DHS awarded $77M for Joint Requirements Council support, with Applied Research Associates Inc. managing the contract

Contract Overview

Contract Amount: $77,144,365 ($77.1M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-06-02

End Date: 2022-02-28

Contract Duration: 1,732 days

Daily Burn Rate: $44.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: JOINT REQUIREMENTS COUNCIL OPERATIONS AND REQUIREMENTS ANALYSIS SUPPORT SERVICES IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $77.1 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: JOINT REQUIREMENTS COUNCIL OPERATIONS AND REQUIREMENTS ANALYSIS SUPPORT SERVICES IGF::OT::IGF Key points: 1. The contract value of $77.1 million over nearly five years suggests a significant investment in specialized analytical support. 2. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of work, potentially encompassing diverse analytical needs. 3. A definitive contract award type implies a clear agreement on terms and scope, reducing ambiguity. 4. The contract duration of 1732 days (approx. 4.7 years) indicates a long-term need for these services. 5. The contract was awarded under full and open competition, suggesting a robust selection process. 6. The cost-plus-fixed-fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can incentivize efficiency but requires careful oversight.

Value Assessment

Rating: fair

The contract's total value of $77.1 million over approximately 4.7 years averages to about $16.4 million annually. Benchmarking this against similar contracts for 'All Other Professional, Scientific, and Technical Services' is challenging due to the broad NAICS code. However, the CPFF structure necessitates close monitoring of costs to ensure value for money, as it allows for cost reimbursement. Without specific performance metrics or comparison data, assessing the overall value is difficult, but the significant duration and cost suggest a substantial and ongoing need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 7 bidders suggests a competitive environment for this requirement. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for the services rendered. Full and open competition increases the likelihood that the government is not overpaying for specialized analytical support.

Public Impact

The primary beneficiaries are likely the Department of Homeland Security's Joint Requirements Council, which receives critical operational and requirements analysis support. The services delivered are expected to enhance the effectiveness and efficiency of requirements definition and analysis for DHS initiatives. The contract's impact is primarily focused within the federal government, specifically at DHS headquarters in Washington D.C. The contract supports specialized analytical roles, potentially requiring a skilled workforce in areas of defense, security, and government operations analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not managed diligently, as contractor incentives are tied to cost reimbursement.
The broad NAICS code 'All Other Professional, Scientific, and Technical Services' makes it difficult to benchmark performance and cost against specific industry standards.
The lack of readily available performance metrics makes it challenging to assess the contractor's effectiveness and the true value delivered.
Long-term contracts can sometimes lead to complacency or a lack of agility if not actively managed and reviewed.
The significant contract value warrants robust oversight to ensure funds are used efficiently and effectively towards stated objectives.

Positive Signals

Awarded under full and open competition, indicating a fair and broad solicitation process.
The contract has a defined period of performance, providing a clear timeframe for service delivery.
The definitive contract type suggests a well-defined scope and agreement between the government and the contractor.
The contractor, Applied Research Associates, Inc., has a track record of performing government contracts, implying experience in this domain.
The contract supports critical functions within the Joint Requirements Council, indicating alignment with agency priorities.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting government operations and requirements analysis. This sector is characterized by a wide range of specialized expertise, from research and development to management consulting and technical support. The market size for such services supporting federal agencies is substantial, with significant spending allocated annually to enhance operational effectiveness and strategic planning. This contract represents a portion of that investment, focusing on the unique needs of the Department of Homeland Security's requirements processes.

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 or benefits specifically for small businesses mandated by this award. The primary contractor, Applied Research Associates, Inc., is likely a large business, and the focus of this contract is on fulfilling the government's requirements directly rather than fostering small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Homeland Security. The CPFF structure necessitates rigorous financial oversight to monitor expenditures and ensure costs are reasonable and allocable to the contract. Performance reviews and regular reporting requirements would also be key accountability measures. Transparency is generally maintained through contract databases and public reporting, though specific operational details may be sensitive.

