Georgia Tech Applied Research Corp awarded $46.15M for Air National Guard EW/Avionics sustainment and modernization

Contract Overview

Contract Amount: $46,150,389 ($46.2M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2017-04-06

End Date: 2022-04-09

Contract Duration: 1,829 days

Daily Burn Rate: $25.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF SYSTEM ENGINEERING FOR AVIONICS AND ELECTRONIC WARFARE SUSTAINMENT AND MODERNIZATION, AIR NATIONAL GUARD AIR FORCE RESERVE COMMAND TEST CENTER

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $46.2 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: IGF::OT::IGF SYSTEM ENGINEERING FOR AVIONICS AND ELECTRONIC WARFARE SUSTAINMENT AND MODERNIZATION, AIR NATIONAL GUARD AIR FORCE RESERVE COMMAND TEST CENTER Key points: 1. Contract focuses on critical sustainment and modernization of avionics and electronic warfare systems. 2. Long-term contract duration suggests a need for ongoing specialized engineering support. 3. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight of costs. 4. Georgia Tech Applied Research Corp has a significant role in defense R&D. 5. The specific nature of the work implies a high degree of technical expertise is required. 6. This contract supports the operational readiness of the Air National Guard and Air Force Reserve Command.

Value Assessment

Rating: good

The contract value of $46.15 million over approximately five years for specialized engineering services in avionics and electronic warfare appears reasonable given the complexity and critical nature of the work. Benchmarking against similar R&D contracts for defense systems suggests that costs are within expected ranges, especially considering the need for highly skilled personnel and the specific technical requirements. The Cost Plus Fixed Fee structure, while allowing for adjustments, necessitates diligent cost tracking to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a competitive process is generally favorable for price discovery and ensuring the government receives the best value. While the exact number of bidders is not specified, full and open competition suggests a robust selection process.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the most cost-effective solution for essential defense sustainment and modernization efforts.

Public Impact

The primary beneficiaries are the Air National Guard and Air Force Reserve Command, who receive enhanced capabilities and sustained operational readiness. Services delivered include engineering support for the sustainment and modernization of critical avionics and electronic warfare systems. The geographic impact is primarily within the operational bases and testing facilities of the Air National Guard and Air Force Reserve Command. Workforce implications include the employment of highly skilled engineers and technical specialists, likely concentrated around Georgia Tech's research facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Dependence on a single contractor for critical sustainment could pose a risk if performance falters.
The specialized nature of the technology may limit the pool of qualified alternative contractors.
Ensuring continuous innovation and adaptation to evolving threats within the fixed-fee structure.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Georgia Tech Applied Research Corp's established expertise in R&D provides a strong foundation for successful execution.
Long contract duration indicates a stable, ongoing need for these critical services.
Focus on modernization suggests proactive efforts to maintain technological superiority.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on engineering services for defense systems. The market for defense avionics and electronic warfare is highly specialized, driven by government procurement and technological advancements. Comparable spending benchmarks in this niche often involve significant investment due to the complexity and critical national security implications of the systems involved. Georgia Tech Applied Research Corp operates within a segment of the R&D market that requires deep technical expertise and a proven track record.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The primary contractor, Georgia Tech Applied Research Corp, is a large research institution. There is no explicit information regarding subcontracting plans with small businesses. The focus on specialized R&D may limit opportunities for broad small business subcontracting unless specific niche expertise is required.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the contracting officer and their representatives (CORs) to monitor performance, costs, and adherence to contract terms. The Department of Defense has established procurement regulations and oversight bodies, including the Defense Contract Audit Agency (DCAA) and potentially Inspector General (IG) functions, to ensure accountability and prevent fraud, waste, and abuse. Transparency is facilitated through contract databases, but detailed performance metrics are often internal.

Related Government Programs

Defense Research and Development
Avionics Systems Sustainment
Electronic Warfare Modernization
Air Force Test and Evaluation Programs
Georgia Tech Research Institute Contracts

Risk Flags

Cost Control Risk (CPFF)
Technical Obsolescence
Contractor Performance Dependency
Evolving Threat Landscape

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.2 million to GEORGIA TECH APPLIED RESEARCH CORP. IGF::OT::IGF SYSTEM ENGINEERING FOR AVIONICS AND ELECTRONIC WARFARE SUSTAINMENT AND MODERNIZATION, AIR NATIONAL GUARD AIR FORCE RESERVE COMMAND TEST CENTER

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 $46.2 million.

What is the period of performance?

Start: 2017-04-06. End: 2022-04-09.

What is Georgia Tech Applied Research Corp's track record with similar Department of Defense contracts?

Georgia Tech Applied Research Corp, often operating through the Georgia Tech Research Institute (GTRI), has a long and extensive history of performing research, development, and engineering services for the Department of Defense and other federal agencies. They are known for their expertise in areas such as electronic warfare, radar, sensors, and advanced materials. GTRI has managed numerous complex R&D programs, often involving significant funding and long durations, similar to this contract. Their track record generally indicates a strong capability to deliver on technically challenging defense projects, though specific performance on individual contracts would require deeper analysis of past performance reviews and award data.

How does the $46.15 million value compare to similar R&D contracts for defense systems?

The $46.15 million contract value for approximately five years of specialized engineering services in avionics and electronic warfare sustainment and modernization is within the expected range for such critical defense R&D efforts. Contracts of this nature often require highly specialized expertise, advanced facilities, and long-term commitment, driving up costs. When benchmarked against similar R&D contracts awarded by the Department of Defense for complex systems integration, sustainment, and modernization, this figure appears to be a reasonable investment for the scope of work. Factors such as the specific technologies involved, the level of innovation required, and the contractor's unique capabilities influence the overall value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of work?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for complex R&D like this involve cost control and contractor incentive. While CPFF provides flexibility to adapt to evolving technical requirements, it can lead to cost overruns if the contractor's costs exceed initial estimates, although the fixed fee provides a guaranteed profit margin. There's a risk that the contractor might not be sufficiently incentivized to control costs rigorously, as the government bears the majority of the cost risk. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for the taxpayer.

How does this contract contribute to the operational effectiveness of the Air National Guard and Air Force Reserve Command?

This contract directly contributes to the operational effectiveness of the Air National Guard and Air Force Reserve Command by ensuring that their avionics and electronic warfare systems remain current, functional, and capable of meeting modern threats. Sustainment ensures that existing systems are maintained in optimal working condition, reducing downtime and enhancing reliability. Modernization efforts introduce new technologies or upgrade existing ones, improving performance, expanding capabilities, and maintaining a technological edge. Without such dedicated engineering support, these critical systems could become obsolete or unreliable, significantly degrading the combat readiness and mission success of these forces.

What is the historical spending trend for similar avionics and electronic warfare R&D contracts within the Department of Defense?

Historical spending trends for avionics and electronic warfare R&D contracts within the Department of Defense generally show a consistent and significant investment. These areas are critical for maintaining military superiority and adapting to evolving global threats. Spending in these sectors often fluctuates based on technological advancements, geopolitical conditions, and specific program requirements. Over the past decade, there has been a sustained focus on modernizing legacy systems and developing next-generation capabilities in electronic warfare and advanced avionics. The total annual spending across the DoD for such R&D can range in the billions of dollars, reflecting the high priority and complexity of these domains.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA807513R0001

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), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,499,779

Exercised Options: $48,499,779

Current Obligation: $46,150,389

Actual Outlays: $2,128,324

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $808,592

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0018

IDV Type: IDC

Timeline