DoD's $51.7M Electronic Warfare Contract Awarded to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $51,713,235 ($51.7M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2015-08-21

End Date: 2020-09-23

Contract Duration: 1,860 days

Daily Burn Rate: $27.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF INITIAL AWARD AND FUNDING FOR DT-15-1068 "ELECTRONIC WARFARE AND TEST SUPPORT FOR AIR NATIONAL GUARD AIR FORCE RESERVE COMMAND TEST CENTER"

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85705

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $51.7 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: IGF::OT::IGF INITIAL AWARD AND FUNDING FOR DT-15-1068 "ELECTRONIC WARFARE AND TEST SUPPORT FOR AIR NATIONAL GUARD AIR FORCE RESERVE COMMAND TEST CENTER" Key points: 1. Contract awarded for essential electronic warfare and test support services. 2. Georgia Tech Applied Research Corp. secured this significant award. 3. The contract duration spans approximately 5 years. 4. Services are critical for the Air National Guard and Air Force Reserve Command. 5. This award falls under Research and Development in Physical, Engineering, and Life Sciences. 6. The contract type is Cost Plus Fixed Fee, indicating shared risk. 7. The contract was awarded through full and open competition.

Value Assessment

Rating: good

The contract's value of $51.7 million over five years for specialized electronic warfare support appears reasonable given the technical expertise required. Benchmarking against similar R&D contracts for defense testing and evaluation services suggests this pricing is within expected ranges. The Cost Plus Fixed Fee structure allows for flexibility while providing the contractor with a defined profit margin, which can be advantageous for complex, evolving research projects. However, detailed cost breakdowns and comparisons to independent cost estimates would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a robust marketplace for these specialized services. This process is designed to foster price discovery and ensure the government receives competitive offers. The selection of Georgia Tech Applied Research Corp. implies they offered the best value proposition among the competing entities.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the most capable and cost-effective provider is selected, maximizing the return on investment for public funds.

Public Impact

The Air National Guard and Air Force Reserve Command benefit from enhanced electronic warfare capabilities and testing support. This contract supports the development and validation of critical defense technologies. The services provided contribute to the overall readiness and effectiveness of air components. Workforce implications include specialized engineering, testing, and research roles. The geographic impact is primarily associated with the contractor's facilities and relevant military test ranges.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
Reliance on a single contractor for specialized EW expertise could pose a risk if performance issues arise.
The evolving nature of electronic warfare technology may require contract modifications and additional funding.

Positive Signals

Award to a research institution suggests strong technical capabilities and a focus on innovation.
Full and open competition indicates a healthy market and potential for competitive pricing.
The contract's duration provides stability for critical support services.

Sector Analysis

This contract falls within the broader Research and Development sector, specifically focusing on defense-related physical, engineering, and life sciences. The electronic warfare market is a specialized niche within defense, characterized by high technological barriers to entry and significant government investment. Comparable spending benchmarks in this area are difficult to establish precisely due to the unique nature of EW systems, but R&D spending for defense applications often represents a substantial portion of the overall defense budget. Georgia Tech Applied Research Corp. is a known entity in defense R&D, suggesting this contract aligns with their established market position.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor is not a small business. Therefore, there are no direct small business set-aside implications. However, the prime contractor may engage small businesses for subcontracting opportunities, particularly for specialized components or services that fall outside their core competencies. The extent of small business subcontracting would depend on the contractor's procurement strategy and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Navy, which awarded the contract on behalf of the Department of Defense. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Performance metrics and regular reporting requirements would be in place to monitor progress and ensure accountability. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Air Force Test and Evaluation Programs
Electronic Warfare Systems Development
DoD Research and Development Contracts
Air National Guard Readiness Programs
Air Force Reserve Command Support

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Specialized nature of EW may limit competition in future procurements.
Performance monitoring is critical due to technical complexity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.7 million to GEORGIA TECH APPLIED RESEARCH CORP. IGF::OT::IGF INITIAL AWARD AND FUNDING FOR DT-15-1068 "ELECTRONIC WARFARE AND TEST SUPPORT FOR AIR NATIONAL GUARD AIR FORCE RESERVE COMMAND TEST CENTER"

Who is the contractor on this award?

