DHS Awards $116.7M for Technical Services to Applied Research Associates, Inc

Contract Overview

Contract Amount: $116,653,488 ($116.7M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-30

End Date: 2026-05-15

Contract Duration: 1,323 days

Daily Burn Rate: $88.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TECHNICAL SERVICES TO SUPPORT ALL PHASES OF DHS OPERATIONS ANALYSIS AND THE DEVELOPMENT OF OPERATIONAL REQUIREMENTS DOCUMENTS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $116.7 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: TECHNICAL SERVICES TO SUPPORT ALL PHASES OF DHS OPERATIONS ANALYSIS AND THE DEVELOPMENT OF OPERATIONAL REQUIREMENTS DOCUMENTS. Key points: 1. Contract awarded to Applied Research Associates, Inc. for engineering services. 2. Significant contract value of $116.7 million over approximately 3.6 years. 3. Full and open competition was utilized. 4. No small business participation noted.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount is substantial, and the pricing will need close monitoring against the fixed fee component.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific details of the bidding and selection are not provided, making a definitive assessment of price competitiveness difficult.

Taxpayer Impact: Taxpayers are impacted by the $116.7 million expenditure, with the expectation that the services provided will effectively support DHS operations and requirements development.

Public Impact

Supports critical Department of Homeland Security operations and requirements development. Long-term contract (over 3 years) indicates ongoing need for these services. Potential for significant impact on national security and operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 88 / 10

Warning Flags

Lack of small business participation.
Cost Plus Fixed Fee contract type can be prone to cost growth.

Positive Signals

Full and open competition utilized.
Supports critical DHS functions.

Sector Analysis

Engineering services are crucial for government operations, particularly in sectors like homeland security where technical expertise is vital for developing and maintaining operational capabilities. The benchmark for similar contracts varies widely based on scope and complexity.

Small Business Impact

This contract does not appear to include any specific provisions or set-asides for small businesses. This represents a missed opportunity to foster small business growth and leverage their specialized capabilities within the federal contracting landscape.

Oversight & Accountability

The contract is managed by the Department of Homeland Security's Office of Procurement Operations. Oversight will be critical to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs and that the delivered services meet all specified requirements.

Related Government Programs

Engineering Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Lack of small business participation.
Long contract duration requires sustained oversight.
Limited insight into specific performance metrics and bid details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $116.7 million to APPLIED RESEARCH ASSOCIATES, INC.. TECHNICAL SERVICES TO SUPPORT ALL PHASES OF DHS OPERATIONS ANALYSIS AND THE DEVELOPMENT OF OPERATIONAL REQUIREMENTS DOCUMENTS.

Who is the contractor on this award?

The obligated recipient is APPLIED RESEARCH ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $116.7 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-05-15.

How will the fixed fee component of the Cost Plus Fixed Fee contract be benchmarked to ensure it represents fair value for the services provided?

Benchmarking the fixed fee requires a detailed understanding of the labor categories, hours, and overhead rates involved. The government should compare these elements against industry standards and historical data for similar engineering support services. Regular audits and performance reviews will be essential to ensure the fee remains justified throughout the contract's duration.

What specific metrics will be used to evaluate the effectiveness of the technical services in supporting DHS operations and requirements development?

Effectiveness metrics should include the timely delivery of high-quality operational requirements documents, successful integration of technical solutions, and positive feedback from DHS operational units. Key Performance Indicators (KPIs) could track the accuracy of requirements, the efficiency of the analysis process, and the overall contribution to mission success.

Given the full and open competition, what was the range of bids received, and how did Applied Research Associates, Inc.'s proposal stand out?

While the data indicates full and open competition, specific bid ranges are not provided. Typically, the government would evaluate proposals based on a combination of technical merit, past performance, and price. Applied Research Associates, Inc. likely presented a compelling technical approach and competitive pricing structure that aligned best with DHS's needs and evaluation criteria.

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: 70RSAT22R00000002

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4300 SAN MATEO BLVD NE STE A-220, 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: $190,761,116

Exercised Options: $119,657,427

Current Obligation: $116,653,488

Actual Outlays: $105,064,705

Subaward Activity

Number of Subawards: 242

Total Subaward Amount: $66,383,942

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU104

IDV Type: IDC

Timeline