DoD's $60.9M contract for WMD analysis capabilities awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $60,913,858 ($60.9M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-04-19

End Date: 2023-04-18

Contract Duration: 1,825 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IMPROVE CAPABILITIES TO FIND, CHARACTERIZE, ANALYZE, MODEL DEFEAT AND ASSESS WEAPONS OF MASS DESTRUCTION TRANSITION THESE CAPABILITIES IDENTIFY POTENTIAL NEW CONCEPTS, TECHNOLOGIES, AND TECHNIQUES TO IDENTIFY VULNERABILITIES OF THREATS.

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $60.9 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: IMPROVE CAPABILITIES TO FIND, CHARACTERIZE, ANALYZE, MODEL DEFEAT AND ASSESS WEAPONS OF MASS DESTRUCTION TRANSITION THESE CAPABILITIES IDENTIFY POTENTIAL NEW CONCEPTS, TECHNOLOGIES, AND TECHNIQUES TO IDENTIFY VULNERABILITIES OF THREATS. Key points: 1. Contract focuses on enhancing capabilities for identifying and assessing weapons of mass destruction (WMD) threats. 2. The award supports research and development in physical, engineering, and life sciences, excluding biotechnology. 3. A significant portion of the contract value is allocated to applied research, indicating a focus on practical solutions. 4. The contract duration of five years suggests a long-term commitment to developing and refining WMD assessment techniques. 5. The procurement method was full and open competition, implying a broad search for qualified contractors. 6. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee, common in R&D. 7. The contractor, Applied Research Associates, Inc., has a track record in research and development services.

Value Assessment

Rating: good

The contract value of $60.9 million over five years for WMD analysis capabilities appears reasonable given the specialized nature of the research and development required. Benchmarking against similar R&D contracts in defense is challenging due to the unique focus on WMD threat assessment. However, the Cost Plus Fixed Fee (CPFF) structure is typical for this type of work, balancing cost control with the need for flexibility in research. The awarded amount suggests a significant investment in advancing critical national security capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Defense Threat Reduction Agency (DTRA) sought proposals from all responsible sources. The fact that it resulted in a single award suggests that Applied Research Associates, Inc. was the most qualified bidder based on technical merit, past performance, and price. The competitive process aims to ensure the government receives the best value by considering multiple proposals.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more innovative solutions and potentially better pricing, even for specialized R&D services.

Public Impact

The primary beneficiaries are national security agencies and the Department of Defense, which will gain improved capabilities to detect, characterize, and analyze WMD threats. The services delivered include research and development aimed at identifying vulnerabilities of potential adversaries and developing new concepts and technologies for threat assessment. The geographic impact is national, focusing on enhancing U.S. defense capabilities against WMD threats. Workforce implications include potential employment opportunities for scientists, engineers, and researchers specializing in physical sciences, engineering, and life sciences.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can incentivize cost overruns if not closely monitored, as the contractor is reimbursed for costs incurred plus a fee.
The specialized nature of WMD analysis may limit the pool of qualified subcontractors, potentially impacting small business participation.
The long duration of the contract could lead to scope creep if not managed effectively, increasing overall costs.

Positive Signals

The use of full and open competition suggests a robust process to identify the best technical solution and value.
The focus on R&D for WMD capabilities directly addresses critical national security needs, indicating a high-priority program.
The contractor's specialization in research and development is a positive signal for successful execution of complex technical requirements.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for WMD analysis and threat assessment is highly specialized, often dominated by a few key research institutions and defense contractors. Spending in this area is driven by national security priorities and the evolving threat landscape. Comparable spending benchmarks are difficult to establish due to the niche nature, but significant government investment is typical for advanced defense R&D.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the highly specialized nature of WMD analysis and R&D, the primary contractor is likely a large, established firm. Subcontracting opportunities for small businesses may exist, but would depend on the specific technical needs and the prime contractor's subcontracting plan. The overall impact on the small business ecosystem for this specific contract is likely limited unless significant subcontracting is pursued.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed cost reporting and justification. Transparency is maintained through contract reporting mechanisms and potential reviews by the Government Accountability Office (GAO) or the Inspector General, particularly concerning cost and performance.

