DoD's $50M contract for R&D in disruptive tech awarded to Georgia Tech, raising value-for-money questions

Contract Overview

Contract Amount: $50,148,919 ($50.1M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2016-04-15

End Date: 2021-04-26

Contract Duration: 1,837 days

Daily Burn Rate: $27.3K/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 DT 15-1179 TRAVEL, THIS CLIN IS FOR _TRAVEL_ WITHIN SCOPE OF DT-15-1179 PWS "SYSTEMS ENGINEERING, MODELING&SIMULATION, AND SCIENTIFIC STUDIES&ANALYSIS SUPPORT ON DISRUPTIVE TECHNOLOGIES AND EMERGING THREATS AFFECTING NATIONAL SECURITY AND DOD ACQUISITION PROCESS FOR ASD (R&E)/RESEARCH DIRECTORATE."

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $50.1 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: IGF::OT::IGF DT 15-1179 TRAVEL, THIS CLIN IS FOR _TRAVEL_ WITHIN SCOPE OF DT-15-1179 PWS "SYSTEMS ENGINEERING, MODELING&SIMULATION, AND SCIENTIFIC STUDIES&ANALYSIS SUPPORT ON DISRUPTIVE TECHNOLOGIES AND EMERGING THREATS AFFECTING NATIONAL SECURITY AND DOD ACQUISITION PROCESS FO… Key points: 1. Contract awarded to Georgia Tech Applied Research Corp for R&D support on disruptive technologies. 2. Significant funding allocated for systems engineering, modeling, simulation, and scientific studies. 3. Contract duration spans over 5 years, indicating a long-term need for these services. 4. The contract type (Cost Plus Fixed Fee) can sometimes lead to cost overruns if not managed carefully. 5. Focus on emerging threats and national security acquisition processes highlights critical defense needs. 6. The specific R&D focus area is 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'.

Value Assessment

Rating: fair

The contract's value of approximately $50 million over five years for specialized R&D services appears reasonable given the critical nature of disruptive technologies and emerging threats. However, the Cost Plus Fixed Fee (CPFF) contract type warrants scrutiny. CPFF contracts can incentivize contractors to incur costs, and without robust oversight, the final cost may exceed initial estimates. Benchmarking this specific R&D niche is challenging due to its specialized and evolving nature, but the duration suggests a sustained need and potentially a fair price for the expertise provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award (no) suggests that Georgia Tech Applied Research Corp was selected as the most qualified bidder. While full and open competition is generally preferred for ensuring fair pricing and access to the best solutions, the specifics of the competition, such as the number of bids received and the evaluation criteria, are not detailed here. This level of competition is positive for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The Department of Defense, specifically the Air Force's Research Directorate, benefits from advanced research and analysis. Services delivered include systems engineering, modeling, simulation, and scientific studies related to national security. The geographic impact is primarily within the United States, supporting defense innovation and research capabilities. Workforce implications include the employment of highly skilled scientists, engineers, and researchers at Georgia Tech.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to cost overruns if not closely monitored.
The specialized nature of 'disruptive technologies' makes direct cost benchmarking difficult.
Long contract duration (over 5 years) requires sustained oversight to ensure continued value.
Potential for scope creep in R&D projects if not clearly defined and managed.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Georgia Tech Applied Research Corp is a reputable institution with a strong track record in research.
Focus on critical national security areas like disruptive technologies and emerging threats.
Contract supports advanced scientific and engineering capabilities vital for defense modernization.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on advanced physical, engineering, and life sciences (excluding biotechnology). The market for R&D services supporting national security is substantial, with significant government investment. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of 'disruptive technologies' and 'emerging threats,' which often involve cutting-edge, proprietary research. However, the overall federal R&D spending is in the hundreds of billions annually, with a significant portion dedicated to defense-related innovation.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of the R&D services required, it is likely that the primary focus was on securing the most capable large research institutions or specialized firms. Subcontracting opportunities for small businesses may exist if Georgia Tech identifies specific needs that can be met by smaller, innovative companies, but this is not explicitly stated in the provided data. The impact on the small business ecosystem is likely minimal unless specific subcontracting plans are implemented.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force and the Department of Defense's acquisition and research offices. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to monitor incurred costs against the fixed fee and ensure compliance with the contract's scope. Accountability measures would include performance reviews, milestone tracking, and adherence to the Performance Work Statement (PWS). Transparency is generally maintained through contract databases, but detailed project-specific progress reports may be considered sensitive due to national security implications. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
National Security Innovation Base
Advanced Technology Development Contracts
Systems Engineering Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
The specialized nature of 'disruptive technologies' makes direct benchmarking of value challenging.
Long contract duration necessitates sustained monitoring of performance and value realization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.1 million to GEORGIA TECH APPLIED RESEARCH CORP. IGF::OT::IGF DT 15-1179 TRAVEL, THIS CLIN IS FOR _TRAVEL_ WITHIN SCOPE OF DT-15-1179 PWS "SYSTEMS ENGINEERING, MODELING&SIMULATION, AND SCIENTIFIC STUDIES&ANALYSIS SUPPORT ON DISRUPTIVE TECHNOLOGIES AND EMERGING THREATS AFFECTING NATIONAL SECURITY AND DOD ACQUISITION PROCESS FOR ASD (R&E)/RESEARCH DIRECTORATE."

