DTRA awards $31M technical reachback services contract to Applied Research Associates, Inc

Contract Overview

Contract Amount: $31,184,677 ($31.2M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-08

End Date: 2029-12-07

Contract Duration: 1,825 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: DTRA TECHNICAL REACHBACK SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.2 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: DTRA TECHNICAL REACHBACK SERVICES Key points: 1. Contract provides essential technical support for threat reduction missions. 2. Applied Research Associates, Inc. has a history of supporting complex defense initiatives. 3. The contract duration of five years suggests a need for sustained technical expertise. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of potential services. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost monitoring. 6. This award represents a significant investment in specialized scientific and technical capabilities for national security.

Value Assessment

Rating: good

The contract value of $31.18 million over five years for technical reachback services appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for advanced scientific and technical support in the defense sector suggests that the pricing is competitive. The Cost Plus Fixed Fee (CPFF) structure, while allowing for adjustments, necessitates diligent oversight to ensure value for money. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging, but the duration and scope imply a critical need for these services.

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 vendors had the opportunity to bid. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. This approach suggests the Defense Threat Reduction Agency (DTRA) sought the best possible solution from the widest range of potential providers.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a broader range of innovative solutions, ensuring that government funds are used efficiently.

Public Impact

The primary beneficiaries are the agencies and personnel involved in threat reduction missions, who receive critical technical expertise. Services delivered likely include scientific analysis, technical assessments, and specialized support for complex defense challenges. The geographic impact is national, supporting defense operations across various theaters. Workforce implications include the potential for highly skilled scientists, engineers, and technical specialists to be engaged.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
The broad NAICS code could imply a wide range of services, making scope creep a potential concern.
Limited public information on specific performance metrics makes it difficult to assess effectiveness independently.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The five-year duration indicates a stable, long-term need for the contractor's specialized expertise.
The contractor, Applied Research Associates, Inc., likely has a proven track record in supporting defense requirements.

Sector Analysis

The defense sector relies heavily on specialized technical services to maintain technological superiority and address evolving threats. This contract falls within the professional, scientific, and technical services sub-sector, which is a critical component of the defense industrial base. Spending in this area is driven by the need for advanced research, development, and analytical capabilities. Comparable spending benchmarks would typically involve contracts for similar scientific support, engineering services, and specialized analysis for government agencies, particularly within the Department of Defense.

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 small business set-aside. However, the prime contractor, Applied Research Associates, Inc., may engage small businesses as subcontractors depending on their own subcontracting plans and the specific needs of the technical reachback services required. The absence of a set-aside means the primary focus was on securing the best overall solution through open competition.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. Accountability measures would be embedded within the Cost Plus Fixed Fee contract terms, requiring detailed reporting and justification of costs. Transparency is typically facilitated through contract award announcements and, where appropriate, performance reports. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

DTRA Research and Development Support Services
Department of Defense Scientific and Technical Support
Advanced Technology Development Contracts
Threat Assessment and Analysis Services

Risk Flags

Potential for cost overruns due to CPFF contract type.
Broad NAICS code could lead to scope creep if not managed tightly.
Limited public information on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.2 million to APPLIED RESEARCH ASSOCIATES, INC.. DTRA TECHNICAL REACHBACK 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 $31.2 million.

What is the period of performance?

Start: 2024-12-08. End: 2029-12-07.

What is the track record of Applied Research Associates, Inc. in supporting similar defense contracts?

Applied Research Associates, Inc. (ARA) has a significant history of supporting defense and national security initiatives. While specific details for this 'technical reachback' contract are not public, ARA's broader portfolio includes work in areas such as advanced materials, energetic materials, simulation and modeling, and systems engineering for various government agencies, including the Department of Defense. Their experience often involves complex scientific and engineering challenges, suggesting a strong capability to fulfill the requirements of this DTRA contract. Publicly available contract databases and ARA's corporate information often highlight their involvement in research, development, testing, and evaluation projects, underscoring their established presence and expertise within the defense sector.

How does the awarded value compare to similar technical reachback services contracts?

Benchmarking the $31.18 million value for five years of technical reachback services requires comparing it to contracts with similar scope, duration, and complexity within the defense sector. Contracts for specialized scientific, engineering, and technical support services can vary widely. Given that this contract is for DTRA, an agency focused on countering weapons of mass destruction, the services are likely highly specialized and require niche expertise. Without specific details on the exact services rendered, a precise comparison is difficult. However, for multi-year, high-level technical support contracts within the DoD, this value appears within a reasonable range, especially considering the potential for advanced research and analysis involved. The Cost Plus Fixed Fee structure also implies that the final cost could fluctuate based on actual expenses incurred.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for technical services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Applied Research Associates, Inc., revolve around cost control and contractor incentive. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the actual expenses incurred (within allowable costs). This can potentially lead to cost overruns if the contractor's estimates are inaccurate or if scope creep occurs without adequate adjustments. For the contractor, the risk lies in underestimating the costs required to complete the work, which could erode their profit margin if the fixed fee is insufficient to cover actual expenses and a reasonable profit. Effective oversight, detailed cost tracking, and clear definition of work are crucial to mitigate these risks.

How effective is 'full and open competition' in ensuring value for taxpayer money in specialized technical services?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money, particularly for specialized technical services. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. This broad competition increases the likelihood that the government will receive the best technical solution at the most advantageous price. For specialized services, it ensures that agencies can identify and select contractors with the precise expertise required, rather than being limited to a pre-approved list or sole-source providers. While it requires more upfront effort in solicitation and evaluation, the long-term benefits in terms of cost savings and quality are substantial.

What are the implications of the 'All Other Professional, Scientific, and Technical Services' NAICS code for contract scope?

The North American Industry Classification System (NAICS) code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad category that encompasses a wide range of activities not classified under more specific NAICS codes within the professional, scientific, and technical services sector. For this DTRA contract, it implies that the scope of services could be extensive and varied, potentially including specialized research, consulting, data analysis, testing, and other technical support functions that do not fit neatly into categories like engineering, computer systems design, or research and development in specific fields. This breadth can be advantageous for flexibility but also presents a risk of scope creep if not clearly defined and managed through detailed contract statements of work and performance requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HDTRA118R0025

Pricing Type: COST PLUS FIXED FEE (U)

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: $111,328,939

Exercised Options: $63,958,043

Current Obligation: $31,184,677

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $52,946,685

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA119D0007

IDV Type: IDC

Timeline