DoD's $21.8M autonomy R&D contract awarded to Applied Research Solutions, Inc. for Air Force systems

Contract Overview

Contract Amount: $21,829,832 ($21.8M)

Contractor: Applied Research Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-01-02

End Date: 2029-04-02

Contract Duration: 1,917 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MISSION AUTONOMY FOR AIR AND SPACE SYSTEMS

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to APPLIED RESEARCH SOLUTIONS, INC. for work described as: MISSION AUTONOMY FOR AIR AND SPACE SYSTEMS Key points: 1. Contract focuses on advanced research and development in physical, engineering, and life sciences. 2. The awardee, Applied Research Solutions, Inc., has secured a significant contract for mission autonomy. 3. Competition was full and open, suggesting a robust bidding process. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 5. Performance is expected over approximately five years, indicating a long-term investment. 6. The North American Industry Classification System (NAICS) code 541715 points to specialized R&D services.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost certainty, but the cost-reimbursement nature means the government bears the risk of cost overruns. Comparing this to similar R&D contracts in the defense sector would require access to proprietary cost data and specific technical objectives. The total award amount of $21.8 million over nearly five years suggests a moderate investment for specialized research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of 5 bids suggests a healthy level of interest and competition for this specialized R&D requirement. A competitive process generally helps ensure that the government receives fair pricing and that the most capable contractor is selected.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices and encourages innovation among contractors vying for the award.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive advancements in mission autonomy for air and space systems. This contract supports the development of cutting-edge technologies that could enhance operational capabilities. The research conducted may have implications for national security and defense readiness. The contract is expected to support specialized scientific and engineering workforce roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored.
The long duration of the contract increases the risk of scope creep or evolving requirements.
The specialized nature of R&D means outcomes are not guaranteed, posing a risk to mission success.

Positive Signals

Full and open competition suggests a strong market response and potential for innovation.
The award to a single entity implies a focused effort on achieving specific autonomy objectives.
The contract duration allows for in-depth research and development, potentially leading to significant technological advancements.

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, driven by the need for technological superiority. Comparable spending benchmarks would typically be found within the broader DoD R&D budget, with specific comparisons requiring analysis of contracts for similar autonomy or aerospace system development.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures will be tied to performance milestones and adherence to the fixed fee structure. Transparency may be limited due to the sensitive nature of defense R&D, but contract award details are publicly available.

Related Government Programs

Air Force Research Laboratory (AFRL) Contracts
DoD Autonomous Systems Development
Advanced Aerospace Technology R&D
Department of Defense Research and Development

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk for the government.
Long contract duration increases potential for scope creep and requirement changes.
R&D outcomes are inherently uncertain, posing a risk to achieving specific mission autonomy goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to APPLIED RESEARCH SOLUTIONS, INC.. MISSION AUTONOMY FOR AIR AND SPACE SYSTEMS

Who is the contractor on this award?

The obligated recipient is APPLIED RESEARCH SOLUTIONS, 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 $21.8 million.

What is the period of performance?

Start: 2024-01-02. End: 2029-04-02.

What is the specific technical scope and expected deliverables for this mission autonomy R&D contract?

The provided data does not detail the specific technical scope or expected deliverables for the 'MISSION AUTONOMY FOR AIR AND SPACE SYSTEMS' contract. However, given the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences), the contract likely involves theoretical and applied research aimed at developing advanced capabilities for autonomous operation of air and space systems. Deliverables could include research reports, prototypes, simulations, algorithms, or demonstrations of autonomous functionalities. The Cost Plus Fixed Fee structure suggests that the contractor will be reimbursed for allowable costs plus a predetermined fixed fee representing profit, incentivizing efficient cost management while pursuing complex R&D objectives.

How does the $21.8 million award compare to typical R&D spending for similar autonomy projects within the Department of Defense?

Comparing the $21.8 million award to typical R&D spending for similar autonomy projects requires access to a broader dataset of DoD contracts. However, this amount represents a significant but not exceptionally large investment for a multi-year R&D effort in a specialized field like mission autonomy. Defense R&D budgets are vast, and individual contracts can range from a few million to hundreds of millions of dollars depending on the project's phase, complexity, and strategic importance. This contract's value suggests a focused effort on specific technological advancements rather than a broad, foundational research program.

What are the key performance indicators (KPIs) or milestones that Applied Research Solutions, Inc. must meet to earn their fixed fee?

The specific Key Performance Indicators (KPIs) and milestones for this contract are not publicly detailed in the provided data. Typically, for Cost Plus Fixed Fee R&D contracts, performance is measured against defined technical objectives, research progress, successful demonstrations, and timely delivery of research findings or prototypes. The fixed fee is contingent upon the contractor meeting these pre-defined criteria. The Department of the Air Force would establish these KPIs and milestones within the contract's Statement of Work (SOW) to ensure accountability and track progress towards the program's autonomy goals.

What is the track record of Applied Research Solutions, Inc. in securing and successfully executing DoD R&D contracts, particularly in autonomy?

Information regarding the specific track record of Applied Research Solutions, Inc. in securing and executing DoD R&D contracts, especially in the domain of autonomy, is not provided in the data. A comprehensive assessment would require reviewing the company's contract history, past performance evaluations, and any publicly available project outcomes. Companies in the defense R&D sector often have specialized expertise, and their success can be gauged by their ability to win competitive bids, manage complex projects, and deliver innovative solutions that meet stringent military requirements. Further investigation into the contractor's portfolio would be necessary.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this autonomy R&D effort?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for R&D is that the government bears the majority of the cost risk. While the fee is fixed, the contractor is reimbursed for allowable costs, which can exceed initial estimates if the research proves more complex or time-consuming than anticipated. This can lead to budget overruns for the government. Additionally, CPFF contracts can sometimes provide less incentive for the contractor to control costs aggressively compared to fixed-price contracts, although the fixed fee itself does represent a ceiling on profit. Effective oversight and clear definition of allowable costs are crucial to mitigate these risks.

How does this contract align with broader Department of the Air Force strategic goals related to artificial intelligence and autonomous systems?

This contract directly aligns with the Department of the Air Force's strategic emphasis on advancing artificial intelligence (AI) and autonomous systems. The pursuit of 'MISSION AUTONOMY FOR AIR AND SPACE SYSTEMS' indicates a clear objective to enhance the capabilities of aircraft and spacecraft through increased automation and intelligent decision-making. Such advancements are critical for maintaining a technological edge, improving operational efficiency, reducing risk to human personnel in complex environments, and enabling new operational concepts. The investment in R&D signifies a commitment to future warfighting capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 51 PLUM ST, BEAVERCREEK, OH, 45440

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

Financial Breakdown

Contract Ceiling: $48,750,000

Exercised Options: $48,750,000

Current Obligation: $21,829,832

Actual Outlays: $238,301

Subaward Activity

Number of Subawards: 163

Total Subaward Amount: $9,686,483

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline