DoD's $73M R&D Contract for Systems Engineering Support Awarded to Applied Research Associates

Contract Overview

Contract Amount: $73,271,531 ($73.3M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-04-08

End Date: 2026-04-02

Contract Duration: 2,551 days

Daily Burn Rate: $28.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SYSTEMS, ENGINEERING, AND INTEGRATION SUPPORT

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $73.3 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: SYSTEMS, ENGINEERING, AND INTEGRATION SUPPORT Key points: 1. Significant investment in specialized R&D services for defense. 2. Applied Research Associates, Inc. is the sole awardee. 3. Contract duration extends to April 2026, indicating long-term need. 4. The NAICS code 541712 points to R&D in physical, engineering, and life sciences. 5. Awarded under full and open competition, suggesting a competitive process.

Value Assessment

Rating: good

The contract value of $73.3M over approximately 7 years represents a substantial investment. Benchmarking against similar R&D contracts in the defense sector would be necessary for a precise value assessment, but the duration and scope suggest a fair price for specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical defense research and development needs.

Public Impact

Supports critical defense research and development initiatives. Enhances the Department of Defense's capabilities in systems engineering. Potential for technological advancements stemming from the research. Impacts the defense industrial base through contract awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for cost overruns in Cost Plus Fixed Fee contracts.
Limited visibility into the specific R&D outcomes.

Positive Signals

Awarded through full and open competition.
Long contract duration suggests sustained need and potential for stable support.
Focus on critical R&D areas for national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority and addressing evolving threats. Benchmarks for similar R&D contracts vary widely based on scope and duration.

Small Business Impact

While the contract was awarded under full and open competition, there is no specific information provided regarding small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors or if there were specific set-aside goals.

Oversight & Accountability

The Department of Defense, through the Defense Threat Reduction Agency, is responsible for overseeing this contract. Standard oversight mechanisms for R&D contracts, including progress reports and milestone reviews, are expected to be in place.

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 risk inherent in CPFF contracts.
Uncertainty of R&D outcomes and return on investment.
Potential for scope creep without stringent oversight.
Dependence on a single contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.3 million to APPLIED RESEARCH ASSOCIATES, INC.. SYSTEMS, ENGINEERING, AND INTEGRATION SUPPORT

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 $73.3 million.

What is the period of performance?

Start: 2019-04-08. End: 2026-04-02.

What specific systems engineering and integration challenges does this contract aim to address for the Defense Threat Reduction Agency?

This contract likely supports the DTRA in complex challenges related to the integration and engineering of advanced defense systems. This could encompass areas such as threat assessment, countermeasure development, and ensuring the interoperability of various defense technologies to counter emerging threats. The R&D focus suggests innovation in these critical national security domains.

How does the Cost Plus Fixed Fee (CPFF) contract type balance cost control with the inherent uncertainties of research and development?

The CPFF structure allows for cost reimbursement plus a fixed fee, providing flexibility for R&D where exact costs are unpredictable. While it incentivizes the contractor to manage costs to protect their fee, the government bears the risk of cost overruns. Effective oversight is crucial to ensure costs remain reasonable and aligned with project goals.

What are the potential long-term technological impacts of this $73M R&D investment on national security capabilities?

This significant investment in R&D could lead to breakthroughs in areas critical to national security, such as advanced threat detection, novel defense system designs, or improved integration of existing technologies. The outcomes could enhance the U.S.'s strategic advantage, improve response capabilities to complex threats, and potentially influence future defense technology roadmaps.

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: $92,921,744

Exercised Options: $81,766,761

Current Obligation: $73,271,531

Actual Outlays: $10,884,895

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $9,579,923

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