DoD awards $7.9M to Georgia Tech for India's Electronic Warfare support, raising value-for-money questions

Contract Overview

Contract Amount: $7,945,355 ($7.9M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2025-09-30

End Date: 2029-07-31

Contract Duration: 1,400 days

Daily Burn Rate: $5.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS EFFORT IS TO SUPPORT THE DEVELOPMENT, DOCUMENTATION, DELIVERY AND INITIAL MAINTENANCE OF THE ELECTRONIC WARFARE (EW) INTEGRATED SUPPORT STATION (ISS) FOR THE PARTNERING COUNTRY OF INDIA (FMS).

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $7.9 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: THIS EFFORT IS TO SUPPORT THE DEVELOPMENT, DOCUMENTATION, DELIVERY AND INITIAL MAINTENANCE OF THE ELECTRONIC WARFARE (EW) INTEGRATED SUPPORT STATION (ISS) FOR THE PARTNERING COUNTRY OF INDIA (FMS). Key points: 1. Contract awarded on a sole-source basis, limiting price competition and potentially increasing costs. 2. The contract duration of nearly four years suggests a significant, long-term support requirement. 3. Focus on Foreign Military Sales (FMS) indicates a strategic international partnership. 4. The 'Engineering Services' NAICS code points to a need for specialized technical expertise. 5. Lack of competition raises concerns about achieving optimal value for taxpayer funds. 6. The Cost Plus Fixed Fee (CPFF) contract type may incentivize cost overruns.

Value Assessment

Rating: questionable

The contract's value of $7.9 million for engineering services supporting India's Electronic Warfare Integrated Support Station (ISS) appears high given the sole-source award. Without competitive bidding, it is difficult to benchmark the pricing against market rates or similar contracts. The CPFF structure, while allowing for flexibility, can lead to higher overall costs if not managed stringently. Further analysis of the specific deliverables and the contractor's historical performance on similar FMS projects would be needed to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one contractor possesses the necessary specialized skills or when urgency dictates. The lack of multiple bidders means that price discovery through competition was bypassed, potentially leading to a higher price than if multiple firms had vied for the contract. The justification for this sole-source award would need to be thoroughly reviewed to ensure it was appropriate.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without competing offers, the government has less leverage to negotiate the best possible price for these critical engineering services.

Public Impact

The primary beneficiary is the partnering country of India, which will receive enhanced Electronic Warfare capabilities. The services delivered include development, documentation, delivery, and initial maintenance of the EW ISS. The geographic impact is primarily focused on India, supporting its defense infrastructure. Workforce implications include the need for specialized engineers and technical staff at Georgia Tech Applied Research Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value for money.
Cost Plus Fixed Fee (CPFF) contract type can incentivize higher costs.
Lack of transparency in the procurement process due to sole-source nature.
Potential for cost overruns without robust oversight.
Limited opportunity for small business participation due to sole-source award.

Positive Signals

Award to a specialized research corporation (Georgia Tech) suggests access to high-level expertise.
Long-term contract duration indicates a commitment to sustained support and capability building.
Focus on Electronic Warfare is critical for modern defense capabilities.
Supports a key international partner (India) through Foreign Military Sales.

Sector Analysis

The Electronic Warfare (EW) sector is a critical and rapidly evolving domain within the broader defense industry. This contract fits within the specialized engineering services segment of the defense sector, focusing on integrated support systems. The global market for EW systems is substantial, driven by increasing geopolitical tensions and the need for advanced threat detection and countermeasures. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature and FMS context, but significant investments are common for such advanced defense technologies.

Small Business Impact

As this contract was awarded on a sole-source basis, there is no explicit small business set-aside. Furthermore, the nature of specialized engineering services for advanced defense systems often requires unique capabilities that may not be readily available from small businesses. Subcontracting opportunities for small businesses are not detailed in the provided data and would depend on Georgia Tech Applied Research Corp's procurement practices. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Air Force, which awarded the delivery order. As a Cost Plus Fixed Fee (CPFF) contract, robust financial oversight is crucial to monitor expenditures and ensure costs remain within reasonable bounds. Accountability measures would involve performance reviews and adherence to the contract's technical and delivery requirements. Transparency may be limited due to the sole-source nature, but reporting requirements within the FMS framework should provide some level of insight.

