DoD's $28.5M R&D contract for prototype operations support awarded to Applied Research Associates, Inc

Contract Overview

Contract Amount: $28,484,418 ($28.5M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-05-13

End Date: 2026-05-12

Contract Duration: 1,460 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: THIS ACTION IS FOR OPERATIONS SUPPORT FOR THE CAPABILITY PROTOTYPES/ RAPID REACTION TECHNOLOGY OFFICE.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: THIS ACTION IS FOR OPERATIONS SUPPORT FOR THE CAPABILITY PROTOTYPES/ RAPID REACTION TECHNOLOGY OFFICE. Key points: 1. Contract focuses on applied research and development for physical, engineering, and life sciences. 2. Significant funding allocated for prototype operations and rapid reaction technology. 3. Contract duration of 4 years suggests a sustained need for these specialized services. 4. Awarded under full and open competition, indicating a broad market search. 5. Firm Fixed Price contract type aims to control costs and provide predictability. 6. The specific NAICS code (541715) points to a niche but critical R&D sector.

Value Assessment

Rating: good

The contract value of $28.5 million over four years for R&D operations support appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for prototype development and rapid technology deployment is challenging due to the unique requirements. However, the firm fixed-price structure suggests an effort to manage costs effectively. The award to a single contractor, Applied Research Associates, Inc., warrants further scrutiny to ensure competitive pricing was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that the agency sought proposals from all responsible sources. While the specific number of bidders is not provided, this procurement method generally fosters price discovery and encourages multiple companies to compete. The agency's decision to exclude certain sources might be based on specific technical requirements or past performance, which could influence the competitive landscape.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it aims to secure the best value by encouraging a wider range of offers and potentially driving down prices through market forces.

Public Impact

The primary beneficiaries are the Department of Defense's research and development initiatives, particularly within the Capability Prototypes/Rapid Reaction Technology Office. Services delivered include essential operational support for the development and testing of advanced technologies. The geographic impact is likely concentrated around the contractor's facilities and DoD research centers, with potential for broader national security implications. Workforce implications may include specialized R&D personnel, engineers, and technical support staff employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count makes it difficult to fully assess the intensity of competition.
The 'exclusion of sources' clause requires understanding the justification to ensure it didn't unduly limit competition.
Performance metrics and quality assurance details are not readily available to gauge contractor performance risks.

Positive Signals

Awarded under full and open competition, suggesting a broad market approach.
Firm Fixed Price contract type provides cost certainty for the government.
Long-term duration (4 years) indicates a stable and ongoing requirement for critical R&D support.
Contractor is likely experienced in applied research and development given the contract's focus.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for applied R&D services supporting defense initiatives is highly specialized, often involving a limited number of firms with the requisite expertise and security clearances. Comparable spending benchmarks are difficult to establish without more granular data on the specific technologies and prototypes involved, but R&D spending within the DoD is substantial and consistently represents a significant portion of the defense budget.

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 arising from a set-aside provision. However, the prime contractor, Applied Research Associates, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Washington Headquarters Services (WHS) within the Department of Defense. Accountability measures are inherent in the firm fixed-price contract structure, which obligates the contractor to deliver specific outcomes within a set budget. Transparency is facilitated through contract award databases, though detailed operational performance data may be considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Rapid Prototyping Initiatives
Advanced Technology Development Contracts
Applied Research Services
Defense Science and Technology Strategy

Risk Flags

Potential for scope creep in R&D projects despite FFP.
Reliance on a single contractor for critical prototype operations.
Need for detailed performance monitoring to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to APPLIED RESEARCH ASSOCIATES, INC.. THIS ACTION IS FOR OPERATIONS SUPPORT FOR THE CAPABILITY PROTOTYPES/ RAPID REACTION TECHNOLOGY OFFICE.

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 $28.5 million.

What is the period of performance?

Start: 2022-05-13. End: 2026-05-12.

What is the specific nature of the 'operations support' required for the Capability Prototypes/Rapid Reaction Technology Office?

The 'operations support' for the Capability Prototypes/Rapid Reaction Technology Office likely encompasses a range of activities crucial for the lifecycle of advanced technology prototypes. This could include logistical support for testing and experimentation, maintenance and calibration of prototype systems, technical assistance during development phases, data collection and analysis from trials, and potentially security management for sensitive technologies. The 'rapid reaction' aspect suggests support for technologies designed for quick deployment or adaptation, requiring agile and responsive operational services. Without more specific details on the prototypes, it's difficult to pinpoint exact tasks, but the focus is on enabling the effective development, testing, and readiness of these advanced capabilities for the DoD.

How does the $28.5 million contract value compare to similar R&D support contracts within the DoD?

Directly comparing the $28.5 million value to similar R&D support contracts is challenging without access to a comprehensive database of classified or specialized defense R&D agreements. However, for a four-year contract supporting rapid reaction technology prototypes, this figure appears within a reasonable range for specialized applied research and development services. The DoD invests heavily in R&D, with individual contracts varying widely based on technological complexity, scope, and duration. Contracts for operationalizing and testing prototypes often require significant resources for specialized personnel, equipment, and facilities. The firm fixed-price nature suggests a defined scope, which aids in cost estimation, but the unique nature of 'rapid reaction' technologies can introduce variability.

What are the potential risks associated with a firm fixed-price contract for R&D operations support?

While firm fixed-price (FFP) contracts are designed to provide cost certainty, they can introduce risks in R&D environments. For the contractor, the primary risk is underestimating the complexity or duration of the R&D operations support, leading to reduced profit margins or even losses if costs exceed the fixed price. This could incentivize the contractor to cut corners on quality or scope, potentially impacting the effectiveness of the prototypes. For the government, the risk is that the contractor may be hesitant to incorporate necessary changes or innovations discovered during the R&D process if they fall outside the original scope, potentially hindering technological advancement. Effective oversight is crucial to ensure the contractor meets performance standards despite the FFP structure.

What is the track record of Applied Research Associates, Inc. in supporting DoD R&D initiatives?

Applied Research Associates, Inc. (ARA) has a documented history of supporting Department of Defense (DoD) research and development initiatives, particularly in areas related to engineering, physical sciences, and advanced technologies. Their expertise often spans areas like materials science, structural engineering, and specialized testing. ARA has been involved in various defense contracts, including those focused on developing and testing new systems, analyzing threats, and providing scientific and technical support. Their presence in this specific R&D domain suggests a familiarity with the requirements and challenges inherent in supporting prototype development and rapid reaction technologies, aligning with the scope of this particular contract award.

How does the NAICS code 541715 (R&D in Physical, Engineering, and Life Sciences) reflect the nature of this contract?

The North American Industry Classification System (NAICS) code 541715 precisely categorizes this contract as 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. This classification indicates that the core of the work involves systematic study and investigation in these scientific fields, aiming to discover or create new knowledge and applications. The contract's focus on 'operations support for capability prototypes/rapid reaction technology' directly aligns with this code, as it implies the practical application and testing of R&D outcomes in engineering and physical sciences. It distinguishes this contract from R&D in other areas like social sciences or computer science, highlighting the technical and scientific rigor involved.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003420R0129

Offers Received: 2

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, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,410,459

Exercised Options: $31,561,280

Current Obligation: $28,484,418

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $23,356,951

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HQ003421D0004

IDV Type: IDC

Timeline