DoD's $86M ALQ-161 Reactivation Contract Awarded to Georgia Tech Applied Research Corp
Contract Overview
Contract Amount: $86,327,611 ($86.3M)
Contractor: Georgia Tech Applied Research Corp
Awarding Agency: Department of Defense
Start Date: 2018-03-22
End Date: 2023-03-22
Contract Duration: 1,826 days
Daily Burn Rate: $47.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ALQ-161 BAND 8 REACTIVATION
Place of Performance
Location: ATLANTA, FULTON County, GEORGIA, 30318
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $86.3 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: ALQ-161 BAND 8 REACTIVATION Key points: 1. Significant investment in specialized defense technology. 2. Lack of competition raises concerns about potential overpricing. 3. Long contract duration (5 years) may limit flexibility. 4. Focus on engineering services within the aerospace sector.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes it difficult to assess value. The awarded amount of $86.3 million over five years for engineering services needs further scrutiny against industry benchmarks for similar specialized defense systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers as there was no competitive pressure to drive down the price.
Taxpayer Impact: The absence of competition for this substantial contract raises concerns about whether the government secured the best possible price for these critical engineering services.
Public Impact
Taxpayers may be overpaying due to the sole-source nature of the award. The long-term commitment could divert funds from potentially more innovative or cost-effective solutions. Dependence on a single contractor for critical defense system reactivation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- Lack of small business participation
Positive Signals
- Awarded to a research corporation, potentially bringing specialized expertise
- Supports critical defense capabilities
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting the Department of Defense's aerospace and defense capabilities. Spending in this area is often characterized by high complexity and specialized requirements, but also significant potential for cost overruns without strong oversight.
Small Business Impact
The data indicates no small business participation in this contract. Given the significant value and duration, opportunities for small businesses to contribute or benefit were likely missed.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure cost reasonableness and performance effectiveness. Accountability mechanisms should be robust to track expenditures and deliverables throughout the contract's five-year term.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration (5 years) poses risk of obsolescence.
- No small business participation noted.
- Potential for contractor lock-in.
Tags
engineering-services, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $86.3 million to GEORGIA TECH APPLIED RESEARCH CORP. ALQ-161 BAND 8 REACTIVATION
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 $86.3 million.
What is the period of performance?
Start: 2018-03-22. End: 2023-03-22.
What is the justification for the sole-source award, and how was the fixed fee determined to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by the contractor. For this contract, the specific rationale for not competing needs to be documented. The fixed fee component of a Cost Plus Fixed Fee contract should be negotiated based on estimated costs and a reasonable profit margin, but without competition, verifying its fairness is challenging and requires rigorous government cost analysis.
What are the specific risks associated with reactivating the ALQ-161 system through a single, long-term contract?
The primary risks include technological obsolescence if the system's requirements change, potential contractor performance issues without competitive pressure, and the inability to leverage newer, potentially more cost-effective technologies that might emerge. The five-year duration increases the risk of the system or its associated needs becoming outdated or less relevant during the contract period.
How will the effectiveness of the ALQ-161 reactivation be measured, and what are the key performance indicators for Georgia Tech Applied Research Corp?
Effectiveness will likely be measured by the successful reactivation, testing, and operational readiness of the ALQ-161 system according to specified military requirements. Key performance indicators (KPIs) should include meeting technical specifications, achieving performance targets, timely delivery of services, and adherence to safety and quality standards. The government must actively monitor these KPIs to ensure the contract's objectives are met.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA852318R0009
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: $88,104,070
Exercised Options: $86,327,611
Current Obligation: $86,327,611
Actual Outlays: $3,732,101
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-03-22
Current End Date: 2023-03-22
Potential End Date: 2023-03-22 00:00:00
Last Modified: 2024-01-03
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