DoD's $48M Cyber Security Contract Awarded to Georgia Tech Applied Research Corp for Navy C2 Systems

Contract Overview

Contract Amount: $48,047,352 ($48.0M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2017-09-20

End Date: 2022-09-19

Contract Duration: 1,825 days

Daily Burn Rate: $26.3K/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 CYBER SECURITY ANALYSIS AND IMPROVEMENT NAVY COMMAND AND CONTROL (C2) AND INFORMATION SYSTEMS PROGRAM EXECUTIVE OFFICE (PEO) C4I/PMW 790

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $48.0 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: IGF::OT::IGF CYBER SECURITY ANALYSIS AND IMPROVEMENT NAVY COMMAND AND CONTROL (C2) AND INFORMATION SYSTEMS PROGRAM EXECUTIVE OFFICE (PEO) C4I/PMW 790 Key points: 1. Contract focuses on enhancing cybersecurity for Navy Command and Control (C2) and Information Systems. 2. Awarded to Georgia Tech Applied Research Corp, a non-profit research institute. 3. The contract duration is 5 years, indicating a long-term need for these services. 4. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee. 5. This contract is categorized under Research and Development in Physical, Engineering, and Life Sciences. 6. The contract was awarded using Full and Open Competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract's value of approximately $48 million over five years suggests a significant investment in cybersecurity for critical Navy systems. While specific benchmarks for similar cyber R&D contracts are difficult to ascertain without more granular data, the CPFF structure implies that costs will be monitored closely. The fixed fee component provides some cost certainty for the government, but the overall value for money will depend on the successful delivery of enhanced security capabilities and the efficiency of Georgia Tech Applied Research Corp's operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed suggests that the Department of Defense sought to leverage the market to find the best value and technical solution for its cybersecurity needs. The number of bidders is not specified, but a full and open competition generally leads to a more robust price discovery process compared to sole-source or limited competitions.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, potentially leading to cost savings and improved service delivery.

Public Impact

The primary beneficiaries are the U.S. Navy's Command and Control (C2) and Information Systems, which will receive enhanced cybersecurity protections. Services delivered include research and development aimed at improving the security posture of critical naval infrastructure. The geographic impact is primarily within the Department of Defense's operational sphere, with potential implications for naval bases and deployed units. Workforce implications may include specialized cybersecurity and R&D roles at Georgia Tech Applied Research Corp and potentially within the Navy's IT and security departments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher overall costs if not managed diligently, as the contractor is reimbursed for all allowable costs.
The long duration of the contract (5 years) may present challenges in adapting to rapidly evolving cyber threats if the scope of work is not regularly reviewed and updated.
Reliance on a single contractor for critical cybersecurity R&D could pose a risk if the contractor's capabilities or focus shifts.

Positive Signals

Awarding to Georgia Tech Applied Research Corp, a reputable research institution, suggests a focus on technical expertise and innovation.
The full and open competition process indicates a commitment to seeking the best possible solution and value.
The contract's focus on cybersecurity for C2 systems addresses a critical national security need.

Sector Analysis

This contract falls within the broader Information Technology and Research & Development sectors, specifically focusing on cybersecurity solutions for defense applications. The market for cybersecurity services and R&D is substantial and growing, driven by increasing cyber threats. Comparable spending benchmarks for cybersecurity R&D in the defense sector are often substantial, reflecting the high stakes involved in protecting critical infrastructure and operational capabilities. This contract represents a significant, albeit specific, investment within this vital area.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Georgia Tech Applied Research Corp, is a large research institute, and its subcontracting practices would need to be assessed separately to understand any potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Defense, specifically the Navy's PEO C4I/PMW 790. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure that costs are allowable, allocable, and reasonable. Transparency is generally maintained through contract reporting mechanisms, though specific details of the R&D activities may be subject to security restrictions. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Navy Command and Control Systems
Cybersecurity Research and Development
Information Systems Security
Defense R&D Contracts
PEO C4I Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may require adaptive management to evolving cyber threats.
Cybersecurity R&D is inherently complex and carries technical risks.
Dependence on a single contractor for critical R&D could be a risk factor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.0 million to GEORGIA TECH APPLIED RESEARCH CORP. IGF::OT::IGF CYBER SECURITY ANALYSIS AND IMPROVEMENT NAVY COMMAND AND CONTROL (C2) AND INFORMATION SYSTEMS PROGRAM EXECUTIVE OFFICE (PEO) C4I/PMW 790

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 $48.0 million.

