DoD's DTRA Spends $19.3M on Weapon System Engineering and Integration Support
Contract Overview
Contract Amount: $19,333,264 ($19.3M)
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: $8.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THIS REQUIREMENT IS TO PROVIDE SYSTEM ENGINEERING AND INTEGRATION SUPPORT TO DTRA'S CXW. IT INCLUDES IMPROVED WEAPON CAPABILITIES AND WEAPON EFFECTS
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110
Plain-Language Summary
Department of Defense obligated $19.3 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: THIS REQUIREMENT IS TO PROVIDE SYSTEM ENGINEERING AND INTEGRATION SUPPORT TO DTRA'S CXW. IT INCLUDES IMPROVED WEAPON CAPABILITIES AND WEAPON EFFECTS Key points: 1. Contract awarded to Applied Research Associates, Inc. for system engineering and integration. 2. Focus on improved weapon capabilities and effects for DTRA's CXW program. 3. Significant investment in R&D for physical, engineering, and life sciences. 4. Full and open competition was utilized for this award.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure requires diligent oversight to ensure fair pricing.
Taxpayer Impact: Taxpayer funds are supporting advanced research and development in defense capabilities, with the ultimate goal of enhancing national security.
Public Impact
Enhances national defense capabilities through advanced weapon system development. Supports technological advancements in the physical and engineering sciences. Potential for dual-use applications in civilian sectors. Long-term contract duration suggests sustained investment in this area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration increases exposure to potential scope creep.
- Specialized R&D work makes direct cost comparisons challenging.
Positive Signals
- Full and open competition promotes market efficiency.
- Focus on critical defense capabilities.
- Supports innovation in engineering and physical sciences.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining a technological edge in defense, with benchmarks varying widely based on specific research areas and project scope.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of Defense, specifically the Defense Threat Reduction Agency, is responsible for overseeing this contract. Robust oversight is critical for Cost Plus Fixed Fee contracts to manage costs and ensure performance.
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
- Potential for cost overruns due to CPFF structure.
- Long contract duration increases risk of scope creep.
- Difficulty in benchmarking specialized R&D costs.
- Reliance on contractor's technical expertise.
- Potential for schedule delays in complex R&D.
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 $19.3 million to APPLIED RESEARCH ASSOCIATES, INC.. THIS REQUIREMENT IS TO PROVIDE SYSTEM ENGINEERING AND INTEGRATION SUPPORT TO DTRA'S CXW. IT INCLUDES IMPROVED WEAPON CAPABILITIES AND WEAPON EFFECTS
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 $19.3 million.
What is the period of performance?
Start: 2019-05-01. End: 2025-12-02.
What is the expected return on investment for this R&D spending in terms of enhanced weapon capabilities?
The return on investment is measured by the successful development and integration of improved weapon capabilities and effects that enhance the warfighter's effectiveness and national security. Quantifying this ROI is complex and often realized over the long term through deterrence or successful mission outcomes, rather than immediate financial returns.
What are the primary risks associated with the Cost Plus Fixed Fee contract structure for this specialized R&D effort?
The primary risks with a CPFF structure in specialized R&D include potential cost overruns if the contractor's estimated costs are inaccurate or if unforeseen technical challenges arise. There's also a risk of reduced incentive for cost efficiency compared to fixed-price contracts, necessitating strong government oversight to manage expenditures and ensure value.
How effectively will the system engineering and integration support translate into tangible improvements in weapon capabilities?
The effectiveness hinges on the contractor's technical expertise, the clarity of DTRA's requirements, and the ongoing collaboration between the agency and Applied Research Associates. Success will be measured by the successful integration of new capabilities, demonstrable improvements in weapon effects, and the overall enhancement of DTRA's mission readiness.
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: $20,176,464
Exercised Options: $19,856,878
Current Obligation: $19,333,264
Actual Outlays: $6,943,025
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $718,432
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: 2019-05-01
Current End Date: 2025-12-02
Potential End Date: 2025-12-02 00:00:00
Last Modified: 2025-09-03
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