DoD's $168M WMD Analysis Tool Development Contract Awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $168,478,506 ($168.5M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-04-04

End Date: 2026-04-02

Contract Duration: 2,555 days

Daily Burn Rate: $65.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: COMBATING WEAPONS OF MASS DESTRUCTION ANALYSIS AND PLANNING TOOL DEVELOPMENT

Place of Performance

Location: RALEIGH, WAKE County, NORTH CAROLINA, 27615

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $168.5 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: COMBATING WEAPONS OF MASS DESTRUCTION ANALYSIS AND PLANNING TOOL DEVELOPMENT Key points: 1. Contract focuses on critical WMD analysis and planning tool development for the Defense Threat Reduction Agency. 2. Applied Research Associates, Inc. secured the award, indicating potential specialized expertise in this niche. 3. The Cost Plus Fixed Fee contract type suggests potential for cost overruns if not managed carefully. 4. The R&D sector for physical, engineering, and life sciences is highly specialized and often involves long development cycles.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if the contractor's expenses exceed initial estimates. Benchmarking CPFF contracts in R&D is challenging due to unique project scopes.

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 WMD analysis tools may limit the number of truly capable bidders.

Taxpayer Impact: Taxpayer funds are allocated for critical national security research and development, aiming to enhance WMD threat mitigation capabilities.

Public Impact

Enhances national security by developing advanced tools to combat weapons of mass destruction. Supports technological innovation in a highly sensitive and critical defense sector. Potential for spin-off technologies or methodologies applicable to other scientific research areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Long contract duration (2555 days) increases exposure to changing technological landscapes and requirements.
Lack of small business participation noted.

Positive Signals

Awarded under full and open competition.
Addresses a critical national security need.
Long-term investment in advanced defense capabilities.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on defense applications. Spending in this area is often project-specific and driven by national security priorities rather than broad market trends.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that the prime contractor is likely a large entity, and opportunities for small businesses may be limited to subcontracting roles, if any.

Oversight & Accountability

The Department of Defense, through the Defense Threat Reduction Agency, is responsible for overseeing this contract. Robust oversight will be crucial to manage costs and ensure the development of effective WMD analysis tools.

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

Cost overrun potential due to CPFF structure.
Long contract duration increases risk of obsolescence or scope creep.
Limited visibility into specific performance metrics for R&D outcomes.
No stated small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $168.5 million to APPLIED RESEARCH ASSOCIATES, INC.. COMBATING WEAPONS OF MASS DESTRUCTION ANALYSIS AND PLANNING TOOL DEVELOPMENT

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 $168.5 million.

What is the period of performance?

Start: 2019-04-04. End: 2026-04-02.

What specific metrics will be used to evaluate the effectiveness of the developed WMD analysis and planning tools?

Effectiveness will likely be evaluated through a combination of technical performance benchmarks, user acceptance testing by DTRA personnel, and simulated threat scenario analyses. Key performance indicators might include accuracy of threat assessment, speed of analysis, and usability of the planning interface. Formal reviews at key milestones will also assess progress against defined objectives.

How will the agency mitigate the risks associated with a Cost Plus Fixed Fee contract in a long-term R&D project?

Mitigation strategies for CPFF contracts typically involve stringent cost tracking, regular audits, and clearly defined scope limitations. For this long-term R&D project, DTRA will likely implement phased funding, detailed milestone reviews, and performance-based incentives. Establishing a strong working relationship with the contractor and fostering open communication are also critical to managing potential cost escalations.

What is the anticipated impact of these new tools on current WMD interdiction and response strategies?

The development of advanced analysis and planning tools is expected to significantly enhance the government's ability to anticipate, identify, and respond to WMD threats. These tools could lead to more precise intelligence gathering, improved resource allocation for interdiction efforts, and more effective strategic planning for response operations, ultimately reducing the potential impact of WMD incidents.

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: $416,790,290

Exercised Options: $345,695,865

Current Obligation: $168,478,506

Actual Outlays: $34,325,632

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $6,875,769

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