DoD's $75M Airlift Training Contract Awarded to Georgia Tech for R&D Services

Contract Overview

Contract Amount: $74,870,058 ($74.9M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2020-02-18

End Date: 2025-02-17

Contract Duration: 1,826 days

Daily Burn Rate: $41.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AATTC TACTICS, INTEGRATION ENGINEERING, AND TRAINING, ADVANCED AIRLIFT TACTICS TRAINING CENTER

Place of Performance

Location: SAINT JOSEPH, BUCHANAN County, MISSOURI, 64503

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $74.9 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: AATTC TACTICS, INTEGRATION ENGINEERING, AND TRAINING, ADVANCED AIRLIFT TACTICS TRAINING CENTER Key points: 1. Contract focuses on advanced airlift tactics, integration, and training, indicating a need for specialized expertise. 2. The award to Georgia Tech Applied Research Corp suggests a reliance on academic and research institutions for complex technical services. 3. The contract duration of 5 years points to a long-term requirement for these critical training and development services. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code highlights the technical and scientific nature of the work. 5. The contract type (Cost Plus Fixed Fee) is common for R&D where scope may evolve, but requires careful cost oversight. 6. The absence of small business set-aside suggests the primary contractor is expected to handle the bulk of the work, with potential for subcontracting.

Value Assessment

Rating: good

The contract value of approximately $75 million over five years for specialized R&D in airlift tactics appears reasonable given the complexity and duration. Benchmarking against similar R&D contracts in defense requires detailed analysis of scope and deliverables, but the pricing structure (Cost Plus Fixed Fee) allows for flexibility while aiming for a fixed profit margin. The value proposition likely lies in Georgia Tech's established research capabilities and specific expertise in aerospace and defense.

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 specific number of bidders is not provided, but this competitive approach is generally favorable for price discovery and ensuring the government receives the best value. The selection of Georgia Tech Applied Research Corp suggests they offered the most advantageous proposal based on technical merit, cost, and other factors.

Taxpayer Impact: Full and open competition maximizes taxpayer value by encouraging a wide range of qualified contractors to submit proposals, driving down costs and improving service quality.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel who will receive advanced airlift tactics, integration, and training. The services delivered are critical for enhancing the effectiveness and safety of airlift operations. The geographic impact is primarily within the operational sphere of the U.S. Air Force, with potential training exercises occurring at various locations. Workforce implications include the potential for highly skilled researchers, engineers, and training specialists at Georgia Tech to be engaged in this project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently, requiring robust oversight.
The specialized nature of the R&D may present challenges in defining clear performance metrics and ensuring successful knowledge transfer.
Reliance on a single large research institution could limit opportunities for smaller, innovative firms in specific niches.

Positive Signals

Awarding to a reputable research institution like Georgia Tech suggests a high likelihood of technical competence and successful project execution.
The full and open competition process indicates a commitment to achieving best value for taxpayer dollars.
The long-term nature of the contract suggests a stable and ongoing need for these critical capabilities, fostering sustained development.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The aerospace and defense R&D market is substantial, driven by continuous innovation needs in military technology and operational capabilities. Georgia Tech Applied Research Corp is a well-established entity in this space, often competing for and winning significant government contracts. Comparable spending benchmarks would involve analyzing other large-scale R&D efforts in aerospace and advanced training systems.

Small Business Impact

The contract does not indicate a small business set-aside, suggesting that the primary focus is on securing specialized R&D capabilities from a large, established research institution. While Georgia Tech may engage small businesses as subcontractors, the primary award mechanism does not prioritize small business participation. This approach is typical for highly specialized R&D where specific expertise is paramount.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve the Department of the Air Force contracting officers and program managers. Accountability measures will be tied to the achievement of research and development milestones and the delivery of training solutions. Transparency is expected through regular reporting requirements and potential site visits. Inspector General jurisdiction would apply to ensure the integrity of the contracting process and fund utilization.

Related Government Programs

Advanced Training Systems Development
Aerospace Research and Development
Military Logistics and Support Services
Tactical Integration Programs
Department of Defense Research Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Technical Feasibility Challenges
Performance Measurement Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.9 million to GEORGIA TECH APPLIED RESEARCH CORP. AATTC TACTICS, INTEGRATION ENGINEERING, AND TRAINING, ADVANCED AIRLIFT TACTICS TRAINING CENTER

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 $74.9 million.

What is the period of performance?

Start: 2020-02-18. End: 2025-02-17.

What is Georgia Tech Applied Research Corp's track record with similar Department of Defense R&D contracts?

Georgia Tech Applied Research Corp (GTARC) has a significant history of performing research and development for the Department of Defense and other federal agencies. They are known for their expertise in aerospace, engineering, and advanced technologies. GTARC has previously secured numerous contracts for complex projects, including those involving simulation, training systems, and advanced materials. Their established presence and consistent performance in securing defense-related R&D awards suggest a strong track record and a deep understanding of government contracting requirements and technical challenges. Specific details on past contract values and performance metrics would require further investigation into federal procurement databases.

How does the cost structure (Cost Plus Fixed Fee) compare to other R&D contracts of this nature?

The Cost Plus Fixed Fee (CPFF) contract type is a common choice for research and development efforts where the scope of work may not be fully defined at the outset or is expected to evolve. In a CPFF contract, the government reimburses the contractor for allowable costs incurred and pays a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs while allowing flexibility for innovation and adaptation. Compared to fixed-price contracts, CPFF can be more expensive if costs escalate significantly, but it is often preferred for high-risk R&D where the final deliverables are uncertain. Other R&D contracts might use Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) to further align contractor performance with specific objectives.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential cost overruns due to the CPFF structure, scope creep if R&D objectives are not clearly managed, and technical challenges in achieving advanced airlift tactics and integration. Mitigation strategies likely involve robust government oversight, including regular reviews of contractor expenditures and progress reports. Clear definition and management of research milestones, performance metrics, and change control processes are crucial. The selection of Georgia Tech, a reputable institution with proven R&D capabilities, also serves as a risk mitigation factor, suggesting a higher probability of technical success and adherence to project goals.

How effective is the 'full and open competition' process in ensuring value for this specialized R&D contract?

The full and open competition process is generally effective in ensuring value for specialized R&D contracts by broadening the pool of potential offerors and fostering a competitive environment. This allows the government to solicit proposals from a wide range of institutions, including universities, private research firms, and consortia, potentially leading to innovative solutions and better pricing. For specialized R&D, the evaluation criteria would heavily weigh technical merit, past performance, and the proposed approach, alongside cost. While competition drives value, the unique nature of advanced airlift tactics might mean only a limited number of entities possess the requisite expertise, making the 'fullness' of the competition dependent on the market's capacity.

What is the historical spending pattern for airlift tactics, integration, and training within the Department of the Air Force?

Historical spending on airlift tactics, integration, and training within the Department of the Air Force has been substantial and consistent, reflecting the critical role of airlift in military operations. This spending encompasses various forms, including procurement of airlift assets, development of new tactics and technologies, and ongoing training programs for aircrews and support personnel. Contracts for R&D in this area, like the one awarded to Georgia Tech, represent a portion of this overall investment, focusing on future capabilities. Analyzing historical data would reveal trends in technology adoption, shifts in strategic priorities, and the evolution of training methodologies, all of which inform current and future contract awards.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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: 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: $91,413,241

Exercised Options: $91,413,241

Current Obligation: $74,870,058

Actual Outlays: $4,462,006

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $22,439,898

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0008

IDV Type: IDC

Timeline