DoD awards $2.7M engineering services contract to Georgia Tech Applied Research Corp for data reduction

Contract Overview

Contract Amount: $2,699,174 ($2.7M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2026-09-30

Contract Duration: 1,097 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: REDUCTION OF DATA USING COMPRESSION ENHANCEMENT (RDUCE)

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $2.7 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: REDUCTION OF DATA USING COMPRESSION ENHANCEMENT (RDUCE) Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The contract duration of nearly three years suggests a significant, ongoing need for these specialized services. 3. Engineering services are critical for defense operations, indicating a strategic importance for this award. 4. The awardee, Georgia Tech Applied Research Corp, likely possesses unique capabilities for this specialized task. 5. Lack of competition may limit opportunities for other firms and potentially impact price discovery. 6. The fixed-fee structure provides some cost certainty, but the absence of competition warrants scrutiny.

Value Assessment

Rating: fair

The contract value of $2.7 million over approximately three years for engineering services appears moderate for specialized research and development support. Without comparable sole-source contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the lack of competition suggests that the government may not have achieved the most competitive pricing possible. Benchmarking against similar sole-source engineering support contracts within the Department of Defense would be necessary for a more definitive evaluation.

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. This typically occurs when only one responsible source is available or capable of meeting the requirement. The absence of multiple bidders means there was no direct price competition, which can sometimes lead to higher costs for the government compared to a fully competed contract. The justification for this sole-source award would need to be reviewed to understand why other potential offerors were not considered.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses and can mean taxpayers do not benefit from the cost savings that competitive bidding often generates.

Public Impact

The Department of the Air Force benefits from specialized engineering expertise for data reduction. This contract supports critical defense operations by enhancing data processing capabilities. The services are likely to be performed in Georgia, supporting the local economy and workforce. The contract enables the development and application of advanced techniques for handling large datasets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns if not closely monitored due to lack of competition.

Positive Signals

Award to a research corporation suggests access to specialized, high-level expertise.
Fixed-fee contract provides a degree of cost predictability.
Long-term duration indicates a sustained need and potential for stable support.

Sector Analysis

The engineering services sector within the federal government is broad, encompassing a wide range of specialized support. This contract falls under the 'Engineering Services' category (NAICS 541330), which includes firms that provide engineering consulting and services. Federal spending in this area is substantial, supporting everything from infrastructure design to advanced research and development for defense and civilian agencies. Awards like this, especially when sole-source, often indicate a need for highly specific technical skills or proprietary knowledge that a particular entity possesses.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The awardee, Georgia Tech Applied Research Corp, is a large research institution. Therefore, this contract is unlikely to have a direct positive impact on the small business ecosystem. Opportunities for small businesses would typically arise if the prime contractor were to subcontract portions of the work, which is not specified here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The fixed-fee nature of the contract provides some level of cost control, but the sole-source award necessitates diligent monitoring to ensure fair pricing and performance. Transparency regarding the justification for the sole-source award and regular performance reviews are key accountability measures. Inspector General involvement would be possible if specific concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Research and Development Contracts
Engineering and Technical Services
Data Analysis and Processing Services
Air Force Research Laboratory Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for cost inefficiency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.7 million to GEORGIA TECH APPLIED RESEARCH CORP. REDUCTION OF DATA USING COMPRESSION ENHANCEMENT (RDUCE)

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 $2.7 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-30.

What is the specific nature of the 'data reduction using compression enhancement' being performed under this contract?

The contract title, 'REDUCTION OF DATA USING COMPRESSION ENHANCEMENT (RDUCE)', suggests the work involves applying advanced compression techniques to reduce the size or complexity of data while preserving its essential information. This is crucial in defense contexts where vast amounts of sensor data, intelligence, or operational information are generated. The goal is likely to make data more manageable for storage, transmission, and analysis, potentially using proprietary algorithms or specialized methodologies developed by Georgia Tech Applied Research Corp. The specific type of data (e.g., imagery, signals intelligence, telemetry) and the compression algorithms employed would be detailed in the contract's statement of work.

Why was this contract awarded on a sole-source basis, and what is the justification provided?

Sole-source awards are typically justified when only one responsible source is capable of meeting the agency's needs. For Georgia Tech Applied Research Corp, this could be due to unique intellectual property, specialized facilities, or a proven track record with highly specific, advanced technologies related to data reduction and compression that no other entity possesses. The Department of the Air Force would have a formal justification document (e.g., a Justification and Approval, J&A) outlining the specific reasons why competition was not feasible. This document is critical for understanding the necessity of the sole-source award and ensuring it was not simply a matter of convenience.

How does the $2.7 million contract value compare to similar engineering services contracts awarded by the DoD?

The $2.7 million value for a nearly three-year engineering services contract is within a moderate range for specialized support within the Department of Defense. However, direct comparisons are difficult without knowing the exact scope of work and the specific technical expertise required. Contracts for basic engineering consulting might be lower, while those involving cutting-edge R&D or large-scale system integration could be significantly higher. Given this is a sole-source award to a research institution, the pricing might reflect unique capabilities rather than standard market rates. A detailed benchmark analysis would require comparing it to other sole-source awards for similar specialized engineering or data science services.

What are the potential risks associated with a sole-source contract of this nature?

The primary risk with a sole-source contract is the lack of price competition, which can lead to the government paying more than it would in a competitive environment. There's also a risk of reduced innovation if the contractor faces less pressure to improve efficiency or develop novel solutions. Furthermore, over-reliance on a single source can create vulnerabilities if that source experiences performance issues, financial instability, or decides to discontinue the service. Effective oversight, robust performance metrics, and clear deliverables are essential to mitigate these risks.

What is Georgia Tech Applied Research Corp's track record with the federal government, particularly the Department of Defense?

Georgia Tech Applied Research Corp (GTARC) has a significant history of performing research and development contracts for the Department of Defense and other federal agencies. As a component of the Georgia Institute of Technology, it leverages academic expertise and research infrastructure to undertake complex technical challenges. GTARC has likely been involved in numerous projects related to aerospace, defense systems, data analytics, and advanced materials. Reviewing their contract history would reveal the types of services they typically provide, their performance ratings on past contracts, and their success in securing competitive awards, which can inform the assessment of their capabilities for this specific data reduction task.

What are the expected outcomes or deliverables for this contract, and how will their success be measured?

The expected outcomes likely involve the successful implementation and validation of data reduction and compression techniques that meet specific performance criteria outlined in the contract's Statement of Work (SOW). This could include achieving certain compression ratios, maintaining data integrity above a defined threshold, and demonstrating the efficiency of the enhanced data for subsequent analysis or use. Success measurement would involve technical reviews, performance testing, delivery of reports detailing the methodologies and results, and potentially demonstrations of the system's capabilities. Key Performance Parameters (KPPs) or specific metrics would be defined in the SOW to objectively assess the contractor's performance.

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: FA852323R0019

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: $5,540,864

Exercised Options: $2,699,174

Current Obligation: $2,699,174

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,356,506

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