DoD's $14.8M Contract for Blue Cyber Assessment Awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $14,828,867 ($14.8M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-04-11

End Date: 2026-04-10

Contract Duration: 729 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BLUE CYBER ASSESSMENT

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.8 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: BLUE CYBER ASSESSMENT Key points: 1. Contract value of $14.8M for engineering services. 2. Awarded under full and open competition. 3. Potential risk associated with the firm-fixed-price contract type. 4. Spending falls within the Engineering Services sector.

Value Assessment

Rating: good

The contract value of $14.8M for engineering services appears reasonable given the scope and duration. Benchmarking against similar large-scale defense engineering contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve value.

Public Impact

Enhances national security through specialized cyber assessments. Supports the Defense Threat Reduction Agency's mission. Provides critical engineering services for defense readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Firm-fixed-price contract may shift risk to the government if costs escalate unexpectedly.
  • Long duration (729 days) could lead to scope creep or evolving requirements.

Positive Signals

  • Awarded under full and open competition, indicating potential for good value.
  • Clear agency and specific service type (Engineering Services).

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense infrastructure and technological development. Spending benchmarks for similar large-scale defense engineering contracts are typically in the multi-million dollar range.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract is managed by the Defense Threat Reduction Agency, a component of the Department of Defense, suggesting established oversight mechanisms. However, the effectiveness of oversight depends on specific agency practices and contract management.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Defense Threat Reduction Agency Programs

Risk Flags

  • Potential for cost overruns under firm-fixed-price.
  • Long contract duration may increase risk of scope creep.
  • Limited visibility into specific deliverables and performance metrics.
  • Cybersecurity assessments are inherently sensitive and require robust security protocols.

Tags

engineering-services, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.8 million to APPLIED RESEARCH ASSOCIATES, INC.. BLUE CYBER ASSESSMENT

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 $14.8 million.

What is the period of performance?

Start: 2024-04-11. End: 2026-04-10.

What is the specific nature of the 'Blue Cyber Assessment' and its criticality to national security?

The 'Blue Cyber Assessment' likely refers to a comprehensive evaluation of cybersecurity capabilities and vulnerabilities within a specific defense system or network. Its criticality stems from protecting sensitive defense information and operational integrity against evolving cyber threats, ensuring mission success and maintaining technological superiority.

What are the primary risks associated with a firm-fixed-price contract for engineering services of this duration?

The primary risk with a firm-fixed-price contract for long-duration engineering services is that the government may overpay if the contractor's actual costs are significantly lower than anticipated. Conversely, the contractor bears the risk of cost overruns, which could lead to reduced quality or contractor default if not managed carefully.

How effectively does full and open competition ensure optimal value for taxpayer dollars in specialized defense engineering contracts?

Full and open competition is designed to maximize value by encouraging multiple bidders to offer their best prices and technical solutions. For specialized defense engineering, it can lead to innovation and cost savings, but the complexity of requirements may sometimes limit the number of truly competitive bids, necessitating careful evaluation of proposals beyond just price.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTIONOTHER QUALITY, TEST, INSPECT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HDTRA120R0006

Offers Received: 4

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: $57,881,085

Exercised Options: $19,349,811

Current Obligation: $14,828,867

Actual Outlays: $1,484,386

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $31,759,776

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

Start Date: 2024-04-11

Current End Date: 2026-04-10

Potential End Date: 2029-04-10 00:00:00

Last Modified: 2026-01-13

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