DoD awards $17M R&D contract for physical and engineering sciences research to Applied Research Associates, Inc

Contract Overview

Contract Amount: $17,000,000 ($17.0M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-12-15

End Date: 2026-03-22

Contract Duration: 828 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BASE YEAR --

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: BASE YEAR -- Key points: 1. Contract focuses on advanced research and development in physical and engineering sciences. 2. Awarded to a single contractor, Applied Research Associates, Inc., suggesting specialized capabilities. 3. The contract duration of over two years indicates a need for sustained research efforts. 4. Research and Development (R&D) spending is crucial for technological advancement and national security. 5. The specific NAICS code (541715) points to a focus on fundamental and applied research. 6. The contract type (Cost Plus Fixed Fee) is common for R&D where scope may evolve.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without detailed scope and deliverables. The Cost Plus Fixed Fee (CPFF) structure allows for flexibility but can lead to cost overruns if not managed tightly. Compared to similar R&D contracts, the $17 million base year value appears within a typical range for specialized research projects. However, the absence of a fixed price or more defined cost ceiling warrants careful monitoring of expenditures to ensure cost-effectiveness.

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 had the opportunity to bid. The specific number of bidders is not provided, but the competitive process is intended to foster price discovery and ensure the government receives the best value. A full and open competition generally leads to more favorable pricing and a wider selection of qualified contractors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most advantageous pricing and innovative solutions for critical research and development needs.

Public Impact

The primary beneficiaries are the Department of Defense and potentially other government agencies requiring advancements in physical and engineering sciences. The contract will deliver research outcomes that could lead to new technologies, improved systems, or enhanced scientific understanding. The geographic impact is primarily centered around the contractor's location in New Mexico, but the research findings can have national implications. Workforce implications include employment opportunities for scientists, engineers, and support staff at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs without a strict upper limit, potentially leading to higher final costs than anticipated.
The evolving nature of R&D can make it difficult to precisely define scope upfront, increasing the risk of scope creep and budget adjustments.
Without specific performance metrics detailed, assessing the true value and impact of the research outcomes will be challenging post-award.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contractor, Applied Research Associates, Inc., likely possesses specialized expertise required for this advanced R&D.
The multi-year duration indicates a commitment to a specific research area, allowing for deeper investigation and development.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This sector is critical for innovation and maintaining a technological edge for national security. Spending in this area is often characterized by long lead times, evolving requirements, and the inherent uncertainty of research outcomes. Comparable spending benchmarks would typically be found within broader DoD R&D budgets and specific science and technology investment portfolios.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to Applied Research Associates, Inc., there may be opportunities for small businesses to participate as subcontractors, depending on the contractor's subcontracting plan and the specific research tasks involved. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting opportunities rather than direct awards.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of the Army. Accountability measures will be tied to the achievement of research milestones and deliverables outlined in the contract. Transparency will depend on the reporting requirements stipulated in the contract and the DoD's policies on releasing R&D information. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Army Science and Technology Investments
Advanced Materials Research
Engineering Sciences Research Contracts
Physical Sciences Research Initiatives

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Research Outcome Uncertainty
Potential for Scope Creep
Long Development Cycles

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to APPLIED RESEARCH ASSOCIATES, INC.. BASE YEAR --

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 $17.0 million.

What is the period of performance?

Start: 2023-12-15. End: 2026-03-22.

What is the specific research focus within physical, engineering, and life sciences for this contract?

The contract specifies NAICS code 541715, which covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. While the broad category is defined, the precise research focus is not detailed in the provided data. This typically involves fundamental and applied research aimed at advancing scientific knowledge and developing new technologies or processes within these scientific domains. Further details would likely be found in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract, outlining specific objectives, methodologies, and expected outcomes for the research.

How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control for this R&D project?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development where the scope of work is not fully defined at the outset, or where innovation and exploration are key objectives. Under CPFF, the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it also places a significant burden on the government to closely monitor costs and ensure they are reasonable and allocable to the contract. Unlike fixed-price contracts, there isn't a hard ceiling on the total cost, making robust oversight crucial to prevent cost overruns and ensure value for taxpayer money.

What is the track record of Applied Research Associates, Inc. in performing similar R&D contracts for the DoD?

Applied Research Associates, Inc. (ARA) has a history of performing research and development services, including work for the Department of Defense. While specific details on past performance for contracts identical in scope and value to this $17 million award are not provided in the summary data, ARA is known for its expertise in various engineering and scientific fields. A comprehensive assessment of their track record would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the types and complexity of previous DoD contracts they have held, and their success in meeting technical and cost objectives on those projects. Their sustained presence in the federal contracting space suggests a capacity to deliver on complex R&D requirements.

What are the potential risks associated with the 'Research and Development in the Physical, Engineering, and Life Sciences' category?

The primary risks associated with R&D contracts in this category stem from the inherent uncertainty of scientific discovery and technological development. These include technical risks, where research may not yield the desired results or breakthroughs, leading to project delays or failure. Cost risks are also significant, as unforeseen challenges can increase expenses, especially under flexible contract types like CPFF. Schedule risks can arise if research progresses slower than anticipated. Furthermore, there's a risk of obsolescence if the developed technology is surpassed by advancements elsewhere before deployment. Effective risk mitigation requires clear objectives, adaptable project management, and continuous monitoring of progress and expenditures.

How does this contract align with broader DoD strategic goals for technological advancement?

This contract, focused on 'Research and Development in the Physical, Engineering, and Life Sciences,' directly aligns with the Department of Defense's strategic imperative to maintain technological superiority. By investing in fundamental and applied research, the DoD aims to foster innovation that can lead to next-generation capabilities across various domains, from advanced materials and propulsion to sophisticated sensing and communication systems. The specific research areas funded under this contract would determine its precise contribution, but generally, such R&D efforts are crucial for addressing future threats, enhancing operational effectiveness, and ensuring the U.S. military retains a decisive advantage in a rapidly evolving global landscape.

What is the historical spending trend for NAICS code 541715 by the Department of the Army?

Historical spending data for NAICS code 541715 by the Department of the Army indicates a consistent and significant investment in research and development across physical, engineering, and life sciences. While the exact figures fluctuate year-to-year based on strategic priorities and budget allocations, the Army regularly procures services under this code to advance scientific knowledge and develop new technologies. This spending reflects a long-term commitment to innovation in areas critical for national defense. Analyzing trends would reveal periods of increased or decreased investment, potentially correlating with specific technological pushes or shifts in research focus within the Army's R&D portfolio.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4300 SAN MATEO BLVD NE, 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: $17,377,986

Exercised Options: $17,377,986

Current Obligation: $17,000,000

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $5,568,467

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911NF23D0003

IDV Type: IDC

Timeline