DoD's $29.7M Applied Research Contract for Targeting/Weaponneering Assistance Raises Questions on Value and Competition

Contract Overview

Contract Amount: $29,663,957 ($29.7M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-05-01

End Date: 2025-12-02

Contract Duration: 2,407 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TARGETING/WEAPONEERING ASSISTANCE CELL

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $29.7 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: TARGETING/WEAPONEERING ASSISTANCE CELL Key points: 1. The contract's value of $29.7M for R&D services is significant, warranting scrutiny. 2. Applied Research Associates, Inc. secured this contract, but the specific competitive landscape needs further examination. 3. Potential risks include the effectiveness of the R&D and the long performance period. 4. The sector is R&D, specifically in physical, engineering, and life sciences, a critical area for defense.

Value Assessment

Rating: questionable

The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking this specific R&D service against similar contracts is difficult due to its specialized nature, but the fee structure warrants careful monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a broad search for qualified contractors. However, the impact of this method on price discovery for specialized R&D services like weaponneering assistance requires detailed analysis to ensure optimal value.

Taxpayer Impact: Taxpayer funds are being used for advanced research and development. Ensuring the cost-effectiveness and tangible outcomes of this investment is crucial for responsible fiscal management.

Public Impact

This contract supports critical defense research, potentially enhancing national security capabilities. The long duration (over 6 years) suggests a sustained need for these specialized services. The specific nature of 'weaponneering assistance' may have implications for future military operations and technological advancements. Transparency in how the fixed fee is determined and managed is important for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure can incentivize higher costs.
Long contract duration increases risk of scope creep or obsolescence.
Specialized R&D makes direct cost comparison difficult.
Lack of specific performance metrics in provided data.

Positive Signals

Awarded under full and open competition.
Supports critical defense research and development.
Contractor has a history in applied research.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541712. Spending in this area is crucial for maintaining technological superiority but can be complex to benchmark due to the unique nature of R&D projects and the varying levels of innovation.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. This contract was awarded to Applied Research Associates, Inc., and further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Department of Defense, through the Defense Threat Reduction Agency, is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust oversight to manage costs and ensure deliverables meet requirements. Accountability hinges on performance metrics and regular reporting.

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 Plus Fixed Fee contract type.
Long contract duration (over 6 years).
Specialized R&D service with limited comparability.
Potential for cost overruns.
Lack of specific performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to APPLIED RESEARCH ASSOCIATES, INC.. TARGETING/WEAPONEERING ASSISTANCE CELL

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 $29.7 million.

What is the period of performance?

Start: 2019-05-01. End: 2025-12-02.

What specific deliverables or outcomes are expected from this $29.7M targeting and weaponneering assistance contract, and how will their effectiveness be measured?

The contract aims to provide specialized research and development services related to targeting and weaponneering. Specific deliverables likely include technical reports, analyses, simulations, and potentially prototype development. Effectiveness will be measured against predefined technical objectives and performance standards set by the Defense Threat Reduction Agency, though these are not detailed in the provided data. Success hinges on the tangible improvements these services bring to DoD's capabilities.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure the government receives fair value?

The Cost Plus Fixed Fee (CPFF) structure requires stringent oversight from the contracting agency. Mechanisms to mitigate cost overruns include detailed audits of contractor expenses, regular progress reviews, and clear definition of the fixed fee based on estimated costs and profit. The agency must ensure the contractor operates efficiently and that the fee remains appropriate for the work performed. Value is assessed by comparing the achieved technical outcomes against the total cost.

How does the specialized nature of 'weaponneering assistance' impact the ability to benchmark this contract against similar government procurements for R&D services?

Benchmarking highly specialized R&D services like 'weaponneering assistance' is inherently challenging. Unlike standardized goods or services, R&D outcomes are often unique and context-dependent. Applied Research Associates, Inc. likely possesses unique expertise. This makes direct cost-per-unit or price comparisons difficult. The primary benchmarking would focus on the contractor's historical performance, the reasonableness of the proposed fixed fee relative to the estimated effort, and the ultimate technical success of the project.

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: $35,742,207

Exercised Options: $30,574,016

Current Obligation: $29,663,957

Actual Outlays: $6,317,362

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $6,493,449

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