GSA Awards $413M Engineering Services Task Order to Applied Research Associates, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $413,121,263 ($413.1M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-09-29

End Date: 2026-03-29

Contract Duration: 2,007 days

Daily Burn Rate: $205.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TASK ORDER AWARD

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33609

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $413.1 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: TASK ORDER AWARD Key points: 1. Significant contract value of $413M for engineering services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Contract duration extends to March 2026, indicating a long-term need. 4. Applied Research Associates, Inc. is the sole awardee for this task order.

Value Assessment

Rating: good

The contract type is Cost Plus Award Fee, which can incentivize contractor performance. Benchmarking against similar engineering services contracts would be necessary for a definitive assessment, but the value suggests a substantial project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source procurement.

Public Impact

Taxpayers benefit from a competitive bidding process for a large engineering services contract. Long-term engagement (until 2026) suggests ongoing critical government needs. The award to a single entity highlights the specialized nature of the services required.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts require careful monitoring to ensure cost control and performance.
Lack of small business participation noted.

Positive Signals

Awarded through full and open competition.
Long contract duration indicates sustained demand for services.

Sector Analysis

Engineering services are crucial for government infrastructure and defense projects. The North American Industry Classification System (NAICS) code 541330 confirms this focus. Spending in this sector can vary widely based on project scope and national priorities.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-aside goals were considered or if opportunities were missed.

Oversight & Accountability

The General Services Administration (GSA) manages this award through its Federal Acquisition Service. Oversight would focus on contract performance, cost management, and adherence to the terms of the Cost Plus Award Fee structure.

Related Government Programs

Engineering Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Contract type (CPAF) requires diligent oversight.
No small business participation indicated.
Long contract duration increases exposure to potential scope creep or changing requirements.
Specific engineering services not detailed, hindering full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $413.1 million to APPLIED RESEARCH ASSOCIATES, INC.. TASK ORDER AWARD

Who is the contractor on this award?

The obligated recipient is APPLIED RESEARCH ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $413.1 million.

What is the period of performance?

Start: 2020-09-29. End: 2026-03-29.

What specific engineering services are being procured under this task order, and how do they align with GSA's mission?

The task order falls under NAICS code 541330 (Engineering Services). While the specific services aren't detailed, GSA's Federal Acquisition Service procures a wide range of engineering support for government agencies, including design, consulting, and technical analysis for infrastructure, IT, and other federal projects. Understanding the precise nature of these services is key to assessing their alignment with GSA's role in facilitating efficient government operations.

How does the Cost Plus Award Fee structure impact the final cost and contractor performance for this $413M contract?

A Cost Plus Award Fee (CPAF) contract allows the contractor to be reimbursed for allowable costs plus an award fee based on performance against defined criteria. This structure aims to incentivize high performance. However, it requires robust government oversight to ensure costs remain reasonable and that the award fee criteria are objective and effectively drive desired outcomes, preventing potential cost overruns or inflated profits.

What is the potential long-term impact of this contract on the engineering services market and government capabilities?

This significant $413M award to Applied Research Associates, Inc. could solidify their position in the federal engineering services market. For the government, it ensures access to specialized engineering expertise until March 2026, potentially enhancing capabilities in critical areas. The long duration suggests a sustained need, and the competitive award process indicates a healthy market response, though the lack of small business participation warrants attention.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA20R0022

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, 87110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $785,886,265

Exercised Options: $641,962,491

Current Obligation: $413,121,263

Subaward Activity

Number of Subawards: 219

Total Subaward Amount: $234,649,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU304

IDV Type: IDC

Timeline