Air Force awards $30M+ R&D contract to Georgia Tech for architectural support

Contract Overview

Contract Amount: $29,871,956 ($29.9M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2021-12-21

End Date: 2025-08-31

Contract Duration: 1,349 days

Daily Burn Rate: $22.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: GEORGIA TECH RESEARCH INSTITUTE (GTRI) SUPPORT TO DEPARTMENT OF THE AIR FORCE CHIEF ARCHITECT'S OFFICE

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: GEORGIA TECH RESEARCH INSTITUTE (GTRI) SUPPORT TO DEPARTMENT OF THE AIR FORCE CHIEF ARCHITECT'S OFFICE Key points: 1. Contract focuses on research and development in physical and engineering sciences. 2. Sole-source award to Georgia Tech raises questions about competition and potential cost savings. 3. Long contract duration of over three years suggests a need for sustained support. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 5. Geographic concentration in Georgia may limit broader regional economic impact. 6. The specific NAICS code indicates a focus on advanced scientific research.

Value Assessment

Rating: fair

The contract value of over $30 million for R&D services is substantial. Without comparable contract data for similar architectural support services within the Air Force or DoD, it is difficult to definitively benchmark the value. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility in research, carries inherent risks of cost escalation if the fixed fee is not adequately justified by the scope of work and if cost controls are not robust. Further analysis would be needed to compare the proposed fixed fee against industry standards for similar R&D efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Georgia Tech Applied Research Corp. This means that the Department of the Air Force did not conduct a competitive bidding process to solicit offers from multiple potential contractors. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they typically limit price discovery and may result in higher costs compared to a fully competed contract. The absence of competition means taxpayers do not benefit from the potential cost savings that can arise from a competitive environment.

Taxpayer Impact: The lack of competition for this significant R&D award means taxpayers may not be receiving the best possible price for these services. Without competing offers, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The Department of the Air Force Chief Architect's Office is the primary beneficiary, receiving specialized R&D support. Services delivered likely involve advanced research and technical analysis related to architectural standards and systems. The geographic impact is concentrated in Georgia, where Georgia Tech is located. The contract supports a highly specialized workforce within the research and development sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Cost Plus Fixed Fee contract type introduces risk of cost overruns if not closely monitored.
Lack of transparency in the justification for a sole-source award.
Long contract duration may indicate a lack of readily available alternative solutions.
Limited visibility into the specific deliverables and performance metrics without a competitive baseline.

Positive Signals

Leverages the specialized R&D capabilities of a well-regarded research institution (Georgia Tech).
Addresses a specific need within the Air Force Chief Architect's Office for technical expertise.
Contract duration provides stability for critical research and development efforts.
Focus on R&D aligns with the Air Force's need for innovation and technological advancement.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for such specialized R&D services is often characterized by a limited number of highly qualified institutions and firms. Georgia Tech, as a major research university, is a significant player in this space. Comparable spending benchmarks would typically involve analyzing other large R&D contracts awarded by the Department of Defense or other federal agencies to similar research entities for specialized technical support.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Georgia Tech Applied Research Corp, is a large research institution, making it unlikely to be a small business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, this award does not directly contribute to small business prime contracting goals and its impact on the small business ecosystem is likely minimal unless significant subcontracting opportunities are pursued.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, specifically the Chief Architect's Office and the contracting activity responsible for its administration. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs remain within reasonable bounds and that the fixed fee is justified. Transparency regarding the justification for the sole-source award and the specific performance metrics would be key areas for public accountability. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Air Force Technical Support Services
University Research Partnerships with Government
Applied Research and Development in Engineering

Risk Flags

Sole-source award may limit competition and potentially increase costs.
Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Lack of detailed performance metrics in the provided data hinders full assessment.
Geographic concentration limits broader economic benefits.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to GEORGIA TECH APPLIED RESEARCH CORP. GEORGIA TECH RESEARCH INSTITUTE (GTRI) SUPPORT TO DEPARTMENT OF THE AIR FORCE CHIEF ARCHITECT'S OFFICE

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 $29.9 million.

What is the period of performance?

Start: 2021-12-21. End: 2025-08-31.

What is the specific justification for awarding this R&D contract on a sole-source basis to Georgia Tech?

The provided data does not explicitly state the justification for the sole-source award. Typically, sole-source procurements are justified when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique research capabilities, proprietary technology, or a critical need that cannot be fulfilled through competition within the required timeframe. For this contract, the justification would likely center on Georgia Tech's specific expertise and established relationship with the Air Force Chief Architect's Office, potentially related to ongoing projects or highly specialized knowledge that other entities may not possess. A formal Justification for Other than Full and Open Competition (JOFOC) would typically be required and publicly accessible for such awards.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of risk and flexibility?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work is not precisely defined at the outset, allowing for flexibility. The government agrees to pay the contractor's allowable costs plus a fixed fee, representing profit. This offers flexibility as the project evolves. However, it carries risks for the government: if costs exceed initial estimates, the government pays more. The fixed fee, once negotiated, does not change with cost fluctuations, incentivizing the contractor to control costs to maximize their percentage return on the fee. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but less cost certainty for the government. Cost-reimbursement contracts without a fixed fee (e.g., Cost Plus Incentive Fee) might offer different risk-sharing mechanisms.

What are the potential implications of the long contract duration (1349 days) for this R&D effort?

A contract duration of 1349 days (approximately 3.7 years) for an R&D effort suggests a need for sustained, long-term research and development activities. This extended period can be beneficial for complex projects requiring iterative development, testing, and refinement, allowing the contractor to build deep expertise and continuity. It can also provide stability for the research team and ensure consistent support for the Air Force's architectural initiatives. However, a long duration also increases the risk of technological obsolescence if the R&D focus shifts or if advancements occur rapidly outside the scope of the contract. It also ties up significant funding over an extended period, potentially limiting flexibility for future R&D investments if priorities change.

Can we benchmark the value of this contract against similar R&D services provided to other government agencies?

Benchmarking the value of this $30M+ R&D contract requires access to detailed data on similar contracts awarded by other federal agencies, specifically for research and development in physical, engineering, and life sciences (NAICS 541715) or closely related fields. Key comparison points would include the scope of work, the specific technical services rendered, the contract type (e.g., CPFF, FFP, other cost-reimbursement), the duration, and the contractor's qualifications. Without access to a comprehensive database of comparable contract actions, including their pricing structures and performance outcomes, a precise benchmark is challenging. However, general market intelligence on R&D service rates for large research institutions can provide a qualitative sense of whether the overall investment is within a reasonable range, though specific contract terms heavily influence final costs.

What is Georgia Tech's track record with federal R&D contracts, particularly with the Department of Defense?

Georgia Tech, through its Applied Research Corporation (GTRI), has a substantial and well-established track record of performing research and development for the Department of Defense (DoD) and other federal agencies. GTRI is known for its expertise across a wide range of scientific and engineering disciplines, including aerospace, defense systems, cybersecurity, and advanced materials. They frequently secure large, complex R&D contracts, often through competitive processes, demonstrating their capability and value. Their long history of successful contract performance with the DoD suggests a high level of technical competence, project management proficiency, and adherence to government requirements, making them a trusted partner for significant research initiatives.

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: 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: 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: $30,279,983

Exercised Options: $30,279,983

Current Obligation: $29,871,956

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $14,450,213

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