DoD awards $28.37M for Royal Saudi Air Force EW training, raising questions on competition and value

Contract Overview

Contract Amount: $28,370,704 ($28.4M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2019-05-01

End Date: 2025-12-31

Contract Duration: 2,436 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE OBJECTIVE OF TASK ORDER W31P4Q-19-F-0188: AIR FORCE SECURITY ASSISTANCE TRAINING (AFSAT) REQUIRES THAT GTRI DEVELOP A 4-5 YEAR ROYAL SAUDI AIR FORCE (RSAF) IN-KINGDOM REPROGRAMMING (IKR) ELECTRONIC WARFARE (EW) TRAINING PROGRAM (32 COURSES TOTAL). THE CLASSES WILL BE TAUGHT AT THE UNCLASSIFIED LEVEL AND SHOULD INCORPORATE THE COURSE WORK DESCRIBED IN THE FOUR TRAINING PHASES: BASIC, FOCUSED, SPECIFIC AND INFORMATION TECHNOLOGY (IT)/INFORMATION ASSURANCE (IA) SECTIONS OF THE RSAF IKR KNOWLEDGE ROADMAP.

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $28.4 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: THE OBJECTIVE OF TASK ORDER W31P4Q-19-F-0188: AIR FORCE SECURITY ASSISTANCE TRAINING (AFSAT) REQUIRES THAT GTRI DEVELOP A 4-5 YEAR ROYAL SAUDI AIR FORCE (RSAF) IN-KINGDOM REPROGRAMMING (IKR) ELECTRONIC WARFARE (EW) TRAINING PROGRAM (32 COURSES TOTAL). THE CLASSES WILL BE TAUGHT A… Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Significant duration of over 6 years suggests a complex and long-term training requirement. 3. Focus on Electronic Warfare (EW) training indicates a critical capability development for a key ally. 4. The contract's value, while substantial, needs benchmarking against similar international training programs. 5. Lack of competition raises concerns about achieving optimal value for taxpayer investment. 6. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code may not fully capture the training service nature of this contract.

Value Assessment

Rating: questionable

The contract value of $28.37 million for a 4-5 year training program is substantial. Without comparable international training contracts for Electronic Warfare (EW) with similar scope and duration, a precise value-for-money assessment is difficult. The sole-source nature of the award means there was no competitive bidding process to establish a market-based price, which inherently raises concerns about whether the government achieved the best possible price. Further analysis would require benchmarking against similar EW training programs provided to other allied nations or assessing the cost breakdown of the training services provided by Georgia Tech Applied Research Corp.

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. The data indicates that only one offer was solicited and received. This approach bypasses the standard competitive procurement process, which typically involves soliciting bids from multiple vendors. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they generally lead to less price competition and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: The lack of competition means taxpayers did not benefit from the potential cost savings that could arise from a bidding war among multiple qualified contractors. This could translate to a higher overall expenditure for the services rendered.

Public Impact

The primary beneficiaries are the Royal Saudi Air Force (RSAF) personnel who will receive critical Electronic Warfare (EW) training. The services delivered include the development and execution of a comprehensive EW training program comprising 32 courses. The training is intended to be conducted 'in-kingdom,' suggesting a focus on building domestic capabilities within Saudi Arabia. This contract supports the development of specialized technical skills within the RSAF, potentially impacting their operational readiness and technological advancement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
The long contract duration (over 6 years) increases the risk of cost overruns or scope creep.
The specific nature of EW training requires highly specialized instructors and curriculum, which may limit the pool of qualified contractors.
Reliance on a single contractor for such a critical training program could pose a risk if performance issues arise.

Positive Signals

Georgia Tech Applied Research Corp is a reputable institution with significant research and development capabilities.
The contract addresses a specific and critical training need for a key international partner.
The training is designed to be delivered in-kingdom, fostering local expertise and potentially reducing long-term reliance on external support.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, though its primary function is training services. The market for specialized defense training, particularly in advanced areas like Electronic Warfare (EW), is often characterized by a limited number of highly specialized providers. International military training contracts can range from millions to billions of dollars, depending on the scope, duration, and technological complexity. This $28.37 million contract represents a significant investment in capability development for a foreign military.

