DoD Awards $47.4M for Next Generation Penetrator Ammunition to Applied Research Associates
Contract Overview
Contract Amount: $47,418,362 ($47.4M)
Contractor: Applied Research Associates, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-04
End Date: 2027-09-06
Contract Duration: 732 days
Daily Burn Rate: $64.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NEXT GENERATION PENETRATOR
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110
Plain-Language Summary
Department of Defense obligated $47.4 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: NEXT GENERATION PENETRATOR Key points: 1. Significant investment in advanced munitions development. 2. Applied Research Associates, Inc. secures a key contract. 3. Potential for enhanced military capabilities. 4. Focus on ammunition manufacturing sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts for advanced munitions is difficult due to the specialized nature of the 'Next Generation Penetrator'.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific nature of 'next generation' technology might limit the number of truly capable bidders.
Taxpayer Impact: Taxpayer funds are being invested in developing advanced defense capabilities, which could have long-term strategic benefits but also carries the risk of technological obsolescence or failure.
Public Impact
Enhances U.S. Air Force's munition capabilities. Supports innovation in defense technology. Potential impact on future military readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost uncertainty.
- Specialized technology may limit competition in future procurements.
- Long development cycle for advanced munitions.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical defense need.
- Investment in advanced R&D.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on ammunition. Spending in this area is driven by military modernization efforts and geopolitical considerations. Benchmarks are highly variable based on technology and quantity.
Small Business Impact
The contract was awarded to Applied Research Associates, Inc., a large business. There is no indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses for this specific award.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be critical to manage the Cost Plus Fixed Fee structure and ensure the successful development of the 'Next Generation Penetrator'.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract.
- Potential for cost overruns.
- Long-term technology development.
- Limited visibility into specific performance gains.
- No direct small business participation indicated.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, nm, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.4 million to APPLIED RESEARCH ASSOCIATES, INC.. NEXT GENERATION PENETRATOR
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 $47.4 million.
What is the period of performance?
Start: 2025-09-04. End: 2027-09-06.
What is the projected performance improvement of the Next Generation Penetrator compared to existing munitions?
The provided data does not specify the performance improvements. This information is crucial for assessing the value for money and the strategic necessity of this investment. Further details on the technical specifications and expected capabilities would be needed to quantify the advancement over current systems.
What are the key technical risks associated with developing this new penetrator technology?
Key technical risks likely include material science challenges, achieving desired penetration capabilities against advanced armor, ensuring reliability under extreme conditions, and integration with existing delivery platforms. The Cost Plus Fixed Fee contract structure suggests that some of these risks are being borne by the government.
How will the effectiveness of this new penetrator be measured and validated post-development?
Effectiveness will likely be measured through rigorous testing protocols, including live-fire exercises against representative targets and simulations. Validation will involve comparing performance metrics against predefined requirements and potentially against legacy systems to demonstrate superiority and justify the investment.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA868125RNGP1
Offers Received: 3
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: $47,418,362
Exercised Options: $47,418,362
Current Obligation: $47,418,362
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865621DA007
IDV Type: IDC
Timeline
Start Date: 2025-09-04
Current End Date: 2027-09-06
Potential End Date: 2027-09-06 00:00:00
Last Modified: 2025-09-02
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