DoD awards $40.4M for Nuclear Capabilities Services Program R&D to Applied Research Associates

Contract Overview

Contract Amount: $40,365,964 ($40.4M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-01

End Date: 2025-12-01

Contract Duration: 1,187 days

Daily Burn Rate: $34.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS TASK ORDER IS FOR CONTINUED DEVELOPMENT OF THE NUCLEAR CAPABILITIES SERVICES PROGRAM.

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $40.4 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: THIS TASK ORDER IS FOR CONTINUED DEVELOPMENT OF THE NUCLEAR CAPABILITIES SERVICES PROGRAM. Key points: 1. Significant investment in a critical national security program. 2. Applied Research Associates, Inc. is the sole awardee for this task order. 3. Potential for long-term reliance on a single contractor for specialized services. 4. The contract falls under R&D in Physical, Engineering, and Life Sciences.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without more specific cost breakdowns for similar R&D efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive process. However, this specific task order was a delivery order, implying it might be part of a larger contract vehicle where competition was previously established.

Taxpayer Impact: Taxpayer funds are being used for advanced research in a critical defense area, with the ultimate goal of enhancing national security.

Public Impact

Ensures continued development of vital nuclear capabilities for national defense. Supports advanced scientific research and development within the defense sector. Potential for technological advancements that could have broader applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Single award for a critical program may limit future competition.
Long-term duration of the task order.

Positive Signals

Addresses a critical national security need.
Awarded under full and open competition.
Supports advanced R&D.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541712. Spending in this sector is crucial for technological advancement and maintaining a competitive edge in defense.

Small Business Impact

The data indicates this award was not set aside for small businesses, and the prime contractor is Applied Research Associates, Inc., which is not explicitly identified as an SMB in this context. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses.

Oversight & Accountability

The Department of Defense, through the Defense Threat Reduction Agency, is responsible for overseeing this contract. Standard oversight mechanisms for R&D contracts, including progress reports and milestone reviews, should be in place.

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.
Single award for a critical R&D program.
Long-term contract duration.
Lack of specific performance metrics in provided data.
Potential for contractor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.4 million to APPLIED RESEARCH ASSOCIATES, INC.. THIS TASK ORDER IS FOR CONTINUED DEVELOPMENT OF THE NUCLEAR CAPABILITIES SERVICES PROGRAM.

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 $40.4 million.

What is the period of performance?

Start: 2022-09-01. End: 2025-12-01.

What specific deliverables are expected under this task order, and how will their successful completion be measured to ensure value for money?

The specific deliverables are not detailed in the provided data. However, for a Cost Plus Fixed Fee R&D contract, value is typically assessed through the achievement of defined research milestones, successful prototype development, or the generation of critical data and analysis. The Defense Threat Reduction Agency would establish performance metrics and review processes to ensure the contractor meets the program's objectives and that taxpayer funds are used effectively.

What are the potential risks associated with relying on a single contractor for the continued development of nuclear capabilities, particularly concerning innovation and long-term cost control?

Relying on a single contractor can stifle innovation due to a lack of competitive pressure and potentially lead to complacency. Long-term cost control can also be challenging as the contractor may have less incentive to reduce costs once established. This risk is partially mitigated by the fixed fee component, but ongoing oversight is crucial to manage scope creep and ensure efficient resource utilization.

How does this investment align with broader DoD strategies for nuclear modernization and deterrence, and what is the expected impact on national security effectiveness?

This investment directly supports the DoD's strategic goals by ensuring the continued development and modernization of critical nuclear capabilities. Effective R&D in this area is paramount for maintaining a credible nuclear deterrent, adapting to evolving threats, and ensuring the safety and reliability of the nation's nuclear arsenal. The program's success is expected to enhance overall national security posture.

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: $46,640,568

Exercised Options: $40,365,964

Current Obligation: $40,365,964

Actual Outlays: $13,123,969

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $7,930,865

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