DoD's $24M R&D contract for open architectures systems integration awarded to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $22,267,829 ($22.3M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2018-09-29

End Date: 2023-09-30

Contract Duration: 1,827 days

Daily Burn Rate: $12.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS IS A RESEARCH AND DEVELOPMENT (R&D)-SERVICES FOR OMNIBUS OPEN ARCHITECTURES SYSTEMS INTEGRATION AND DEVELOPMENT. THE TOTAL TASK ORDER W31P4Q18F0127 AMOUNT IS $23,999,884.57 WITH A PERIOD OF PERFORMANCE THROUGH 5 YEARS. THIS TASK ORDER WILL BE INCREMENTALLY FUNDED. THE INITIAL INCREMENT OF FUNDING IS $4,850.00 WITH A PERIOD OF PERFORMANCE THROUGH 30 SEPTEMBER 2019.

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: THIS IS A RESEARCH AND DEVELOPMENT (R&D)-SERVICES FOR OMNIBUS OPEN ARCHITECTURES SYSTEMS INTEGRATION AND DEVELOPMENT. THE TOTAL TASK ORDER W31P4Q18F0127 AMOUNT IS $23,999,884.57 WITH A PERIOD OF PERFORMANCE THROUGH 5 YEARS. THIS TASK ORDER WILL BE INCREMENTALLY FUNDED. THE INI… Key points: 1. Contract focuses on critical R&D for open architectures, aiming to enhance system integration and development. 2. Awarded to Georgia Tech Applied Research Corp, a known entity in the research and development sector. 3. The contract is structured with incremental funding, indicating phased development and expenditure. 4. Performance period spans five years, suggesting a long-term commitment to the research objectives. 5. The initial funding increment is minimal, with the bulk of the funds to be disbursed over time. 6. This contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code.

Value Assessment

Rating: fair

The total contract value of approximately $24 million over five years for R&D services appears reasonable for specialized systems integration. However, without specific benchmarks for similar omnibus open architecture R&D contracts, a precise value-for-money assessment is challenging. The incremental funding approach, with a very small initial increment, suggests a cautious approach to expenditure, which could be a positive sign for fiscal management. Further analysis would require comparing the scope and deliverables to other R&D contracts in this niche area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The rationale for not competing the contract is not provided in the available data. Sole-source awards can sometimes lead to higher prices due to a lack of competitive pressure. The absence of competition means that the government did not explore alternative solutions or pricing from other potential vendors, which could limit price discovery and potentially impact overall value.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive bidding, which typically drives down costs. This could result in a higher overall expenditure for the government compared to a competed contract for similar services.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which will receive advancements in open architecture systems integration. The services delivered will focus on research and development, aiming to improve the flexibility, interoperability, and future adaptability of defense systems. The geographic impact is primarily within the United States, supporting national defense research initiatives. Workforce implications may include specialized R&D personnel, engineers, and scientists employed by Georgia Tech Applied Research Corp and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited innovation.
Incremental funding with a very small initial amount could indicate uncertainty in project scope or phased development challenges.
The specific R&D objectives and expected outcomes are not detailed, making it difficult to assess performance metrics.

Positive Signals

Award to a research institution like Georgia Tech suggests access to specialized expertise and advanced research capabilities.
A five-year performance period allows for in-depth research and development, potentially leading to significant technological advancements.
Focus on open architectures aligns with modern defense strategy for interoperability and modularity.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for R&D services in defense systems integration is highly specialized, often involving academic institutions and dedicated research organizations. Comparable spending benchmarks are difficult to establish without more specific details on the R&D scope, but large-scale R&D contracts for defense systems can range from tens to hundreds of millions of dollars, depending on complexity and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, Georgia Tech Applied Research Corp, may engage small businesses as subcontractors, but this is not mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures would be tied to the achievement of R&D milestones and deliverables outlined in the contract. Transparency is limited by the sole-source nature and the proprietary aspects of R&D, but contract awards are generally reported in federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Army Systems Integration Contracts
Omnibus Contract Vehicles
Open Architecture Initiatives

