DoD's $57.8M BMEWS PAVE PAWS contract awarded to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $57,843,432 ($57.8M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2021-09-16

End Date: 2025-07-01

Contract Duration: 1,384 days

Daily Burn Rate: $41.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS INCENTIVE FEE

Sector: R&D

Official Description: BMEWS PAVE PAWS (BPP) SPARC AND REX

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $57.8 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: BMEWS PAVE PAWS (BPP) SPARC AND REX Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant duration of 1384 days suggests a long-term need for these R&D services. 3. The contract type (Cost Plus Incentive Fee) can incentivize cost control but also carries inherent risk. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical but complex sector. 5. The contract's value is substantial, requiring careful oversight to ensure taxpayer value. 6. Geographic location in Georgia may have implications for local economic impact and workforce.

Value Assessment

Rating: questionable

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and sole-source award. Without competitive bids, it's difficult to definitively assess if the pricing reflects fair market value. The Cost Plus Incentive Fee structure aims to balance contractor profit with cost efficiency, but the ultimate value for money depends heavily on the achievement of performance incentives and the effective management of costs throughout the contract's lifecycle. Further analysis of the specific R&D objectives and achieved outcomes would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude a competitive process. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids had been solicited. The justification for a sole-source award would need to be robust to ensure it serves the government's best interest.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the best possible prices for taxpayers. This can result in less favorable terms and potentially higher overall expenditure compared to a competitively bid contract.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force, which will receive advanced research and development services. The services delivered are critical for maintaining and potentially enhancing early warning systems, contributing to national security. The geographic impact is centered in Georgia, where the contractor is located, potentially creating or sustaining high-skilled jobs in the region. The contract supports specialized scientific and engineering workforce development within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Incentive Fee contracts can lead to cost overruns if not managed tightly.
The specialized nature of R&D makes performance metrics and value assessment complex.
Long contract duration requires sustained oversight to ensure continued relevance and efficiency.

Positive Signals

Georgia Tech Applied Research Corp is a reputable institution with a strong track record in research.
The contract addresses a critical national security need for early warning systems.
The incentive fee structure, if well-designed, can align contractor and government interests.
The contract supports advanced technological development within the US.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a high-value, knowledge-intensive area crucial for technological advancement and national security. The market for such specialized R&D services is often characterized by a limited number of highly qualified contractors. Comparable spending in this sub-sector can vary widely based on the specific research area and project scope, but contracts supporting defense systems often represent significant investments.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false. Furthermore, the 'sb' flag is also false, suggesting no explicit subcontracting goals for small businesses were mandated within this award. This means that opportunities for small businesses to participate in this specific contract are likely limited unless they are direct subcontractors to Georgia Tech Applied Research Corp without a formal set-aside requirement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Given the sole-source nature and the Cost Plus Incentive Fee structure, rigorous oversight is essential to monitor cost expenditures, track progress against research objectives, and ensure that incentive targets are met appropriately. Transparency would be enhanced through regular reporting requirements and potentially through the Defense Contract Audit Agency (DCAA) for cost audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

BMEWS (Ballistic Missile Early Warning System)
PAVE PAWS (Precision Acquisition of Violent Enemy Signatures)
Air Force Research Laboratory Contracts
Department of Defense Research and Development Programs

Risk Flags

Sole-source award may limit cost savings.
CPIF contract requires careful performance metric definition and oversight.
Long contract duration necessitates sustained monitoring.
Specialized R&D nature makes value assessment complex.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.8 million to GEORGIA TECH APPLIED RESEARCH CORP. BMEWS PAVE PAWS (BPP) SPARC AND REX

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 $57.8 million.

What is the period of performance?

Start: 2021-09-16. End: 2025-07-01.

What is the specific research and development objective of the BMEWS PAVE PAWS (BPP) SPARC AND REX contract?

The BMEWS PAVE PAWS (BPP) SPARC AND REX contract is designed to support the research and development efforts related to the Ballistic Missile Early Warning System (BMEWS) and PAVE PAWS radar systems. While the exact technical specifications and research goals are often proprietary, these systems are critical for detecting and tracking ballistic missiles, providing early warning of potential threats. The 'SPARC' and 'REX' likely refer to specific sub-projects or technological enhancements within the broader BPP program, focusing on areas such as signal processing, radar performance, or system integration to improve the effectiveness and reliability of these vital national security assets.

How does the Cost Plus Incentive Fee (CPIF) structure typically function in a contract like this, and what are the potential risks and benefits?

A Cost Plus Incentive Fee (CPIF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for allowable costs and receives an initial fee that is adjusted based on the achievement of specific performance targets. In this DoD contract, the 'incentive' likely relates to achieving certain R&D milestones, cost efficiencies, or performance metrics for the BMEWS PAVE PAWS systems. The benefit is that it can motivate the contractor to control costs and meet or exceed performance goals, aligning their interests with the government's. However, the risks include potential for cost overruns if targets are not met or if the baseline cost estimates are inaccurate, and the complexity of defining and measuring objective performance targets for advanced R&D can be challenging, potentially leading to disputes.

Given the sole-source nature of this award, what mechanisms are in place to ensure Georgia Tech Applied Research Corp is performing effectively and delivering value?

Despite the sole-source award, robust oversight mechanisms are crucial. The Department of the Air Force will assign contracting officers and program managers responsible for monitoring the contractor's performance against the contract's Statement of Work (SOW) and any defined milestones. Regular progress reports, technical reviews, and potentially site visits would be standard. For a CPIF contract, the achievement of specific incentive targets will be closely evaluated to determine the final fee. Furthermore, the Defense Contract Audit Agency (DCAA) may conduct audits to ensure the allowability, allocability, and reasonableness of costs incurred. The long duration of the contract necessitates continuous engagement and performance assessment.

What is the historical spending trend for BMEWS PAVE PAWS related research and development within the Department of Defense?

Historical spending on BMEWS PAVE PAWS and related early warning system R&D within the Department of Defense has been substantial and ongoing for decades, reflecting the persistent need for missile defense capabilities. While specific figures for 'BPP SPARC AND REX' are tied to this contract, the broader category of ballistic missile defense R&D, including radar systems, has consistently received significant budgetary allocations. These investments are driven by evolving threat landscapes and the need to maintain technological superiority. Analyzing past budgets for programs like PAVE PAWS would reveal a pattern of continuous funding for upgrades, maintenance, and research into next-generation capabilities, often in the hundreds of millions or even billions of dollars annually across various related projects.

How does the geographic location in Georgia (st: GA) potentially influence the contract's execution and impact?

The contract's execution and impact are influenced by its geographic location in Georgia primarily through the contractor's operational base and potential workforce implications. Georgia Tech Applied Research Corp's presence in Georgia means that the direct labor and overhead costs associated with the contract are likely incurred within the state. This can stimulate the local economy through job creation for scientists, engineers, and support staff, as well as through spending with local suppliers. Furthermore, the proximity of the contractor to relevant research institutions or government facilities in the region might facilitate collaboration and logistical efficiency. The state's ecosystem for R&D and defense contracting could also play a role in the availability of specialized talent and resources.

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: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

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: $57,845,308

Exercised Options: $57,845,308

Current Obligation: $57,843,432

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $439,006

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA873021D0001

IDV Type: IDC

Timeline