The obligated recipient is GEORGIA TECH APPLIED RESEARCH CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $51.7 million.

What is the period of performance?

Start: 2015-08-21. End: 2020-09-23.

What is the track record of Georgia Tech Applied Research Corp. in performing similar electronic warfare and test support contracts for the Department of Defense?

Georgia Tech Applied Research Corp. (GTARC) has a well-established history of supporting defense research and development initiatives, including those related to electronic warfare (EW). As a component of the Georgia Tech Research Institute (GTRI), GTARC leverages extensive expertise and facilities for advanced technology development and testing. While specific contract details and performance ratings are often proprietary, GTRI has consistently been a significant player in defense R&D, undertaking complex projects for various military branches. Their involvement in EW typically spans areas such as system design, simulation, testing, and analysis. The award of this contract suggests a positive assessment of their past performance and technical capabilities by the Department of the Navy, indicating they have successfully delivered on similar requirements in the past.

How does the awarded value of $51.7 million compare to other electronic warfare support contracts of similar scope and duration?

Benchmarking the $51.7 million award for this five-year electronic warfare and test support contract requires careful consideration of the specific services, technologies involved, and the complexity of the requirements. Contracts for specialized R&D and testing in areas like electronic warfare can vary significantly in price due to the cutting-edge nature of the technology and the need for highly skilled personnel. Generally, contracts of this duration and scope for advanced defense systems support can range from tens to hundreds of millions of dollars. Without access to detailed statements of work and specific performance metrics for comparable contracts, a precise comparison is challenging. However, the value appears to be within a plausible range for specialized, long-term defense R&D support, assuming the scope of work is substantial and technically demanding.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for electronic warfare development?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure, particularly in a complex field like electronic warfare (EW) development, is the potential for cost overruns. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the project's costs exceed initial estimates, the government bears the burden of these increased expenses, while the contractor's profit remains fixed. This can incentivize less cost-consciousness on the part of the contractor. Effective management, robust oversight, and clear definition of allowable costs are crucial to mitigate this risk. Additionally, the evolving nature of EW technology can lead to scope creep or the need for significant modifications, further complicating cost control under a CPFF structure.

How effective is the 'full and open competition' approach likely to be in ensuring value for money for this specific contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money, as it allows the widest possible pool of qualified vendors to submit proposals. This competition drives innovation and encourages bidders to offer their best technical solutions at the most competitive prices. For a specialized contract like electronic warfare and test support, this approach increases the likelihood that the government will select a contractor offering the optimal balance of technical capability, performance, and cost. The success in achieving value for money ultimately depends on the clarity of the solicitation requirements, the evaluation criteria, and the rigor of the source selection process. Assuming these elements were well-executed, full and open competition provides a strong foundation for achieving good value.

What are the historical spending patterns for electronic warfare support and R&D within the Department of Defense, and how does this contract fit?

The Department of Defense consistently allocates significant resources to electronic warfare (EW) research, development, testing, and procurement, reflecting its critical importance in modern military operations. Historical spending patterns show a continuous investment in EW capabilities across all branches of the military, driven by the need to counter evolving threats and maintain technological superiority. This $51.7 million contract for EW test support aligns with these patterns by providing essential services that underpin the development and validation of EW systems. It represents a component of the broader DoD R&D budget, specifically targeting the foundational testing and evaluation phases necessary for effective EW system deployment. Such contracts are vital for ensuring the readiness and effectiveness of forces operating in contested electromagnetic spectrum environments.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA807513R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 505 10TH ST, ATLANTA, GA, 30318

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,277,448

Exercised Options: $53,277,448

Current Obligation: $51,713,235

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $583,330

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0018

IDV Type: IDC

Timeline