DoD awards $13.9M R&D contract to Georgia Tech Applied Research Corp for missile defense

Contract Overview

Contract Amount: $13,911,724 ($13.9M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2022-05-06

End Date: 2026-05-05

Contract Duration: 1,460 days

Daily Burn Rate: $9.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: RESEARCH AND DEVELOPMENT Key points: 1. Significant R&D investment in missile defense technology. 2. Sole-source award to a specific research institution. 3. Potential for high-value technological advancements. 4. Focus on physical, engineering, and life sciences research.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Georgia Tech Applied Research Corp. This limits price discovery and potentially increases costs compared to a competitive process.

Taxpayer Impact: Taxpayer funds are directed to a single entity without exploring alternative solutions or pricing, potentially leading to a less cost-effective outcome.

Public Impact

Advancement in national missile defense capabilities. Investment in cutting-edge scientific research. Potential for technological spin-offs benefiting other sectors. Support for specialized research institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Limited transparency on pricing justification

Positive Signals

Focus on critical defense technology
Award to a reputable research institution

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for technological advancement but requires careful oversight due to its specialized nature and potential for cost escalation.

Small Business Impact

This award does not appear to involve small businesses, as it is a sole-source contract with a large research corporation. Opportunities for small business subcontracting are not evident from the provided data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution of the research objectives. Accountability for deliverables and cost management will be critical.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Missile Defense Agency Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns due to CPFF structure
Limited transparency on specific research deliverables
No clear indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to GEORGIA TECH APPLIED RESEARCH CORP. RESEARCH AND DEVELOPMENT

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 $13.9 million.

What is the period of performance?

Start: 2022-05-06. End: 2026-05-05.

What is the justification for the sole-source award, and how does it ensure value for money?

The justification for a sole-source award typically centers on unique capabilities or specialized expertise possessed by the contractor that cannot be replicated by others. For this contract, the Department of Defense likely determined that Georgia Tech Applied Research Corp holds specific, indispensable knowledge or facilities for this particular missile defense R&D. Ensuring value for money in such cases relies heavily on robust negotiation of the fixed fee, clear performance metrics, and rigorous oversight to prevent scope creep or inefficient resource allocation.

What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D, and how are they mitigated?

The primary risk with Cost Plus Fixed Fee (CPFF) contracts is that the government bears the cost risk, potentially paying more than anticipated if actual costs exceed estimates. The fixed fee provides an incentive for the contractor to control costs, but it's not as strong as in fixed-price contracts. Mitigation strategies include detailed cost proposals, stringent monitoring of expenditures, clear definition of allowable costs, and performance-based milestones tied to fee or award adjustments. Regular audits and progress reviews are essential.

How will the effectiveness of this R&D investment be measured, particularly given the long-term nature of missile defense technology?

Effectiveness will be measured through a combination of technical milestones, prototype development, testing outcomes, and the successful integration of developed technologies into broader missile defense systems. Given the long-term nature, interim deliverables and progress reports will be crucial for assessing progress. Key Performance Parameters (KPPs) related to system performance, reliability, and cost-effectiveness of the proposed solutions will be defined and tracked throughout the contract duration.

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: $17,188,742

Exercised Options: $16,008,742

Current Obligation: $13,911,724

Actual Outlays: $3,312,004

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $7,964,130

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