DoD's $23.1M Secure Web Services Contract with Georgia Tech Raises Questions on Competition and Value
Contract Overview
Contract Amount: $23,122,311 ($23.1M)
Contractor: Georgia Tech Applied Research Corp
Awarding Agency: Department of Defense
Start Date: 2015-06-12
End Date: 2017-12-23
Contract Duration: 925 days
Daily Burn Rate: $25.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::CT::IGF OSD SECURE WEB SERVICES
Place of Performance
Location: ATLANTA, FULTON County, GEORGIA, 30318
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $23.1 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: IGF::CT::IGF OSD SECURE WEB SERVICES Key points: 1. Contract awarded to Georgia Tech Applied Research Corp for $23.1M. 2. The contract was not competed, raising concerns about price discovery. 3. Services fall under Colleges, Universities, and Professional Schools NAICS code. 4. Potential for higher costs due to lack of competitive bidding.
Value Assessment
Rating: questionable
The contract's value is difficult to assess without competitive benchmarks. The 'Cost Plus Fixed Fee' structure can incentivize cost overruns if not closely monitored, potentially leading to a higher effective price than a fixed-price contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This contract was not competed, indicating a sole-source or limited competition award. The absence of competition limits the government's ability to secure the best possible price and innovative solutions.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these secure web services.
Public Impact
Citizens may question the fairness of awarding large contracts without exploring competitive options. The use of research institutions for standard services warrants scrutiny regarding efficiency. Transparency in the justification for non-competitive awards is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
Positive Signals
- Awarded to a research institution
- Definitive contract type
Sector Analysis
This contract falls within the IT services sector, specifically web services, provided by a university research arm. Spending benchmarks for similar secure web services contracts are typically driven by competitive bidding, making this non-competed award an outlier.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to a large research corporation suggests a focus on specialized capabilities rather than small business set-asides.
Oversight & Accountability
The non-competed nature of this award necessitates robust oversight to ensure the contractor is delivering services efficiently and that costs are reasonable. Accountability for the justification of sole-source procurement is paramount.
Related Government Programs
- Colleges, Universities, and Professional Schools
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Lack of competition limits price discovery.
- Cost-plus contract type can lead to cost overruns.
- Absence of small business participation.
- Potential for inefficient service delivery without competitive pressure.
Tags
colleges-universities-and-professional-s, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.1 million to GEORGIA TECH APPLIED RESEARCH CORP. IGF::CT::IGF OSD SECURE WEB SERVICES
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 (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $23.1 million.
What is the period of performance?
Start: 2015-06-12. End: 2017-12-23.
What was the specific justification for not competing this contract, and were alternative competitive strategies considered?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to understand the specific justification, such as unique capabilities, urgent need, or lack of market research. Without this, it's difficult to assess if competitive strategies were adequately explored or if the non-competitive approach was truly warranted.
How does the cost-plus fixed fee structure compare to market rates for similar secure web services, and what controls are in place to manage potential cost growth?
Cost-plus fixed fee contracts carry inherent risks of cost growth if not managed diligently. Benchmarking against similar competitively awarded contracts for secure web services is essential. The government must have strong oversight mechanisms, including detailed cost reviews and performance metrics, to ensure Georgia Tech Applied Research Corp remains within projected costs and delivers value.
What is the long-term strategy for these secure web services, and will future requirements be subject to competition to ensure ongoing value and innovation?
The duration of the contract (925 days) suggests a medium-term need. Future procurements should prioritize competitive bidding to leverage market innovation and ensure cost-effectiveness. Agencies should conduct market research to identify potential competitors and develop strategies that encourage a competitive environment for subsequent contract awards.
Industry Classification
NAICS: Educational Services › Colleges, Universities, and Professional Schools › Colleges, Universities, and Professional Schools
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ003415R0094
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Georgia Tech Research Corp (UEI: 097394084)
Address: 505 10TH ST, 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: $23,122,311
Exercised Options: $23,122,311
Current Obligation: $23,122,311
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-06-12
Current End Date: 2017-12-23
Potential End Date: 2017-12-23 00:00:00
Last Modified: 2021-06-25
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