Small Business Impact

The contract data indicates that this was not a small business set-aside, nor does it appear to involve significant subcontracting to small businesses based on the information provided. Georgia Tech Applied Research Corp is a large research institution. Therefore, this contract is unlikely to have a direct positive impact on the small business ecosystem within the federal contracting space.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense, specifically the Department of the Army, which awarded the delivery order. Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award, as there is less public information available compared to competed contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Foreign Military Sales (FMS) Program
Defense Security Cooperation Agency (DSCA) initiatives
International Training and Education Programs
Electronic Warfare Systems Development
Advanced Technical Training Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for unverified value for money
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.4 million to GEORGIA TECH APPLIED RESEARCH CORP. THE OBJECTIVE OF TASK ORDER W31P4Q-19-F-0188: AIR FORCE SECURITY ASSISTANCE TRAINING (AFSAT) REQUIRES THAT GTRI DEVELOP A 4-5 YEAR ROYAL SAUDI AIR FORCE (RSAF) IN-KINGDOM REPROGRAMMING (IKR) ELECTRONIC WARFARE (EW) TRAINING PROGRAM (32 COURSES TOTAL). THE CLASSES WILL BE TAUGHT AT THE UNCLASSIFIED LEVEL AND SHOULD INCORPORATE THE COURSE WORK DESCRIBED IN THE FOUR TRAINING PHASES: BASIC, FOCUSED, SPECIFIC AND INFORMATION TECHNOLOGY (IT)/INFORMATION ASSURANCE (IA) SECTIONS OF THE RSAF IKR KNOWLEDG

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 $28.4 million.

What is the period of performance?

Start: 2019-05-01. End: 2025-12-31.

What is Georgia Tech Applied Research Corp's track record in delivering similar international defense training programs, particularly in Electronic Warfare?

Georgia Tech Applied Research Corp (GTRI) has a strong reputation for research and development, including in defense-related fields. While specific details on their track record for delivering large-scale, multi-year Electronic Warfare (EW) training programs to foreign militaries like the Royal Saudi Air Force (RSAF) are not publicly detailed in this data, GTRI's core competencies in engineering, science, and technology suggest a capacity for such complex undertakings. Their involvement in defense research often includes technology development and integration, which can translate to training expertise. However, the absence of readily available public data on comparable international training contracts necessitates a deeper dive into GTRI's past performance reports and client testimonials to fully assess their suitability and experience for this specific task order.

How does the $28.37 million cost compare to similar international EW training programs, and what factors might justify this price?

Benchmarking the $28.37 million cost against similar international Electronic Warfare (EW) training programs is challenging without access to proprietary data or a broader market analysis of such specialized services. Factors that could justify this price include the complexity and duration of the training (4-5 years, 32 courses), the highly specialized nature of EW, the need for expert instructors, the development of custom training materials, and potentially the 'in-kingdom' delivery requirement which might involve logistical costs. The sole-source award, however, means there was no competitive process to validate this price against market alternatives. A thorough value assessment would require comparing the cost per training hour or per trainee against industry standards for comparable advanced military training, considering the specific technologies and threats involved.

What are the primary risks associated with awarding this significant training contract on a sole-source basis?

The primary risk associated with awarding this significant training contract on a sole-source basis is the potential for inflated costs due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the best possible price for the services rendered. This can lead to a suboptimal return on investment for taxpayer funds. Additionally, sole-source awards can sometimes indicate a lack of available qualified sources or a rushed procurement process, which might introduce risks related to contractor performance or the suitability of the chosen solution. Transparency is also reduced, making it harder for the public and oversight bodies to scrutinize the value and necessity of the expenditure.

How effective is the 'in-kingdom' delivery model for building long-term EW capabilities within the RSAF?

The 'in-kingdom' delivery model for Electronic Warfare (EW) training is generally considered an effective strategy for building long-term capabilities within a partner nation's military. By conducting training within Saudi Arabia, the Royal Saudi Air Force (RSAF) can integrate the learning directly into their operational environment, potentially fostering a more sustainable and self-sufficient training ecosystem. This approach allows for hands-on experience with relevant equipment and scenarios specific to their operational needs. Furthermore, it can reduce the logistical burden and costs associated with sending personnel abroad for training. The success of this model hinges on the quality of instruction, the availability of appropriate facilities, and the commitment of the RSAF to institutionalize the acquired knowledge and skills post-training.

What are the potential implications of the 'Research and Development' NAICS code for a primarily training-focused contract?

Assigning the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541715) code to a contract primarily focused on Electronic Warfare (EW) training services presents a potential mismatch. While the development of training curricula and materials might involve R&D elements, the core service being procured is instruction and skill development, which typically falls under different service-oriented NAICS codes (e.g., educational services, professional services). This classification could have implications for how the contract is categorized in government spending databases, potentially skewing R&D spending figures. It might also influence the types of contractors considered or the regulatory oversight applied, although in this case, Georgia Tech Applied Research Corp, with its strong R&D background, was deemed suitable. Clarity on the specific R&D components versus training services is crucial for accurate reporting and analysis.

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: $28,370,704

Exercised Options: $28,370,704

Current Obligation: $28,370,704

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $15,068,268

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