DoD's $14.2M Contract for Penetrating Weapons Analysis Supports R&D in Biotechnology

Contract Overview

Contract Amount: $14,266,316 ($14.3M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-08-26

End Date: 2027-08-25

Contract Duration: 1,825 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PENETRATING WEAPONS EVALUATION TESTS AND ANALYSIS SUPPORT

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $14.3 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: PENETRATING WEAPONS EVALUATION TESTS AND ANALYSIS SUPPORT Key points: 1. The contract focuses on R&D in biotechnology, a critical but specialized sector. 2. Applied Research Associates, Inc. is the sole awardee, raising questions about competition. 3. The contract's duration and cost-plus-fixed-fee structure warrant scrutiny for potential cost overruns. 4. The specific focus on penetrating weapons analysis within biotechnology is unique.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed carefully. Benchmarking CPFF contracts in R&D is challenging due to unique project scopes, but the duration and potential for scope creep are concerns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although advertised as full and open competition, the award went to a single contractor. This suggests either a highly specialized capability or potential issues in the bidding process that limited broader participation and competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for specialized R&D. Without robust competition, there's a risk of paying a premium for services that could potentially be obtained at a lower cost through more competitive means.

Public Impact

Supports advanced research in defense technology, potentially leading to future security enhancements. The contract's focus on biotechnology could have dual-use applications, impacting civilian sectors. Investment in specialized R&D may foster innovation within the scientific community.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite full and open solicitation
Cost-plus-fixed-fee structure carries inherent cost escalation risks
Long contract duration (5 years) increases exposure to changing requirements and market conditions

Positive Signals

Supports critical R&D in a specialized scientific field
Potential for technological advancements with national security implications

Sector Analysis

This contract falls under Research and Development in Biotechnology, a highly specialized sector. Benchmarking is difficult due to the niche nature, but R&D spending generally requires careful oversight to ensure value for money and alignment with strategic goals.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data, suggesting limited direct impact on this segment.

Oversight & Accountability

The contract's long duration and CPFF structure necessitate strong oversight from the Defense Threat Reduction Agency to ensure cost control, adherence to scope, and achievement of research objectives. Regular performance reviews and milestone tracking are crucial.

Related Government Programs

Research and Development in Biotechnology (except Nanobiotechnology)
Department of Defense Contracting
Defense Threat Reduction Agency Programs

Risk Flags

Potential for cost overruns due to CPFF structure
Lack of demonstrated competition despite solicitation type
Long contract duration may lead to scope creep or outdated technology
Limited transparency on specific R&D outcomes and their direct application

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.3 million to APPLIED RESEARCH ASSOCIATES, INC.. PENETRATING WEAPONS EVALUATION TESTS AND ANALYSIS SUPPORT

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 $14.3 million.

What is the period of performance?

Start: 2022-08-26. End: 2027-08-25.

What specific biotechnology advancements are expected from this contract, and how do they align with DTRA's mission?

The contract supports 'Penetrating Weapons Evaluation Tests and Analysis.' While the data specifies 'Research and Development in Biotechnology,' the exact link to specific biotechnological advancements is unclear. It's crucial to understand if this involves biological agents, countermeasures, or novel materials derived from biotech, and how these directly contribute to DTRA's mission of countering weapons of mass destruction.

Given the full and open solicitation but single award, what factors led to this outcome, and were alternative solutions considered?

The discrepancy between a 'full and open' solicitation and a sole award warrants investigation. Potential reasons include highly specialized proprietary technology, unique expertise held by Applied Research Associates, Inc., or perhaps a flawed solicitation process that deterred other bidders. Understanding the evaluation criteria and the number of proposals received is key to assessing if fair competition was truly achieved.

How will the effectiveness and value for money of this long-term, CPFF contract be measured, particularly in the R&D context?

Measuring effectiveness in R&D, especially under a CPFF contract, relies on clearly defined milestones, deliverables, and performance metrics. Value for money will be assessed by comparing the achieved research outcomes against the total cost. Continuous monitoring of the contractor's progress, adherence to budget, and the ultimate utility of the research findings are essential for accountability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: HDTRA221R0001

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: $26,709,273

Exercised Options: $26,709,273

Current Obligation: $14,266,316

Actual Outlays: $629,712

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA222D0002

IDV Type: IDC

Timeline