DoD's $13.7M contract for electromagnetic reliability research awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $13,686,440 ($13.7M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-01

End Date: 2026-04-02

Contract Duration: 1,097 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ELECTROMAGNETIC RELIABILITY AND EFFECTS PREDICTION

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $13.7 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: ELECTROMAGNETIC RELIABILITY AND EFFECTS PREDICTION Key points: 1. Contract focuses on advanced research and development in physical sciences, specifically electromagnetic reliability. 2. The awardee, Applied Research Associates, Inc., has a history of performing similar research and development services. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not carefully managed. 4. The duration of the contract is approximately three years, indicating a medium-term research effort. 5. The contract was awarded under full and open competition, suggesting a competitive bidding process. 6. The primary agency is the Defense Threat Reduction Agency, highlighting the national security relevance of the research.

Value Assessment

Rating: fair

Benchmarking the value of this specific applied research contract is challenging without detailed cost breakdowns and comparison to similar R&D efforts. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's allowable costs plus a fixed fee, which can sometimes incentivize higher spending if cost controls are not robust. However, CPFF is common for research where the scope may evolve. The total award amount of $13.7 million over three years suggests a moderate investment in this specialized area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this method generally promotes price discovery and allows the government to select the best value offering. The competitive nature suggests that the pricing was likely scrutinized against other potential solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible price and technical solution through a robust bidding process, fostering a more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and national security interests, through enhanced understanding of electromagnetic reliability. The services delivered involve advanced research and development in physical sciences, contributing to technological advancements. The geographic impact is primarily within the United States, with potential applications across various defense installations. Workforce implications include highly skilled researchers and scientists in specialized fields of physics and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
The specialized nature of the research may limit the pool of potential contractors, even under full and open competition.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
The contractor, Applied Research Associates, Inc., likely possesses relevant expertise for this specialized R&D effort.
The research directly supports critical defense needs related to electromagnetic reliability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The market for specialized defense R&D is characterized by a limited number of highly technical firms capable of undertaking such complex projects. Government spending in this area is crucial for maintaining technological superiority and addressing evolving threats. Comparable spending benchmarks would typically involve analyzing other DoD contracts for similar applied research in physics and engineering.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of electromagnetic reliability research, it is likely that larger, more established R&D firms are better positioned to compete. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in this research effort.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates close monitoring of incurred costs and the contractor's progress against research milestones. Transparency is generally maintained through contract reporting requirements, though detailed research findings may be subject to security classifications. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DoD Research and Development Programs
Defense Threat Reduction Agency (DTRA) Contracts
Electromagnetic Spectrum Operations Research
Applied Physics Research Contracts

Risk Flags

Cost Overrun Risk (CPFF contract type)
Scope Creep Risk (R&D nature)
Limited Competition Pool (Specialized R&D)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.7 million to APPLIED RESEARCH ASSOCIATES, INC.. ELECTROMAGNETIC RELIABILITY AND EFFECTS PREDICTION

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 $13.7 million.

What is the period of performance?

Start: 2023-04-01. End: 2026-04-02.

What is the track record of Applied Research Associates, Inc. in performing similar electromagnetic reliability research for the DoD?

Applied Research Associates, Inc. (ARA) has a documented history of performing research and development services for the Department of Defense. While specific details on past electromagnetic reliability projects are not provided in this summary, ARA's core competencies often include areas like advanced materials, simulation, and testing, which are relevant to understanding electromagnetic effects. Their portfolio typically includes work on survivability, vulnerability, and performance of systems under various environmental conditions, including electromagnetic interference. Further investigation into ARA's contract history with agencies like DTRA, DARPA, or other military branches would reveal the extent and success of their prior engagements in this precise domain.

How does the $13.7 million award compare to other DoD contracts for similar applied research in physical sciences?

The $13.7 million award for approximately three years of research into electromagnetic reliability is a moderate-sized contract within the DoD's R&D portfolio. Larger, more foundational research programs can easily exceed hundreds of millions of dollars, while smaller, more targeted studies might be in the low millions. Contracts for applied research in physical sciences, especially those with national security implications like electromagnetic effects, often fall into this mid-range. The value is influenced by the specificity of the research, the required expertise, and the duration. Without direct comparisons to contracts with identical scope and objectives, it's difficult to definitively benchmark, but it appears to be a standard investment for specialized R&D.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D?

The primary risks with a CPFF contract for advanced R&D, such as this one, revolve around cost control and potential for scope creep. The government agrees to pay all allowable costs incurred by the contractor, plus a predetermined fixed fee. If the research proves more complex or time-consuming than initially estimated, costs can escalate significantly. The fixed fee, while intended to provide contractor incentive, might not adequately reflect the effort if unforeseen challenges arise. Effective risk mitigation requires robust government oversight, clear definition of allowable costs, regular progress reviews, and strong program management to ensure the research stays within budget and achieves its objectives without unnecessary expenditure.

How effective is full and open competition in ensuring value for money for specialized R&D contracts like this?

Full and open competition is generally considered the most effective method for ensuring value for money, even for specialized R&D. It maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. For R&D, this means the government can solicit proposals from a wide range of technically capable firms, potentially uncovering novel approaches or more cost-effective solutions. While specialized R&D may have a smaller pool of qualified bidders compared to commercial services, the principle remains: competition forces contractors to be efficient and offer compelling value to win the contract. The key is ensuring the solicitation clearly defines requirements and evaluation criteria to attract the right bidders.

What are the potential implications of this contract on future technological advancements in electromagnetic reliability?

This contract has the potential to significantly advance the understanding and prediction of electromagnetic reliability, which is critical for the performance and survivability of modern defense systems. By funding applied research, the DoD aims to develop new methodologies, models, or technologies that can better anticipate and mitigate electromagnetic effects. Successful outcomes could lead to more robust electronic systems, improved testing protocols, and enhanced resilience against electronic warfare threats. These advancements can have ripple effects, influencing the design of future military hardware and potentially spilling over into commercial applications requiring high electromagnetic compatibility.

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: $34,199,185

Exercised Options: $14,339,544

Current Obligation: $13,686,440

Actual Outlays: $1,256,460

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $5,021,295

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