DoD's $118M Robotic Demining System Contract Awarded to Applied Research Associates, Inc
Contract Overview
Contract Amount: $11,840,996 ($11.8M)
Contractor: Applied Research Associates, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-09-26
End Date: 2011-06-29
Contract Duration: 1,372 days
Daily Burn Rate: $8.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: NEMESIS - ROBOTIC DEMINING SYSTEM
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110
Plain-Language Summary
Department of Defense obligated $11.8 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: NEMESIS - ROBOTIC DEMINING SYSTEM Key points: 1. The Department of Defense awarded a significant contract for a robotic demining system. 2. Applied Research Associates, Inc. secured the sole-source contract, raising questions about competition. 3. The contract's cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns. 4. This R&D expenditure focuses on advanced physical and engineering sciences.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, while common in R&D, can lead to higher costs if not managed tightly. Benchmarking against similar R&D contracts for advanced robotics is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for an $118 million contract suggests taxpayers may have paid a premium for the robotic demining system.
Public Impact
Enhances soldier safety by automating dangerous demining tasks. Potential for dual-use technology applicable to other hazardous environments. Invests in advanced robotics and AI for defense applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost-plus-fixed-fee contract type can incentivize cost escalation.
- Lack of small business participation noted.
Positive Signals
- Addresses critical soldier safety need.
- Invests in advanced technological capabilities.
- Potential for significant operational efficiency gains.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but requires careful oversight to ensure value for money.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor is not identified as a small business. This suggests limited direct opportunities for small businesses on this particular contract.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Army to ensure the contractor is performing efficiently and costs are reasonable.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award.
- Cost-plus-fixed-fee contract.
- Lack of small business participation.
- Long contract duration (over 3 years).
Tags
research-and-development-in-the-physical, department-of-defense, nm, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.8 million to APPLIED RESEARCH ASSOCIATES, INC.. NEMESIS - ROBOTIC DEMINING SYSTEM
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $11.8 million.
What is the period of performance?
Start: 2007-09-26. End: 2011-06-29.
What specific technological advancements justify the sole-source award and the $118 million price tag for the robotic demining system?
The justification for a sole-source award typically hinges on unique capabilities or proprietary technology held by a single entity. For the NEMESIS system, this likely relates to highly specialized robotic components, advanced sensor integration, or proprietary algorithms for threat detection and neutralization that are not readily available from other sources. The $118 million cost would encompass extensive research, development, prototyping, testing, and initial production phases to meet stringent military requirements for demining operations.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract structure in this context?
The primary risk with a CPFF contract is that the contractor may have less incentive to control costs, as the government agrees to cover all allowable costs plus a predetermined fixed fee. If the contractor's actual costs exceed estimates, the government bears the burden. This structure can lead to cost overruns if not meticulously monitored, potentially increasing the final price beyond initial projections and impacting the overall value for taxpayer investment.
How effective is the robotic demining system expected to be in improving soldier safety and operational efficiency in deployed environments?
The system is expected to be highly effective by removing soldiers from immediate danger during demining operations, significantly reducing casualties and injuries. Its robotic nature allows for operation in hazardous conditions and potentially faster clearance rates. Effectiveness will depend on the system's reliability, maneuverability in diverse terrains, accuracy in detecting various explosive threats, and ease of operation by military personnel, all of which are critical factors evaluated during its development and deployment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W909MY07R0014
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4300 SAN MATEO BLVD NE STE A220, ALBUQUERQUE, NM, 01
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,840,996
Exercised Options: $11,840,996
Current Obligation: $11,840,996
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-09-26
Current End Date: 2011-06-29
Potential End Date: 2011-06-29 00:00:00
Last Modified: 2012-07-16
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