DoD's $8.15M Cyber Operations contract awarded to Applied Research Associates for Joint Munitions Effectiveness Manual

Contract Overview

Contract Amount: $8,153,725 ($8.2M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-30

End Date: 2026-08-29

Contract Duration: 729 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SUPPORT FOR CYBER OPERATIONS AND LETHALITY EFFECTIVENESS (COLE) JOINT MUNITIONS EFFECTIVENESS MANUAL (JMEM)

Place of Performance

Location: RALEIGH, WAKE County, NORTH CAROLINA, 27615

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $8.2 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: SUPPORT FOR CYBER OPERATIONS AND LETHALITY EFFECTIVENESS (COLE) JOINT MUNITIONS EFFECTIVENESS MANUAL (JMEM) Key points: 1. Contract focuses on research and development for cyber operations and munitions effectiveness. 2. Applied Research Associates, Inc. is the sole awardee. 3. The contract carries a risk of cost overruns due to its Cost Plus Fixed Fee structure. 4. Spending is within the R&D sector, specifically physical and engineering sciences.

Value Assessment

Rating: fair

The $8.15M award for a 2-year period appears reasonable for specialized R&D. However, the Cost Plus Fixed Fee structure warrants close monitoring for potential cost creep compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery, but the Cost Plus Fixed Fee pricing type can limit its effectiveness in controlling final costs.

Taxpayer Impact: Taxpayer funds are being used for critical defense research. While competition is present, the CPFF structure requires diligent oversight to ensure cost efficiency and prevent unnecessary expenditure.

Public Impact

Enhances military capabilities in cyber warfare and munitions effectiveness. Supports the development of advanced defense technologies. Potential for improved operational readiness and strategic advantage. Investment in research critical for national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee pricing structure
  • Potential for cost overruns
  • Limited visibility into detailed cost breakdowns

Positive Signals

  • Awarded under full and open competition
  • Focus on critical defense R&D
  • Clear period of performance

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for maintaining technological superiority, with benchmarks varying widely based on project scope and complexity.

Small Business Impact

The contract data indicates no specific set-aside for small businesses. This suggests that large businesses were likely the primary participants in the competition, potentially limiting opportunities for smaller, specialized firms in this particular award.

Oversight & Accountability

The Department of the Army is the contracting agency. Oversight will be critical to manage the Cost Plus Fixed Fee contract, ensuring adherence to scope, budget, and performance metrics to maximize taxpayer value.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Cost Plus Fixed Fee pricing
  • Potential for cost overruns
  • Limited small business participation
  • Complexity of cyber operations R&D
  • Ensuring ethical application of lethality research

Tags

research-and-development-in-the-physical, department-of-defense, nc, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.2 million to APPLIED RESEARCH ASSOCIATES, INC.. SUPPORT FOR CYBER OPERATIONS AND LETHALITY EFFECTIVENESS (COLE) JOINT MUNITIONS EFFECTIVENESS MANUAL (JMEM)

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 $8.2 million.

What is the period of performance?

Start: 2024-08-30. End: 2026-08-29.

What is the specific breakdown of costs within the Cost Plus Fixed Fee structure, and how will the government ensure cost efficiency?

The Cost Plus Fixed Fee (CPFF) structure reimburses the contractor for allowable costs plus a predetermined fixed fee. The government's oversight will involve rigorous auditing of incurred costs, detailed review of progress reports, and strict adherence to the contract's scope of work to prevent scope creep and ensure the fee remains justified by performance.

How does the 'Lethality Effectiveness' component of the manual align with current DoD ethical guidelines and international law?

The 'Lethality Effectiveness' component likely focuses on the technical performance and impact of munitions within defined operational parameters. Alignment with ethical guidelines and international law is a separate, but crucial, aspect of weapons system development and deployment, typically addressed through separate policy and legal reviews.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure value for money?

Key performance indicators will likely relate to the accuracy, completeness, and timeliness of the Joint Munitions Effectiveness Manual updates. Measurement will involve technical reviews of the delivered manual content against predefined specifications, user feedback from relevant military units, and adherence to project milestones outlined in the contract.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911QX23R0002

Offers Received: 2

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: $27,147,813

Exercised Options: $12,134,556

Current Obligation: $8,153,725

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911QX24D0004

IDV Type: IDC

Timeline

Start Date: 2024-08-30

Current End Date: 2026-08-29

Potential End Date: 2027-08-29 00:00:00

Last Modified: 2025-12-04

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