DoD's $65.3M CLPS Array Development & Production contract awarded to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $65,298,952 ($65.3M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2017-02-07

End Date: 2023-10-31

Contract Duration: 2,457 days

Daily Burn Rate: $26.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF CLPS ARRAY DEVELOPMENT&PRODUCTION

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $65.3 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: IGF::OT::IGF CLPS ARRAY DEVELOPMENT&PRODUCTION Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant duration of 2457 days (approx. 6.7 years) suggests a long-term project. 3. Cost-plus-fixed-fee structure may incentivize cost overruns. 4. Awarded to a non-profit research institute, potentially indicating a focus on R&D over pure profit. 5. High dollar value for a single award without open competition raises value-for-money questions. 6. Lack of competition could indicate specialized capabilities required or limited market availability.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specialized focus on CLPS Array Development & Production. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D, can lead to higher overall costs compared to fixed-price contracts if not managed tightly. Without competitive bids, it's difficult to assess if the fixed fee represents a fair return for the contractor's effort or if the government is paying a premium for the services. The total award amount of $65.3 million over nearly seven years warrants scrutiny regarding cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Georgia Tech Applied Research Corp., was solicited. This approach is typically used when a unique capability or specialized expertise is required that cannot be met by multiple sources. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may have paid a higher price due to the absence of competitive pressure. The government did not benefit from the cost-saving mechanisms that typically arise from a competitive bidding process.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive the developed CLPS Array system. The contract supports the development and production of a specialized array system, likely for defense or scientific applications. The geographic impact is primarily centered in Georgia, where Georgia Tech Applied Research Corp. is located. Workforce implications include employment opportunities for researchers, engineers, and technicians at Georgia Tech.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Cost-plus-fixed-fee contract structure can incentivize higher spending.
Long contract duration (nearly 7 years) increases exposure to potential cost escalations.
Lack of transparency in the justification for sole-source award.

Positive Signals

Award to a reputable research institution like Georgia Tech suggests a focus on technical expertise.
Potential for development of advanced technology critical to national security or scientific advancement.
Long-term engagement allows for deep development and refinement of the CLPS Array system.

Sector Analysis

The contract falls within the broader 'Miscellaneous Manufacturing' sector, specifically related to advanced technology development and production. The Department of Defense frequently procures specialized systems like this, often involving significant research and development components. Comparable spending benchmarks are difficult to establish without knowing the specific nature of the CLPS Array, but contracts for advanced sensor systems or specialized electronic equipment can range from tens to hundreds of millions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it was awarded directly to Georgia Tech Applied Research Corp. There is no indication of subcontracting plans specifically targeting small businesses within the provided data. The focus is on a single, large award to a research institute, suggesting limited direct impact on the broader small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Given the sole-source nature and CPFF structure, rigorous oversight of costs, performance, and milestones would be crucial. Transparency regarding the justification for the sole-source award and ongoing progress reports would be key accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Contracts
Naval Technology Development Programs
Advanced Sensor Systems Procurement
Specialized Electronic Equipment Manufacturing

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing
Long contract duration
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.3 million to GEORGIA TECH APPLIED RESEARCH CORP. IGF::OT::IGF CLPS ARRAY DEVELOPMENT&PRODUCTION

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 Navy).

What is the total obligated amount?

The obligated amount is $65.3 million.

What is the period of performance?

Start: 2017-02-07. End: 2023-10-31.

What is the specific nature and intended application of the CLPS Array System being developed and produced under this contract?

The provided data does not specify the exact nature or intended application of the CLPS Array System. 'CLPS' could potentially refer to various acronyms within defense or scientific contexts. However, given the award to Georgia Tech Applied Research Corp. by the Department of the Navy, it is highly probable that the system is related to advanced technology development, potentially for naval applications such as surveillance, communication, or specialized sensing. The 'Array' component suggests a system composed of multiple elements working in concert. Further investigation into Navy R&D programs or specific solicitations would be required to ascertain the precise function and strategic importance of this system.

What was the justification for awarding this contract on a sole-source basis, and were alternative sources considered?

The justification for a sole-source award typically stems from a determination that only one responsible source can provide the required supplies or services. For this contract, common reasons might include unique proprietary technology, specialized expertise held exclusively by Georgia Tech Applied Research Corp., or a critical need that cannot be met through a competitive process within the required timeframe. The data indicates the contract was 'NOT COMPETED,' strongly suggesting that a formal sole-source justification was documented and approved by the contracting agency. Without access to the specific contract file or justification documents, the precise reasons remain unconfirmed, but it implies a belief that competition was either not feasible or not in the government's best interest at the time of award.

How does the cost-plus-fixed-fee (CPFF) structure potentially impact the final cost and contractor's incentive for efficiency?

The Cost-Plus-Fixed-Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee provides some incentive for the contractor to control costs (as higher costs don't increase their profit), it can also lead to cost overruns if the initial cost estimates are inaccurate or if scope creep occurs. Unlike fixed-price contracts, the government bears the majority of the cost risk. This structure is often used for research and development or complex services where the scope is not fully defined at the outset. For this $65.3 million contract spanning nearly seven years, rigorous oversight is essential to ensure costs remain reasonable and the fixed fee represents fair compensation for the effort expended.

What is the historical spending pattern for similar CLPS Array development or production contracts within the Department of Defense?

Historical spending data for 'CLPS Array' development and production contracts is not readily available in the public domain without more specific identifiers. The term 'CLPS Array' itself is not a widely recognized standard system name. However, the Department of Defense (DoD) does engage in numerous contracts for advanced array technologies, including sensor arrays, communication arrays, and electronic warfare arrays. These types of specialized R&D and production contracts can vary significantly in value, often ranging from tens to hundreds of millions of dollars, depending on complexity, technological maturity, and production volume. The $65.3 million awarded here falls within a moderate range for such specialized defense systems, particularly for a development and initial production phase.

What are the potential risks associated with a long-duration contract (2457 days) for technology development?

Long-duration contracts, such as this 2457-day (approximately 6.7 years) award, carry several potential risks for technology development. Firstly, technology can rapidly become obsolete; by the time the contract concludes, the developed system might be outdated compared to emerging technologies. Secondly, requirements can change significantly over such a long period due to evolving threats, strategic shifts, or new scientific discoveries, potentially leading to costly contract modifications or a system that no longer meets the most current needs. Thirdly, maintaining contractor focus and performance over an extended period can be challenging, requiring sustained oversight. Finally, economic factors like inflation can impact the cost of materials and labor, potentially increasing the overall expenditure beyond initial projections, especially with a cost-reimbursable contract type.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6833516R0066

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)

Financial Breakdown

Contract Ceiling: $81,852,518

Exercised Options: $67,703,894

Current Obligation: $65,298,952

Actual Outlays: $580,219

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $34,952,302

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline