DoD's $256M EPASS contract to Applied Research Solutions, Inc. shows strong competition and R&D focus

Contract Overview

Contract Amount: $256,616,697 ($256.6M)

Contractor: Applied Research Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-01-09

End Date: 2021-04-17

Contract Duration: 829 days

Daily Burn Rate: $309.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: IGF::CL,CT::IGF PROCUREMENT OF ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS

Place of Performance

Location: BEAVERCREEK, MONTGOMERY County, OHIO, 45440

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $256.6 million to APPLIED RESEARCH SOLUTIONS, INC. for work described as: IGF::CL,CT::IGF PROCUREMENT OF ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Significant portion of spending allocated to Research and Development in Physical, Engineering, and Life Sciences. 3. Firm Fixed Price contract type suggests predictable costs and manageable financial risk. 4. Delivery Order award mechanism allows for phased execution and flexibility. 5. Contractor, Applied Research Solutions, Inc., operates within a specialized R&D sector. 6. Geographic location in Ohio may point to regional economic impact. 7. Contract duration of 829 days provides a substantial period for service delivery.

Value Assessment

Rating: good

The contract's value of $256.6 million over approximately 2.2 years for engineering, professional, and administrative support services appears reasonable given the scope. Benchmarking against similar large-scale R&D support contracts is challenging without more specific service details. However, the firm fixed-price nature suggests that the government has negotiated a set price, which can be advantageous for cost control. The number of bids received (10) also suggests a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The fact that 10 bids were received suggests a healthy level of competition for this significant contract. This broad competition is generally expected to drive down prices and encourage innovation as contractors vie for the award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a more cost-effective award and encourages contractors to offer their best value solutions.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, receiving critical R&D support services. Services delivered encompass research and development in physical, engineering, and life sciences, advancing technological capabilities. The contract's impact is likely concentrated in Ohio, where the contractor is based, potentially creating or sustaining high-skilled jobs. The workforce implications include employment opportunities for scientists, engineers, researchers, and administrative professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly due to the broad nature of R&D services.
Dependence on a single contractor for a significant duration could pose continuity risks if performance issues arise.
The 'after exclusion of sources' clause warrants review to ensure no viable sources were unduly excluded.

Positive Signals

Awarded through full and open competition, indicating a wide range of potential bidders.
Firm Fixed Price contract type provides cost certainty for the government.
The contractor's specialization in R&D aligns with the contract's objectives.
Multiple bids received suggest a competitive market for these services.

Sector Analysis

The contract falls within the Research and Development sector, specifically NAICS code 541712. This sector is characterized by innovation and scientific advancement, often involving long-term projects and specialized expertise. The market size for R&D support services is substantial, driven by government and private sector investment in new technologies. This contract represents a significant award within this niche, supporting critical defense research initiatives.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the contract was not set aside for small businesses (ss: false, sb: false). While Applied Research Solutions, Inc. may be a small business itself, the award mechanism did not prioritize small business set-asides. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided data. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Research and Development Services
Engineering Support Services
Professional Services
Administrative Support Services
Department of Defense Contracts
Air Force Procurement

Risk Flags

Potential for contractor performance issues
Risk of cost overruns if scope is not well-defined
Dependency on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $256.6 million to APPLIED RESEARCH SOLUTIONS, INC.. IGF::CL,CT::IGF PROCUREMENT OF ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS

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 $256.6 million.

What is the period of performance?

Start: 2019-01-09. End: 2021-04-17.

What is the track record of Applied Research Solutions, Inc. with federal contracts, particularly within the R&D sector?

Applied Research Solutions, Inc. (ARS) has a history of performing federal contracts, primarily within the research and development domain. While the provided data highlights this specific $256.6 million EPASS contract, a comprehensive review of ARS's federal contracting history would involve examining past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Their specialization in R&D suggests a focus on scientific and technical services. Understanding their past performance on similar-sized or complex R&D contracts would provide further insight into their capabilities and reliability. Without access to a broader contract database or performance reviews, it's difficult to provide a definitive assessment of their overall track record beyond this single large award.

How does the pricing of this contract compare to similar R&D support services procured by the DoD?

Benchmarking the pricing of this $256.6 million contract against similar R&D support services is challenging without detailed cost breakdowns and specific service comparisons. The contract's 'Firm Fixed Price' (FFP) structure aims to provide cost certainty, but the actual value-for-money depends on the efficiency and effectiveness of the services delivered. Factors influencing price include the level of technical expertise required, the duration of the contract, and the specific research areas involved. To conduct a thorough comparison, one would need to analyze the labor categories, rates, and overhead applied to this contract and contrast them with rates for comparable positions and services on other DoD R&D contracts awarded around the same period. The fact that it was competed full and open with 10 bidders suggests competitive pressures likely influenced the final price.

What are the key risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep, given the nature of R&D projects which can evolve, and performance execution risks, ensuring the contractor meets technical and programmatic milestones. There's also a risk related to contractor dependency over the contract's duration. Mitigation strategies likely involve robust contract management by the Air Force, including clear statement of work definitions, regular performance reviews, and milestone tracking. The FFP structure inherently shifts some cost risk to the contractor. The 'Full and Open Competition' award process, with 10 bidders, suggests a competitive environment that incentivizes good performance to secure future work. However, specific risk mitigation plans are not detailed in the provided summary data.

How effective has the EPASS program been in delivering the intended R&D support services for the Air Force?

The effectiveness of the EPASS program in delivering intended R&D support services cannot be fully assessed solely from the provided contract data. Effectiveness is typically measured by the achievement of research objectives, the quality of deliverables, adherence to schedules, and the overall contribution to the Air Force's mission goals. While the contract's FFP nature and competitive award suggest a framework for achieving value, actual effectiveness depends on the contractor's execution and the government's oversight. Post-award performance metrics, program reviews, and user feedback would be necessary to determine the program's success in advancing the Air Force's R&D capabilities.

What are the historical spending patterns for engineering, professional, and administrative support services within the Department of Defense?

Historical spending patterns for engineering, professional, and administrative support services within the Department of Defense (DoD) are substantial and represent a significant portion of the department's overall contracting budget. These services are critical for supporting military operations, research and development, logistics, and infrastructure management. Spending in these categories fluctuates based on geopolitical events, modernization priorities, and budget allocations. The DoD consistently procures billions of dollars annually in these types of services across various agencies and branches. Contracts like EPASS are part of this broader trend, reflecting the DoD's reliance on external expertise and support to fulfill its diverse mission requirements.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 51 PLUM ST STE 240, BEAVERCREEK, OH, 45440

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,026,698,922

Exercised Options: $293,123,142

Current Obligation: $256,616,697

Actual Outlays: $30,697,017

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $116,590,790

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS742

IDV Type: IDC

Timeline