DoD's $38.3M Georgia Tech contract for engineering services awarded via full and open competition

Contract Overview

Contract Amount: $38,309,298 ($38.3M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2009-12-31

End Date: 2015-06-29

Contract Duration: 2,006 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Engineering Services

Official Description: INDEPENDENT ASSESSMENT AND VALIDATION SUPPORT FOR GOVT. SOLUTION-BASED PROJECTS

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30332

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $38.3 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: INDEPENDENT ASSESSMENT AND VALIDATION SUPPORT FOR GOVT. SOLUTION-BASED PROJECTS Key points: 1. Significant contract value for engineering services. 2. Competition method indicates potential for competitive pricing. 3. Long duration suggests sustained need for services. 4. Focus on government solution-based projects.

Value Assessment

Rating: fair

The contract's Cost No Fee (CNF) pricing structure is unusual for engineering services and warrants further investigation into how value was determined and if it incentivized efficiency. Benchmarking against similar contracts is difficult without detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded through full and open competition, suggesting a robust price discovery process. However, the Cost No Fee structure may limit the contractor's incentive to control costs, potentially impacting the overall value achieved.

Taxpayer Impact: Taxpayer funds were used for engineering services. The effectiveness of the Cost No Fee structure in ensuring value for money is a key consideration for taxpayer impact.

Public Impact

Supports government solution-based projects, potentially impacting agency efficiency. Engineering services are critical for complex government initiatives. Long contract duration (2009-2015) indicates a sustained need and investment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee pricing structure
Lack of detailed cost information for value assessment

Positive Signals

Full and open competition
Services align with critical government needs

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector crucial for government infrastructure and technology development. Spending benchmarks for this sector vary widely based on project complexity and duration.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract's Cost No Fee structure raises questions about performance incentives and cost control oversight. Independent validation support suggests a focus on ensuring project success and accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost No Fee pricing structure lacks profit incentive for contractor cost control.
Limited transparency on cost breakdowns and value determination.
Potential for scope creep due to shifted cost risk to government.
Long contract duration without clear performance outcome data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.3 million to GEORGIA TECH APPLIED RESEARCH CORP. INDEPENDENT ASSESSMENT AND VALIDATION SUPPORT FOR GOVT. SOLUTION-BASED 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 Navy).

What is the total obligated amount?

The obligated amount is $38.3 million.

What is the period of performance?

Start: 2009-12-31. End: 2015-06-29.

What was the rationale behind the Cost No Fee pricing structure for this engineering services contract, and how was value ensured without contractor profit incentive?

The Cost No Fee (CNF) structure is typically used when the government has significant leverage or when the contractor's primary motivation is not profit, such as in research collaborations or specific strategic partnerships. For this contract, the rationale might stem from Georgia Tech's unique capabilities or a specific government objective where cost control was secondary to achieving a defined outcome. However, without detailed justification, it's difficult to assess if this structure truly maximized value for the taxpayer compared to a more traditional cost-plus or fixed-price model.

How did the Cost No Fee structure impact the contractor's risk and the government's ability to manage project costs effectively?

A Cost No Fee structure shifts the financial risk almost entirely to the government, as the contractor is reimbursed for allowable costs without any profit margin. This can reduce the contractor's incentive for cost efficiency and potentially lead to scope creep if not managed tightly. The government's ability to manage costs effectively relies heavily on robust oversight, clear performance metrics, and strong contract administration to prevent unnecessary expenditures, which is crucial when the contractor has no direct financial stake in cost savings.

Given the long duration and significant value, what measures were in place to ensure the ongoing effectiveness and relevance of the engineering services provided?

The contract's duration (2009-2015) suggests a need for sustained support. Effectiveness would likely be ensured through performance metrics, regular reviews, and potentially phased delivery orders tied to specific project milestones. The 'Independent Assessment and Validation Support' nature of the service implies a focus on ensuring government solutions meet requirements. However, the lack of specific performance data makes it challenging to definitively assess the long-term effectiveness without further inquiry into project outcomes.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002409R3179

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Georgia Tech Research Corp (UEI: 097394084)

Address: 505 10TH ST, ATLANTA, GA, 30332

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $44,973,828

Exercised Options: $44,973,828

Current Obligation: $38,309,298

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017806D4752

IDV Type: IDC

Timeline