DoD's $57.6M contract for adversarial assessments support services awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $57,575,534 ($57.6M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-03

End Date: 2026-04-02

Contract Duration: 1,095 days

Daily Burn Rate: $52.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ADVERSARIAL ASSESSMENTS SUPPORT SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $57.6 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: ADVERSARIAL ASSESSMENTS SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days (3 years) indicates a medium-term commitment. 3. Firm Fixed Price contract type aims to control costs and provide predictability. 4. The award value of $57.6 million positions this as a significant investment in defense support services. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical sector for defense. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $57.6 million for three years of adversarial assessment support services appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for advanced engineering and threat assessment services would provide a more precise valuation. The firm fixed price structure suggests an effort to manage costs effectively, but the absence of detailed cost breakdowns makes a definitive value-for-money assessment challenging without further data. The base award value of $52.58 million provides a starting point for evaluating the overall contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specialized service. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. However, the specific nature of adversarial assessment support may inherently limit the pool of qualified contractors.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it fosters a competitive environment that can drive down prices and improve service quality, ensuring government funds are used efficiently.

Public Impact

The Department of Defense benefits from enhanced capabilities in understanding and countering adversarial threats. Services delivered likely include analysis, simulation, and testing related to defense systems and strategies. The geographic impact is primarily within the United States, supporting national defense initiatives. Workforce implications include employment for specialized engineers, analysts, and technical personnel within Applied Research Associates, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'adversarial assessments' is not tightly managed.
Reliance on a single contractor for critical assessment services could pose a risk if performance falters.
The specialized nature of the services may limit the availability of alternative contractors in the future.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm Fixed Price contract type provides cost certainty for the government.
The contractor, Applied Research Associates, Inc., likely possesses specialized expertise required for this niche service.
The contract duration allows for sustained support and development of long-term capabilities.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related research and development. The market for defense engineering services is substantial, driven by continuous technological advancements and evolving geopolitical landscapes. Contracts like this are crucial for maintaining a technological edge and ensuring national security. Comparable spending benchmarks would involve analyzing other large-scale defense contracts for specialized technical support and analysis.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor may engage small businesses as subcontractors if their specialized services are required, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. Accountability measures are embedded within the contract's performance work statement and delivery schedules. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Threat Reduction Agency (DTRA) Contracts
Engineering Services for National Defense
Adversarial Simulation and Analysis Contracts
Applied Research and Development in Defense

Risk Flags

Potential for undefined scope impacting cost and performance.
Reliance on specialized contractor expertise.
Need for continuous adaptation to evolving threat environments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.6 million to APPLIED RESEARCH ASSOCIATES, INC.. ADVERSARIAL ASSESSMENTS SUPPORT SERVICES

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 $57.6 million.

What is the period of performance?

Start: 2023-04-03. End: 2026-04-02.

What is the track record of Applied Research Associates, Inc. in performing similar adversarial assessment support services for the Department of Defense or other federal agencies?

Applied Research Associates, Inc. (ARA) has a documented history of providing specialized engineering and scientific services to government agencies, including the Department of Defense. While specific details on past 'adversarial assessment support services' contracts are not immediately available in this summary, ARA's broader portfolio often includes areas like threat analysis, simulation, modeling, and advanced materials research. Their experience in these related fields suggests a strong capability to perform the services required under this contract. A deeper dive into their contract history, performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS), and specific project outcomes would be necessary to fully assess their track record for this particular service area. However, their established presence in the defense sector indicates a level of familiarity and competence.

How does the awarded value of $57.6 million compare to similar contracts for adversarial assessment support services over the past five years?

Benchmarking the $57.6 million award against similar contracts requires access to a comprehensive database of federal procurements. However, based on the nature of 'adversarial assessment support services,' which often involve highly specialized engineering, simulation, and analysis, this value appears to be within a reasonable range for a three-year contract. Contracts for advanced R&D, threat modeling, and specialized engineering support for defense agencies can range from tens to hundreds of millions of dollars depending on scope, duration, and complexity. Without specific comparable contract data, it's difficult to definitively state if this represents exceptional value or is on the higher end. Factors such as the number of bidders, the specific deliverables, and the level of expertise required significantly influence pricing in this niche market.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks for this contract could include technical challenges in accurately modeling and assessing adversarial threats, potential for cost overruns if the scope is not well-defined (despite the FFP structure), contractor performance issues, and the risk of obsolescence if threat landscapes evolve rapidly. Mitigation strategies likely involve rigorous performance monitoring by the Defense Threat Reduction Agency (DTRA), clear definition of deliverables and acceptance criteria within the Performance Work Statement (PWS), regular technical reviews, and potentially incorporating clauses for adaptive threat assessment. The firm fixed price contract itself is a risk mitigation tool for cost control. Furthermore, the competitive award process suggests that multiple capable contractors were vetted, reducing the risk of selecting an underqualified provider.

How effective is the firm fixed price (FFP) contract type in ensuring value for money for this specific service?

The Firm Fixed Price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and understood, as it places the risk of cost overruns on the contractor. For 'adversarial assessment support services,' FFP can provide cost certainty to the government, preventing unexpected increases in expenditure. However, its effectiveness hinges on the clarity and completeness of the Performance Work Statement (PWS). If the PWS is ambiguous or fails to capture all necessary aspects of the complex threat assessment process, the contractor might deliver less than optimal results, or disputes could arise. In such cases, the government might not receive the full intended value despite the fixed price. Continuous oversight and clear communication are crucial to maximize the value derived from an FFP contract in this specialized domain.

What are the historical spending patterns for adversarial assessment support services by the Defense Threat Reduction Agency (DTRA)?

Analyzing historical spending patterns for 'adversarial assessment support services' by the Defense Threat Reduction Agency (DTRA) requires access to detailed historical contract databases. DTRA's mission focuses on countering weapons of mass destruction (WMD) and emerging threats, which inherently involves significant investment in threat assessment, analysis, and simulation capabilities. Spending in this area is likely to fluctuate based on evolving threat landscapes, geopolitical priorities, and specific program requirements. It's probable that DTRA has consistently allocated substantial funds towards acquiring expertise and tools for understanding and mitigating adversarial threats, potentially through a mix of sole-source, competitive, and IDIQ contracts. This specific $57.6 million award represents a portion of that ongoing investment, the scale of which would be better understood by examining DTRA's budget allocations and contract awards over several fiscal years.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HDTRA123R0009

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4300 SAN MATEO BLVD NE STE A-220, ALBUQUERQUE, NM, 87110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $129,516,927

Exercised Options: $74,585,457

Current Obligation: $57,575,534

Actual Outlays: $10,344,694

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $16,925,732

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA122D0002

IDV Type: IDC

Timeline