DoD's $53M EW R&D contract awarded to Georgia Tech Applied Research Corp shows fair value, but limited competition

Contract Overview

Contract Amount: $52,981,609 ($53.0M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2017-02-17

End Date: 2022-06-21

Contract Duration: 1,950 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF MULTI-SPECTRAL ELECTRONIC WARFARE RESEARCH AND DEVELOPMENT, COMMUNICATIONS ELECTRONICS COMMAND (CECOM) SOFTWARE ENGINEERING CENTER (SEC) ARMY REPROGRAMMING ANALYSIS TEAM (ARAT)

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30332

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $53.0 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: IGF::CT::IGF MULTI-SPECTRAL ELECTRONIC WARFARE RESEARCH AND DEVELOPMENT, COMMUNICATIONS ELECTRONICS COMMAND (CECOM) SOFTWARE ENGINEERING CENTER (SEC) ARMY REPROGRAMMING ANALYSIS TEAM (ARAT) Key points: 1. The contract's value appears reasonable given the specialized nature of electronic warfare R&D. 2. Competition was limited, raising questions about potential price overruns and optimal resource allocation. 3. The duration of the contract (over 5 years) suggests a long-term need for these EW capabilities. 4. Performance context is crucial; the effectiveness of the R&D will determine the true value. 5. This contract falls within the broader Defense sector, specifically focusing on advanced electronics. 6. The lack of small business involvement is noted, with no set-aside or reported subcontracting. 7. Oversight will be critical to ensure the R&D meets its objectives and stays within budget.

Value Assessment

Rating: fair

Benchmarking the value of specialized R&D contracts is challenging due to unique technical requirements and limited comparable projects. However, the total award amount of approximately $53 million over five years for multi-spectral electronic warfare research and development suggests a moderate investment. Without detailed cost breakdowns or comparisons to similar, publicly available R&D efforts, it's difficult to definitively assess if this represents excellent value. The cost-plus-fixed-fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can incentivize contractors to control costs, but also carries inherent risks of cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were theoretically allowed to submit proposals. However, the data does not specify the number of bids received. For highly specialized R&D in areas like electronic warfare, the pool of qualified bidders can be limited, potentially reducing the effectiveness of full and open competition in driving down prices. The specific nature of the work may have naturally led to fewer than expected proposals.

Taxpayer Impact: While full and open competition was utilized, the actual level of competition achieved is unclear. If only a few highly specialized firms could bid, taxpayers may not have benefited from the full price discovery advantages of a robustly contested procurement.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Communications Electronics Command (CECOM), which will receive advanced electronic warfare capabilities. The services delivered include research and development in multi-spectral electronic warfare, aiming to enhance military technology. The geographic impact is primarily within the United States, with Georgia Tech Applied Research Corp based in Georgia. Workforce implications include employment for scientists, engineers, and researchers at Georgia Tech Applied Research Corp and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition, even if full and open, may lead to higher costs than a more contested procurement.
The CPFF contract type can incentivize cost overruns if not rigorously monitored.
The specialized nature of EW R&D makes independent cost benchmarking difficult, potentially obscuring inefficiencies.
Long contract duration increases the risk of scope creep or misalignment with evolving technological needs.

Positive Signals

Award to a reputable research institution (Georgia Tech Applied Research Corp) suggests a focus on technical expertise.
Full and open competition, in principle, allows for the widest possible range of solutions.
The R&D focus indicates investment in future technological superiority for national defense.
The contract aims to address critical national security needs in electronic warfare.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541712. The defense sector heavily relies on R&D for technological advancement, particularly in areas like electronic warfare (EW). Spending in EW R&D is critical for maintaining a technological edge against adversaries. Comparable spending benchmarks are difficult to establish precisely due to the proprietary and specialized nature of EW technologies, but significant government investment is typical in this high-stakes field.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no indication of small business subcontracting. Georgia Tech Applied Research Corp is a large research institution. This suggests that opportunities for small businesses to participate in this specific contract were likely minimal, which is common for highly specialized, large-scale R&D efforts that may require extensive resources and established infrastructure.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force, which is listed as the servicing agency, and the Communications Electronics Command (CECOM) Software Engineering Center (SEC) Army Reprogramming Analysis Team (ARAT) as the requiring entity. The cost-plus-fixed-fee structure necessitates close monitoring of costs and progress to ensure adherence to the fixed fee and overall budget. Transparency would be expected through regular reporting from the contractor and potential reviews by the agency's program management and potentially the Inspector General if specific concerns arise.

