DoD's $18M R&D contract to Georgia Tech Applied Research Corp for missile defense systems

Contract Overview

Contract Amount: $18,002,813 ($18.0M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2022-04-21

End Date: 2026-04-18

Contract Duration: 1,458 days

Daily Burn Rate: $12.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT -BC

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $18.0 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: RESEARCH AND DEVELOPMENT -BC Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Focus on missile defense systems indicates a critical national security objective. 3. Long duration of nearly four years suggests a complex and ongoing research effort. 4. Sole-source award raises questions about potential cost efficiencies and market alternatives. 5. Georgia Tech's established research capabilities likely underpin this award. 6. Contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not managed carefully.

Value Assessment

Rating: questionable

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and sole-source award. Without competitive bids, it's difficult to ascertain if the fixed fee adequately reflects market rates for similar research. The Cost Plus Fixed Fee structure necessitates close oversight to ensure costs remain reasonable and that the fixed fee is justified by the scope and complexity of the research. Comparing it to other missile defense R&D contracts would be more informative, but such data is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically justified when a specific entity possesses unique capabilities or when urgency precludes a competitive process. The lack of competition limits the government's ability to leverage market forces to drive down costs and potentially explore innovative solutions from a wider range of contractors. The Missile Defense Agency would need to have documented specific justifications for this sole-source award.

Taxpayer Impact: Taxpayers may not be receiving the best possible value due to the absence of competitive bidding, which typically leads to lower prices. The government may also miss out on potentially more innovative or cost-effective solutions that could have emerged from a competitive process.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Missile Defense Agency, which will receive advanced research for national security. The contract aims to deliver advancements in missile defense technologies, enhancing the nation's security posture. The geographic impact is primarily within Georgia, where Georgia Tech Applied Research Corp is located, potentially creating or sustaining high-skilled jobs. The workforce implications include employment for researchers, engineers, and support staff at Georgia Tech, contributing to the specialized scientific community.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Cost Plus Fixed Fee contract type can incentivize higher spending if not rigorously managed.
Lack of competition may restrict access to a broader range of innovative solutions.
Specialized R&D nature makes direct value-for-money assessment difficult without comparable data.

Positive Signals

Award to a reputable research institution like Georgia Tech suggests strong technical capability.
Long contract duration indicates a commitment to a critical, long-term research objective.
Focus on missile defense aligns with significant national security priorities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical and engineering sciences related to defense. The market for missile defense technology is highly specialized, dominated by a few key players and research institutions with the necessary expertise and security clearances. Spending in this area is driven by national security imperatives and technological advancements. Comparable spending benchmarks would likely be found within other large-scale defense R&D programs, often involving significant government investment due to the complexity and strategic importance.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by 'sb': false. Given the specialized nature of missile defense research and the sole-source award to Georgia Tech Applied Research Corp, it is unlikely that subcontracting opportunities for small businesses would be a primary focus or requirement of this specific award. The primary goal is likely to leverage the unique capabilities of the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Missile Defense Agency. Given the Cost Plus Fixed Fee structure, rigorous financial and programmatic oversight is crucial to monitor expenditures, ensure adherence to research objectives, and manage the fixed fee. Transparency would be expected through regular reporting from the contractor. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems Research
Advanced Technology Development
Department of Defense Research and Development Programs
National Security Technology Innovation

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Potential for cost overruns
Lack of competitive benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.0 million to GEORGIA TECH APPLIED RESEARCH CORP. RESEARCH AND DEVELOPMENT -BC

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 (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $18.0 million.

What is the period of performance?

Start: 2022-04-21. End: 2026-04-18.

What is Georgia Tech Applied Research Corp's track record with the Department of Defense, particularly in missile defense R&D?

Georgia Tech Applied Research Corp (GTARC) has a long-standing relationship with the Department of Defense and various government agencies, often undertaking complex research and development projects. While specific details on their missile defense R&D track record for this particular contract are not provided in the abbreviated data, GTARC is known for its expertise in areas such as aerospace engineering, materials science, and systems engineering, which are all critical to missile defense. Their history likely includes numerous successful projects contributing to national security. Further investigation into GTARC's contract history with the DoD, particularly the Missile Defense Agency, would reveal the extent and success of their prior work in this specialized field, including performance metrics and any past issues.

How does the $18 million cost compare to similar missile defense R&D contracts awarded by the DoD?

Directly comparing the $18 million cost of this sole-source contract to similar missile defense R&D efforts is challenging without access to detailed, comparable contract data. Missile defense R&D is a highly specialized and often classified field, with contract values varying significantly based on the specific technology, research phase, and duration. However, $18 million for a nearly four-year R&D effort suggests a focused project rather than a large-scale system development. To provide a meaningful comparison, one would need to identify contracts with similar objectives (e.g., sensor development, countermeasure research, system integration studies) and similar contract types (Cost Plus Fixed Fee) awarded around the same timeframe. The sole-source nature also complicates direct price benchmarking against competitively awarded contracts.

What are the primary risks associated with a sole-source, Cost Plus Fixed Fee contract for R&D?

A sole-source, Cost Plus Fixed Fee (CPFF) contract for R&D presents several risks. The primary risk of a sole-source award is the lack of competition, which can lead to higher prices and potentially less innovation than a competitively sourced contract. Taxpayers may not be getting the best value for their money. The CPFF structure, while allowing flexibility for R&D where costs can be uncertain, carries the risk of cost overruns. The contractor is reimbursed for allowable costs plus a fixed fee representing profit. If not managed diligently, this can incentivize the contractor to incur more costs, as their fee remains fixed. Robust oversight is essential to monitor costs, ensure efficiency, and prevent scope creep. The government must ensure the fixed fee is appropriate for the level of risk and effort involved.

How effective is the Missile Defense Agency in managing R&D contracts to ensure program success?

The Missile Defense Agency (MDA) has a complex mandate to develop and deploy missile defense capabilities, which inherently involves managing high-risk, cutting-edge R&D. Historically, the MDA has faced scrutiny regarding program execution, cost overruns, and schedule delays in some of its major programs. However, the agency has also achieved significant technological milestones. Its effectiveness in managing R&D contracts is dependent on strong program management, clear requirements, effective oversight of contractors (especially under CPFF arrangements), and the ability to adapt to technological challenges. The success of individual contracts, like this one with Georgia Tech, relies heavily on the specific project team's diligence, the contractor's performance, and the established oversight mechanisms within the MDA.

What is the historical spending pattern for missile defense R&D by the Department of Defense?

The Department of Defense, through agencies like the Missile Defense Agency, has consistently allocated substantial funding towards missile defense research and development over several decades. This spending is driven by evolving threats and the need for advanced technological solutions. Historical spending patterns show significant investment in areas such as ballistic missile defense, terminal high altitude area defense (THAAD), and ground-based midcourse defense (GMD). While specific annual figures fluctuate based on strategic priorities and program lifecycles, the overall trend indicates a sustained and significant commitment to R&D in this domain. The total budget allocated to missile defense R&D often runs into billions of dollars annually, reflecting the complexity and critical nature of the mission.

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

Solicitation ID: HQ085421R0001

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: $25,281,696

Exercised Options: $25,281,696

Current Obligation: $18,002,813

Actual Outlays: $4,236,115

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ085421D0002

IDV Type: IDC

Timeline