Related Government Programs

Foreign Military Sales (FMS) Program
Electronic Warfare Systems
Defense Engineering Services
Air Force Research and Development Contracts

Risk Flags

Sole-source award may limit value for money.
CPFF contract type carries inherent cost overrun risk.
Long contract duration increases risk of technology obsolescence and scope creep.
Lack of competition reduces transparency in pricing.
Potential for insufficient oversight on a sole-source, long-term contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.9 million to GEORGIA TECH APPLIED RESEARCH CORP. THIS EFFORT IS TO SUPPORT THE DEVELOPMENT, DOCUMENTATION, DELIVERY AND INITIAL MAINTENANCE OF THE ELECTRONIC WARFARE (EW) INTEGRATED SUPPORT STATION (ISS) FOR THE PARTNERING COUNTRY OF INDIA (FMS).

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 $7.9 million.

What is the period of performance?

Start: 2025-09-30. End: 2029-07-31.

What is the specific justification for awarding this contract on a sole-source basis to Georgia Tech Applied Research Corp?

The provided data indicates the contract was awarded as 'NOT COMPETED,' implying a sole-source justification. Typically, such justifications are based on factors like the unique capabilities of the contractor, the urgency of the requirement, or the existence of only one responsible source. For Foreign Military Sales (FMS) contracts, specific regulations and agreements with the partner nation can also influence procurement methods. A detailed review of the official justification document (e.g., a Justification and Approval or J&A) would be necessary to understand the precise reasons why full and open competition was deemed impractical or not in the national interest for this particular Electronic Warfare Integrated Support Station (ISS) effort for India.

How does the Cost Plus Fixed Fee (CPFF) contract type potentially impact the final cost compared to other contract types?

The Cost Plus Fixed Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure offers flexibility, especially for research and development or services where the scope might evolve. However, it carries a risk of cost overruns, as the contractor is incentivized to incur costs to cover their base, and the fixed fee does not increase with costs. Unlike fixed-price contracts, where the contractor bears the risk of cost increases, CPFF shifts much of that risk to the government. This necessitates stringent oversight to manage costs effectively and ensure the government receives good value, as the final price is not known upfront.

What are the potential risks associated with the long duration (nearly 4 years) of this contract?

A contract duration of nearly four years (ending July 2029) for the development, documentation, delivery, and initial maintenance of an Electronic Warfare Integrated Support Station (ISS) presents several potential risks. Firstly, technology obsolescence is a significant concern in the fast-paced EW domain; the systems developed might be outdated by the time they are fully delivered or implemented. Secondly, the extended timeline increases the risk of scope creep, where requirements may change or expand, leading to cost increases and delays if not managed properly. Thirdly, maintaining consistent performance and oversight over such a long period can be challenging for the contracting agency. Finally, the long duration ties up significant government resources that could potentially be allocated to other pressing needs or more competitively sourced opportunities.

What is the significance of this contract being part of a Foreign Military Sale (FMS) to India?

This contract is significant as it falls under a Foreign Military Sale (FMS) to India, indicating a strategic defense partnership between the United States and India. FMS programs are government-to-government sales of U.S. defense equipment, services, and training. Awarding this contract supports India's military modernization efforts and strengthens bilateral security cooperation. For the U.S. Department of Defense, it represents a commitment to supporting allies' defense capabilities, which can enhance regional stability and interoperability. The specific nature of the EW ISS suggests India is seeking advanced capabilities to counter electronic threats, highlighting the importance of this technology in modern warfare.

Can we assess the contractor's track record based on the provided data?

The provided data identifies the contractor as 'Georgia Tech Applied Research Corp' (GTARC). While GTARC is a reputable entity associated with Georgia Tech, known for its extensive research and development capabilities, the data itself does not offer specific details about its track record on similar Electronic Warfare (EW) projects or Foreign Military Sales (FMS) contracts. To assess GTARC's track record for this specific effort, one would need to examine past performance evaluations, previous contract awards for similar systems, and any documented successes or failures in delivering complex defense systems, particularly within the EW domain and for international clients.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $8,811,728

Exercised Options: $7,945,355

Current Obligation: $7,945,355

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