DoD Awards $63M F-22 Modernization Contract to Applied Research Associates, Inc
Contract Overview
Contract Amount: $63,234,199 ($63.2M)
Contractor: Applied Research Associates, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-11-15
End Date: 2023-05-15
Contract Duration: 1,642 days
Daily Burn Rate: $38.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: F-22 MODERNIZATION MANAGED SERVICE PROVIDER (TE-RECCS)
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110
Plain-Language Summary
Department of Defense obligated $63.2 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: F-22 MODERNIZATION MANAGED SERVICE PROVIDER (TE-RECCS) Key points: 1. Contract awarded to Applied Research Associates, Inc. for F-22 modernization. 2. Spending falls under R&D in Physical, Engineering, and Life Sciences. 3. Full and open competition after exclusion of sources was used. 4. Contract duration is 1642 days, ending May 15, 2023. 5. This is a Delivery Order under a larger contract.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award amount is $63.2M.
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 suggests a competitive process but with specific source exclusions, potentially limiting the breadth of competition and impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for advanced aircraft modernization, aiming to maintain technological superiority.
Public Impact
Supports the F-22 fighter jet program, a critical national security asset. Invests in research and development for advanced military capabilities. Contract duration spans over four years, indicating a significant project. Managed service provider model for modernization efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Exclusion of sources in competition may limit price competitiveness.
Positive Signals
- Supports critical defense modernization.
- Long-term contract provides stability for R&D efforts.
Sector Analysis
This contract falls under the Research and Development sector, specifically NAICS code 541712. Spending in this sector is crucial for maintaining technological advantages in defense.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract.
Oversight & Accountability
The contract is a Delivery Order, suggesting it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract, which may have its own oversight mechanisms. Further review of the parent contract is needed.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for limited competition due to source exclusion.
- Long contract duration may increase risk of scope creep.
- Dependence on a single managed service provider.
Tags
research-and-development-in-the-physical, department-of-defense, nm, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.2 million to APPLIED RESEARCH ASSOCIATES, INC.. F-22 MODERNIZATION MANAGED SERVICE PROVIDER (TE-RECCS)
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 $63.2 million.
What is the period of performance?
Start: 2018-11-15. End: 2023-05-15.
What specific modernization efforts are being undertaken for the F-22 under this contract, and how do they align with current and future Air Force requirements?
The contract focuses on modernization managed services for the F-22, likely encompassing upgrades to avionics, software, and potentially weapon systems to maintain the aircraft's combat effectiveness. These efforts are expected to align with the Air Force's strategic goals for air superiority and its long-term vision for the F-22 fleet's role in the evolving threat landscape.
What are the key performance indicators (KPIs) for Applied Research Associates, Inc. under this contract, and how is their performance being measured to ensure value for taxpayer money?
Specific KPIs are not detailed in the provided data. However, for a Cost Plus Fixed Fee contract, performance is typically measured against milestones, delivery schedules, and adherence to the fixed fee objectives. The Air Force would likely monitor technical progress, cost control, and overall program execution to ensure value and mission accomplishment.
How does the 'Full and Open Competition After Exclusion of Sources' approach balance the need for specialized expertise with ensuring fair market competition and optimal pricing?
This procurement method allows for competition among a broad range of qualified sources but permits the exclusion of specific entities. It aims to balance the need for specialized capabilities, potentially held by a limited number of firms, with the principles of competition. The effectiveness in achieving optimal pricing depends on the number of eligible bidders and the rigor of the evaluation process.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $70,221,587
Exercised Options: $70,221,587
Current Obligation: $63,234,199
Actual Outlays: $3,318,430
Subaward Activity
Number of Subawards: 87
Total Subaward Amount: $16,568,259
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADS702
IDV Type: IDC
Timeline
Start Date: 2018-11-15
Current End Date: 2023-05-15
Potential End Date: 2024-06-03 00:00:00
Last Modified: 2024-06-03
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