and schedule delays. Secondly, the inclusion of travel and labor means that fluctuations in personnel costs (salaries, benefits) and travel expenses (airfare, lodging) can impact the overall budget, especially if not adequately forecasted or if economic conditions change. Thirdly, the procurement and management of supplies over such a period require careful inventory control and risk mitigation against obsolescence or loss. For R&D specifically, there's the inherent risk that the research may not yield the desired results, leading to a technically unsuccessful outcome despite the resources expended. Effective project management, clear communication, and robust change control processes are crucial to mitigate these risks.

What does 'full and open competition after exclusion of sources' imply about the procurement process and potential bidder pool?

The phrase 'full and open competition after exclusion of sources' indicates a nuanced procurement approach. It signifies that the solicitation was initially intended for full and open competition, meaning all responsible sources were permitted to submit offers. However, specific sources were subsequently excluded. This exclusion must be justified under specific circumstances outlined in federal acquisition regulations, such as national security concerns, sole-source justifications for follow-on work, or specific technical requirements that only certain entities can meet. While the process aimed for broad competition, the exclusion implies that the final pool of bidders was smaller than it might have been otherwise. This could potentially impact price competition, although the 'full and open' aspect suggests a genuine effort to maximize participation within the established constraints.

How does the NAICS code 541710 (R&D in Physical, Engineering, and Life Sciences) typically relate to defense spending and innovation?

NAICS code 541710 is a critical category for defense spending as it encompasses the research and development activities that underpin military technological advancement. The Department of Defense is a major investor in this sector, funding research to develop next-generation weapons systems, communication technologies, surveillance capabilities, materials science, and life support systems for personnel. Contracts under this code often involve highly specialized scientific and engineering expertise, pushing the boundaries of current knowledge. The R&D funded here is essential for maintaining a technological advantage over potential adversaries, ensuring national security, and driving innovation that can also have civilian applications. Spending in this area reflects a strategic commitment to future capabilities and problem-solving.

What is the significance of the contract being awarded to Applied Research Associates, Inc. (ARA) in Florida?

The award of this $24.5 million R&D contract to Applied Research Associates, Inc. (ARA), located in Florida, signifies a significant economic contribution to the state's technology and defense sectors. ARA is known for its expertise in various engineering and scientific disciplines, often supporting government and commercial clients. This contract likely translates into job creation and retention for highly skilled professionals in Florida, including scientists, engineers, technicians, and support staff. Furthermore, it reinforces Florida's position as a hub for defense contracting and technological innovation. The geographic concentration of the work in Florida means that a substantial portion of the federal funds allocated for this R&D effort will be spent within the state, benefiting local businesses through supply chains and services.

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: $24,780,709

Exercised Options: $24,780,709

Current Obligation: $24,472,226

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: FA481907D0001

IDV Type: IDC

Timeline