DoD's $29.9M R&D contract for biotechnology research awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $29,906,653 ($29.9M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-11-18

End Date: 2014-03-31

Contract Duration: 1,959 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ILEADER

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: ILEADER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1959 days indicates a long-term research and development effort. 3. The 'COST PLUS FIXED FEE' contract type may incentivize cost control while allowing for flexibility. 4. The North American Industry Classification System (NAICS) code 541711 points to a specialized R&D sector. 5. Awarded by the Department of the Air Force, indicating a focus on defense-related biotechnology applications. 6. The contract was awarded in New Mexico, potentially impacting the local high-tech workforce.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable biotechnology R&D contracts from the same period. The Cost Plus Fixed Fee structure can sometimes lead to higher costs than fixed-price contracts if not managed carefully. However, for complex R&D where scope may evolve, it can be appropriate. The total award amount of $29.9 million over approximately 5.4 years suggests a moderate investment in 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 all responsible sources were permitted to submit a bid. The presence of 9 bidders (as indicated by 'no': 9) suggests a healthy level of competition for this specialized research and development requirement. A competitive process generally helps ensure that the government receives fair pricing and the best value available in the market.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs and encouraged innovation among the bidding firms, leading to a more efficient use of public funds.

Public Impact

The primary beneficiaries are likely the Department of Defense and the Air Force, who will receive advancements in biotechnology relevant to their missions. The contract supports research and development in biotechnology, potentially leading to new technologies or improved existing ones. The geographic impact is centered in New Mexico, where the contractor Applied Research Associates, Inc. is located, potentially creating or sustaining high-skilled jobs. The contract implies a need for specialized scientific and technical personnel, contributing to the skilled workforce in the biotechnology R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
The long duration of the contract (1959 days) requires sustained oversight to ensure progress and adherence to objectives.
The specialized nature of biotechnology R&D may present unique challenges in performance measurement and risk management.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract supports critical research and development for the Department of Defense.
The contractor, Applied Research Associates, Inc., has secured a significant R&D award, suggesting established capabilities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on biotechnology (NAICS 541711). The R&D services market is characterized by innovation, specialized expertise, and often long project timelines. Government spending in this area is crucial for national security, technological advancement, and economic competitiveness. Comparable spending benchmarks would involve analyzing other DoD or federal agency contracts for similar biotechnology R&D efforts, considering factors like project scope, duration, and contractor expertise.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('sb': false) and the contractor is not classified as a small business ('st': 'NM', implying 'Not a Major' or similar, but not explicitly small). Therefore, there are no direct small business set-aside implications. However, the prime contractor may engage small businesses as subcontractors for specialized services or supplies, which would be detailed in subcontracting plans not provided here. The overall impact on the small business ecosystem would depend on whether subcontracting opportunities were pursued.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are typically embedded in the contract terms, including performance milestones, reporting requirements, and payment schedules tied to progress. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development
Air Force Science and Technology Programs
Biotechnology Research Contracts
Federal R&D Services
Cost-Plus Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of technological obsolescence in a fast-moving field.
Need for sustained government oversight over a long contract duration.
Challenges in defining and measuring success for complex R&D.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to APPLIED RESEARCH ASSOCIATES, INC.. ILEADER

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 $29.9 million.

What is the period of performance?

Start: 2008-11-18. End: 2014-03-31.

What is the track record of Applied Research Associates, Inc. in securing and performing federal R&D contracts, particularly in biotechnology?

Applied Research Associates, Inc. (ARA) has a history of securing federal contracts, including those related to research and development. While this specific $29.9 million contract for biotechnology R&D is a significant award, ARA's broader portfolio likely includes other defense and scientific research projects. A deeper analysis would involve examining their past performance ratings, any contract disputes or terminations, and their success rate in competitive bidding across various agencies. Their ability to successfully execute this long-term, complex R&D effort hinges on their demonstrated technical capabilities, project management expertise, and financial stability, which can be inferred from their historical contract performance.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar biotechnology R&D projects?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development projects where the scope of work is not precisely defined at the outset, or where significant uncertainties exist. In such cases, it allows the contractor to be reimbursed for allowable costs plus a predetermined fixed fee representing their profit. Compared to Fixed Price contracts, CPFF can offer more flexibility but may carry a higher risk of cost overruns if not managed diligently. For highly innovative or exploratory R&D, it can be more appropriate than a firm-fixed-price contract, which might stifle innovation due to cost pressures. However, it requires robust government oversight to ensure costs remain reasonable and necessary.

What are the key performance indicators (KPIs) likely used to assess the success of this biotechnology R&D contract?

Key performance indicators for this biotechnology R&D contract would likely focus on technical achievements and project milestones. These could include the successful development of specific prototypes, validation of research hypotheses, achievement of defined performance metrics for new technologies, timely delivery of research reports and data, and adherence to scientific protocols. Given the CPFF structure, cost control and efficient resource utilization would also be monitored, though perhaps less stringently than in a fixed-price contract. Ultimately, the contract's success would be measured by its contribution to the Air Force's strategic objectives in biotechnology.

What is the historical spending trend for NAICS code 541711 (Biotechnology Research and Development) within the Department of Defense?

Historical spending trends for NAICS code 541711 within the Department of Defense (DoD) generally show consistent investment in biotechnology research, driven by national security and advanced technological needs. While specific year-over-year figures fluctuate based on emerging priorities and budget allocations, the overall trend indicates a sustained commitment to this field. The DoD often funds R&D in areas like medical countermeasures, advanced materials, and biological defense systems. Analyzing aggregated spending data over several fiscal years would reveal the magnitude and growth trajectory of DoD's investment in biotechnology R&D, highlighting its strategic importance.

What are the potential risks associated with a long-duration (1959 days) R&D contract in a rapidly evolving field like biotechnology?

A long-duration R&D contract in biotechnology carries several potential risks. Firstly, the rapid pace of scientific advancement means that the initial research objectives or technologies may become obsolete before the contract concludes. Secondly, there's a risk of 'scope creep' where the project expands beyond its original intent, potentially increasing costs and delaying timelines. Thirdly, maintaining contractor engagement and technical expertise over an extended period can be challenging. Finally, unforeseen scientific or technical hurdles could significantly impede progress, leading to delays or the inability to meet contract goals. Robust contract management, flexible adaptation strategies, and clear communication are crucial to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4300 SAN MATEO BLVD NE #A220, ALBUQUERQUE, NM, 01

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,906,653

Exercised Options: $29,906,653

Current Obligation: $29,906,653

Contract Characteristics

Cost or Pricing Data: NO

Timeline