DoD Awards $15.9M for RF Analysis Software, Raising Questions on Value and Competition
Contract Overview
Contract Amount: $15,867,635 ($15.9M)
Contractor: Applied Research Associates, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-05-22
End Date: 2027-09-30
Contract Duration: 2,687 days
Daily Burn Rate: $5.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RF ANALYSIS AND VERIFICATION ENGINEERING SOFTWARE
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110
Plain-Language Summary
Department of Defense obligated $15.9 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: RF ANALYSIS AND VERIFICATION ENGINEERING SOFTWARE Key points: 1. Significant investment in specialized R&D software for the Air Force. 2. Sole contractor identified, raising concerns about competitive pricing. 3. Long contract duration (2020-2027) may not reflect current market needs. 4. Lack of small business participation noted.
Value Assessment
Rating: questionable
The contract value of $15.9M over 7 years for specialized software is substantial. Without competitive bids, it's difficult to ascertain if this price represents fair market value compared to similar R&D software solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although advertised as full and open competition, only one awardee was identified. This limited competition may have hindered price discovery and potentially led to a higher cost for the government.
Taxpayer Impact: The government may be overpaying due to the lack of robust competition, impacting taxpayer funds.
Public Impact
Advanced capabilities for Air Force research and development. Potential for technological advancements in RF analysis. Limited visibility into the specific applications and benefits for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite full and open solicitation
- No small business participation
- Long contract duration
- Cost Plus Fixed Fee contract type can incentivize cost overruns
Positive Signals
- Supports critical R&D for the Department of Defense
- Addresses a specialized technical need
Sector Analysis
This contract falls under the Research and Development sector, specifically for physical and engineering sciences. Spending in this area is crucial for innovation but requires careful oversight to ensure value for money.
Small Business Impact
The absence of small business participation in this significant contract is a missed opportunity to foster innovation and competition within the small business sector.
Oversight & Accountability
The contract's long duration and the limited competition warrant closer oversight to ensure the software remains relevant and the pricing is justified throughout its lifecycle.
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
- Potential for overpayment due to limited competition.
- Risk of technology obsolescence over the contract's long duration.
- Lack of small business involvement.
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
Tags
research-and-development-in-the-physical, department-of-defense, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.9 million to APPLIED RESEARCH ASSOCIATES, INC.. RF ANALYSIS AND VERIFICATION ENGINEERING SOFTWARE
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 $15.9 million.
What is the period of performance?
Start: 2020-05-22. End: 2027-09-30.
What specific technological advancements or operational efficiencies are expected from this $15.9M investment in RF analysis software?
The contract aims to provide advanced capabilities for Radio Frequency (RF) analysis and verification engineering, crucial for the Air Force's research and development efforts. Expected outcomes include enhanced simulation accuracy, improved design validation, and potentially faster development cycles for new aerospace and defense technologies. However, the specific metrics for success and expected return on investment are not detailed in the provided data.
Given the full and open solicitation but single award, what steps were taken to ensure the government received the best possible price?
While the solicitation was full and open, the single award suggests that either only one offeror met the technical requirements, or the evaluation process favored a specific approach. To ensure best price, the government likely relied on pre-negotiated rates, historical cost data, or independent government cost estimates. However, the lack of competing bids inherently limits the government's leverage in price negotiation.
How will the effectiveness and continued necessity of this software be evaluated over its 7-year duration?
The effectiveness will likely be evaluated through periodic technical reviews and performance metrics outlined in the contract. Continued necessity will depend on the evolving needs of the Air Force's R&D programs and the availability of alternative or superior technologies. The Cost Plus Fixed Fee structure necessitates careful monitoring to ensure costs remain aligned with the value delivered and that the scope of work doesn't expand unnecessarily.
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: BASIC RESEARCH
Solicitation ID: FA865019S1031
Offers Received: 4
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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,749,379
Exercised Options: $24,749,379
Current Obligation: $15,867,635
Actual Outlays: $76,011
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $8,391,273
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-05-22
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-01-07
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