DoD's $11.2M Wargaming Prototype Contract Awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $11,230,232 ($11.2M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-05-19

End Date: 2025-11-25

Contract Duration: 2,016 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: WARGAMING EXPERIMENTAL PROTOTYPING-BASE

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: WARGAMING EXPERIMENTAL PROTOTYPING-BASE Key points: 1. Contract focuses on experimental prototyping for wargaming. 2. Applied Research Associates, Inc. is the sole awardee. 3. Potential risks include cost overruns in R&D and limited competition. 4. The R&D sector is crucial for defense innovation.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar R&D contracts is difficult due to the specialized nature of wargaming prototyping.

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 the requirement might limit the number of qualified bidders, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are supporting advanced defense research and development, aiming for improved wargaming capabilities. The effectiveness of this investment will depend on the successful development of the prototype.

Public Impact

Enhances national security through advanced wargaming simulations. Supports technological advancement in defense research. Potential for job creation in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type
  • Limited number of potential bidders for specialized R&D
  • Long performance period (2020-2025)

Positive Signals

  • Full and open competition utilized
  • Focus on critical defense R&D

Sector Analysis

This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is vital for maintaining a technological edge in defense.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further investigation 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 overseeing this contract. Accountability will be measured by the successful delivery of the experimental wargaming prototype.

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
  • Potential for cost overruns
  • Limited visibility into subcontractor performance
  • Long contract duration may lead to scope creep
  • Specialized nature of R&D may limit competitive landscape

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 $11.2 million to APPLIED RESEARCH ASSOCIATES, INC.. WARGAMING EXPERIMENTAL PROTOTYPING-BASE

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 $11.2 million.

What is the period of performance?

Start: 2020-05-19. End: 2025-11-25.

What specific wargaming capabilities will this experimental prototype aim to develop?

The contract focuses on 'WARGAMING EXPERIMENTAL PROTOTYPING-BASE,' suggesting the development of foundational technologies or platforms for future wargaming simulations. This could include advanced modeling, data integration, or visualization tools to enhance the realism and effectiveness of military training and strategic planning exercises.

What are the primary risks associated with a Cost Plus Fixed Fee contract for experimental R&D?

The primary risks with a Cost Plus Fixed Fee (CPFF) contract in experimental R&D include potential cost overruns if the contractor's estimated costs are inaccurate, and the government bearing the majority of the financial risk. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks and ensure value for taxpayer money.

How will the effectiveness of this R&D investment be measured?

The effectiveness will likely be measured by the successful development and delivery of a functional experimental wargaming prototype that meets the specified technical requirements. Further evaluation may involve its integration into existing defense systems, its utility in training exercises, and its contribution to improved strategic decision-making capabilities.

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: 2

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: $13,380,542

Exercised Options: $11,753,894

Current Obligation: $11,230,232

Actual Outlays: $2,188,981

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $4,211,730

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: 2020-05-19

Current End Date: 2025-11-25

Potential End Date: 2025-11-25 00:00:00

Last Modified: 2025-12-08

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