DoD's $32.8M contract for ALQ-213 software updates awarded to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $32,828,214 ($32.8M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2019-07-09

End Date: 2025-07-16

Contract Duration: 2,199 days

Daily Burn Rate: $14.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ALQ-213 BLOCK CYCLE SOFTWARE UPDATES

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $32.8 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: ALQ-213 BLOCK CYCLE SOFTWARE UPDATES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant duration of nearly 6 years suggests a long-term need for software maintenance. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. Performance is for the Department of the Air Force, indicating a focus on aviation systems. 5. The value of the contract is substantial, requiring robust oversight. 6. No small business set-aside was applied, potentially impacting small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to its specialized nature and sole-source award. However, the duration and cost-plus fixed-fee structure warrant close monitoring to ensure costs remain reasonable and aligned with the value delivered. Without competitive bids, it's difficult to definitively assess if the pricing represents optimal value for money compared to potential market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances prevent full and open competition. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids had been solicited.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. The absence of competition reduces the incentive for the contractor to offer the lowest possible price.

Public Impact

The primary beneficiary is the Department of the Air Force, which receives essential software updates for the ALQ-213 system. This contract ensures the continued operational effectiveness and security of critical aviation electronic warfare systems. The services delivered are specialized engineering and software maintenance, crucial for maintaining advanced military technology. The geographic impact is primarily within the operational theaters where the Air Force utilizes the ALQ-213 system, with the contractor based in Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus fixed-fee contract type carries inherent risk of cost escalation.
Lack of small business set-aside may limit opportunities for smaller firms.
Long contract duration requires sustained oversight to ensure performance and cost control.

Positive Signals

Award to Georgia Tech Applied Research Corp suggests access to specialized technical expertise.
Contract ensures continued support for a critical defense system.
The fixed fee component of the contract provides some level of cost predictability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related technology. The market for specialized aerospace and defense software maintenance is often characterized by high barriers to entry due to proprietary technology and security requirements. Georgia Tech Applied Research Corp, as a research institution with applied research capabilities, is well-positioned to provide such specialized services. Comparable spending benchmarks are difficult to establish without more specific details on the ALQ-213 system's software complexity and the scope of updates.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no subcontracting goals were specified. This means that opportunities for small businesses to participate in this significant contract are limited unless they are prime contractors or choose to subcontract independently. The absence of a set-aside may reduce the direct economic impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Accountability measures would include performance reviews, milestone tracking, and financial audits, particularly given the cost-plus fixed-fee structure. Transparency is facilitated through contract award databases, though detailed performance metrics may be considered sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

ALQ-213 Electronic Warfare System
Air Force Software Maintenance Contracts
Defense Engineering Services
Cost-Plus Fixed Fee Contracts

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.8 million to GEORGIA TECH APPLIED RESEARCH CORP. ALQ-213 BLOCK CYCLE SOFTWARE UPDATES

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 $32.8 million.

What is the period of performance?

Start: 2019-07-09. End: 2025-07-16.

What is the track record of Georgia Tech Applied Research Corp in performing similar defense software contracts?

Georgia Tech Applied Research Corp (GTARC) has a history of performing research, development, and engineering services for various government agencies, including the Department of Defense. Their expertise often lies in advanced technology areas. While specific details on past performance for the ALQ-213 system are not provided in this data, GTARC's general profile suggests a capacity for complex technical work. A deeper dive into their contract history, past performance reviews, and any reported issues would be necessary to fully assess their track record for this specific type of software maintenance and update contract.

How does the pricing structure of this Cost Plus Fixed Fee (CPFF) contract compare to industry standards for similar software maintenance?

The Cost Plus Fixed Fee (CPFF) contract type allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. For software maintenance, this structure can be beneficial if the scope of work is well-defined but can also incentivize cost overruns if not managed rigorously, as the contractor is guaranteed their fee regardless of cost efficiency. Benchmarking CPFF pricing for specialized defense software is complex due to unique system requirements and limited market competition. However, the fixed fee percentage should be scrutinized against industry norms for similar risk profiles and service complexity to ensure it is reasonable and does not unduly burden taxpayers.

What are the primary risks associated with this sole-source award for software updates?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for efficiency. Without competing bids, the government cannot be assured it is receiving the best possible price or value. Additionally, reliance on a single contractor can create vendor lock-in and reduce flexibility. If the sole-source contractor experiences performance issues, financial instability, or decides to discontinue services, the government may face significant disruption and difficulty finding an alternative provider, especially for highly specialized systems like the ALQ-213.

How effective is the ALQ-213 system, and how critical are these software updates to its performance?

The ALQ-213 is an advanced electronic warfare (EW) system designed to detect, identify, and counter radar threats. Its effectiveness is crucial for protecting aircrews and aircraft from enemy air defenses. Software updates are vital for maintaining and enhancing the system's capabilities. These updates often include new threat libraries, improved algorithms for signal processing and jamming, enhanced user interfaces, and cybersecurity patches. Without regular updates, the ALQ-213 could become obsolete, less effective against evolving threats, or vulnerable to cyberattacks, thereby compromising mission success and aircrew safety.

What has been the historical spending trend for ALQ-213 software maintenance and updates prior to this contract?

Historical spending data for ALQ-213 software maintenance and updates prior to this $32.8 million contract would provide valuable context. Analyzing previous contract values, durations, and award types (competitive vs. sole-source) can reveal trends in cost escalation, the frequency of updates, and the reliance on specific contractors. If past spending has been consistently high or awarded sole-source, it might indicate a persistent need for specialized support and a limited competitive landscape. Conversely, a history of competitive awards at lower price points could raise questions about the justification for this current sole-source contract.

What are the potential performance risks if Georgia Tech Applied Research Corp fails to deliver timely and effective software updates?

Failure by Georgia Tech Applied Research Corp to deliver timely and effective software updates for the ALQ-213 system could have severe consequences. The most immediate risk is the degradation of the system's ability to counter emerging electronic warfare threats, potentially leaving Air Force aircraft vulnerable. This could lead to increased risk for aircrews and compromised mission effectiveness. Furthermore, delays or poor-quality updates might necessitate costly workarounds, emergency fixes, or even grounding of aircraft equipped with the ALQ-213. The sole-source nature of the contract exacerbates this risk, as finding an alternative provider quickly would be challenging.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA852319R0019

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: $38,852,114

Exercised Options: $32,828,214

Current Obligation: $32,828,214

Actual Outlays: $1,654,261

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA852319D0006

IDV Type: IDC

Timeline