DoD's $13M Nuclear Survivability Analysis Contract Awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $12,954,751 ($13.0M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-04-01

End Date: 2025-12-02

Contract Duration: 1,341 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NUCLEAR SURVIVABILITY ANALYSIS SUPPORT

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: NUCLEAR SURVIVABILITY ANALYSIS SUPPORT Key points: 1. Contract focuses on critical nuclear survivability analysis, a specialized area within defense R&D. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of over three years indicates a need for sustained support. 4. The contractor, Applied Research Associates, Inc., has a track record in defense-related research. 5. The specific NAICS code (541712) points to a high-tech R&D service. 6. The contract type (Cost Plus Fixed Fee) can present cost control challenges. 7. Geographic location of performance is New Mexico, a hub for defense and nuclear research.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to its specialized nature and the limited public data on comparable nuclear survivability analysis contracts. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility for research, can sometimes lead to higher costs if not managed tightly. Without detailed cost breakdowns or comparisons to similar government-funded R&D efforts in this niche, it's difficult to definitively assess value for money. However, the contract amount of approximately $13 million over three years suggests a significant investment in this critical capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This approach is generally favored as it promotes a wider range of potential solutions and can drive more competitive pricing. The specific number of bidders is not provided, but the designation suggests a robust competition was intended and likely occurred, which is a positive sign for price discovery and achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from full and open competition through the potential for lower prices and access to a broader pool of innovative solutions. This process helps ensure that government funds are used efficiently by fostering a competitive environment.

Public Impact

The primary beneficiaries are the Department of Defense and its agencies, specifically the Defense Threat Reduction Agency, which will receive critical analysis to ensure the survivability of nuclear assets. The services delivered are essential for national security, providing insights into the resilience of nuclear systems under various threat scenarios. The geographic impact is primarily centered in New Mexico, where the contract performance is located, potentially supporting local technical expertise and employment. The contract supports specialized scientific and engineering roles within the defense research sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type may lead to cost overruns if not closely monitored.
The specialized nature of nuclear survivability analysis could limit the pool of qualified contractors, potentially impacting future competition.
Long contract duration requires sustained oversight to ensure continued relevance and effectiveness of the research.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contractor has a history in defense research, suggesting relevant expertise.
Focus on a critical national security area (nuclear survivability) addresses a vital government need.

Sector Analysis

The contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on defense applications. This is a highly specialized segment of the R&D market, often characterized by long-term projects, significant intellectual property, and close ties to government funding. The market size for such niche defense R&D is substantial, driven by continuous modernization and the need to maintain technological superiority. This contract represents a specific investment in ensuring the robustness of nuclear capabilities, a critical component of national defense spending.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the specialized nature of nuclear survivability analysis, it is likely that larger, established research firms with specific expertise and security clearances are better positioned to bid and perform. There is no explicit indication of subcontracting opportunities for small businesses within the provided data, though it remains a possibility depending on the prime contractor's approach.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the technical point of contact within the Defense Threat Reduction Agency (DTRA). As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure compliance with cost principles. Transparency is generally maintained through regular reporting requirements from the contractor. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Nuclear Weapons Stockpile Stewardship Program
Defense Nuclear Nonproliferation
Strategic Deterrence Research
Advanced Scientific Research Contracts
Department of Defense Research and Development

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Limited Competition Pool for Niche Expertise
Long-Term Project Management Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to APPLIED RESEARCH ASSOCIATES, INC.. NUCLEAR SURVIVABILITY ANALYSIS 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 $13.0 million.

What is the period of performance?

Start: 2022-04-01. End: 2025-12-02.

What is the track record of Applied Research Associates, Inc. in performing similar nuclear survivability analysis contracts for the DoD?

Applied Research Associates, Inc. (ARA) has a significant history of supporting the Department of Defense and other government agencies in complex research and engineering endeavors. While specific details on prior nuclear survivability analysis contracts are not publicly itemized in this data, ARA's broader portfolio includes work in areas such as high-energy physics, advanced materials, structural analysis, and simulation, all of which are foundational to survivability assessments. Their expertise in modeling and simulation, particularly for extreme environments, suggests a strong capability to undertake this type of work. Government contract databases often show ARA as a recipient of numerous awards related to defense research and development, indicating a sustained relationship and a demonstrated ability to meet government requirements across various technical domains.

How does the $13 million contract value compare to similar nuclear survivability analysis efforts?

Directly comparing the $13 million value of this specific contract to 'similar' nuclear survivability analysis efforts is challenging due to the highly specialized and often classified nature of this field. Publicly available data on comparable contracts is scarce. However, considering the contract duration of over three years (approximately 40 months) and the specialized R&D focus (NAICS 541712), the annual value of roughly $4 million appears consistent with significant, multi-disciplinary research projects undertaken by specialized firms for defense agencies. Larger, more comprehensive survivability programs might involve hundreds of millions of dollars, while smaller, focused studies could be in the low millions. This contract likely represents a mid-tier investment for a specific set of analytical tasks.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for nuclear survivability analysis?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for nuclear survivability analysis revolve around cost control and potential for scope creep. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. The risk for the government is that costs could escalate beyond initial projections, especially in complex R&D where unforeseen technical challenges may arise. If the scope of work is not tightly defined or if changes occur, the contractor may incur higher costs, potentially impacting the overall value. Effective oversight, detailed cost tracking, and robust change management processes are critical to mitigate these risks and ensure the government receives the intended research outcomes within a reasonable budget framework.

How effective is the 'full and open competition' approach likely to be for securing specialized nuclear survivability expertise?

The 'full and open competition' approach is generally effective for securing specialized expertise, provided the solicitation is well-defined and targets the right market. For nuclear survivability analysis, this means clearly articulating the technical requirements, security needs, and desired outcomes. While 'full and open' theoretically allows any qualified vendor to bid, the reality for highly specialized fields is that the pool of truly capable contractors may be limited. The effectiveness hinges on whether the solicitation successfully reaches and attracts these niche experts. If the requirements are too restrictive or obscure, it might inadvertently limit competition. However, when executed properly, it maximizes the chances of finding the best technical solution at a competitive price from the available expert pool.

What are the potential implications of performing this contract in New Mexico for the defense R&D sector?

Performing this contract in New Mexico has several potential implications for the defense R&D sector. New Mexico is home to significant national laboratories (like Los Alamos and Sandia) and a robust ecosystem of defense contractors and research institutions focused on nuclear science, engineering, and security. Awarding this contract to a firm performing work in the state can leverage existing specialized talent pools, foster collaboration between industry and government labs, and potentially spur further innovation within the region. It also reinforces New Mexico's position as a critical hub for national security research and development, potentially attracting further investment and high-skilled jobs to the area.

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 › C – National Defense R&D Services

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: $17,015,294

Exercised Options: $13,334,430

Current Obligation: $12,954,751

Actual Outlays: $4,119,433

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,077,551

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