Related Government Programs

DoD Electronic Warfare Programs
Advanced Research Projects Agency (ARPA) Contracts
Defense Science and Technology Research
Communications and Signal Intelligence R&D
Air Force Research Laboratory Contracts

Risk Flags

Limited competition may impact price.
CPFF contract type carries cost overrun risk.
Specialized R&D makes value assessment difficult.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.0 million to GEORGIA TECH APPLIED RESEARCH CORP. IGF::CT::IGF MULTI-SPECTRAL ELECTRONIC WARFARE RESEARCH AND DEVELOPMENT, COMMUNICATIONS ELECTRONICS COMMAND (CECOM) SOFTWARE ENGINEERING CENTER (SEC) ARMY REPROGRAMMING ANALYSIS TEAM (ARAT)

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 $53.0 million.

What is the period of performance?

Start: 2017-02-17. End: 2022-06-21.

What is the track record of Georgia Tech Applied Research Corp in delivering complex R&D projects for the DoD?

Georgia Tech Applied Research Corp (GTARC) has a long-standing history of supporting government research and development efforts, particularly within the Department of Defense. As a component of the Georgia Tech Research Institute (GTRI), it leverages significant academic and research infrastructure. GTARC has been involved in numerous projects spanning aerospace, defense, cybersecurity, and advanced materials. Its track record generally indicates a strong capability in tackling complex technical challenges. Specific to electronic warfare, GTRI has been a significant player, contributing to various EW systems and research initiatives. While specific project performance metrics are often not publicly disclosed, GTARC's continued awards and its role as a trusted research partner suggest a generally positive performance history in delivering on R&D contracts.

How does the $53 million award compare to other EW R&D contracts awarded by the DoD in recent years?

The $53 million award for multi-spectral electronic warfare R&D is a substantial but not unprecedented figure for the Department of Defense. Large-scale R&D efforts in advanced defense technologies, especially those with long development cycles and complex requirements like EW, frequently involve contract values in the tens to hundreds of millions of dollars. For instance, contracts for developing next-generation radar systems, electronic attack capabilities, or integrated EW suites can easily reach these levels. The duration of this contract (over five years) also contributes to its overall value. When compared to other EW R&D contracts, this award appears to be within a typical range for significant, multi-year research initiatives aimed at developing cutting-edge capabilities.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D revolve around cost control and potential inefficiencies. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses the contractor's allowable costs. This can create a disincentive for the contractor to aggressively control costs, as higher costs (within allowable limits) do not reduce their fee. Consequently, there's a risk of cost overruns if the initial cost estimates are inaccurate or if unforeseen technical challenges drive up expenses significantly. For the government, the risk lies in potentially paying more than necessary if robust oversight and cost management are not diligently applied throughout the contract's lifecycle. Ensuring clear definition of scope and rigorous monitoring of expenditures are crucial mitigation strategies.

What is the expected impact of this contract on the development of future electronic warfare capabilities for the Army and Air Force?

This contract is expected to significantly impact the development of future electronic warfare (EW) capabilities for both the Army and Air Force, given the 'multi-spectral' nature of the research. Electronic warfare encompasses a broad range of activities, including electronic attack, electronic protection, and electronic support. By investing in R&D across multiple spectra (e.g., radio frequency, infrared, optical), the Department of Defense aims to develop more sophisticated and adaptable EW systems. This could lead to advancements in areas such as improved threat detection, enhanced jamming and deception techniques, better protection of friendly forces from enemy EW, and more effective intelligence gathering. The research conducted under this contract could form the technological foundation for next-generation EW platforms and strategies, ensuring U.S. forces maintain a critical advantage in the electromagnetic spectrum.

How does the lack of small business participation in this contract align with broader DoD goals for small business engagement?

The apparent lack of small business participation in this specific $53 million contract for multi-spectral EW R&D presents a potential divergence from broader Department of Defense goals for small business engagement. The DoD actively promotes opportunities for small businesses, often setting specific goals for prime contracting and subcontracting dollars awarded to them. However, highly specialized, large-scale R&D contracts, particularly in advanced technology areas like electronic warfare, often favor large, established research institutions or defense contractors with extensive infrastructure and prior experience. While this contract may not have been designed as a small business set-aside, the absence of any reported subcontracting to small businesses suggests that opportunities for them in this particular instance were limited. Agencies are generally expected to seek out small business participation where feasible, even on larger prime contracts.

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: $53,496,759

Exercised Options: $53,496,759

Current Obligation: $52,981,609

Actual Outlays: $206,753

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $7,250,818

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