Related Government Programs

Department of Homeland Security Operations Support
Joint Requirements Council Functions
Federal Requirements Analysis Services
Professional and Technical Services Contracts
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Difficulty in performance benchmarking due to broad NAICS code
Risk of scope creep with undefined technical services
Need for rigorous financial oversight of costs
Ensuring alignment of broad services with specific JRC needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $77.1 million to APPLIED RESEARCH ASSOCIATES, INC.. JOINT REQUIREMENTS COUNCIL OPERATIONS AND REQUIREMENTS ANALYSIS SUPPORT SERVICES IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is APPLIED RESEARCH ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $77.1 million.

What is the period of performance?

Start: 2017-06-02. End: 2022-02-28.

What is the specific nature of the 'Joint Requirements Council Operations and Requirements Analysis Support Services' provided under this contract?

The contract, awarded to Applied Research Associates, Inc., provides support for the Department of Homeland Security's (DHS) Joint Requirements Council (JRC). This likely involves assisting the JRC in defining, analyzing, and validating requirements for various DHS programs and initiatives. Services could include conducting studies, developing documentation, facilitating meetings, and providing expert advice to ensure that requirements are clear, achievable, and aligned with agency strategic goals. The broad NAICS code (541990 - All Other Professional, Scientific, and Technical Services) suggests the scope is comprehensive, potentially covering policy analysis, operational research, and technical assessments related to homeland security missions.

How does the Cost-Plus-Fixed-Fee (CPFF) contract structure influence cost control and contractor incentives for this $77M DHS contract?

The Cost-Plus-Fixed-Fee (CPFF) structure means the contractor, Applied Research Associates, Inc., is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can be beneficial for complex projects where the scope is not fully defined at the outset, allowing flexibility. However, it places a significant burden on the government to meticulously track and audit costs to prevent overruns. Contractor incentives are primarily driven by completing the work within the defined scope to earn the fixed fee, rather than minimizing costs, which could potentially lead to less cost-consciousness compared to fixed-price contracts. Robust government oversight is crucial to manage this risk.

What are the potential risks associated with the broad 'All Other Professional, Scientific, and Technical Services' NAICS code for this contract?

The use of NAICS code 541990 presents several risks. Firstly, it lacks specificity, making it difficult to benchmark the contract's cost and performance against industry standards or comparable government contracts. This ambiguity can hinder effective value-for-money assessments. Secondly, the broad scope might allow for scope creep if not managed tightly, potentially leading to increased costs and extended timelines beyond the original intent. Thirdly, it may be challenging for the government to precisely define and measure the required expertise, potentially leading to the contractor providing services that are not optimally aligned with the JRC's most critical needs.

Given the $77.1 million value and nearly 5-year duration, what level of performance oversight is expected for Applied Research Associates, Inc.?

With a contract value of $77.1 million spanning approximately 4.7 years, a high level of performance oversight is expected. The Department of Homeland Security's contracting officer and program managers would be responsible for monitoring contractor performance against contract requirements, including deliverables, timelines, and quality standards. Given the CPFF structure, financial oversight is equally critical, involving regular audits of incurred costs to ensure they are reasonable, allocable, and allowable. Performance metrics, regular progress reports, and potentially site visits would be standard oversight mechanisms to ensure the contractor is meeting its obligations effectively and efficiently.

How does the 'full and open competition' with 7 bidders impact the potential value and risk for taxpayers on this contract?

The fact that this $77.1 million contract was awarded under 'full and open competition' with seven bidders is a positive indicator for taxpayers. It suggests that a robust market participated, increasing the likelihood that the government received competitive pricing and terms. A higher number of bidders generally leads to better price discovery and reduces the risk of the government awarding a contract at an inflated price. This competitive environment incentivizes bidders to offer their best value propositions, potentially leading to cost savings or enhanced service quality compared to a sole-source or limited competition scenario.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSHQDC-17-R-00006

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4300 SAN MATEO BLVD NE STE A220, ALBUQUERQUE, NM, 87110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,144,365

Exercised Options: $77,144,365

Current Obligation: $77,144,365

Actual Outlays: $-325,277

Subaward Activity

Number of Subawards: 143

Total Subaward Amount: $38,491,599

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline