DoD's $46.2M contract for Ballistic Missile Early Warning Systems awarded to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $46,225,336 ($46.2M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2021-07-30

End Date: 2026-03-31

Contract Duration: 1,705 days

Daily Burn Rate: $27.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BALLISTIC MISSILE EARLY WARNING SYSTEMS (BMEWS) PAVE PAWS T-REX

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $46.2 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: BALLISTIC MISSILE EARLY WARNING SYSTEMS (BMEWS) PAVE PAWS T-REX Key points: 1. Contract focuses on critical R&D for missile defense systems, enhancing national security. 2. Sole-source award raises questions about competition and potential for cost efficiencies. 3. Long performance period (2021-2026) suggests a sustained need for these specialized services. 4. Contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not closely monitored. 5. Georgia Tech's established role in research suggests a strong technical capability for this niche. 6. Spending aligns with broader DoD investments in advanced threat detection and deterrence.

Value Assessment

Rating: fair

The contract's value of $46.2 million over approximately five years for specialized R&D in missile warning systems appears within a reasonable range for such complex, high-stakes work. However, without specific benchmarks for similar sole-source R&D contracts in missile defense, a definitive value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous oversight to ensure costs remain controlled and that the fixed fee remains appropriate for the effort expended. Benchmarking against other government-funded R&D in advanced sensor technology or defense systems would provide a clearer picture of pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Department of Defense identified Georgia Tech Applied Research Corp. as the only responsible source capable of fulfilling the requirement. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors vying for the contract. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and may not yield the most cost-effective outcome compared to a fully competed contract.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions that can arise from competitive bidding. This can lead to higher overall costs for the government and, consequently, for taxpayers.

Public Impact

The primary beneficiaries are the Department of Defense and national security, through the enhancement of early warning capabilities against ballistic missile threats. The services delivered are critical research and development activities essential for maintaining and improving the Ballistic Missile Early Warning Systems (BMEWS) PAVE PAWS T-REX. The geographic impact is national, as the improved warning systems contribute to the defense posture of the entire United States. Workforce implications include specialized roles for researchers, engineers, and technical staff at Georgia Tech, contributing to a high-skilled R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost efficiency.
Cost Plus Fixed Fee contract type requires diligent oversight to prevent cost overruns.
Lack of public competition data makes independent value assessment difficult.

Positive Signals

Georgia Tech Applied Research Corp. likely possesses specialized expertise crucial for this sensitive R&D.
Long-term contract suggests a stable and predictable need for these critical defense capabilities.
Focus on R&D for early warning systems directly supports national security objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences related to defense applications. The market for advanced missile defense technology is highly specialized, often dominated by a few key research institutions and defense contractors with unique expertise. Spending in this area is driven by national security priorities and the evolving threat landscape. Comparable spending benchmarks would likely be found within other classified or sensitive R&D programs managed by the Department of Defense or other intelligence agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of the specialized R&D, particularly for a sole-source award to a large research corporation, typically means that prime contract opportunities are not directed towards small businesses. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, a component of the Department of Defense. Accountability measures would be embedded within the contract's terms, including performance metrics, reporting requirements, and financial audits, especially given the CPFF structure. Transparency is likely limited due to the sensitive nature of missile defense R&D. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Ballistic Missile Defense System
Missile Defense Agency Programs
Early Warning Systems
Aerospace Research and Development
Department of Defense Research Contracts

Risk Flags

Sole Source Award
Cost Plus Fixed Fee Contract Type
Potential for Cost Overruns
Limited Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.2 million to GEORGIA TECH APPLIED RESEARCH CORP. BALLISTIC MISSILE EARLY WARNING SYSTEMS (BMEWS) PAVE PAWS T-REX

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 $46.2 million.

What is the period of performance?

Start: 2021-07-30. End: 2026-03-31.

What is Georgia Tech Applied Research Corp.'s track record with similar sole-source R&D contracts for the Department of Defense?

Georgia Tech Applied Research Corp. (GTARC) has a long history of supporting the Department of Defense (DoD) and other government agencies with advanced research and development. While specific details on past sole-source contracts for missile defense R&D may be limited in public databases due to classification or proprietary reasons, GTARC is known for its expertise in areas such as aerospace engineering, sensor technology, and systems analysis. Their involvement in projects like the PAVE PAWS system suggests a deep understanding of the technologies and operational requirements. Publicly available contract data often shows GTARC receiving significant funding for various R&D efforts, indicating a strong and established relationship with the DoD. Assessing their track record specifically for sole-source awards would require deeper access to contract histories and performance reviews, but their sustained engagement points to a reliable performance history in critical defense research.

How does the $46.2 million value compare to similar R&D contracts for early warning systems?

Benchmarking the $46.2 million value of this contract against similar R&D efforts for early warning systems is challenging due to the specialized nature of missile defense technology and the commonality of sole-source or limited-competition awards in this domain. However, major defense R&D programs, especially those involving advanced sensor development, complex system integration, and long-term research, often run into tens or hundreds of millions of dollars. For instance, contracts related to radar modernization, satellite-based surveillance, or advanced signal processing for threat detection can represent substantial investments. Given that this contract spans approximately five years (July 2021 to March 2026) and involves critical national security R&D, the total value appears to be in a plausible range for such specialized work. A more precise comparison would necessitate access to data on comparable sole-source or competitively awarded R&D contracts for ballistic missile early warning systems, which are often not publicly detailed.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Georgia Tech Applied Research Corp., is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee incentivizes the contractor to control costs to maximize their profit margin, it does not provide the same level of cost certainty as fixed-price contracts. If the project scope expands, unforeseen technical challenges arise, or costs escalate beyond initial estimates, the government bears the burden of these increased expenses. Effective oversight, robust cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value. Without stringent management, CPFF contracts can become more expensive than initially anticipated.

How does the sole-source nature of this award impact price discovery and potential cost savings for taxpayers?

The sole-source nature of this award significantly limits price discovery. When a contract is competed, multiple vendors submit proposals, creating a competitive environment that typically drives down prices as companies vie for the business. In a sole-source scenario, the government negotiates directly with a single contractor, often based on the contractor's proposed pricing. While the government aims to negotiate a fair and reasonable price, the absence of competing bids means there is no market-driven pressure to achieve the lowest possible cost. Consequently, taxpayers may not benefit from the cost efficiencies that a competitive process could yield. This approach is usually justified when only one entity possesses the required unique capabilities, but it inherently carries a higher risk of the government paying more than it might in a competitive situation.

What are the implications of the contract's end date (March 2026) for future ballistic missile early warning system capabilities?

The contract's end date of March 2026 suggests that the research and development activities funded under this award are intended to mature or conclude by that time, or lead to a follow-on phase. This timeline implies that the Department of Defense is planning for the evolution of its Ballistic Missile Early Warning Systems (BMEWS) beyond the current capabilities. The R&D outcomes could inform upgrades to existing systems, the development of new technologies, or strategic decisions regarding future missile defense architectures. The proximity of the end date also signals that planning for subsequent phases, whether through further R&D, procurement of new systems, or sustainment of existing ones, should be well underway within the DoD to ensure continuity of critical early warning functions. The specific impact depends heavily on the nature of the R&D being conducted.

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

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: $46,225,336

Exercised Options: $46,225,336

Current Obligation: $46,225,336

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $594,245

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