DoD Awards $8.1M R&D Contract to Applied Technology, Inc. for Physical Sciences Research
Contract Overview
Contract Amount: $8,085,651 ($8.1M)
Contractor: Applied Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-05-01
End Date: 2026-04-30
Contract Duration: 364 days
Daily Burn Rate: $22.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SEE ATTACHMENT 1 - STATEMENT OF WORK
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20375
Plain-Language Summary
Department of Defense obligated $8.1 million to APPLIED TECHNOLOGY, INC. for work described as: SEE ATTACHMENT 1 - STATEMENT OF WORK Key points: 1. The contract focuses on Research and Development in Physical, Engineering, and Life Sciences, a critical area for defense innovation. 2. Applied Technology, Inc. secured this award, indicating potential specialization or past performance in this specific R&D niche. 3. The contract value of $8.1M is moderate for R&D, but its impact depends on the criticality of the research outcomes. 4. The sector is R&D, which often involves high risk but also high potential reward for technological advancement.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The fixed fee component provides some incentive for the contractor to control costs, but the overall pricing structure warrants close monitoring.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while competition was intended, specific criteria limited the pool of eligible bidders, potentially impacting price discovery and overall value.
Taxpayer Impact: The limited competition may result in a higher price than if full and open competition had been utilized, impacting taxpayer funds.
Public Impact
Advancement in physical, engineering, and life sciences research could lead to new defense capabilities. The contract supports technological innovation within the Department of Defense. Potential for breakthroughs in areas relevant to national security. The specific R&D focus could have long-term implications for military technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about optimal pricing.
- Cost Plus Fixed Fee contracts require diligent oversight to prevent cost escalation.
- The specific R&D outcomes are not detailed, making it hard to assess immediate value.
Positive Signals
- Supports critical R&D in defense.
- Awarded to a single entity, potentially leveraging specialized expertise.
- Fixed fee provides some cost control mechanism.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this sector is crucial for maintaining a technological edge but often carries inherent risks and long development cycles.
Small Business Impact
The data provided does not indicate any specific set-aside for small businesses. Therefore, the extent of small business participation in this contract is unclear and likely minimal given the nature of specialized R&D.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause suggests a structured procurement process, but the exclusion of sources warrants scrutiny to ensure fairness and prevent potential anti-competitive practices. Oversight will be key to managing the Cost Plus Fixed Fee structure.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition may lead to suboptimal pricing.
- Cost Plus Fixed Fee structure requires stringent oversight to manage costs.
- Lack of detailed SOW prevents full assessment of research objectives and value.
- Potential for scope creep in R&D projects.
Tags
research-and-development-in-the-physical, department-of-defense, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.1 million to APPLIED TECHNOLOGY, INC.. SEE ATTACHMENT 1 - STATEMENT OF WORK
Who is the contractor on this award?
The obligated recipient is APPLIED TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $8.1 million.
What is the period of performance?
Start: 2025-05-01. End: 2026-04-30.
What specific research objectives are outlined in the Statement of Work, and how do they align with current and future defense priorities?
The Statement of Work (SOW) is referenced as 'ATTACHMENT 1' and is not provided in the data. Therefore, a detailed analysis of the specific research objectives and their alignment with defense priorities cannot be performed. Further review of the SOW is necessary to assess the strategic value and potential impact of this R&D investment.
What was the rationale for excluding other potential sources, and how was the fair and reasonable price determined under limited competition?
The rationale for excluding other sources is not detailed in the provided data. The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies a justification was made. Determining fair and reasonable pricing under such conditions requires robust cost analysis and comparison with similar contracts or market data, which is not available here.
How will the effectiveness of the research be measured, and what are the key performance indicators for Applied Technology, Inc. under this Cost Plus Fixed Fee contract?
Effectiveness measurement and Key Performance Indicators (KPIs) are typically detailed within the Statement of Work (SOW) and contract clauses. Without access to the SOW, it's impossible to specify these metrics. For a Cost Plus Fixed Fee contract, effectiveness is often tied to achieving defined research milestones and deliverables within the scope of work.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0017323RTJ01
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 5200 POTOMAC DR, KING GEORGE, VA, 22485
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,339,637
Exercised Options: $10,579,841
Current Obligation: $8,085,651
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0017324D2001
IDV Type: IDC
Timeline
Start Date: 2025-05-01
Current End Date: 2026-04-30
Potential End Date: 2028-04-30 00:00:00
Last Modified: 2025-12-12
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