DoD's $51.6M R&D contract with Georgia Tech Applied Research Corp for Naval Warfare Center research shows fair value

Contract Overview

Contract Amount: $51,619,657 ($51.6M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2015-09-28

End Date: 2020-09-27

Contract Duration: 1,826 days

Daily Burn Rate: $28.3K/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 DT15-1119 RESEARCH, ANALYSIS, AND RECOMMENDATIONS TO THE NAVAL SURFACE WARFARE CENTER PANAMA CITY DIVISION CODE X AND ITS INNOVATION CELL

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $51.6 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: IGF::OT::IGF DT15-1119 RESEARCH, ANALYSIS, AND RECOMMENDATIONS TO THE NAVAL SURFACE WARFARE CENTER PANAMA CITY DIVISION CODE X AND ITS INNOVATION CELL Key points: 1. Contract awarded to Georgia Tech Applied Research Corp for specialized R&D services. 2. The contract value of $51.6M over 5 years suggests a significant investment in innovation. 3. Competition was full and open, indicating a broad search for qualified contractors. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight. 5. Performance is tied to the Naval Surface Warfare Center's innovation initiatives. 6. The NAICS code 541712 points to a focus on physical, engineering, and life sciences research. 7. The contract duration of 1826 days (5 years) allows for sustained research efforts.

Value Assessment

Rating: good

The contract value of $51.6M over five years averages approximately $10.3M annually. While specific benchmarks for this niche R&D are difficult to ascertain without more granular data on the specific research tasks, the award to a reputable research institution like Georgia Tech suggests a reasonable allocation of funds for specialized scientific and engineering support. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, necessitates close monitoring to ensure costs remain aligned with the fixed fee and overall project objectives. Without direct comparisons to similar contracts for identical research scopes, a definitive value-for-money assessment is challenging, but the award to a known entity in the research space is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. This approach is generally favored as it maximizes the pool of potential offerors and is expected to drive competitive pricing. The number of bidders is not specified in the provided data, but the 'full and open' designation implies a robust competitive process was intended. The open nature of the competition suggests that the government sought the best technical solution and price from a wide range of qualified research institutions.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value by fostering a competitive environment that can drive down costs and encourage innovation among bidders.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center Panama City Division and its innovation cell, receiving advanced research and analysis. The contract supports the development of new technologies and solutions for naval applications. Geographic impact is primarily within the defense sector, potentially leading to advancements in national security. Workforce implications include employment opportunities for researchers, scientists, and engineers at Georgia Tech Applied Research Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The specialized nature of R&D may make direct cost comparisons difficult, potentially obscuring inefficiencies.
The long duration of the contract requires sustained oversight to ensure continued alignment with evolving research needs.

Positive Signals

Award to a well-established research institution (Georgia Tech Applied Research Corp) suggests a high level of expertise.
Full and open competition indicates a thorough vetting process and potential for competitive pricing.
The contract supports critical innovation within the Naval Surface Warfare Center, aligning with strategic defense goals.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would typically involve analyzing other contracts awarded for similar scientific and engineering support services to defense agencies. Georgia Tech Applied Research Corp is a recognized entity in this space, often competing for and winning contracts that require advanced technical capabilities and a strong research infrastructure.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large-scale R&D effort awarded to Georgia Tech Applied Research Corp, it is unlikely to have a direct small business set-aside. However, the prime contractor may engage small businesses as subcontractors for specialized services or components, contributing to the broader small business ecosystem within the defense R&D supply chain. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Naval Surface Warfare Center Panama City Division, the contracting activity. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the estimated costs and ensure the fixed fee remains appropriate. Transparency is typically managed through contract reporting requirements and performance reviews. The Department of Defense's Inspector General would have jurisdiction for audits and investigations if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Naval Research and Development
Defense Science and Technology
Applied Research Services
Engineering Support Contracts
Innovation and Technology Development

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Long-term R&D Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.6 million to GEORGIA TECH APPLIED RESEARCH CORP. IGF::OT::IGF DT15-1119 RESEARCH, ANALYSIS, AND RECOMMENDATIONS TO THE NAVAL SURFACE WARFARE CENTER PANAMA CITY DIVISION CODE X AND ITS INNOVATION CELL

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 Air Force).

What is the total obligated amount?

The obligated amount is $51.6 million.

