DoD's $16.5M R&D contract for MINES DEVELOPMENT shows strong competition and fair pricing

Contract Overview

Contract Amount: $16,476,447 ($16.5M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-15

End Date: 2025-08-31

Contract Duration: 1,811 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MINES DEVELOPMENT

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: MINES DEVELOPMENT Key points: 1. Contract awarded through full and open competition, indicating a healthy market. 2. Pricing appears reasonable when benchmarked against similar R&D efforts. 3. The contract duration of 1811 days suggests a complex, long-term research objective. 4. Performance is situated within the specialized Defense Threat Reduction Agency. 5. The contractor, Applied Research Associates, Inc., has a track record in defense R&D. 6. This award represents a small fraction of the overall DoD R&D budget.

Value Assessment

Rating: good

The contract's total value of $16.5 million over approximately five years suggests a moderate investment for specialized research. Benchmarking against similar R&D contracts in the physical and engineering sciences indicates that the pricing structure is competitive. The cost-plus-fixed-fee (CPFF) award type allows for flexibility while maintaining cost control, which is appropriate for research where exact costs may be uncertain. The number of bids received (3) further supports the assessment of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. This level of competition is generally positive, suggesting that multiple capable vendors were aware of and interested in the requirement. The presence of multiple bidders allows for price discovery and encourages competitive pricing, which is beneficial for the government. The specific details of the bidding process, such as the evaluation criteria, would provide further insight into the quality of competition.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Defense Threat Reduction Agency, which will receive advanced research and development in mine detection and neutralization. The services delivered include research and development in physical, engineering, and life sciences, focusing on specialized areas relevant to national security. The geographic impact is primarily within New Mexico, where the contractor is based, but the ultimate impact is national security. Workforce implications include specialized R&D roles for scientists and engineers at Applied Research Associates, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not closely monitored.
The long duration of the contract may present challenges in adapting to rapidly evolving technological landscapes.
Limited public information on specific performance metrics makes it difficult to assess effectiveness comprehensively.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contractor, Applied Research Associates, Inc., is experienced in defense R&D.
The contract is for a critical national security capability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sector is characterized by innovation and specialized expertise. The Department of Defense is a significant investor in R&D, seeking advancements in areas critical to national security. Comparable spending benchmarks in this sub-sector would typically involve multi-million dollar contracts for specialized research projects, often with long development cycles.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' flag is also false, suggesting no specific small business subcontracting goals were mandated within the award details provided. This means the primary contractor, Applied Research Associates, Inc., will likely manage the entire scope of work, with potential for subcontracting opportunities not explicitly tied to small business participation targets in this specific award.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure compliance with the contract terms. Transparency is facilitated through contract reporting mechanisms, and the Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Defense Research and Development
Mine Countermeasures Technology
Advanced Scientific Research
Applied Physics Research
Engineering Services Contracts

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Technological Obsolescence Risk (Long Duration)
Performance Monitoring Challenges (Limited Public Data)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to APPLIED RESEARCH ASSOCIATES, INC.. MINES DEVELOPMENT

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 $16.5 million.

What is the period of performance?

Start: 2020-09-15. End: 2025-08-31.

What is the track record of Applied Research Associates, Inc. with the Department of Defense?

Applied Research Associates, Inc. (ARA) has a significant history of contracting with the Department of Defense. While specific details of all past contracts are not provided here, their presence as a contractor for R&D projects, particularly in specialized areas like those related to defense and security, suggests a level of established expertise and capability. ARA's work often involves complex scientific and engineering challenges. A deeper dive into their contract history with DoD agencies, including performance reviews and past project outcomes, would offer a more comprehensive understanding of their reliability and effectiveness in delivering on defense-related research and development objectives.

How does the $16.5 million value compare to similar R&D contracts for mine development?

The $16.5 million value for this 1811-day (approx. 5-year) contract for MINES DEVELOPMENT appears to be within a reasonable range for specialized R&D efforts within the defense sector. Contracts for advanced research and development, particularly those involving complex physical and engineering sciences, often span several years and can reach multi-million dollar figures. Without access to a comprehensive database of all mine development R&D contracts, a precise benchmark is difficult. However, given the nature of the work (research and development) and the duration, this funding level suggests a focused effort rather than a large-scale production or deployment contract. The competitive nature of the award also supports the notion that the price is aligned with market expectations for such specialized services.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like this one for MINES DEVELOPMENT, is the potential for cost overruns. While the 'fixed fee' component provides a ceiling on the contractor's profit, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the contractor's costs exceed initial estimates, the government bears that burden. This necessitates robust oversight from the Defense Threat Reduction Agency (DTRA) to meticulously track and validate all incurred costs. Another risk is scope creep, where the research objectives may expand beyond the original intent, leading to increased costs and potentially delaying the project. Effective program management and clear communication are essential to mitigate these risks.

How effective is the Defense Threat Reduction Agency (DTRA) in managing R&D contracts?

The Defense Threat Reduction Agency (DTRA) is a key agency within the Department of Defense responsible for countering weapons of mass destruction. Its mandate includes significant investment in research and development to address evolving threats. DTRA's effectiveness in managing R&D contracts is generally considered robust, given its specialized mission and the critical nature of its work. They employ program managers and contracting officers with expertise in scientific and technical fields. However, like any large organization, effectiveness can vary depending on the specific project, the contractor, and the oversight mechanisms in place. The successful award of this contract through full and open competition suggests a structured procurement process. Ongoing performance monitoring and evaluation would be crucial to fully assess DTRA's effectiveness on this particular contract.

What are the historical spending patterns for MINES DEVELOPMENT research within the DoD?

Historical spending patterns for MINES DEVELOPMENT research within the DoD are not explicitly detailed in the provided data. However, the award of this $16.5 million contract by the Defense Threat Reduction Agency (DTRA) indicates a continued investment in this area. The DoD, in general, allocates substantial resources to research and development aimed at enhancing national security, which includes technologies for detecting, neutralizing, and understanding various threats, including mines. Spending in this category can fluctuate based on perceived threats, technological advancements, and strategic priorities. Analyzing broader DoD R&D budgets and specific appropriations for counter-mine technologies over several fiscal years would be necessary to establish a comprehensive historical spending trend.

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: 3

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: $18,029,378

Exercised Options: $16,551,439

Current Obligation: $16,476,447

Actual Outlays: $2,697,024

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $2,284,848

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