DoD awards $59M for Engineering Services Support to Georgia Tech Applied Research Corp
Contract Overview
Contract Amount: $59,057,002 ($59.1M)
Contractor: Georgia Tech Applied Research Corp
Awarding Agency: Department of Defense
Start Date: 2022-03-01
End Date: 2025-08-30
Contract Duration: 1,278 days
Daily Burn Rate: $46.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: ENGINEERING SERVICES SUPPORT
Place of Performance
Location: ATLANTA, FULTON County, GEORGIA, 30318
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $59.1 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: ENGINEERING SERVICES SUPPORT Key points: 1. Significant contract value of $59M awarded. 2. Sole-source award to Georgia Tech Applied Research Corp. 3. Contract duration extends to August 2025. 4. Focus on custom computer programming services.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the fixed fee represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a $59M contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The sole-source nature of the award warrants scrutiny to ensure fair pricing. Long contract duration could lock in potentially suboptimal pricing. The specific nature of 'engineering services support' needs clear definition to assess value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Award to a research corporation, potentially for specialized expertise
- Clear contract end date provides some predictability
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically custom computer programming. The $59M value is substantial for this sector, especially for a sole-source award.
Small Business Impact
The awardee is Georgia Tech Applied Research Corp, a large entity, not a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this large contract necessitates robust oversight from the Defense Information Systems Agency to ensure cost control and performance accountability.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Limited transparency on pricing justification
- Long contract duration
- No small business participation evident
Tags
custom-computer-programming-services, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.1 million to GEORGIA TECH APPLIED RESEARCH CORP. ENGINEERING SERVICES SUPPORT
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 (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $59.1 million.
What is the period of performance?
Start: 2022-03-01. End: 2025-08-30.
What specific engineering services are being provided, and why was a sole-source award deemed necessary?
The contract specifies 'Engineering Services Support' and falls under NAICS code 541511 (Custom Computer Programming Services). A sole-source award typically implies that only one responsible source is capable of providing the required services, often due to unique capabilities, national security concerns, or lack of market research. Further justification from the agency is needed to understand the necessity.
What is the estimated cost savings or efficiency gain from using a Cost Plus Fixed Fee structure versus a fixed-price contract in this context?
Cost Plus Fixed Fee (CPFF) contracts are generally used when the scope of work is uncertain or R&D intensive. While it allows flexibility, it shifts cost risk to the government. Without competitive bidding, it's impossible to determine if CPFF is more efficient or cost-effective than a fixed-price approach, which would have incentivized the contractor to control costs more aggressively.
How will the Defense Information Systems Agency ensure fair pricing and prevent cost overruns throughout the contract's duration?
DISA must implement rigorous monitoring and auditing of Georgia Tech Applied Research Corp's costs and performance. Regular reviews of incurred costs against the fixed fee, performance metrics, and scope adherence are crucial. Establishing clear milestones and deliverables with defined payment schedules can also help manage costs and ensure accountability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC102822R0019
Offers Received: 1
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: $62,662,061
Exercised Options: $62,662,061
Current Obligation: $59,057,002
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-03-01
Current End Date: 2025-08-30
Potential End Date: 2025-08-30 00:00:00
Last Modified: 2025-08-12
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