What is the period of performance?

Start: 2015-09-28. End: 2020-09-27.

What is the track record of Georgia Tech Applied Research Corp in securing and successfully executing similar R&D contracts with the Department of Defense?

Georgia Tech Applied Research Corp (GTARC) has a substantial history of performing research and development for the Department of Defense and other federal agencies. As a component of the Georgia Institute of Technology, GTARC leverages extensive academic and research expertise. While specific details of past performance on identical contracts are not provided, GTARC is known for its capabilities in areas such as aerospace, materials science, cybersecurity, and systems engineering, often undertaking complex, long-term research projects. Their track record generally indicates a strong capacity to manage large-scale R&D efforts, meet technical requirements, and adhere to contractual obligations. Performance metrics and past performance reviews from previous DoD contracts would offer a more granular assessment, but their established presence suggests a reliable partner for advanced research.

How does the average annual value of this contract ($10.3M) compare to other R&D contracts awarded by the Naval Surface Warfare Center or similar entities?

The average annual value of approximately $10.3 million for this R&D contract is substantial, reflecting the complexity and scope of research typically undertaken for naval warfare applications. Benchmarking this against other contracts requires access to a comprehensive database of federal procurements. However, R&D contracts for specialized scientific and engineering support within the Department of Defense can range widely, from a few million dollars for focused studies to tens or even hundreds of millions for large-scale, multi-year programs. Given the focus on innovation and advanced capabilities for the Naval Surface Warfare Center, an annual value in the low double-digit millions is within the expected range for significant, long-term research endeavors. It suggests a commitment to sustained development rather than short-term, smaller-scale projects.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they mitigated in this case?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond initial estimates, the government may end up paying more than anticipated, while the contractor's profit is capped by the fixed fee. For R&D, this risk is amplified by the inherent uncertainty in research outcomes. Mitigation strategies typically involve robust government oversight, including detailed cost monitoring, audits of incurred costs, and clear definition of allowable expenses. The contracting officer must ensure the fixed fee is reasonable and reflects the risk undertaken by the contractor. Strong performance metrics and regular progress reviews are also crucial to ensure the project stays on track technically and financially, preventing scope creep and unnecessary expenditures.

What specific types of research and analysis are likely being conducted under this contract, given the NAICS code and agency?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' combined with the awardee being the Naval Surface Warfare Center (NSWC) Panama City Division, suggests the research likely focuses on advanced technologies and systems relevant to naval operations. This could encompass areas such as underwater acoustics, naval hydrodynamics, materials science for marine environments, advanced sensor technologies, electronic warfare systems, autonomous underwater vehicles (AUVs), command and control systems, and potentially human factors engineering for naval platforms. The 'innovation cell' mentioned implies a focus on exploring novel concepts and emerging technologies to provide future capabilities for the Navy.

What does the 'full and open competition' designation imply about the potential for innovation and cost-effectiveness in this contract?

The 'full and open competition' designation implies that the government actively sought proposals from all responsible sources capable of meeting the contract requirements. This broad approach is intended to maximize the pool of potential offerors, thereby increasing the likelihood of receiving innovative technical solutions and competitive pricing. By allowing any qualified entity to bid, the government fosters a dynamic environment where contractors are incentivized to differentiate themselves through superior technology, efficient methodologies, and cost-effective proposals. This process is generally considered the most effective way to ensure taxpayers receive the best value and to drive innovation by exposing the government to a wider range of ideas and approaches compared to sole-source or limited competition scenarios.

How does the contract duration of five years impact the assessment of its value and the contractor's commitment?

A five-year contract duration (1826 days) for R&D signifies a long-term commitment to a particular research area or set of objectives. This extended period allows for sustained effort, deeper exploration of complex problems, and the potential for significant technological advancements that may not be achievable within shorter timelines. From a value perspective, a longer duration can indicate a stable, ongoing need for the services, potentially leading to economies of scale or learning curve efficiencies for the contractor over time. It also suggests a level of confidence from the awarding agency in the contractor's ability to deliver results consistently. For the contractor, such a duration provides a predictable revenue stream and allows for strategic investment in personnel and resources dedicated to the project, fostering a strong working relationship and commitment to the program's success.

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: $52,579,816

Exercised Options: $52,579,816

Current Obligation: $51,619,657

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $26,680,006

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