DoD Awards $5.7M for AJEM Software Dev & User Assistance to Applied Research Associates

Contract Overview

Contract Amount: $5,703,118 ($5.7M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2026-01-30

Contract Duration: 1,674 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AJEM SOFTWARE DEV. & USER ASSISTANCE

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $5.7 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: AJEM SOFTWARE DEV. & USER ASSISTANCE Key points: 1. Contract awarded to Applied Research Associates, Inc. for AJEM software development and user assistance. 2. The contract has a duration of 1674 days, spanning from July 2021 to January 2026. 3. This award falls under Engineering Services (NAICS 541330). 4. The contract was awarded using full and open competition. 5. The total award amount is $5,703,117.59.

Value Assessment

Rating: good

The contract value of $5.7 million over approximately 4.6 years appears reasonable for specialized software development and user assistance services. Benchmarking against similar DoD contracts for engineering services of this scope and duration would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust process for soliciting bids and ensuring fair pricing. This method typically leads to competitive pricing as multiple vendors have the opportunity to propose solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

Ensures continued development and support for the AJEM software, crucial for Department of the Army operations. Supports a private sector company, Applied Research Associates, Inc., through a significant federal contract. The long-term nature of the contract provides stability for both the government's software needs and the contractor's resource planning. The award contributes to the broader IT and engineering services sector within the federal contracting landscape.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term software development contracts.
Reliance on a single vendor for critical software support.
Ensuring continued relevance and modernization of the AJEM software over its lifecycle.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Long contract duration provides stability and predictability for service delivery.
Clear definition of services (software dev & user assistance).

Sector Analysis

This contract falls within the Engineering Services sector, which is a significant area of federal spending, particularly within the Department of Defense. Benchmarks for similar software development and support contracts can vary widely based on complexity and technology.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). Therefore, the primary beneficiary is likely a large business, Applied Research Associates, Inc. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses.

Oversight & Accountability

The contract is managed by the Department of the Army, a component of the Department of Defense. Standard DoD oversight mechanisms for contract performance, quality assurance, and financial management are expected to be in place.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long-term contract duration increases risk of software obsolescence if not actively managed.
Potential for cost overruns if project scope expands beyond initial estimates.
Dependence on a single contractor for critical software functions.
Lack of specific details on software functionality and impact hinders full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.7 million to APPLIED RESEARCH ASSOCIATES, INC.. AJEM SOFTWARE DEV. & USER ASSISTANCE

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 $5.7 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-01-30.

What is the specific function and criticality of the AJEM software to the Department of the Army's mission?

The specific function and criticality of the AJEM software are not detailed in the provided data. Understanding its role in operational planning, intelligence analysis, or logistical support would be crucial for assessing the true value of this $5.7 million investment. Without this context, it's difficult to definitively gauge its impact beyond the stated need for development and user assistance.

How does the per-unit cost or labor rate compare to industry standards for similar engineering and software development services?

The provided data does not include specific per-unit costs or labor rates, making a direct comparison difficult. While the overall contract value seems reasonable for the duration and scope, a detailed breakdown of labor categories, hours, and rates would be necessary to benchmark against industry standards and ensure optimal value for taxpayer money.

What mechanisms are in place to ensure the AJEM software remains current and effective throughout the contract period?

The contract specifies 'development & user assistance,' implying ongoing support and potential updates. However, explicit details on modernization roadmaps, technology refresh cycles, or agile development methodologies are absent. Robust oversight and clear performance metrics are essential to ensure the software evolves with changing requirements and technological advancements, preventing obsolescence.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911QX21R0018

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,436,839

Exercised Options: $6,574,860

Current Obligation: $5,703,118

Actual Outlays: $300,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU304

IDV Type: IDC

Timeline