DoD's $13.7M R&D contract with Georgia Tech Applied Research Corp awarded in 2005 shows long-term engagement

Contract Overview

Contract Amount: $13,682,553 ($13.7M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2005-01-31

End Date: 2009-12-31

Contract Duration: 1,795 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30332

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $13.7 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: Key points: 1. Contract value suggests a significant, multi-year research initiative. 2. Sole-source award indicates potential lack of market competition or specialized capabilities. 3. Long duration (nearly 5 years) implies complex or ongoing research needs. 4. Focus on R&D aligns with defense innovation goals. 5. Awarded by the Department of the Army, suggesting specific military research applications. 6. Geographic location in Georgia may point to regional research strengths or facilities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable projects. The $13.7 million over nearly five years averages to approximately $2.7 million annually, which could be reasonable for a significant R&D effort. However, the lack of competition and detailed performance data makes a definitive value-for-money assessment difficult. Without knowing the specific research outcomes, it's hard to say if the investment yielded sufficient returns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. While efficient for specialized needs, it limits price discovery and potentially higher costs compared to a competitive process.

Taxpayer Impact: Sole-source awards can mean taxpayers may not benefit from the cost savings that competitive bidding often generates. It also raises questions about whether alternative solutions or contractors were adequately explored.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially specific military branches requiring advanced research. The contract supports research and development in physical, engineering, and life sciences, contributing to technological advancements. The geographic impact is centered in Georgia, potentially leveraging local expertise and facilities. Workforce implications include employment for researchers, scientists, and support staff at Georgia Tech Applied Research Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited innovation.
Absence of detailed performance metrics makes it difficult to assess the true impact and success of the R&D.
Long contract duration without clear milestones could indicate scope creep or inefficient project management.

Positive Signals

Long-standing relationship with a research institution suggests a track record of successful collaboration.
Focus on R&D aligns with strategic defense objectives, potentially leading to critical technological advancements.
Award to a specialized research entity indicates access to unique expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization, aiming to develop next-generation technologies. Comparable spending in this sector can vary widely depending on the specific research area, but significant government investment is typical for defense-related R&D to maintain a technological edge.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to a large research corporation suggests the primary focus was on specialized research capabilities rather than broad market engagement.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve program managers within the Department of the Army responsible for monitoring research progress and expenditures. Transparency might be limited due to the nature of R&D and sole-source awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Army Research Laboratory Contracts
Applied Science and Technology Research
Advanced Technology Development Contracts

Risk Flags

Sole-source award limits competition.
Lack of detailed performance metrics.
Long contract duration without clear phase gates.
Contract type 'COST NO FEE' is unusual for external R&D and warrants understanding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.7 million to GEORGIA TECH APPLIED RESEARCH CORP. See the official description on USAspending.

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 Army).

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2005-01-31. End: 2009-12-31.

What specific research areas were covered under this $13.7 million contract?

The contract's NAICS code (541710) indicates 'Research and Development in the Physical, Engineering, and Life Sciences.' However, without access to the contract's statement of work or specific task orders, the precise research areas remain undefined. Given the Department of the Army as the awarding agency, potential areas could include materials science, advanced manufacturing, sensor technology, cyber capabilities, or biomedical research relevant to military applications. The 'COST NO FEE' contract type suggests the government reimburses allowable costs, and the contractor receives no fee, which is unusual for R&D and might indicate a specific type of internal research or grant-like structure within Georgia Tech.

How does the $13.7 million value compare to similar R&D contracts awarded by the Department of the Army during that period?

Comparing this $13.7 million contract requires context on the specific R&D domain and duration. For the period of 2005-2009, the Department of the Army awarded numerous R&D contracts. Contracts for basic research might be smaller, while those for advanced technology development or prototyping could be significantly larger. An average annual spend of approximately $2.7 million for a multi-year R&D effort is not inherently high or low without knowing the scope. However, sole-source awards often bypass the price competition that would typically benchmark against other awarded contracts, making direct value comparisons less meaningful.

What are the potential risks associated with a sole-source R&D contract of this magnitude and duration?

Sole-source R&D contracts carry several risks. Firstly, the lack of competition can lead to higher costs for taxpayers, as the government doesn't benefit from market-driven price reductions. Secondly, it may stifle innovation if alternative, potentially more effective or efficient, approaches from other research institutions are not explored. Thirdly, there's a risk of contractor lock-in, where the government becomes dependent on a single entity. Finally, without robust oversight and clear performance metrics, there's a risk of project delays, cost overruns, or research that doesn't meet the intended objectives.

What does the 'COST NO FEE' contract type imply for this R&D effort?

The 'COST NO FEE' (CNF) contract type is relatively uncommon, especially for external contractors. It typically means the government agrees to reimburse the contractor for all allowable costs incurred in performing the contract, but the contractor receives no additional profit or fee. This type of contract is often used when the contractor is a non-profit entity, a university research center, or an entity where profit is not the primary motive, and the focus is purely on achieving the research objectives. It suggests Georgia Tech Applied Research Corp was compensated only for its direct expenses and overhead, not for profit.

What is the track record of Georgia Tech Applied Research Corp with federal R&D contracts?

Georgia Tech Applied Research Corp (GTARC) has a long and extensive history of performing research and development for various U.S. federal agencies, including the Department of Defense, NASA, and others. They are known for their expertise in a wide range of scientific and engineering disciplines. While this specific $13.7 million contract dates back to 2005-2009, GTARC has consistently secured and executed numerous federal R&D contracts over decades, indicating a strong track record and established capabilities in supporting government research initiatives. Their performance on past contracts generally reflects a capacity to handle complex, large-scale R&D projects.

How does the duration of nearly five years impact the assessment of this contract's effectiveness?

A contract duration of nearly five years (1795 days) for an R&D effort suggests a project of significant complexity and scope, likely involving multiple phases or long-term investigation. While long durations can be appropriate for cutting-edge research where breakthroughs are unpredictable, they also increase the risk of scope creep, evolving requirements, and potential inefficiencies if not managed tightly. Assessing effectiveness requires examining whether the project met its objectives within the timeframe and budget, and whether the research outcomes remained relevant and valuable by the end of the contract period. Without specific performance data, it's difficult to definitively link the duration to effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 505 10TH ST, ATLANTA, GA, 90

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline