DoD's $22.7M contract with Georgia Tech Applied Research Corp for Marine Corps logistics and systems engineering

Contract Overview

Contract Amount: $22,749,375 ($22.7M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2023-01-09

End Date: 2028-01-22

Contract Duration: 1,839 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: LOGISTICS, INNOVATION, SUPPLY CHAIN, AND SYSTEMS ENGINEERING FOR THE UNITED STATES MARINE CORPS, MARINE CORPS LOGISTICS COMMAND

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $22.7 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: LOGISTICS, INNOVATION, SUPPLY CHAIN, AND SYSTEMS ENGINEERING FOR THE UNITED STATES MARINE CORPS, MARINE CORPS LOGISTICS COMMAND Key points: 1. Contract focuses on critical logistics, innovation, and systems engineering for the Marine Corps. 2. Georgia Tech Applied Research Corp, a known entity in R&D, is the contractor. 3. The contract duration spans over five years, indicating a long-term need. 4. This award falls under Research and Development in Physical, Engineering, and Life Sciences. 5. The contract type is Cost Plus Fixed Fee, which can allow for cost overruns. 6. The award was made via full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: good

The contract value of $22.7 million over approximately five years for specialized logistics and systems engineering support appears reasonable given the scope. Benchmarking against similar R&D contracts for defense logistics is challenging without more specific service details. However, Georgia Tech Applied Research Corp's established reputation in research suggests a potentially high-quality service delivery. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, warrants attention to ensure cost controls are effective.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of a competitive bidding process is generally favorable for price discovery and ensuring the government receives competitive pricing. The specific number of bidders is not provided, but the method of award suggests a market capable of supporting multiple interested parties for this type of specialized research and development service.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging innovation among bidders to offer the best value.

Public Impact

The United States Marine Corps Logistics Command will benefit from enhanced logistics, innovation, and systems engineering capabilities. Services delivered are expected to improve the efficiency and effectiveness of Marine Corps supply chains and operational support. The geographic impact is primarily within the Marine Corps' operational and support infrastructure, with potential ripple effects on readiness. Workforce implications may include specialized engineering and research roles, potentially leveraging academic and research institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not managed diligently.
The duration of the contract (over 5 years) requires ongoing performance monitoring to ensure continued value.
Specific performance metrics and deliverables are not detailed, making direct performance assessment difficult without further information.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potential for good value.
Contractor is Georgia Tech Applied Research Corp, an established research institution with a track record.
Focus on innovation and systems engineering aligns with modernizing military logistics capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on engineering and applied sciences. The market for defense logistics and systems engineering R&D is highly specialized, often involving academic institutions and dedicated research organizations. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the 'innovation' and 'systems engineering' required, but R&D contracts for defense can range significantly in value based on complexity and duration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Georgia Tech Applied Research Corp, is a large research institution, and its subcontracting practices would need to be assessed separately to understand any potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force, which awarded it on behalf of the Department of Defense and Marine Corps Logistics Command. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the contract's public award notice, but detailed performance data and cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Marine Corps Logistics Modernization Programs
Department of Defense Research and Development Initiatives
Supply Chain Management Systems
Systems Engineering Support Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration requires sustained performance monitoring.
Scope of 'innovation' is broad and may require clear definition of success metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.7 million to GEORGIA TECH APPLIED RESEARCH CORP. LOGISTICS, INNOVATION, SUPPLY CHAIN, AND SYSTEMS ENGINEERING FOR THE UNITED STATES MARINE CORPS, MARINE CORPS LOGISTICS COMMAND

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 $22.7 million.

What is the period of performance?

Start: 2023-01-09. End: 2028-01-22.

What is the track record of Georgia Tech Applied Research Corp with the Department of Defense, particularly in logistics and systems engineering?

Georgia Tech Applied Research Corp (GTARC) has a significant history of performing research and development for the Department of Defense (DoD) and other federal agencies. While specific details on their logistics and systems engineering contracts with the DoD are not provided in this data snippet, GTARC is known for its expertise in various engineering disciplines, including systems engineering, supply chain management, and advanced manufacturing. Their work often involves complex problem-solving and innovation for military applications. A deeper dive into federal procurement databases like FPDS or SAM.gov would reveal the full scope and success of their past performance with the DoD, including contract values, performance ratings, and specific project outcomes related to logistics and systems engineering.

How does the $22.7 million contract value compare to similar R&D contracts for defense logistics and systems engineering?

Comparing the $22.7 million contract value requires context on the specific deliverables and duration. This contract spans approximately five years, making the annual value around $4.5 million. This figure is moderate for large-scale R&D efforts within the DoD, which can range from a few million to hundreds of millions of dollars. Contracts focused on fundamental research might be smaller, while those involving advanced prototyping, testing, and integration of complex systems tend to be larger. Given that this contract is for 'logistics, innovation, and systems engineering,' it likely involves a blend of research, analysis, and potentially the development of new methodologies or technologies. Without knowing the exact scope of 'innovation' and the complexity of the systems engineering required, a precise benchmark is difficult, but the value appears within a reasonable range for a multi-year, specialized R&D effort.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Georgia Tech Applied Research Corp, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased expenses. This can lead to the total contract cost being higher than anticipated. For R&D services, where the scope can be inherently uncertain and subject to unforeseen technical challenges, cost escalation is a significant risk. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk and ensure the government receives value for its investment.

What is the expected impact of this contract on the Marine Corps' logistical capabilities?

This contract is expected to significantly enhance the Marine Corps' logistical capabilities by focusing on innovation and systems engineering. The 'innovation' aspect suggests the development or integration of new technologies, processes, or strategies to improve how the Marine Corps manages its supply chains, equipment maintenance, and deployment readiness. Systems engineering will likely involve optimizing the design, integration, and management of complex logistical systems, ensuring they are efficient, resilient, and adaptable to evolving operational demands. Ultimately, the goal is to create a more agile, responsive, and cost-effective logistics network that better supports Marine Corps missions across various environments.

How does the 'Research and Development in the Physical, Engineering, and Life Sciences' classification (NAICS 541715) influence the nature of the services provided?

The NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' indicates that the core of this contract involves scientific inquiry and experimentation aimed at discovering or interpreting facts, principles, or operational practices. For this contract, it means the services provided by Georgia Tech Applied Research Corp will likely focus on engineering principles and physical sciences to solve problems related to Marine Corps logistics. This could include areas like materials science for equipment durability, advanced modeling and simulation for supply chain optimization, or engineering solutions for transportation and maintenance challenges. The exclusion of nanotechnology and biotechnology suggests the R&D focus is on more traditional engineering and physical science domains relevant to logistics operations.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $50,550,056

Exercised Options: $50,550,056

Current Obligation: $22,749,375

Actual Outlays: $1,334,089

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $6,134,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0008

IDV Type: IDC

Timeline