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
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 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: $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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