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 $50.1 million.

What is the period of performance?

Start: 2016-04-15. End: 2021-04-26.

What is the specific breakdown of the $50.15 million contract value across different R&D categories like systems engineering, modeling, and scientific studies?

The provided data does not offer a granular breakdown of the $50.15 million contract value across specific R&D categories such as systems engineering, modeling & simulation, or scientific studies. The contract description indicates these are all within the scope of the PWS. Typically, such breakdowns are detailed in the contract's schedule or task order structure, which is not available here. Without this detail, it's challenging to assess the precise allocation of funds towards each area of research and development. Future analysis might require accessing the full contract documentation or specific task orders issued under this delivery order to understand the financial distribution.

How does the Cost Plus Fixed Fee (CPFF) structure for this contract compare to other R&D contracts in the defense sector?

The Cost Plus Fixed Fee (CPFF) structure is common for research and development contracts, particularly when the scope of work is not precisely defined at the outset, allowing for flexibility as research progresses. In the defense sector, CPFF is often used for exploratory or advanced development projects where innovation and adaptation are key. Compared to fixed-price contracts, CPFF offers greater flexibility but carries a higher risk of cost escalation if not managed diligently. Other defense R&D contracts might utilize Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) structures, which introduce performance incentives to better control costs and encourage efficiency. The choice of CPFF here suggests a prioritization of research flexibility over strict cost certainty, necessitating robust government oversight.

What specific 'disruptive technologies' and 'emerging threats' are covered under this contract, and how is progress measured?

The contract's description broadly covers 'disruptive technologies and emerging threats affecting national security and DOD acquisition processes.' Specific details regarding the exact technologies (e.g., AI, quantum computing, hypersonics, cyber warfare advancements) and threats are likely classified or proprietary, detailed within the Performance Work Statement (PWS) and subsequent task orders. Progress measurement would typically involve a combination of technical reviews, milestone achievements, prototype demonstrations, data analysis reports, and adherence to the PWS objectives. The Air Force's Research Directorate would establish specific metrics and evaluation criteria to assess the contractor's progress against the defined R&D goals and deliverables.

What is Georgia Tech Applied Research Corp's track record with similar large-scale, long-term defense R&D contracts?

Georgia Tech Applied Research Corp (GTARC) has a well-established and extensive track record of successfully performing large-scale, long-term research and development contracts for the Department of Defense and other federal agencies. As a leading research university, Georgia Tech consistently secures significant funding for cutting-edge research across various scientific and engineering disciplines. Their experience spans numerous defense-related areas, including systems engineering, advanced materials, cybersecurity, artificial intelligence, and modeling & simulation. GTARC has demonstrated capabilities in managing complex projects, collaborating with government stakeholders, and delivering innovative solutions. Their history suggests a strong capacity to handle the scope and duration of this particular contract effectively.

Given the $50.15 million value and 5-year duration, what is the estimated annual spending rate, and how does it compare to typical R&D investments in this domain?

With a total value of $50,148,918.84 over a duration of 1837 days (approximately 5.03 years), the estimated annual spending rate is roughly $9.97 million per year ($50.15M / 5.03 years). This annual rate is substantial but falls within the range of significant R&D investments made by the Department of Defense for specialized research areas. Many large-scale defense R&D programs, especially those involving advanced technologies and long-term strategic goals, can command annual budgets in the tens or even hundreds of millions of dollars. While precise comparisons are difficult without knowing the specific sub-domains of 'disruptive technologies,' this spending level suggests a focused investment in a critical capability area rather than a broad, multi-faceted program.

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

Parent Company: Georgia Tech Research Corp

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: $51,439,196

Exercised Options: $51,439,196

Current Obligation: $50,148,919

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $143,026

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