DoD awards $30.9M contract for surface use, disposal tools, and equipment to Applied Research Associates, Inc

Contract Overview

Contract Amount: $30,926,486 ($30.9M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-06-28

End Date: 2011-09-30

Contract Duration: 3,381 days

Daily Burn Rate: $9.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Construction

Official Description: 200209!002044!5700!GM15 !AAC/WMK !F0863502C0100 !A!N! !N! !20020628!20120629!097967608!097967608!097967608!N!APPLIED RESEARCH ASSOCIATES, I!4300 SAN MATEO BLVD NE, SU!ALBUQUERQUE !NM!87110!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000001507894!N!N!000001507894!1385!SURFACE USE EXPLO ORD DISPOSAL TOOLS & EQ !C9D!MATERIALS HANDLING EQUIPMENT !3000!NOT DISCERNABLE OR CLASSIFIED !333120!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1G!Z!Y!A! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110, UNITED STATES OF AMERICA

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $30.9 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: 200209!002044!5700!GM15 !AAC/WMK !F0863502C0100 !A!N! !N! !20020628!20120629!097967608!097967608!097967608!N!APPLIED RESEARCH ASSOCIATES, I!4300 SAN MATEO BLVD NE, SU!ALBUQUERQUE !NM!87110!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000001507894!N!N!000001507894!1385!SURFAC… Key points: 1. Contract awarded to a single, established vendor. 2. Significant value suggests critical need or specialized services. 3. Potential for cost overruns due to Time and Materials pricing. 4. Sector focus on construction machinery manufacturing.

Value Assessment

Rating: questionable

The contract value of $30.9M is substantial. Without specific unit cost data or benchmarks for similar 'Surface Use Exploitation Ord Disposal Tools & Eq', it's difficult to definitively assess value. The Time and Materials pricing structure introduces inherent risk to cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about whether the government secured the best possible price.

Public Impact

Taxpayers may be paying a premium due to the sole-source nature of the award. The specific equipment and tools procured are not detailed, limiting public understanding of the expenditure. The long duration of the contract (over 9 years) suggests a sustained need, but also prolonged potential for cost inefficiencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Time and Materials pricing
Long contract duration
Lack of detailed scope

Positive Signals

Contract awarded to a known entity
Addresses a specific need for tools and equipment

Sector Analysis

This contract falls within the Construction Machinery Manufacturing sector. Spending in this area can vary widely based on infrastructure projects and defense needs. Benchmarks are difficult without knowing the exact nature of the 'surface use, disposal tools & eq'.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely precluded small business participation.

Oversight & Accountability

The sole-source award warrants scrutiny to ensure the pricing is fair and reasonable. Oversight should focus on managing the Time and Materials aspect to prevent cost creep over the contract's long duration.

Related Government Programs

Construction Machinery Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition and price discovery.
Time and Materials pricing structure increases risk of cost overruns.
Long contract duration (over 9 years) extends exposure to potential inefficiencies.
Lack of detailed information on procured items hinders value assessment.
Potential for inflated costs due to absence of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.9 million to APPLIED RESEARCH ASSOCIATES, INC.. 200209!002044!5700!GM15 !AAC/WMK !F0863502C0100 !A!N! !N! !20020628!20120629!097967608!097967608!097967608!N!APPLIED RESEARCH ASSOCIATES, I!4300 SAN MATEO BLVD NE, SU!ALBUQUERQUE !NM!87110!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000001507894!N!N!000001507894!1385!SURFACE USE EXPLO ORD DISPOSAL TOOLS & EQ !C9D!MATERIALS HANDLING EQUIPMENT !3000!NOT DISCERNABLE OR CLASSIFIED !333120!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1G!Z!Y!A! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! ! !00

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $30.9 million.

What is the period of performance?

Start: 2002-06-28. End: 2011-09-30.

What specific 'surface use, disposal tools & eq' were procured, and how do their costs compare to commercially available alternatives?

The data does not specify the exact nature of the 'surface use, disposal tools & eq'. Without this detail, a direct cost comparison to commercial alternatives is impossible. Further investigation into the contract's statement of work is needed to assess if the government obtained value for money, especially given the sole-source, Time and Materials award.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for the sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. Steps to ensure fair pricing might include historical cost analysis or independent government cost estimates, but these are not detailed here, raising concerns about potential overpayment.

How effectively has Applied Research Associates, Inc. performed on this contract, and have there been any performance issues or cost overruns?

Performance data and specific cost overrun details are not included in the provided data. The Time and Materials contract type inherently carries a risk of cost overruns if not closely monitored. A review of contract performance reports and payment histories would be necessary to assess effectiveness and identify any issues.

Industry Classification

NAICS: Manufacturing › Agriculture, Construction, and Mining Machinery Manufacturing › Construction Machinery Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4300 SAN MATEO BLVD NE STE, ALBUQUERQUE, NM, 87110

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline