DoD's $24.6M contract for nuclear security support awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $24,654,550 ($24.7M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-07-24

End Date: 2025-09-23

Contract Duration: 2,253 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Defense

Official Description: KNOWLEDGE BASED SERVICES - PROGRAM PLANNING BUDGET EXECUTION SUPPORT AND PHYSICAL SECURITY (NUCLEAR AND NON-NUCLEAR) INCLUDING COUNTER UNMANNED SYSTEMS AND OTHER EVOLVING THREATS TECHNICAL SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: KNOWLEDGE BASED SERVICES - PROGRAM PLANNING BUDGET EXECUTION SUPPORT AND PHYSICAL SECURITY (NUCLEAR AND NON-NUCLEAR) INCLUDING COUNTER UNMANNED SYSTEMS AND OTHER EVOLVING THREATS TECHNICAL SUPPORT Key points: 1. Contract focuses on critical nuclear and non-nuclear security, including counter-unmanned systems. 2. Awarded through full and open competition, suggesting a robust market. 3. Performance period extends through September 2025, indicating a long-term need. 4. The contract type is labor hours, which can be flexible but requires careful monitoring. 5. Small business participation is not explicitly mandated, warranting further investigation. 6. The scope includes program planning, budget execution, and physical security.

Value Assessment

Rating: good

The contract value of $24.6 million over its period of performance appears reasonable for specialized engineering and security services. Benchmarking against similar contracts for nuclear facility security and counter-threat analysis would provide a more precise value-for-money assessment. The labor hour pricing structure necessitates diligent oversight to ensure efficient resource utilization and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of two delivery orders suggests that the initial solicitation was broad enough to attract significant interest. This competitive approach is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and encouraging a wider pool of contractors to bid, potentially leading to better value.

Public Impact

The Department of Defense benefits from enhanced physical security and program execution support for its nuclear and non-nuclear facilities. Services include critical counter-unmanned systems capabilities to address evolving threats. The contract supports the Washington Headquarters Services, impacting national security operations. Workforce implications include specialized engineering and security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in labor hour contracts if not tightly managed.
Reliance on a single awardee for critical security functions requires robust performance monitoring.
Limited visibility into specific small business subcontracting goals.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Long performance period suggests sustained need and potential for contractor expertise development.
Focus on advanced threats like counter-unmanned systems demonstrates modernization efforts.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related security and program management. The market for specialized security solutions, particularly those addressing emerging threats like counter-unmanned systems for critical infrastructure, is growing. Comparable spending benchmarks would likely be found in contracts for facility security, threat analysis, and program support within the broader defense industrial base.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Applied Research Associates, Inc. may be a large business, the implications for small business subcontracting are not detailed in the provided information. Further analysis would be needed to determine if subcontracting opportunities exist and are being utilized to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Washington Headquarters Services and the Department of Defense's contracting and program management offices. Accountability measures would be embedded in the contract's performance work statement and delivery orders, with potential for Inspector General review depending on the nature of any issues. Transparency is facilitated by the contract's award under full and open competition.

Related Government Programs

Department of Defense Security Contracts
Nuclear Facility Security Support
Counter-Unmanned Systems Programs
Engineering Services for Government
Program Planning and Budget Execution Support

Risk Flags

Potential for scope creep in labor hour contracts.
Evolving threat landscape requires continuous adaptation of security measures.
Reliance on specialized personnel for nuclear security expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to APPLIED RESEARCH ASSOCIATES, INC.. KNOWLEDGE BASED SERVICES - PROGRAM PLANNING BUDGET EXECUTION SUPPORT AND PHYSICAL SECURITY (NUCLEAR AND NON-NUCLEAR) INCLUDING COUNTER UNMANNED SYSTEMS AND OTHER EVOLVING THREATS TECHNICAL 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 (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2019-07-24. End: 2025-09-23.

What is the historical spending pattern for similar security and program support services at the Washington Headquarters Services?

Analyzing historical spending patterns for similar services at the Washington Headquarters Services (WHS) is crucial for contextualizing the current $24.6 million award. While specific historical data for WHS is not provided, the Department of Defense (DoD) generally allocates significant resources to security, infrastructure protection, and program management. Contracts for physical security, threat assessment, and budget execution support can range from millions to tens of millions annually, depending on the specific facilities and programs involved. Trends often show increasing investment in advanced technologies for threat detection and mitigation, such as counter-unmanned systems, reflecting evolving security landscapes. Understanding WHS's specific budget allocations and past procurement strategies for these types of services would reveal whether this contract represents a typical investment, an increase, or a decrease in spending for such capabilities.

How does the awarded price per labor hour compare to industry benchmarks for engineering and security consulting services?

Determining the precise price per labor hour requires access to the specific rates negotiated within the contract's delivery orders, which are not publicly detailed. However, for specialized engineering and security consulting services, particularly those involving nuclear facilities and counter-threat expertise, labor rates can vary significantly. Industry benchmarks for senior engineers, security analysts, and program managers in high-security environments often range from $150 to over $300 per hour, depending on experience, clearance levels, and the complexity of the work. Contracts awarded under full and open competition typically aim to secure rates competitive within this range. A thorough assessment would involve comparing the contractor's actual billed rates against established government cost-accounting standards and private sector market surveys for comparable skill sets and services.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for this contract would be defined within the Performance Work Statement (PWS) and subsequent Delivery Orders. Given the scope, KPIs likely focus on the effectiveness of security measures implemented, the accuracy and timeliness of program planning and budget execution support, and the successful integration of counter-unmanned systems capabilities. Specific metrics might include response times to security incidents, adherence to budget timelines, successful completion of security audits, and the operational readiness of security systems. For counter-unmanned systems, KPIs could relate to detection rates, false alarm frequencies, and the effectiveness of mitigation strategies. The government's quality assurance personnel would monitor these KPIs to ensure the contractor meets or exceeds contractual requirements.

What is Applied Research Associates, Inc.'s track record with similar Department of Defense contracts?

Applied Research Associates, Inc. (ARA) has a documented history of performing work for the Department of Defense (DoD) and other government agencies, often in areas related to research, engineering, and specialized technical support. Their portfolio frequently includes projects involving advanced technologies, threat analysis, and defense systems. For contracts similar to this one, focusing on security, program support, and emerging threats, ARA's track record would be assessed based on past performance evaluations, on-time delivery, adherence to budget, and the quality of their technical contributions. Reviewing contract databases and past performance questionnaires (PPQs) would provide insights into their reliability and expertise in executing complex defense-related tasks, including those requiring high-level security clearances and specialized knowledge.

Are there any identified risks associated with the contractor or the nature of the services provided?

Risks associated with this contract can be categorized into several areas. Contractor-related risks include potential performance deficiencies, financial instability (though less likely for established firms), or issues with personnel security clearances, especially given the sensitive nature of nuclear facilities. Service-related risks involve the inherent challenges of providing effective physical security and counter-threat solutions in a rapidly evolving threat landscape. The complexity of integrating counter-unmanned systems, the potential for scope creep in labor-hour contracts, and ensuring consistent adherence to stringent nuclear security protocols are significant operational risks. Furthermore, reliance on specialized expertise means that personnel turnover could impact service continuity. The government mitigates these risks through rigorous oversight, performance monitoring, and contractual clauses addressing deficiencies.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003419R0004

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

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: $27,243,734

Exercised Options: $27,243,734

Current Obligation: $24,654,550

Actual Outlays: $732,231

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $35,175

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU104

IDV Type: IDC

Timeline