DoD's $9.6M research contract for instrumentation infrastructure upgrades awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $9,676,323 ($9.7M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-05-31

End Date: 2028-05-30

Contract Duration: 1,826 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: INSTRUMENTATION INFRASTRUCTURE RESEARCH AND DEVELOPMENT AND UPGRADES

Place of Performance

Location: LAS CRUCES, DONA ANA County, NEW MEXICO, 88007

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $9.7 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: INSTRUMENTATION INFRASTRUCTURE RESEARCH AND DEVELOPMENT AND UPGRADES Key points: 1. Contract focuses on critical instrumentation infrastructure for research and development, enhancing national security capabilities. 2. The award to Applied Research Associates, Inc. signifies a significant investment in specialized scientific and technical services. 3. Performance period spans five years, indicating a long-term commitment to the project's objectives. 4. The contract type, Cost Plus Fixed Fee, suggests a need for flexibility in research scope while maintaining cost control. 5. Geographic focus on New Mexico highlights a regional concentration of defense research and development activities. 6. The North American Industry Classification System (NAICS) code 541714 points to a specialized area within biotechnology research.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the instrumentation and research scope. However, the award amount of approximately $9.6 million over five years suggests a moderate investment for specialized R&D infrastructure. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed tightly, but it also allows for necessary adjustments in research projects. Further analysis would require comparing the scope of work and deliverables to similar R&D infrastructure contracts within the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to yield fair pricing and innovative solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was sought, which is a positive indicator for price discovery and value for money.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible value for the government's investment in critical research infrastructure.

Public Impact

The primary beneficiaries are the Department of Defense and its research arms, which will receive upgraded instrumentation infrastructure. The contract supports advancements in biotechnology research, potentially leading to new technologies and capabilities. The geographic impact is concentrated in New Mexico, where the research and development activities will likely take place. The contract supports a specialized workforce in scientific research, engineering, and technical support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type requires careful oversight to ensure costs remain reasonable and aligned with project goals.
Lack of specific details on the instrumentation and research scope makes it difficult to fully assess value for money.
The long performance period necessitates ongoing monitoring to ensure continued alignment with evolving defense needs.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Focus on critical R&D infrastructure indicates a strategic investment in national security capabilities.
The five-year duration allows for sustained development and integration of new instrumentation.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on biotechnology instrumentation. The market for specialized R&D infrastructure and services within the defense sector is highly competitive, with a few key players possessing the necessary expertise. Comparable spending benchmarks would typically involve analyzing other DoD contracts for similar scientific equipment and research support, which often run into millions of dollars depending on the complexity and scale.

Small Business Impact

The 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. The prime contractor, Applied Research Associates, Inc., may engage small businesses as subcontractors based on their own procurement needs, but this is not mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Threat Reduction Agency (DTRA) within the Department of Defense. Accountability measures are typically embedded in the CPFF contract structure, requiring the contractor to justify costs and demonstrate progress. Transparency is facilitated through contract reporting requirements, and the Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Defense Threat Reduction Agency (DTRA) Research and Development Programs
Department of Defense Instrumentation and Equipment Procurement
Biotechnology Research and Development Contracts
Federal Research and Development Infrastructure Investments

Risk Flags

Contract Type Risk (CPFF)
Long-term Project Scope Definition
Technological Obsolescence Risk
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.7 million to APPLIED RESEARCH ASSOCIATES, INC.. INSTRUMENTATION INFRASTRUCTURE RESEARCH AND DEVELOPMENT AND UPGRADES

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 $9.7 million.

What is the period of performance?

Start: 2023-05-31. End: 2028-05-30.

What is the specific nature of the 'instrumentation infrastructure' being researched and upgraded?

The provided data does not specify the exact nature of the 'instrumentation infrastructure.' However, given the NAICS code 541714 (Research and Development in Biotechnology (except Nanobiotechnology)) and the awarding agency (Defense Threat Reduction Agency), it is highly probable that the instrumentation relates to advanced laboratory equipment, sensors, testing apparatus, or specialized facilities required for cutting-edge biotechnology research relevant to defense applications. This could include equipment for genetic analysis, biological agent detection, or advanced material testing within a biotech context. Further details would be found in the contract's Statement of Work.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control for this R&D contract?

The Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D, this structure is often used when the scope of work is not precisely defined at the outset, allowing flexibility. However, it places a significant burden on the government to meticulously audit and approve all costs. Effective cost control relies heavily on robust government oversight, clear definition of allowable costs, and negotiation of a reasonable fixed fee. Without strong oversight, CPFF contracts can be susceptible to cost overruns as the contractor may have less incentive to control expenses compared to fixed-price contracts.

What are the potential risks associated with a five-year R&D instrumentation contract?

Potential risks for a five-year R&D instrumentation contract include technological obsolescence, where the developed or upgraded infrastructure becomes outdated before the contract concludes or shortly thereafter. There's also the risk of scope creep, where the project's objectives expand beyond the initial agreement, potentially increasing costs and timelines. Furthermore, contractor performance risk exists; the chosen contractor may not deliver the expected quality or meet deadlines. Finally, funding instability within the government can pose a risk, potentially leading to contract modifications or termination if priorities shift or budgets are cut.

What is the significance of the 'Defense Threat Reduction Agency' awarding this contract?

The Defense Threat Reduction Agency (DTRA) is a key component of the U.S. Department of Defense responsible for countering weapons of mass destruction (WMD) and emerging threats. Awarding this contract for instrumentation infrastructure and R&D in biotechnology suggests that the work is directly related to DTRA's mission. This could involve developing or enhancing capabilities for detecting, analyzing, or mitigating biological threats, or advancing biotechnologies with dual-use potential that require specialized research infrastructure. The investment underscores the agency's focus on staying ahead of evolving biological threats.

How does the geographic location in New Mexico influence this contract?

New Mexico has a significant presence in defense and scientific research, hosting facilities like Kirtland Air Force Base, Los Alamos National Laboratory, and Sandia National Laboratories. The concentration of related expertise, research institutions, and existing defense infrastructure in the state likely made it a strategic location for this contract. It may facilitate collaboration with other research entities, access to a skilled workforce, and logistical advantages for the Department of Defense. The award could also stimulate local economic activity and further bolster New Mexico's reputation as a hub for advanced research and development.

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: $19,004,693

Exercised Options: $19,004,693

Current Obligation: $9,676,323

Actual Outlays: $815,437

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