DoD's $77M Cybersecurity Contract for Pacific Fleet Raises Questions on Value and Competition

Contract Overview

Contract Amount: $77,095,386 ($77.1M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2019-05-09

End Date: 2023-11-30

Contract Duration: 1,666 days

Daily Burn Rate: $46.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CYBERSECURITY SUPPORT FOR COMMAND AND CONTROL (C2) AND NETWORKED SYSTEMS COMMANDER, US PACIFIC FLEET (COMPACFLT) AND PACIFIC MISSILE RANGE FACILITY (PMRF)

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $77.1 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: CYBERSECURITY SUPPORT FOR COMMAND AND CONTROL (C2) AND NETWORKED SYSTEMS COMMANDER, US PACIFIC FLEET (COMPACFLT) AND PACIFIC MISSILE RANGE FACILITY (PMRF) Key points: 1. The contract awarded to Georgia Tech Applied Research Corp for cybersecurity support is substantial, highlighting the critical need for network security in the Pacific. 2. While listed as full and open competition, the specific award mechanism (delivery order) warrants closer examination for true market reach. 3. The 'Research and Development' NAICS code for cybersecurity support may indicate a focus on novel solutions, but could also obscure standard service costs. 4. The significant duration (1666 days) suggests a long-term need, but also a potential for cost escalation if not managed tightly.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee (CPFF) structure, while common for R&D, can lead to higher costs compared to fixed-price contracts if not carefully managed. Benchmarking against similar cybersecurity support contracts is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, but the specific mechanism was a delivery order. This suggests a broader contract vehicle was previously competed, but the specific task order's competition details are not provided.

Taxpayer Impact: The significant value of this contract means taxpayer funds are being utilized for critical cybersecurity infrastructure. Ensuring cost-effectiveness and value for money is paramount.

Public Impact

Ensures cybersecurity for critical US military assets in the Pacific, protecting against potential threats. Supports advanced research and development in cybersecurity, potentially leading to technological advancements. The long contract duration may indicate a stable, albeit expensive, solution for ongoing security needs. The use of a university-affiliated research corporation suggests a focus on specialized expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for CPFF contract.
Potential for cost overruns in R&D focused cybersecurity.
Limited insight into the specific competition for this delivery order.
NAICS code may not perfectly align with standard service costs.

Positive Signals

Addresses critical cybersecurity needs for a vital military region.
Leverages specialized research capabilities.
Awarded under a framework of full and open competition.

Sector Analysis

This contract falls within the IT and R&D sectors, focusing on cybersecurity for command and control systems. Spending in this area is crucial for national security, with significant government investment in advanced technological solutions.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The contract's long duration and CPFF structure necessitate robust oversight from the Department of the Air Force to ensure costs remain reasonable and deliverables meet expectations. Regular performance reviews and audits are crucial.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) can lead to higher costs.
Long contract duration increases risk of cost escalation.
NAICS code (R&D) may obscure standard service costs.
Limited transparency on specific delivery order competition.
No small business participation indicated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.1 million to GEORGIA TECH APPLIED RESEARCH CORP. CYBERSECURITY SUPPORT FOR COMMAND AND CONTROL (C2) AND NETWORKED SYSTEMS COMMANDER, US PACIFIC FLEET (COMPACFLT) AND PACIFIC MISSILE RANGE FACILITY (PMRF)

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 $77.1 million.

What is the period of performance?

Start: 2019-05-09. End: 2023-11-30.

What specific cybersecurity challenges are being addressed by Georgia Tech Applied Research Corp under this contract, and how do these differ from standard cybersecurity services?

The contract focuses on cybersecurity for Command and Control (C2) and networked systems within the US Pacific Fleet and Pacific Missile Range Facility. This likely involves specialized, high-assurance security measures tailored to complex military operational environments, potentially including R&D into novel threat mitigation strategies, rather than routine IT security maintenance.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to prevent cost overruns and ensure the government receives fair value for the $77 million expenditure?

The CPFF structure requires stringent oversight. Mechanisms likely include detailed cost reporting, regular audits, performance metrics tied to fee achievement, and clear scope management. The fixed fee component provides some incentive for the contractor to control costs, but the government must actively monitor expenditures against the estimated cost base.

How effectively did the 'full and open competition' process ensure a competitive price and optimal solution for this critical cybersecurity requirement?

While advertised as full and open, the award being a delivery order suggests competition may have occurred at a broader contract vehicle level. Further analysis is needed to understand the specific competition for this task order, including the number of bids received and the evaluation criteria used to ensure the chosen solution and price were indeed the most advantageous to the government.

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

Offers Received: 2

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: $279,622,038

Exercised Options: $279,622,038

Current Obligation: $77,095,386

Actual Outlays: $15,094,056

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $37,907,434

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