Risk Flags

Sole-source award lacks competitive pricing pressure.
Extended performance period increases risk of changing requirements or obsolescence.
R&D scope is not fully detailed, making performance assessment difficult.
Minimal initial funding may indicate uncertainty or phased commitment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to GEORGIA TECH APPLIED RESEARCH CORP. THIS IS A RESEARCH AND DEVELOPMENT (R&D)-SERVICES FOR OMNIBUS OPEN ARCHITECTURES SYSTEMS INTEGRATION AND DEVELOPMENT. THE TOTAL TASK ORDER W31P4Q18F0127 AMOUNT IS $23,999,884.57 WITH A PERIOD OF PERFORMANCE THROUGH 5 YEARS. THIS TASK ORDER WILL BE INCREMENTALLY FUNDED. THE INITIAL INCREMENT OF FUNDING IS $4,850.00 WITH A PERIOD OF PERFORMANCE THROUGH 30 SEPTEMBER 2019.

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 $22.3 million.

What is the period of performance?

Start: 2018-09-29. End: 2023-09-30.

What is the specific technical scope and expected outcome of this R&D contract for omnibus open architectures systems integration?

The provided data identifies the contract as 'Research and Development (R&D)-Services for Omnibus Open Architectures Systems Integration and Development.' However, the specific technical scope and expected outcomes are not detailed. Typically, R&D contracts of this nature aim to develop foundational technologies, prototypes, or methodologies that enable greater interoperability, modularity, and adaptability in defense systems through open architecture principles. This could involve defining standards, developing software frameworks, or demonstrating integration capabilities. Without further documentation, the precise deliverables and the intended impact on future defense systems remain unspecified, making it difficult to gauge the full potential value or measure success against defined objectives.

Why was this contract awarded on a sole-source basis instead of being competed?

The data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. The specific justification for this sole-source designation is not provided. Common reasons for sole-source awards include the unique capabilities of a single source, urgent and compelling needs where competition is not feasible, or when a specific research institution possesses unique expertise or intellectual property essential for the project. Without the official justification documentation (e.g., a Justification and Approval document), it is impossible to definitively state why competition was precluded. This lack of competition raises concerns about potential cost efficiencies and the exploration of alternative solutions.

How does the incremental funding structure, with a minimal initial increment, impact the project's risk and Georgia Tech Applied Research Corp's commitment?

The contract is incrementally funded, with a total amount of $23,999,884.57 and an initial increment of only $4,850.00. This structure suggests a phased approach to funding, where subsequent increments will be awarded as the project progresses and milestones are met. A very small initial increment can indicate a cautious approach by the government, potentially to mitigate financial risk if the project scope changes or proves unfeasible early on. For the contractor, it means revenue will be realized over time, contingent on performance and continued government commitment. This can also serve as a risk mitigation tool for the government, allowing them to terminate the contract with minimal financial exposure if necessary. It implies that the full scope and funding are not yet fully committed or defined.

What is the historical spending pattern for similar R&D services related to open architectures within the Department of Defense?

The provided data does not include historical spending patterns for similar R&D services. To assess this, one would need to query federal procurement databases (like USASpending.gov or FPDS) for contracts with similar NAICS codes (e.g., 541715) and keywords related to 'open architecture,' 'systems integration,' and 'R&D' awarded by the Department of Defense or Department of the Army over recent fiscal years. Analyzing these historical data points would reveal the typical contract values, durations, and awardees for such specialized research, providing a benchmark against which this $24 million contract can be evaluated for its relative scale and investment.

What are the potential performance risks associated with a five-year R&D contract for systems integration, especially given the sole-source award?

Performance risks for a five-year R&D contract, particularly a sole-source one, are multifaceted. Firstly, the extended duration increases the risk of technological obsolescence or shifts in strategic priorities, potentially rendering the R&D outcomes less relevant by completion. Secondly, without competition, there's a reduced incentive for the contractor to innovate aggressively or optimize efficiency, potentially leading to slower progress or less groundbreaking results. The sole-source nature also means the government relies heavily on the contractor's internal project management and technical expertise; any deficiencies in these areas pose a significant risk. Furthermore, defining and measuring success for R&D can be inherently challenging, increasing the risk of disputes over deliverables or perceived value.

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: $23,999,885

Exercised Options: $22,267,829

Current Obligation: $22,267,829

Actual Outlays: $2,640,851

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