DoD's $28.17M Nuclear Capabilities Services Contract Awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $28,168,569 ($28.2M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-07-30

End Date: 2022-08-31

Contract Duration: 1,493 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NUCLEAR CAPABILITIES SERVICES

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: NUCLEAR CAPABILITIES SERVICES Key points: 1. Contract awarded for nuclear capabilities services, a critical area for national security. 2. Applied Research Associates, Inc. secured the contract, indicating their expertise in this specialized field. 3. The contract falls under R&D in Physical, Engineering, and Life Sciences, highlighting innovation in defense. 4. Full and open competition was utilized, suggesting a robust procurement process.

Value Assessment

Rating: good

The contract value of $28.17M over approximately 4 years appears reasonable for specialized R&D services in nuclear capabilities. Benchmarking against similar complex R&D contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a fair process to solicit bids from qualified contractors. This method generally promotes competitive pricing and allows for the best value to be determined.

Taxpayer Impact: The competitive nature of the award aims to ensure taxpayer funds are used efficiently for essential defense services.

Public Impact

Ensures continued development and support for critical nuclear capabilities vital to national security. Supports advanced research and development in a highly specialized scientific and engineering domain. The contract's duration allows for sustained effort and potential breakthroughs in nuclear technology. Awarding to a single entity may streamline project management for complex, integrated nuclear programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in fixed-fee contracts for complex R&D.
  • Reliance on a single contractor for critical nuclear capabilities.
  • Long-term sustainment and maintenance costs not fully detailed.

Positive Signals

  • Awarded through full and open competition.
  • Contract supports critical national security functions.
  • Long contract duration allows for sustained development.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining a technological edge in defense.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The prime contractor, Applied Research Associates, Inc., is not identified as a small business. Further analysis would be needed to determine subcontractor opportunities.

Oversight & Accountability

The Department of Defense and the Defense Threat Reduction Agency are responsible for oversight. The contract type (Cost Plus Fixed Fee) requires careful monitoring of costs and performance to ensure value.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Defense Threat Reduction Agency Programs

Risk Flags

  • High cost associated with specialized R&D.
  • Potential for cost overruns in CPFF contracts.
  • Reliance on a single contractor for critical capabilities.
  • Long contract duration may lead to evolving requirements.
  • National security implications of nuclear capabilities.

Tags

research-and-development-in-the-physical, department-of-defense, nm, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to APPLIED RESEARCH ASSOCIATES, INC.. NUCLEAR CAPABILITIES SERVICES

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 $28.2 million.

What is the period of performance?

Start: 2018-07-30. End: 2022-08-31.

What specific nuclear capabilities are being developed or supported under this contract, and how do they align with current national security threats?

The contract focuses on 'Nuclear Capabilities Services,' which likely encompasses research, development, testing, and potentially sustainment of technologies related to nuclear deterrence, non-proliferation, and threat reduction. The specific alignment with threats would depend on classified threat assessments and strategic defense priorities, but generally supports maintaining a credible nuclear deterrent and countering nuclear proliferation risks.

What are the key performance indicators (KPIs) and milestones for this contract, and how is contractor performance being measured to ensure effectiveness?

Specific KPIs and milestones are typically detailed in the contract's Statement of Work (SOW). For R&D contracts, these often include technical progress reports, successful completion of research phases, prototype development, and adherence to project timelines. Performance is usually assessed through regular reviews by the contracting officer's representative (COR) and technical teams, evaluating the contractor's ability to meet technical objectives, manage costs, and deliver on schedule.

Given the Cost Plus Fixed Fee (CPFF) structure, what mechanisms are in place to control costs and prevent scope creep, ensuring optimal use of taxpayer funds?

The CPFF structure aims to provide the contractor with cost reimbursement plus a fixed fee, incentivizing efficiency. Oversight mechanisms include rigorous review of incurred costs, regular progress meetings to monitor scope, and strict change control processes for any modifications to the SOW. The government's COR plays a crucial role in verifying costs and ensuring work performed aligns with the contract's objectives and budget.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (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: $57,103,304

Exercised Options: $57,103,304

Current Obligation: $28,168,569

Actual Outlays: $2,520,726

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $5,728,171

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

Start Date: 2018-07-30

Current End Date: 2022-08-31

Potential End Date: 2022-08-31 00:00:00

Last Modified: 2025-07-14

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