DoD's $923M SLAKE R&D Contract Awarded to Applied Research Solutions, Inc

Contract Overview

Contract Amount: $92,337,420 ($92.3M)

Contractor: Applied Research Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-11-06

End Date: 2024-08-16

Contract Duration: 2,110 days

Daily Burn Rate: $43.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SENSING, LEARNING, AUTONOMY, AND KNOWLEDGE ENGINEERING (SLAKE)

Place of Performance

Location: BEAVERCREEK, MONTGOMERY County, OHIO, 45440

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $92.3 million to APPLIED RESEARCH SOLUTIONS, INC. for work described as: SENSING, LEARNING, AUTONOMY, AND KNOWLEDGE ENGINEERING (SLAKE) Key points: 1. Significant investment in advanced R&D for sensing, learning, and autonomy. 2. Competition was full and open, suggesting a competitive bidding process. 3. Potential risks include cost overruns in complex research projects. 4. The sector is R&D, focusing on physical, engineering, and life sciences.

Value Assessment

Rating: questionable

The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Benchmarking is difficult due to the specialized nature of the R&D.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. However, the Cost Plus Fixed Fee structure may still allow for cost growth.

Taxpayer Impact: Taxpayer funds are supporting advanced research, with potential long-term benefits but also the risk of inefficient spending if costs escalate.

Public Impact

Advancement in AI and autonomous systems could have significant defense applications. Investment in R&D is crucial for maintaining technological superiority. The long duration of the contract suggests a complex, multi-phase research effort.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee structure
  • Long contract duration (2110 days)
  • No small business participation noted

Positive Signals

  • Full and open competition
  • Focus on critical R&D areas

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical, engineering, and life sciences. Spending in this area is critical for innovation but can be prone to cost overruns due to the inherent uncertainties of research.

Small Business Impact

The contract data indicates no specific set-aside for small businesses, and the prime contractor is not listed as a small business. This suggests limited direct opportunities for small businesses on this specific award.

Oversight & Accountability

The Department of the Air Force is the contracting agency. Oversight will be critical to manage the Cost Plus Fixed Fee structure and ensure research objectives are met efficiently.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Cost Plus Fixed Fee structure
  • Long contract duration
  • Lack of small business participation
  • Potential for scope creep in R&D
  • Difficulty in defining and measuring R&D success upfront

Tags

research-and-development-in-the-physical, department-of-defense, oh, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.3 million to APPLIED RESEARCH SOLUTIONS, INC.. SENSING, LEARNING, AUTONOMY, AND KNOWLEDGE ENGINEERING (SLAKE)

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 $92.3 million.

What is the period of performance?

Start: 2018-11-06. End: 2024-08-16.

What are the specific performance metrics and milestones for this R&D contract to ensure value for money?

Detailed performance metrics and phased milestones are crucial for a Cost Plus Fixed Fee R&D contract. These should outline expected deliverables, research progress, and quality standards at each stage. Effective oversight by the Department of the Air Force is necessary to track adherence to these metrics and ensure taxpayer funds are used efficiently towards achieving the program's objectives.

How will the Department of Defense mitigate the risks associated with cost overruns in this long-term, complex R&D effort?

Mitigation strategies for cost overruns in this CPFF contract should include rigorous independent cost reviews, strict change order management, and regular performance reviews against defined milestones. The agency should also ensure clear communication channels with the contractor to identify potential issues early and implement corrective actions proactively to maintain cost control.

What is the expected long-term impact of the SLAKE program's advancements on national security and technological competitiveness?

The SLAKE program aims to enhance capabilities in sensing, learning, and autonomy, which are critical for future defense systems. Successful advancements could lead to more effective intelligence gathering, improved autonomous operations, and a stronger technological edge against adversaries, thereby bolstering national security and maintaining U.S. competitiveness in key technological domains.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: FA865018S1692

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 51 PLUM ST STE 240, 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: $93,754,494

Exercised Options: $93,754,494

Current Obligation: $92,337,420

Actual Outlays: $7,525,635

Subaward Activity

Number of Subawards: 1785

Total Subaward Amount: $418,800,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2018-11-06

Current End Date: 2024-08-16

Potential End Date: 2024-08-16 00:00:00

Last Modified: 2025-09-22

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