DoD awards GTRI $50M for 5-year R&D engineering support, with initial $150K funded

Contract Overview

Contract Amount: $49,162,937 ($49.2M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2018-07-31

End Date: 2023-07-31

Contract Duration: 1,826 days

Daily Burn Rate: $26.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS IS A RESEARCH AND DEVELOPMENT (R&D) - SERVICES FOR GEORGIA TECH RESEARCH INSTITUTE (GTRI) ENGINEERING SUPPORT TO PROGRAM EXECUTIVE OFFICE INTELLIGENCE ELECTRONIC WARFARE AND SENSORS (PEO IEW&S) WITH A PERIOD OF PERFORMANCE THROUGH 5 YEARS. TASK ORDER 0005 IS INCREMENTALLY FUNDED. THE INITIAL INCREMENT OF FUNDING IS $149,893.86 WITH A PERIOD OF PERFORMANCE THROUGH 28 FEBRUARY 2019. THE TOTAL TASK ORDER 0005 AMOUNT IS $49,950,846.59.

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $49.2 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: THIS IS A RESEARCH AND DEVELOPMENT (R&D) - SERVICES FOR GEORGIA TECH RESEARCH INSTITUTE (GTRI) ENGINEERING SUPPORT TO PROGRAM EXECUTIVE OFFICE INTELLIGENCE ELECTRONIC WARFARE AND SENSORS (PEO IEW&S) WITH A PERIOD OF PERFORMANCE THROUGH 5 YEARS. TASK ORDER 0005 IS INCREMENTALLY F… Key points: 1. Significant 5-year contract for critical R&D engineering support. 2. Sole-source award to Georgia Tech Research Institute raises competition concerns. 3. Cost-plus-fixed-fee contract type may incentivize higher costs. 4. Focus on intelligence, electronic warfare, and sensors highlights national security importance.

Value Assessment

Rating: questionable

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs compared to fixed-price contracts. Benchmarking against similar R&D services for PEO IEW&S is difficult without more data on specific deliverables and scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and potentially leads to a higher price than if multiple vendors had competed.

Taxpayer Impact: The lack of competition for a nearly $50 million contract raises concerns about taxpayer value and the potential for overspending.

Public Impact

Enhances critical intelligence, electronic warfare, and sensor capabilities for national security. Supports advanced research and development at a leading academic institution. Long-term engagement provides stability for research efforts and personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost-plus-fixed-fee contract type may not be the most cost-effective.
Long performance period without clear milestones could pose execution risks.

Positive Signals

Award to a reputable research institute (GTRI) suggests high technical capability.
Focus on critical defense technologies aligns with national security priorities.
Long-term contract allows for sustained development and innovation.

Sector Analysis

This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight due to its often intangible outcomes and complex cost structures.

Small Business Impact

The awardee, Georgia Tech Applied Research Corp, is a large business. There is no indication that small businesses were involved as subcontractors in this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. The cost-plus-fixed-fee structure requires diligent monitoring of costs and contractor performance to prevent potential overruns.

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

Lack of competition
Cost-plus-fixed-fee contract type
Potential for cost overruns
Long performance period without clear interim deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.2 million to GEORGIA TECH APPLIED RESEARCH CORP. THIS IS A RESEARCH AND DEVELOPMENT (R&D) - SERVICES FOR GEORGIA TECH RESEARCH INSTITUTE (GTRI) ENGINEERING SUPPORT TO PROGRAM EXECUTIVE OFFICE INTELLIGENCE ELECTRONIC WARFARE AND SENSORS (PEO IEW&S) WITH A PERIOD OF PERFORMANCE THROUGH 5 YEARS. TASK ORDER 0005 IS INCREMENTALLY FUNDED. THE INITIAL INCREMENT OF FUNDING IS $149,893.86 WITH A PERIOD OF PERFORMANCE THROUGH 28 FEBRUARY 2019. THE TOTAL TASK ORDER 0005 AMOUNT IS $49,950,846.59.

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 Army).

What is the total obligated amount?

The obligated amount is $49.2 million.

What is the period of performance?

Start: 2018-07-31. End: 2023-07-31.

What specific R&D objectives does this contract aim to achieve, and how will success be measured?

The contract supports PEO IEW&S with engineering services for intelligence, electronic warfare, and sensors. Success metrics would likely involve the successful development, testing, and integration of new technologies or improvements to existing systems within these domains. Specific objectives and measurement criteria are typically detailed in the SOW and performance work statement, which are not provided here.

Given the sole-source nature, what steps are being taken to ensure the fixed fee is reasonable and reflects fair market value?

In sole-source procurements, agencies typically conduct a price analysis using historical data, commercial price lists, or other cost-estimating methods to determine the reasonableness of the proposed fixed fee. This often involves detailed cost breakdowns from the contractor and negotiation to arrive at a mutually agreeable fee that compensates the contractor for risk and effort.

How will the cost-plus-fixed-fee structure be managed to prevent scope creep and ensure efficient use of funds over the 5-year period?

Effective management of a CPFF contract involves rigorous oversight of contractor expenditures and performance against the SOW. Regular reviews, audits, and clear communication channels are essential. The government contracting officer must ensure that all costs incurred are allowable, allocable, and reasonable, and that the contractor is diligently working towards the defined objectives without unnecessary expansion of scope.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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)

Financial Breakdown

Contract Ceiling: $49,684,267

Exercised Options: $49,162,937

Current Obligation: $49,162,937

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W31P4Q18D0002

IDV Type: IDC

Timeline