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

State: New Mexico Government Spending

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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (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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