DoD Awards $80.3M for Live Training Enhancement, Raising Questions on Competition and Value

Contract Overview

Contract Amount: $80,347,356 ($80.3M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2019-07-03

End Date: 2025-01-28

Contract Duration: 2,036 days

Daily Burn Rate: $39.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE OBJECTIVE OF TASK ORDER W31P4Q-19-F-0259 IS TO PROVIDE SUPPORT TO AFLCMC/HBZ TO ENHANCE LIVE TRAINING. TO MEET ITS MISSION, AFLCMC/HBZ REQUIRES GTRI TO LEAD, ASSIST, OR INFORM ALL PHASES IN THE DEVELOPMENT, PROCUREMENT, IMPLEMENTATION, AND SUSTAINMENT OF THE LIVE MISSION OPERATIONS CAPABILITY (LMOC). THE LMOC IS AN ENTERPRISE-WIDE COMPONENT OF LVC-OT THAT ENABLES A REALISTIC LIVE-SYNTHETIC TRAINING ENVIRONMENT THAT INCLUDES EXERCISE SCHEDULING, SCENARIO DEVELOPMENT, MISSION PLANNING, BRIEFING, EXECUTION, DEBRIEF, AND DATA ANALYSIS AND ARCHIVE. TO ACCOMPLISH THIS OBJECTIVE, GTRI WILL PERFORM A NUMBER OF TASKS INCLUDING ANALYSIS, DESIGN, MODELING AND SIMULATION (M&S), SOFTWARE DEVELOPMENT, SYSTEMS ENGINEERING, SYSTEMS PROTOTYPING, AND TESTING ACROSS MULTIPLE PLATFORMS WITH A COMMON, MODULAR, SECURE, OPEN-SYSTEMS APPROACH.

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $80.3 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: THE OBJECTIVE OF TASK ORDER W31P4Q-19-F-0259 IS TO PROVIDE SUPPORT TO AFLCMC/HBZ TO ENHANCE LIVE TRAINING. TO MEET ITS MISSION, AFLCMC/HBZ REQUIRES GTRI TO LEAD, ASSIST, OR INFORM ALL PHASES IN THE DEVELOPMENT, PROCUREMENT, IMPLEMENTATION, AND SUSTAINMENT OF THE LIVE MISSION OPER… Key points: 1. Significant investment in live training capabilities for AFLCMC/HBZ. 2. Task order focuses on developing and sustaining the Live Mission Operations Capability (LMOC). 3. Georgia Tech Applied Research Corp is the sole contractor. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 5. The R&D sector is critical for advanced defense capabilities.

Value Assessment

Rating: questionable

The $80.3M award for a Cost Plus Fixed Fee contract with no competition raises concerns about potential overpricing and lack of market validation. Benchmarking against similar R&D contracts for advanced simulation and training systems is difficult without competitive data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits price discovery and may result in a higher cost to the government than if multiple vendors had competed.

Taxpayer Impact: The lack of competition and cost-plus contract type could lead to taxpayers bearing a higher cost for this critical training capability.

Public Impact

Enhances realistic live-synthetic training environments for military personnel. Supports the development of advanced simulation and mission planning tools. Aims to improve overall combat readiness through better training scenarios. Potential for technological advancements in defense training systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Long duration (2036 days) increases exposure to changing requirements and costs.
Lack of clear performance metrics in the provided data.

Positive Signals

Addresses a critical need for enhanced live training capabilities.
Leverages expertise of Georgia Tech Applied Research Corp in R&D.
Supports a vital component of the LVC-OT (Live, Virtual, Constructive - Operational Training) enterprise.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically related to advanced simulation and training for defense applications. Spending in this area is crucial for maintaining technological superiority but requires careful oversight due to its complexity and often sole-source nature.

Small Business Impact

The provided data does not indicate any specific provisions or set-asides for small businesses in this sole-source award. The prime contractor, Georgia Tech Applied Research Corp, is a large research institution, suggesting limited direct opportunities for small businesses on this specific task order.

Oversight & Accountability

The sole-source nature of this award warrants close oversight from the Department of Defense to ensure fair pricing and effective execution. Robust contract management and performance monitoring will be essential to mitigate risks associated with cost-plus contracts and limited competition.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award.
Cost Plus Fixed Fee contract type.
Lack of transparency in pricing due to no competition.
Long contract duration increases risk exposure.
Potential for cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.3 million to GEORGIA TECH APPLIED RESEARCH CORP. THE OBJECTIVE OF TASK ORDER W31P4Q-19-F-0259 IS TO PROVIDE SUPPORT TO AFLCMC/HBZ TO ENHANCE LIVE TRAINING. TO MEET ITS MISSION, AFLCMC/HBZ REQUIRES GTRI TO LEAD, ASSIST, OR INFORM ALL PHASES IN THE DEVELOPMENT, PROCUREMENT, IMPLEMENTATION, AND SUSTAINMENT OF THE LIVE MISSION OPERATIONS CAPABILITY (LMOC). THE LMOC IS AN ENTERPRISE-WIDE COMPONENT OF LVC-OT THAT ENABLES A REALISTIC LIVE-SYNTHETIC TRAINING ENVIRONMENT THAT INCLUDES EXERCISE SCHEDULING, SCENARIO DEVELOPMENT, MISSION PLANNING, BRIEFI

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 Army).

What is the total obligated amount?

The obligated amount is $80.3 million.

What is the period of performance?

Start: 2019-07-03. End: 2025-01-28.

What specific cost-saving measures or price negotiation strategies were employed during the sole-source procurement process to ensure the government received fair value?

Given the sole-source nature and Cost Plus Fixed Fee structure, detailed justification for the negotiated price is crucial. The government should have conducted thorough cost analysis, reviewed historical pricing for similar services, and potentially engaged independent cost estimators to validate GTRI's proposed costs and fee. The absence of competition means the government bears a greater burden to ensure the price is reasonable and reflects the value delivered.

How will the effectiveness of the LMOC in enhancing live training be measured and validated, particularly given the R&D focus and potential for evolving requirements?

Effectiveness should be measured through clearly defined Key Performance Indicators (KPIs) tied to training outcomes, such as improved mission success rates, reduced training time, or enhanced pilot/soldier proficiency. Regular operational testing, user feedback from training exercises, and independent evaluations comparing trained personnel's performance against established benchmarks will be vital. The contract should include mechanisms for adapting to evolving training needs while maintaining cost control.

What are the potential risks associated with the Cost Plus Fixed Fee contract type for this long-duration R&D effort, and what mitigation strategies are in place?

The primary risk is cost overrun, as the contractor is incentivized to incur costs to achieve the fixed fee, and the government absorbs most of the cost increases. Mitigation strategies include stringent oversight of direct and indirect costs, clear definition of allowable costs, robust change management processes, and potentially performance incentives tied to cost efficiency. Regular audits and detailed progress reviews are essential to monitor spending and identify potential issues early.

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: RESEARCH AND DEVELOPMENT › General Science and Technology R&D 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: 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: $81,615,103

Exercised Options: $80,347,356

Current Obligation: $80,347,356

Actual Outlays: $1,090,804

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $20,896,235

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W31P4Q18D0002

IDV Type: IDC

Timeline