DoD's $307.7M Nuclear Certification Activity contract awarded to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $3,077,293 ($3.1M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2024-09-09

End Date: 2026-12-28

Contract Duration: 840 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NUCLEAR CERTIFICATION ACTIVITY

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $3.1 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: NUCLEAR CERTIFICATION ACTIVITY Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 3. The duration of 840 days indicates a significant, long-term project. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 5. The awardee, Georgia Tech Applied Research Corp, is a research institution, implying specialized expertise. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a phased approach. 7. The contract is not set aside for small businesses, indicating it was open to all eligible offerors.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost certainty, but the cost-reimbursement aspect requires careful monitoring to ensure efficiency. Comparing this to similar R&D contracts in nuclear certification would provide better context on pricing and overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically leads to a more robust selection process and potentially better pricing due to market forces. The number of bidders is not specified, but the open competition suggests a healthy level of interest from qualified entities.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force, which will receive services related to nuclear certification. The services delivered are critical for ensuring the safety, security, and reliability of nuclear-related assets. The geographic impact is likely concentrated around facilities and operations managed by the Department of Defense, with potential implications for national security infrastructure. The contract supports specialized research and development roles, potentially impacting the workforce in scientific and engineering fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The lack of specific performance metrics in the provided data makes it difficult to assess the efficiency of the spending.
The specialized nature of nuclear certification may limit the pool of qualified contractors, potentially impacting future competition.
The duration of the contract suggests a long-term commitment, requiring sustained oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The contractor, Georgia Tech Applied Research Corp, is a reputable research institution with demonstrated expertise.
The contract addresses a critical national security need for nuclear certification.
The fixed fee component provides a degree of cost predictability for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The nuclear certification domain is highly specialized and critical for national security, often involving complex engineering and scientific challenges. Comparable spending benchmarks would typically be found within defense R&D budgets for similar specialized technical services, where contracts can range from millions to hundreds of millions of dollars depending on scope and duration.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb' field being false. This means the competition was open to all eligible offerors, including large businesses and research institutions. There is no explicit information on subcontracting plans for small businesses, but given the specialized nature of the work, it's possible that opportunities for small business subcontractors may exist if the prime contractor identifies specific needs they cannot fulfill internally.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program office within the Department of the Air Force. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable, and that the fixed fee is earned. Transparency would be enhanced through regular reporting requirements from the contractor and potential audits by the Defense Contract Audit Agency (DCAA) or the Inspector General.

Related Government Programs

Department of Defense Research and Development
Nuclear Weapons Programs
Aerospace Engineering Services
Applied Physics Research
Defense Contract Management

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage cost risks.
The specialized nature of nuclear certification may limit future competition.
Performance metrics and detailed cost breakdowns are not publicly available for full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.1 million to GEORGIA TECH APPLIED RESEARCH CORP. NUCLEAR CERTIFICATION ACTIVITY

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 $3.1 million.

What is the period of performance?

Start: 2024-09-09. End: 2026-12-28.

What is the track record of Georgia Tech Applied Research Corp in performing similar nuclear certification contracts for the DoD?

Georgia Tech Applied Research Corp (GTARC) has a significant history of performing research and development for government agencies, including the Department of Defense. While specific details on past nuclear certification contracts are not provided in this data snippet, GTARC's broad expertise in engineering, physics, and applied sciences suggests a capability to undertake such complex projects. Their track record typically involves successful completion of research tasks, development of prototypes, and provision of technical analysis. To fully assess their suitability for this specific nuclear certification activity, a review of their past performance evaluations, any prior awards in related nuclear domains, and their success in managing cost-plus contracts would be necessary. Their affiliation with Georgia Tech, a major research university, provides a strong foundation of technical talent and resources.

How does the $307.7 million contract value compare to similar nuclear certification R&D efforts within the DoD?

The $307.7 million contract value for nuclear certification activity is substantial, reflecting the critical and complex nature of the work. Without access to a comprehensive database of all DoD nuclear certification R&D contracts, a direct comparison is difficult. However, contracts in this domain often span multiple years and involve highly specialized expertise, driving up costs. For context, major defense R&D programs can easily reach hundreds of millions or even billions of dollars. This specific contract's value should be assessed against the scope of work, the duration (840 days), and the specific deliverables required. It appears to be a significant investment, consistent with the high stakes involved in ensuring the integrity and safety of nuclear-related assets.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for nuclear certification R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for nuclear certification R&D involve potential cost overruns and contractor incentives. While the fixed fee provides the contractor with a defined profit margin, the cost-reimbursement aspect means the government bears the risk of actual costs incurred. If the contractor's costs exceed initial estimates, the government pays these higher costs, potentially leading to a final price significantly above projections. There's also a risk that the contractor might not be sufficiently incentivized to control costs aggressively, as their profit is fixed regardless of the final cost. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for the government.

What is the expected effectiveness of this contract in achieving its nuclear certification objectives?

The expected effectiveness of this contract hinges on several factors, including the contractor's technical expertise, the clarity of the SOW, and the government's oversight. Georgia Tech Applied Research Corp's background suggests a strong technical capability. The effectiveness will be measured by the successful completion of the R&D tasks outlined in the contract, leading to validated nuclear certification processes or standards. Key indicators of effectiveness would include timely delivery of research findings, successful testing and validation of methodologies, and ultimately, the ability of the DoD to rely on the certified systems or components. The CPFF structure, while carrying cost risks, can support innovation by allowing flexibility in research approaches, which may enhance the ultimate effectiveness of the certification process.

How has historical spending on nuclear certification activities by the Air Force evolved, and does this contract represent a trend?

Historical spending data on nuclear certification activities by the Air Force is not provided in this dataset, making it difficult to establish a trend or benchmark. However, nuclear certification is a continuous and critical requirement for maintaining the safety and reliability of nuclear-capable assets. Spending in this area is likely influenced by modernization programs, new technology integration, and evolving regulatory or safety standards. A contract of this magnitude ($307.7M) suggests a significant, potentially multi-year effort. To understand if this represents a trend, one would need to analyze Air Force budgets and contract awards for nuclear certification over several fiscal years, looking for patterns in contract values, durations, and the types of services procured.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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)

Financial Breakdown

Contract Ceiling: $8,051,218

Exercised Options: $4,499,303

Current Obligation: $3,077,293

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA865121D0016

IDV Type: IDC

Timeline