DoD's $6.1M R&D Contract with Georgia Tech Raises Questions on Competition and Value
Contract Overview
Contract Amount: $6,121,998 ($6.1M)
Contractor: Georgia Tech Applied Research Corp
Awarding Agency: Department of Defense
Start Date: 2022-05-25
End Date: 2026-09-28
Contract Duration: 1,587 days
Daily Burn Rate: $3.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: R&D
Place of Performance
Location: ATLANTA, FULTON County, GEORGIA, 30318
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $6.1 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: R&D Key points: 1. Significant R&D investment in missile defense. 2. Sole-source award to Georgia Tech Applied Research Corp limits competitive pricing. 3. Potential for cost overruns given Cost Plus Fixed Fee contract type. 4. Missile defense sector is critical but often faces unique procurement challenges.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, combined with a lack of competition, makes a definitive value assessment difficult. Benchmarking against similar R&D contracts is challenging without competitive data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this $6.1M contract means taxpayers may not be receiving the best possible price for the research and development services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The specific R&D outcomes and their impact on national security are not detailed. Reliance on a single entity for critical defense research could pose long-term strategic risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Award to a reputable research institution
- Focus on critical defense technology
Sector Analysis
This contract falls under the R&D sector, specifically missile defense, a high-priority area for the Department of Defense. Spending in this niche can be substantial, but often lacks direct commercial benchmarks.
Small Business Impact
This award does not appear to involve small businesses, as it is a sole-source contract with Georgia Tech Applied Research Corp. Opportunities for small business participation are likely limited.
Oversight & Accountability
Oversight is crucial for sole-source, cost-plus contracts to ensure funds are used efficiently and effectively. The Missile Defense Agency should provide detailed reporting on progress and expenditures.
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
- Cost-plus contract type may lead to overspending
- Potential for insufficient oversight on sole-source award
- Limited transparency on research outcomes and value
Tags
research-and-development-in-the-physical, department-of-defense, ga, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.1 million to GEORGIA TECH APPLIED RESEARCH CORP. R&D
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 $6.1 million.
What is the period of performance?
Start: 2022-05-25. End: 2026-09-28.
What specific research objectives does this contract aim to achieve, and how do they align with current missile defense priorities?
The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' under NAICS code 541715. While the specific objectives are not detailed in the provided data, the awarding agency (Missile Defense Agency) suggests the research is critical for advancing capabilities in areas such as threat detection, tracking, and interception systems.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The data indicates the contract was 'NOT COMPETED' and is a 'sole-source' award. Justification for sole-sourcing typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further documentation, it's unclear if adequate steps were taken to ensure fair and reasonable pricing, which is a significant concern with non-competitive awards.
How will the effectiveness and impact of the research funded by this contract be measured and evaluated by the Department of Defense?
Effectiveness will likely be measured through milestone achievements, technical reports, and prototype demonstrations as outlined in the contract's statement of work. The Missile Defense Agency's program managers are responsible for overseeing progress and ensuring the research contributes to the overall effectiveness of U.S. missile defense capabilities.
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: $43,008,383
Exercised Options: $43,008,383
Current Obligation: $6,121,998
Actual Outlays: $1,657,381
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
Start Date: 2022-05-25
Current End Date: 2026-09-28
Potential End Date: 2026-09-28 00:00:00
Last Modified: 2026-01-07
More Contracts from Georgia Tech Applied Research Corp
- Electronic Warfare Research, Analysis, and Testing — $102.5M (Department of Defense)
- ALQ 161A DSU Band 8 Reactivation — $99.7M (Department of Defense)
- Task Order W31p4q-21-F-0285 (S3I Control Number 292-1A) IS Issued in Accordance With Section H-14, Ordering Procedures of the Basic Contract, for the (PWS) Entitled, " Advanced Avionics Research & Systems Engineering for Army Aviation Platforms" — $91.9M (Department of Defense)
- Rdt&e Services to Provide Analysis, Research, and Engineering Support of Aviation Electronic Warfare — $91.3M (Department of Defense)
- ALQ-161 Band 8 Reactivation — $86.3M (Department of Defense)
View all Georgia Tech Applied Research Corp federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)