DoD's $62.3M F-22 TE-RECCS II contract awarded to Applied Research Associates, Inc. for R&D

Contract Overview

Contract Amount: $62,336,767 ($62.3M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2027-05-15

End Date: 2027-05-15

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 TE-RECCS II

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $62.3 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: F-22 TE-RECCS II Key points: 1. Contract focuses on applied research and development, indicating a need for specialized scientific expertise. 2. The contract's duration and value suggest a significant, long-term investment in technological advancement. 3. Competition was open after exclusion of sources, implying a specific technical requirement or limited vendor pool. 4. The award to a single entity suggests a high degree of specialization or unique capability. 5. Performance is expected in New Mexico, potentially impacting the local R&D ecosystem. 6. The contract type (Cost Plus Fixed Fee) is common for R&D where scope may evolve.

Value Assessment

Rating: fair

Benchmarking the value of this specific applied research contract is challenging without detailed scope and deliverable comparisons. The Cost Plus Fixed Fee structure allows for flexibility but can lead to cost overruns if not managed tightly. The total award amount of $62.3 million over its period needs to be assessed against the complexity and novelty of the research objectives. Without more granular data on the specific research outcomes and comparable projects, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, likely due to specific technical requirements, security clearances, or intellectual property considerations. The exact number of bidders is not provided, but the 'exclusion of sources' suggests a potentially narrowed field compared to a truly unrestricted open competition. This approach can sometimes lead to higher prices if the pool of qualified bidders is small.

Taxpayer Impact: The limited competition may mean taxpayers are not benefiting from the lowest possible price achievable through a broader bidding process. However, it could also ensure that the most technically capable contractor is selected for a specialized requirement, potentially leading to better outcomes and reduced long-term costs.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, who will receive advanced research and development outputs. The contract aims to deliver advancements in physical, engineering, and life sciences research, excluding biotechnology. The geographic impact is centered in New Mexico, potentially stimulating the local scientific and technical workforce. This contract supports specialized research roles, contributing to the high-skill segment of the workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs to achieve a fixed profit, requiring robust oversight.
The 'exclusion of sources' in competition limits the potential for price discovery and may result in a higher-than-market price.
The specific nature of R&D can make it difficult to define success metrics upfront, posing a risk to achieving desired outcomes.

Positive Signals

Awarding to a single entity suggests they possess unique or highly specialized capabilities critical for the research.
The contract is for applied research, indicating a focus on practical application and potential for near-term technological improvements.
The long-term nature of the contract (implied by the end date) suggests a sustained commitment to innovation in this area.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization, driving innovation in materials, systems, and operational capabilities. The market for defense R&D is characterized by high barriers to entry due to specialized knowledge, security requirements, and long development cycles. Comparable spending benchmarks would typically involve other large-scale R&D contracts awarded by the DoD to firms specializing in advanced scientific and engineering services.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). The nature of advanced R&D contracts often favors larger, established firms with extensive resources and specialized expertise. There is no explicit mention of subcontracting requirements for small businesses, suggesting that the primary contractor will likely handle the majority of the work. This could limit opportunities for small businesses to participate in this specific project, although they may be involved in the broader defense R&D ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting agency (Department of the Air Force) and potentially the Department of Defense's acquisition and oversight bodies. Accountability measures will be tied to the achievement of research milestones and deliverables outlined in the contract. Transparency is generally limited for specific R&D projects due to national security and proprietary concerns, but contract award details and performance reports (if publicly released) would be subject to oversight.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Advanced Technology Development
Applied Scientific Research Contracts
Engineering Services Contracts
Physical Sciences Research

Risk Flags

Potential for cost overruns due to CPFF structure in R&D.
Limited competition may result in suboptimal pricing.
Lack of transparency regarding specific R&D objectives and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.3 million to APPLIED RESEARCH ASSOCIATES, INC.. F-22 TE-RECCS II

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 $62.3 million.

What is the period of performance?

Start: 2027-05-15. End: 2027-05-15.

What is the specific technical objective of the F-22 TE-RECCS II contract?

The provided data does not detail the specific technical objectives of the F-22 TE-RECCS II contract. The contract is categorized under 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' with the North American Industry Classification System (NAICS) code 541712. This broad classification suggests the research could pertain to areas such as advanced materials, propulsion systems, sensor technology, or other engineering disciplines relevant to the F-22 program. Further details would require access to the contract's statement of work or related documentation, which are typically not publicly disclosed in full for security and proprietary reasons.

How does the $62.3 million award compare to typical R&D spending for advanced aircraft programs?

The $62.3 million award for the F-22 TE-RECCS II contract represents a significant investment in research and development. However, comparing it directly to 'typical' R&D spending for advanced aircraft programs is complex without knowing the specific phase and scope of this particular effort. Major aircraft development programs can involve billions of dollars over many years. This contract, awarded to Applied Research Associates, Inc., appears to be for a specific research and technology enhancement effort rather than the full development of a new aircraft. Its value should be assessed relative to the criticality and complexity of the F-22's ongoing sustainment and modernization needs, which often involve specialized R&D to maintain technological superiority.

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

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded for the F-22 TE-RECCS II, carry specific risks for the government. While the fixed fee provides the contractor with a defined profit margin, the 'cost-plus' element means the government reimburses the contractor's allowable costs. This can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total cost incurred. For R&D, where the scope can be uncertain and evolve, there's a risk of cost overruns if not managed diligently. Robust oversight, clear milestone definitions, and stringent cost controls are crucial to mitigate these risks and ensure the government receives good value for its investment.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for contractor selection and pricing?

'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies a competitive process was used, but with specific limitations. The 'exclusion of sources' means that certain potential bidders were deliberately not considered. This is typically done when there are unique technical requirements, proprietary data, security concerns, or a need for specific past performance that only a limited number of contractors can meet. While it's more competitive than a sole-source award, it's less competitive than unrestricted full and open competition. This can lead to a higher price than might be achieved in a broader competition, as the pool of qualified bidders is smaller. However, it aims to ensure the selection of the most technically capable contractor for a specialized need.

What is the historical spending pattern for Applied Research Associates, Inc. with the Department of Defense?

The provided data does not include historical spending patterns for Applied Research Associates, Inc. with the Department of Defense. To assess their track record, one would need to analyze past contracts awarded to this company by the DoD, including the types of services rendered, contract values, performance history, and any issues encountered. A review of federal procurement databases (like FPDS or USASpending) would be necessary to compile this information. Understanding their past performance and relationship with the DoD is crucial for evaluating their reliability and suitability for current and future contracts, especially for complex R&D efforts like the F-22 TE-RECCS II.

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: $88,675,017

Exercised Options: $79,650,768

Current Obligation: $62,336,767

Subaward Activity

Number of Subawards: 89

Total Subaward Amount: $28,380,528

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