Related Government Programs

Defense Threat Reduction Agency (DTRA) Research and Development Programs
Department of Defense Advanced Research Projects Agency (DARPA) Initiatives
National Nuclear Security Administration (NNSA) Research
Department of Energy (DOE) National Laboratories Research

Risk Flags

Potential for cost overruns due to CPFF structure
Risk of research becoming outdated given evolving threat landscape
Dependence on specialized scientific expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.9 million to APPLIED RESEARCH ASSOCIATES, INC.. IMPROVE CAPABILITIES TO FIND, CHARACTERIZE, ANALYZE, MODEL DEFEAT AND ASSESS WEAPONS OF MASS DESTRUCTION TRANSITION THESE CAPABILITIES IDENTIFY POTENTIAL NEW CONCEPTS, TECHNOLOGIES, AND TECHNIQUES TO IDENTIFY VULNERABILITIES OF THREATS.

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 (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $60.9 million.

What is the period of performance?

Start: 2018-04-19. End: 2023-04-18.

What is the historical spending trend for similar WMD analysis capabilities contracts by the Department of Defense?

Historical spending on WMD analysis capabilities by the Department of Defense has been substantial and consistent, reflecting ongoing national security priorities. While specific contract data for 'WMD analysis capabilities' can vary in categorization, DTRA and other DoD entities regularly invest in research and development to counter emerging threats. For instance, over the past decade, DoD has allocated billions to programs focused on nuclear, biological, chemical, and radiological threat detection, deterrence, and consequence management. This includes funding for advanced sensors, modeling and simulation, intelligence analysis tools, and counter-proliferation technologies. The $60.9 million awarded to Applied Research Associates, Inc. represents a significant, but not unprecedented, investment within this broader context. Analyzing trends requires looking at aggregated spending across multiple agencies and program elements focused on WMD threat reduction and defense.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for R&D in this sector?

The Cost Plus Fixed Fee (CPFF) contract type is commonly used for research and development (R&D) projects, especially when the scope of work is not precisely defined at the outset or is expected to evolve. In this sector, CPFF allows the contractor to be reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This contrasts with Fixed Price contracts, which offer greater cost certainty to the government but can be risky for contractors if costs escalate unexpectedly. Cost Plus Incentive Fee (CPIF) contracts are another alternative, where the fee is adjusted based on performance against targets. For highly exploratory or complex R&D like WMD analysis, CPFF provides flexibility for the contractor to pursue necessary research avenues while the fixed fee provides some cost predictability for the government compared to pure cost-plus contracts. However, it requires robust oversight to manage costs effectively.

What is the track record of Applied Research Associates, Inc. in performing similar government contracts?

Applied Research Associates, Inc. (ARA) has a significant track record of performing government contracts, particularly within the defense and R&D sectors. They have a history of working with various federal agencies, including the Department of Defense, Department of Energy, and others, on complex scientific and engineering challenges. ARA's expertise often lies in areas such as advanced materials, energetic materials, modeling and simulation, and threat assessment. Their past performance on contracts related to research, development, testing, and evaluation would be a key factor in their selection for this WMD analysis capabilities contract. A review of their contract history would likely reveal numerous awards for similar R&D services, demonstrating their capability to handle the technical requirements and project management demands of such specialized work.

What are the potential risks associated with the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code for this contract?

The primary risks associated with the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541712) code for this contract revolve around the inherent uncertainties of R&D. These include technical risks, where the research objectives may not be fully achievable within the allocated budget or timeframe. There's also the risk of cost overruns, particularly with CPFF contracts, if unforeseen technical challenges arise or if the scope needs to expand. Programmatic risks include potential shifts in government priorities or threat assessments that could alter the direction or relevance of the research. Furthermore, reliance on specialized scientific expertise means there's a risk associated with personnel availability and retention. Effective risk mitigation requires strong program management, clear communication, and adaptive research strategies.

How does the duration of this contract (1825 days) impact the assessment of its value and potential for success?

The contract duration of 1825 days, equivalent to five years, is substantial and has several implications for assessing its value and potential for success. A longer duration is often necessary for complex R&D projects like WMD analysis, allowing sufficient time for research, experimentation, development, and refinement of capabilities. This extended period can lead to more robust and mature outcomes. From a value perspective, a longer contract can provide stability and predictability for both the government and the contractor, potentially fostering deeper collaboration and knowledge transfer. However, it also increases the risk of the research becoming outdated if the threat landscape evolves rapidly or if technological advancements outpace the project's progress. Successful execution over five years hinges on effective project management, adaptability to changing requirements, and continuous assessment of progress against evolving WMD threats.

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: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HDTRA112R0016

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4300 SAN MATEO BLVD NE STE A220, ALBUQUERQUE, NM, 87110

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

Financial Breakdown

Contract Ceiling: $84,305,651

Exercised Options: $70,531,242

Current Obligation: $60,913,858

Actual Outlays: $20,579,879

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $9,274,815

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA114D0003

IDV Type: IDC

Timeline