Air Force awards GTRI $16.8M for Engineering Services, a sole-source contract

Contract Overview

Contract Amount: $16,834,799 ($16.8M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $46.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: GEORGIA TECH RESEARCH INSTITUTE (GTRI) SUPPORT TO DEPARTMENT OF THE AIR FORCE (DAF)

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: GEORGIA TECH RESEARCH INSTITUTE (GTRI) SUPPORT TO DEPARTMENT OF THE AIR FORCE (DAF) Key points: 1. Contract awarded to Georgia Tech Applied Research Corp for engineering services. 2. Sole-source award raises questions about competition and potential cost savings. 3. The contract duration is one year, ending February 2026. 4. The primary sector is Engineering Services, with a significant dollar value.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed scope information.

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 higher costs compared to a competitive process.

Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive bidding, potentially leading to a less optimal use of resources.

Public Impact

Air Force research and development capabilities may be enhanced. Potential for specialized expertise from GTRI to address complex engineering challenges. Lack of competition could mean higher costs for taxpayers. Transparency in the sole-source justification is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Limited transparency on justification

Positive Signals

Access to specialized expertise
Potential for critical research outcomes

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector often characterized by specialized expertise and long-term research projects. Spending benchmarks vary widely based on the specific engineering discipline and project scope.

Small Business Impact

This contract does not appear to involve small businesses, as it is a sole-source award to Georgia Tech Applied Research Corp. There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight will be critical to ensure GTRI delivers on the contract's objectives within the fixed fee and to monitor costs effectively, especially given the sole-source nature of the award.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competition.
Cost-plus contract type can lead to cost overruns.
Lack of transparency on justification for sole-source.
Potential for higher costs due to lack of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to GEORGIA TECH APPLIED RESEARCH CORP. GEORGIA TECH RESEARCH INSTITUTE (GTRI) SUPPORT TO DEPARTMENT OF THE AIR FORCE (DAF)

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 $16.8 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What is the specific justification for awarding this contract on a sole-source basis to GTRI, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities, critical research needs, or a lack of other qualified sources. The Department of the Air Force would need to provide documentation detailing why competition was not feasible. Fair pricing in such cases is often assessed through historical data, independent cost estimates, or negotiation with the sole provider, though the absence of competition inherently limits robust price discovery.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for specialized engineering services, and how are they mitigated?

CPFF contracts carry the risk of cost overruns if the contractor's actual costs exceed estimates, although the fixed fee provides a ceiling on profit. Mitigation strategies include strong government oversight, detailed cost tracking, clear scope definition, and performance incentives. For specialized services like those from GTRI, the risk is balanced by the need for unique expertise, requiring careful management to ensure value for money.

How does this $16.8 million award contribute to the Department of the Air Force's overall R&D objectives and technological advancement?

This award likely supports specific, critical research and development initiatives within the Department of the Air Force, leveraging GTRI's specialized engineering capabilities. The contribution depends on the project's scope, aiming to advance technologies, solve complex operational problems, or enhance system performance. The success of this investment hinges on achieving the defined research outcomes and their subsequent application.

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

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: $24,021,838

Exercised Options: $24,021,838

Current Obligation: $16,834,799

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $772,787

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA868421D2002

IDV Type: IDC

Timeline