What is the period of performance?

Start: 2017-09-20. End: 2022-09-19.

What is the track record of Georgia Tech Applied Research Corp in performing similar cybersecurity R&D contracts for the Department of Defense?

Georgia Tech Applied Research Corp (GTARC) has a long-standing history of performing research and development for government agencies, including the Department of Defense. As a non-profit research institute affiliated with the Georgia Institute of Technology, GTARC possesses significant expertise in various scientific and engineering disciplines, including cybersecurity. While specific details of past cybersecurity R&D contracts are not provided in this data snippet, GTARC's general reputation and its affiliation with a major research university suggest a strong capability to undertake complex technical challenges. A deeper dive into their contract history, past performance reviews, and specific project outcomes would be necessary to fully assess their track record for this particular type of work.

How does the $48 million contract value compare to other cybersecurity R&D efforts within the Navy or DoD?

The $48 million contract value for this five-year cybersecurity R&D effort for Navy C2 systems is substantial, reflecting the critical nature of the work. Without access to a comprehensive database of all DoD cybersecurity R&D spending, a direct comparison is challenging. However, cybersecurity is a top priority for the DoD, with annual budgets often in the billions of dollars across various services and agencies. Contracts for advanced research and development in this field can range from a few million to tens or even hundreds of millions of dollars, depending on the scope, complexity, and duration. This $48 million award appears to be a significant, but not exceptionally large, investment for a focused R&D program over a five-year period, suggesting a targeted approach to enhancing specific C2 system vulnerabilities.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for cybersecurity R&D revolve around cost control and contractor efficiency. While the fixed fee provides the government with some predictability regarding the contractor's profit, the contractor is reimbursed for all allowable costs incurred. This can create an incentive for the contractor to incur higher costs, potentially leading to a higher overall contract price than anticipated, especially if cost accounting and oversight are not rigorous. For R&D, where the scope and technical challenges can be uncertain, estimating costs accurately is difficult. The government bears the risk of cost overruns, while the contractor's incentive is to complete the work within the estimated cost structure to maximize their return on the fixed fee. Effective oversight is crucial to mitigate these risks.

How effective is the current cybersecurity posture of Navy C2 systems, and what is the expected impact of this contract?

The effectiveness of the current cybersecurity posture of Navy C2 systems is a complex and continuously evolving issue. C2 systems are critical for naval operations, making them high-value targets for adversaries. While the Navy invests heavily in cybersecurity, the dynamic threat landscape necessitates ongoing research and development to stay ahead. This contract is expected to have a significant positive impact by directly addressing potential vulnerabilities and developing advanced security solutions tailored to these specific systems. The R&D efforts should lead to improved resilience, data protection, and operational continuity, ultimately enhancing the Navy's ability to command and control its forces effectively in contested environments. The specific improvements will depend on the outcomes of the research and development activities undertaken by Georgia Tech Applied Research Corp.

What is the historical spending trend for cybersecurity R&D within the Department of the Air Force (as the servicing agency)?

The provided data indicates the contract was awarded by the Department of the Air Force (as the servicing agency) for a Navy program. Therefore, analyzing the Department of the Air Force's historical spending on cybersecurity R&D would be relevant. The Air Force, like other branches of the DoD, has consistently increased its investment in cybersecurity R&D over the years due to the escalating threat environment. While specific figures for this contract's category (NAICS 541712) and its historical trend within the Air Force are not directly available from the snippet, overall DoD cybersecurity spending has seen a significant upward trajectory. This reflects a strategic prioritization of cyber defense capabilities across all military branches, including dedicated R&D efforts to develop next-generation security technologies and strategies.

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: FA807515R0001

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: $48,704,889

Exercised Options: $48,704,889

Current Obligation: $48,047,352

Subaward Activity

Number of Subawards: 138

Total Subaward Amount: $95,673,242

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807516D0005

IDV Type: IDC

Timeline