DoD's $29.5M Antenna Calibration Facility contract awarded to Georgia Tech, raising questions on competition and value

Contract Overview

Contract Amount: $29,536,061 ($29.5M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2026-01-01

End Date: 2028-11-30

Contract Duration: 1,064 days

Daily Burn Rate: $27.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ANTENNA CALIBRATION FACILITY

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $29.5 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: ANTENNA CALIBRATION FACILITY Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Research and Development in Physical, Engineering, and Life Sciences sector. 3. Long contract duration of 1064 days suggests a significant, ongoing need. 4. Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored. 5. No small business set-aside indicates potential missed opportunities for smaller firms. 6. High value suggests a critical capability for the Department of the Air Force.

Value Assessment

Rating: questionable

The contract's value of $29.5 million for an Antenna Calibration Facility requires careful benchmarking. Without competitive bids, it's difficult to assess if this price represents fair market value. The Cost Plus Fixed Fee structure necessitates robust oversight to ensure costs remain controlled and the fixed fee is reasonable for the effort involved. Comparison to similar R&D facilities or calibration services would be essential to determine value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Georgia Tech Applied Research Corp, was considered. This approach bypasses the standard competitive bidding process, which typically solicits proposals from multiple interested parties. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost efficiencies that a competitive bidding process could have generated. This could result in a higher overall expenditure for the required calibration services.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive essential antenna calibration services. This contract supports advanced research and development activities within the physical, engineering, and life sciences. The facility is located in Utah, potentially impacting the local workforce and economy in that region. Georgia Tech Applied Research Corp, as the contractor, will be directly involved in delivering these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee contract type requires diligent oversight to prevent cost escalation.
Lack of small business participation may limit broader economic impact.
Long contract duration increases exposure to potential scope creep or changing requirements.

Positive Signals

Award to a research institution like Georgia Tech suggests access to specialized expertise.
The significant funding indicates a high priority and critical need for this capability.
The contract supports R&D, aligning with technological advancement goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for specialized calibration facilities is often niche, with a limited number of entities possessing the required expertise and equipment. Georgia Tech Applied Research Corp's involvement suggests a strong position in this specialized segment. Comparable spending benchmarks would likely be found within other government R&D contracts for advanced testing and measurement services.

Small Business Impact

The contract was not competed and did not include a small business set-aside. This means that opportunities for small businesses to participate in this significant R&D effort, either as prime contractors or subcontractors, were not actively pursued through this award mechanism. While Georgia Tech may engage small businesses as subcontractors, the absence of a set-aside suggests a missed opportunity to foster small business growth within this specific contract.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will be critical. The Department of the Air Force will need to implement stringent monitoring of costs incurred by Georgia Tech Applied Research Corp to ensure they align with the fixed fee and the overall contract value. Transparency in reporting expenditures and progress will be key. The Inspector General's office may have jurisdiction depending on the specific nature of the R&D and the funding source.

Related Government Programs

Department of Defense Research and Development Contracts
Air Force Scientific and Technical Support Services
Advanced Calibration and Measurement Services
University Research Partnerships with Government

Risk Flags

Sole-source award lacks competitive pricing.
Cost Plus Fixed Fee contract requires robust oversight.
Potential for cost overruns due to contract type.
Limited transparency on specific technical requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.5 million to GEORGIA TECH APPLIED RESEARCH CORP. ANTENNA CALIBRATION FACILITY

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 $29.5 million.

What is the period of performance?

Start: 2026-01-01. End: 2028-11-30.

What is the specific technical capability being procured for the Antenna Calibration Facility?

The contract data indicates the procurement is for an 'ANTENNA CALIBRATION FACILITY'. While specific technical details are not provided in the summary data, this typically involves specialized equipment and environments designed to accurately measure and verify the performance characteristics of antennas. This includes parameters such as gain, beamwidth, radiation pattern, impedance, and polarization. Such facilities are crucial for ensuring that communication, radar, and other antenna-based systems meet stringent performance requirements, especially in defense applications where reliability and accuracy are paramount. The R&D classification suggests this may involve developing new calibration techniques or enhancing existing ones.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of risk and potential value?

The Cost Plus Fixed Fee (CPFF) contract type is common in R&D where the scope of work can be uncertain or evolve. It reimburses the contractor for allowable costs plus a fixed fee, representing profit. This structure shares risk: the government bears the cost risk, while the contractor is incentivized to control costs to protect their fixed profit margin. Compared to Fixed Price contracts, CPFF offers more flexibility for evolving R&D but can be more expensive if costs are not managed. Compared to Cost Plus Incentive Fee (CPIF), the profit is fixed, removing the incentive for exceeding performance targets beyond what's necessary to complete the work within budget.

What are the potential risks associated with a sole-source award for a facility of this nature?

A sole-source award for an Antenna Calibration Facility carries several risks. Primarily, the absence of competition means the government cannot leverage market forces to secure the best possible price, potentially leading to overpayment. There's also a risk that the contractor may not be as motivated to innovate or optimize processes as they would be under competitive pressure. Furthermore, without a competitive evaluation, it's harder to definitively ascertain if Georgia Tech Applied Research Corp possesses the absolute best or most cost-effective capabilities available in the market for this specific need. This necessitates a higher degree of diligence in contract oversight.

What historical spending patterns exist for antenna calibration facilities or similar R&D services within the Department of the Air Force?

Analyzing historical spending patterns for antenna calibration facilities and similar R&D services within the Department of the Air Force (DoAF) is crucial for context. While specific data for this contract isn't provided, the DoAF frequently invests in advanced research and development, including specialized testing and calibration services. Spending in this area can fluctuate based on technological advancements, modernization programs, and specific mission requirements. Contracts for such facilities often involve significant capital investment and long-term support. Benchmarking this $29.5 million award against previous similar procurements, considering inflation and scope differences, would provide insight into whether the current investment is within historical norms or represents a significant increase.

What is Georgia Tech Applied Research Corp's track record with similar government contracts, particularly sole-source awards?

Georgia Tech Applied Research Corp (GTARC) has a history of performing research and development contracts for various government agencies, including the Department of Defense. As an affiliated entity of Georgia Tech, it often engages in complex, specialized research projects. Information regarding GTARC's specific track record with sole-source awards for calibration facilities would require a deeper dive into contract databases. However, research institutions frequently receive sole-source or limited-competition awards due to their unique research capabilities and established expertise. Evaluating GTARC's past performance on similar contracts, including their adherence to schedule, budget, and technical requirements, is essential for assessing the risk associated with this current award.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA820525RB008

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: $30,355,694

Exercised Options: $30,355,694

Current Obligation: $29,536,061

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA873021D0001

IDV Type: IDC

Timeline