DoD's $50.5M Georgia Tech Contract for Network Upgrade Raises Questions on Competition and Value
Contract Overview
Contract Amount: $50,484,712 ($50.5M)
Contractor: Georgia Tech Applied Research Corp
Awarding Agency: Department of Defense
Start Date: 2021-05-24
End Date: 2025-09-30
Contract Duration: 1,590 days
Daily Burn Rate: $31.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: COMMUNICATIONS NETWORK UPGRADE INCREMENT 3 TASK ORDER
Place of Performance
Location: ATLANTA, FULTON County, GEORGIA, 30318
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $50.5 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: COMMUNICATIONS NETWORK UPGRADE INCREMENT 3 TASK ORDER Key points: 1. Significant investment in R&D for physical and engineering sciences. 2. Sole-source award to Georgia Tech Applied Research Corp limits competitive pricing. 3. Long duration (1590 days) suggests complex, ongoing needs. 4. Potential for cost overruns given Cost Plus Fixed Fee structure.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, combined with a lack of competition, makes it difficult to assess pricing effectiveness. Benchmarking against similar R&D contracts is challenging due to the specialized nature of the work.
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. This significantly limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this substantial contract raises concerns about whether the government secured the best possible price and value for taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long contract duration could indicate critical infrastructure needs or potential for scope creep. Focus on R&D in physical and engineering sciences suggests advanced technological development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Award to established research institution (Georgia Tech)
- Supports critical R&D needs
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but requires careful oversight to ensure value, especially when awarded non-competitively.
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 sole-source nature of this award warrants close oversight to ensure the contractor is delivering on objectives efficiently and that costs are reasonable. Transparency in reporting is essential.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost Plus Fixed Fee contracts carry inherent risk of cost overruns.
- Long contract duration increases exposure to changing requirements and market conditions.
- Limited transparency on specific deliverables and performance metrics.
Tags
research-and-development-in-the-physical, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.5 million to GEORGIA TECH APPLIED RESEARCH CORP. COMMUNICATIONS NETWORK UPGRADE INCREMENT 3 TASK ORDER
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 $50.5 million.
What is the period of performance?
Start: 2021-05-24. End: 2025-09-30.
What specific technological advancements or capabilities are expected from this network upgrade, and how do they justify the sole-source award?
The contract aims to upgrade a communications network, likely involving advanced physical and engineering components. Justification for a sole-source award typically hinges on unique capabilities, proprietary technology, or critical national security needs that only Georgia Tech Applied Research Corp can fulfill. Without detailed project scope, it's difficult to definitively assess the justification's strength.
How will the Department of the Air Force ensure cost control and prevent potential overruns with a Cost Plus Fixed Fee contract awarded non-competitively?
The Air Force must implement rigorous oversight mechanisms, including detailed cost tracking, regular performance reviews, and independent audits. Establishing clear milestones and performance metrics is crucial. Fixed fee components should be carefully defined, and any deviations or scope changes must be thoroughly justified and approved, with a focus on maintaining cost-effectiveness throughout the contract's lifecycle.
What is the long-term strategic value of this R&D investment, and are there plans for knowledge transfer or broader application beyond this specific network upgrade?
The long-term value depends on the specific innovations achieved. Strategic planning should include mechanisms for knowledge transfer to other government agencies or commercial entities, fostering broader technological advancement. Documenting lessons learned and potential applications will maximize the return on this R&D investment for national benefit.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $67,905,528
Exercised Options: $67,905,528
Current Obligation: $50,484,712
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $4,350,016
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
Start Date: 2021-05-24
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-12-16
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