DoD's $27.3M R&D Contract for Marine Corps Logistics Support Awarded to Georgia Tech

Contract Overview

Contract Amount: $27,304,575 ($27.3M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2018-09-30

End Date: 2023-09-13

Contract Duration: 1,809 days

Daily Burn Rate: $15.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS IS A RESEARCH AND DEVELOPMENT - SERVICE FOR SUPPLY CHAIN, LOGISTICS AND APPLIED ENGINEERING IN SUPPORT OF US MARINE CORPS.

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $27.3 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: THIS IS A RESEARCH AND DEVELOPMENT - SERVICE FOR SUPPLY CHAIN, LOGISTICS AND APPLIED ENGINEERING IN SUPPORT OF US MARINE CORPS. Key points: 1. Contract focuses on critical R&D for supply chain, logistics, and applied engineering. 2. Sole-source award to Georgia Tech Applied Research Corp raises questions about competition. 3. Long contract duration (1809 days) suggests a complex, ongoing need. 4. The contract's value is significant within the R&D sector for specialized engineering services. 5. Performance context is tied to supporting US Marine Corps operational readiness. 6. Sector positioning is within advanced physical, engineering, and life sciences R&D.

Value Assessment

Rating: fair

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 definitively assess if the $27.3 million represents optimal value for money. However, the contract's duration and scope suggest a substantial investment in critical support capabilities for the Marine Corps. Further analysis would require comparing the delivered outcomes and technical advancements against the cost, which 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 it was not competed among multiple vendors. This approach is typically used when a specific entity possesses unique capabilities or when circumstances preclude full and open competition. The lack of competition means there was no direct price discovery through bidding, potentially leading to higher costs than if multiple firms had vied for the contract.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the government did not leverage market forces to secure the best possible deal. The justification for a sole-source award needs to be robust to ensure public funds are used efficiently.

Public Impact

The US Marine Corps benefits directly through enhanced supply chain, logistics, and applied engineering capabilities. The contract supports the development of advanced solutions crucial for military operational readiness. Geographic impact is primarily within the operational theaters and support bases of the Marine Corps. Workforce implications include specialized R&D roles at Georgia Tech Applied Research Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns in cost-plus fixed-fee contracts without strong oversight.

Positive Signals

Focus on critical R&D for military logistics and engineering.
Award to a reputable research institution (Georgia Tech).
Long-term contract indicates sustained need and potential for deep expertise development.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541715. This is a highly specialized area focused on applied engineering and logistics solutions. The market for such services is often dominated by a few key research institutions and specialized defense contractors. The $27.3 million value is substantial for a single R&D service contract, reflecting the complexity and criticality of the support provided to the US Marine Corps.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Given the sole-source nature and the award to Georgia Tech Applied Research Corp, it is unlikely that significant subcontracting opportunities for small businesses were mandated or actively pursued through this specific award mechanism. The focus is on specialized R&D capabilities rather than broad market participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices, given they are the servicing agency for the Department of Defense. As a Cost Plus Fixed Fee (CPFF) contract, robust financial oversight is crucial to monitor costs and ensure the fixed fee remains appropriate. Transparency regarding the justification for the sole-source award and the progress of R&D activities would be key accountability measures.

Related Government Programs

Department of Defense Research and Development
US Marine Corps Logistics Modernization
Supply Chain Management R&D
Applied Engineering Services

Risk Flags

Sole-source award may limit competitive pricing.
Cost Plus Fixed Fee contract requires robust cost oversight.
Long contract duration increases risk of scope creep or obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.3 million to GEORGIA TECH APPLIED RESEARCH CORP. THIS IS A RESEARCH AND DEVELOPMENT - SERVICE FOR SUPPLY CHAIN, LOGISTICS AND APPLIED ENGINEERING IN SUPPORT OF US MARINE CORPS.

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 $27.3 million.

What is the period of performance?

Start: 2018-09-30. End: 2023-09-13.

What is the specific nature of the R&D being conducted under this contract for the Marine Corps?

The contract specifies Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology), with a focus on supply chain, logistics, and applied engineering. This suggests the work involves developing innovative solutions, methodologies, or technologies to improve the efficiency, resilience, and effectiveness of the Marine Corps' logistical operations. This could encompass areas like advanced inventory management systems, optimized transportation networks, predictive maintenance for equipment, or novel engineering approaches to support deployed forces. The 'applied engineering' aspect implies a focus on practical, implementable solutions rather than purely theoretical research.

Why was this contract awarded on a sole-source basis to Georgia Tech Applied Research Corp?

The provided data indicates the contract was 'NOT COMPETED' and awarded to 'GEORGIA TECH APPLIED RESEARCH CORP'. Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's requirements. For a research institution like Georgia Tech Applied Research Corp, this could be due to unique expertise, proprietary technology, established research partnerships with the Marine Corps, or specific facilities required for the R&D. The Department of Defense would have a formal justification document (e.g., a Justification and Approval for Other Than Full and Open Competition) outlining the specific reasons why full and open competition was not feasible or not in the government's best interest for this particular R&D effort.

How does the Cost Plus Fixed Fee (CPFF) contract type influence risk and value for this R&D effort?

A Cost Plus Fixed Fee (CPFF) contract type means the contractor (Georgia Tech Applied Research Corp) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D, this structure can incentivize the contractor to perform the work efficiently to maximize their fee, while also providing flexibility to adapt to research uncertainties. However, it shifts some cost risk to the government, as the final cost is not fixed upfront. Effective oversight is crucial to ensure costs are reasonable and allocable, and that the fixed fee adequately compensates the contractor for the effort and risk undertaken. The value is realized through the successful development of the intended R&D outcomes.

What is the historical spending trend for similar R&D services supporting the US Marine Corps?

Analyzing historical spending trends for similar R&D services requires access to broader contract databases. However, contracts for specialized logistics, supply chain, and applied engineering R&D for military branches like the Marine Corps are typically significant investments. Spending in this area often fluctuates based on strategic priorities, technological advancements, and operational needs. Given the long duration and substantial value of this $27.3 million contract, it suggests a sustained commitment by the DoD to enhance these critical support functions through research and development. Without specific historical data, it's difficult to provide precise benchmarks, but such contracts are generally considered substantial within the defense R&D portfolio.

What are the potential performance risks associated with this long-term, sole-source R&D contract?

Performance risks for a long-term, sole-source R&D contract include potential scope creep, where the project expands beyond its original objectives, leading to increased costs and delays. There's also the risk of technical challenges or unforeseen research hurdles that could impede progress. For a sole-source award, a key risk is the contractor's potential lack of incentive to innovate aggressively or control costs as rigorously as they might under competitive pressure. Ensuring clear milestones, regular performance reviews, and strong technical oversight by the government are critical to mitigating these risks and ensuring the successful delivery of valuable R&D outcomes.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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: $49,171,835

Exercised Options: $27,304,575

Current Obligation: $27,304,575

Actual Outlays: $12,492,874

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $3,771,745

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W31P4Q18D0002

IDV Type: IDC

Timeline