DoD awards $14.5M contract to Georgia Tech for R&D services, raising questions about competition
Contract Overview
Contract Amount: $14,533,054 ($14.5M)
Contractor: Georgia Tech Applied Research Corp
Awarding Agency: Department of Defense
Start Date: 2024-07-12
End Date: 2026-07-11
Contract Duration: 729 days
Daily Burn Rate: $19.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH, DEVELOPMENT AND ENGINEERING SERVICES FOR SPECIAL PROJECTS.
Place of Performance
Location: ATLANTA, FULTON County, GEORGIA, 30318
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $14.5 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: RESEARCH, DEVELOPMENT AND ENGINEERING SERVICES FOR SPECIAL PROJECTS. Key points: 1. Significant contract value for specialized R&D. 2. Sole-source award limits competitive pricing. 3. Potential for cost overruns with Cost Plus Fixed Fee structure. 4. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not carefully managed. Without competitive bidding, it's difficult to benchmark pricing against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to the government compared to a competitive process.
Taxpayer Impact: The lack of competition for this $14.5 million contract means taxpayers may not be receiving the best possible value.
Public Impact
Taxpayers fund advanced research and development. Potential for technological advancements from the research. Air Force receives specialized engineering support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of clear performance metrics (implied)
Positive Signals
- Supports critical R&D for the Air Force
- Leverages expertise of a reputable research institution
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value.
Small Business Impact
This contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is performing efficiently and that costs are reasonable. The Air Force should monitor progress and expenditures closely.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and potentially increases cost.
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Lack of transparency regarding the justification for sole-sourcing.
- No clear indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.5 million to GEORGIA TECH APPLIED RESEARCH CORP. RESEARCH, DEVELOPMENT AND ENGINEERING SERVICES FOR SPECIAL PROJECTS.
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 $14.5 million.
What is the period of performance?
Start: 2024-07-12. End: 2026-07-11.
What specific research objectives does this contract aim to achieve, and how will their successful completion be measured?
The contract is for 'RESEARCH, DEVELOPMENT AND ENGINEERING SERVICES FOR SPECIAL PROJECTS.' Without specific project details or defined success metrics, it is challenging to assess the value and effectiveness of the awarded funds. The Department of the Air Force should ensure clear deliverables and performance indicators are established and monitored throughout the contract duration.
What is the justification for awarding this contract on a sole-source basis, and were alternative competitive approaches considered?
The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. The Department of the Air Force should have a documented rationale, and it's important to verify that competitive options were indeed explored and deemed unsuitable before proceeding with a non-competitive award.
How does the Cost Plus Fixed Fee structure ensure cost control and prevent potential overruns for these specialized R&D services?
The CPFF structure involves the contractor being reimbursed for allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost can vary. Effective cost control relies on robust government oversight, detailed cost tracking, and clear definition of work scope to prevent scope creep. Regular audits and performance reviews are essential to manage this risk.
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: FA855524R0006
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: $14,533,054
Exercised Options: $14,533,054
Current Obligation: $14,533,054
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $2,477,410
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
Start Date: 2024-07-12
Current End Date: 2026-07-11
Potential End Date: 2026-07-11 00:00:00
Last Modified: 2026-01-12
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