DoD's $77.6M Advanced Radar Threat Systems (ARTS-V1) contract awarded to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $77,589,622 ($77.6M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2021-12-17

End Date: 2027-05-27

Contract Duration: 1,987 days

Daily Burn Rate: $39.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: ADVANCED RADAR THREAT SYSTEMS - VARIANT 1 (ARTS-V1) - IN SUPPORT OF AEROSPACE DOMINANCE ENABLER DIVISION - RANGE THREAT SYSTEMS BRANCH (AFLCMC/HBZC)

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $77.6 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: ADVANCED RADAR THREAT SYSTEMS - VARIANT 1 (ARTS-V1) - IN SUPPORT OF AEROSPACE DOMINANCE ENABLER DIVISION - RANGE THREAT SYSTEMS BRANCH (AFLCMC/HBZC) Key points: 1. The contract supports the Air Force's Aerospace Dominance Enabler Division. 2. Georgia Tech Applied Research Corp. is the sole contractor for this specific system. 3. The contract type is Cost Plus Incentive Fee, indicating shared risk and reward. 4. The sector is dominated by IT and Defense, with significant R&D components.

Value Assessment

Rating: questionable

The Cost Plus Incentive Fee (CPIF) contract structure can lead to cost overruns if not carefully managed. Benchmarking against similar advanced radar systems is difficult due to the specialized nature of ARTS-V1.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, raising concerns about price discovery and potential lack of competitive pressure to achieve the best value. The sole-source nature suggests a unique capability or a specific research partner.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the ARTS-V1 system compared to what might have been achieved through a competitive bidding process.

Public Impact

Enhances U.S. Air Force's capabilities in aerospace dominance. Supports advanced research and development in radar technology. Potential for technological advancements with broad defense applications. Long-term contract duration suggests a critical and ongoing need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
CPIF contract type can incentivize cost growth.
Lack of clear performance metrics for incentive fee.

Positive Signals

Supports critical national defense objective.
Leverages specialized research expertise.
Long-term commitment to technological advancement.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on advanced radar systems. Spending in this area is typically high due to the complex R&D and specialized manufacturing required for cutting-edge defense technologies.

Small Business Impact

There is no indication of small business participation in this sole-source award. The nature of advanced defense research and development often involves large, specialized organizations.

Oversight & Accountability

The Department of the Air Force is responsible for oversight. The CPIF contract structure requires diligent monitoring of costs and performance to ensure accountability and value for taxpayer money.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competitive pricing.
CPIF contract type poses risk of cost overruns.
Lack of transparency in incentive fee structure.
Potential for contractor lock-in due to specialized technology.
Limited visibility into R&D cost drivers.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.6 million to GEORGIA TECH APPLIED RESEARCH CORP. ADVANCED RADAR THREAT SYSTEMS - VARIANT 1 (ARTS-V1) - IN SUPPORT OF AEROSPACE DOMINANCE ENABLER DIVISION - RANGE THREAT SYSTEMS BRANCH (AFLCMC/HBZC)

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 $77.6 million.

What is the period of performance?

Start: 2021-12-17. End: 2027-05-27.

What is the justification for the sole-source award of the ARTS-V1 contract, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or a specific research partnership. To ensure fair pricing, the Air Force should conduct thorough market research and potentially engage independent cost estimators. Regular reviews of cost proposals and performance against milestones are crucial for managing the CPIF structure effectively and mitigating risks of overspending.

How will the performance incentives in the CPIF contract be structured to effectively drive desired outcomes without encouraging unnecessary cost escalation?

Effective performance incentives in a CPIF contract are tied to clearly defined, measurable, and achievable targets related to technical performance, schedule adherence, or specific operational capabilities. The Air Force must establish robust metrics and a transparent system for tracking progress against these targets. Regular communication and collaboration with Georgia Tech Applied Research Corp. are essential to ensure alignment and to adjust incentives if unforeseen challenges arise, balancing the drive for innovation with fiscal responsibility.

What is the long-term strategy for the ARTS-V1 technology, and how will future procurements ensure greater competition and value?

The long-term strategy for ARTS-V1 likely involves integrating advanced radar capabilities into future aerospace platforms. To ensure greater competition and value in subsequent procurements, the Air Force should consider breaking down the system into components that could be competitively sourced, encouraging industry partnerships, and exploring alternative technologies. Early market research and clear requirements definition for future phases can foster a more competitive environment and drive down costs.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 926 DALNEY ST NW, 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: $77,589,622

Exercised Options: $77,589,622

Current Obligation: $77,589,622

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $29,942,245

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA821022D0001

IDV Type: IDC

Timeline