DoD awards $42M R&D contract to Georgia Tech for national security solutions

Contract Overview

Contract Amount: $42,000,544 ($42.0M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2019-07-31

End Date: 2024-07-31

Contract Duration: 1,827 days

Daily Burn Rate: $23.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TASK ORDER W31P4Q-19-F-0273 ADDRESS HIGH-INTEREST PROBLEMS FROM STRATEGIC CAPABILITIES OFFICE (SCO) AND ITS MISSION PARTNERS AFFECTING NATIONAL SECURITY AND PROVIDE ANALYTICAL ASSESSMENTS AND SOLUTION RECOMMENDATIONS

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30332

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $42.0 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: TASK ORDER W31P4Q-19-F-0273 ADDRESS HIGH-INTEREST PROBLEMS FROM STRATEGIC CAPABILITIES OFFICE (SCO) AND ITS MISSION PARTNERS AFFECTING NATIONAL SECURITY AND PROVIDE ANALYTICAL ASSESSMENTS AND SOLUTION RECOMMENDATIONS Key points: 1. The contract focuses on high-interest problems for national security, indicating critical mission support. 2. Georgia Tech Applied Research Corp is the sole awardee, raising questions about competition. 3. The R&D sector is prone to long development cycles and evolving requirements, posing inherent risks. 4. Spending in the R&D sector can be high, making efficient resource allocation crucial.

Value Assessment

Rating: questionable

The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking is difficult without specific deliverables, but the duration and value suggest a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning potential cost savings and broader innovation from a competitive bidding process were forgone. The sole-source nature limits price discovery and may not reflect market rates.

Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible value for this significant investment.

Public Impact

National security implications: The contract aims to address critical issues affecting national security. Research and Development focus: Funds advanced research with potential for technological breakthroughs. Sole-source award: Raises questions about fairness and potential for higher costs to taxpayers. Long-term commitment: The 5-year duration suggests a sustained effort on complex problems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Long contract duration

Positive Signals

Addresses critical national security needs
Supports advanced R&D

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is vital for technological advancement but requires careful oversight due to the inherent uncertainties and long timelines.

Small Business Impact

The awardee is Georgia Tech Applied Research Corp, a large entity. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is performing efficiently and that costs are reasonable. Transparency in reporting and regular performance reviews are essential.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competition and price discovery.
Cost-plus contract type increases risk of cost overruns.
Long contract duration (5 years) may not align with rapidly changing needs.
Lack of transparency on specific R&D objectives and expected outcomes.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.0 million to GEORGIA TECH APPLIED RESEARCH CORP. TASK ORDER W31P4Q-19-F-0273 ADDRESS HIGH-INTEREST PROBLEMS FROM STRATEGIC CAPABILITIES OFFICE (SCO) AND ITS MISSION PARTNERS AFFECTING NATIONAL SECURITY AND PROVIDE ANALYTICAL ASSESSMENTS AND SOLUTION RECOMMENDATIONS

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 $42.0 million.

What is the period of performance?

Start: 2019-07-31. End: 2024-07-31.

What specific national security problems are being addressed, and how does the chosen research approach offer the best value?

The contract aims to address 'high-interest problems from the Strategic Capabilities Office (SCO) and its mission partners affecting national security.' Without further details on the specific problems or the proposed solutions, it's difficult to assess the value proposition. The sole-source nature means the government accepted Georgia Tech's proposed approach without competitive validation, increasing the risk that alternative, potentially more cost-effective or innovative solutions were overlooked.

Given the sole-source award and cost-plus fixed fee structure, what mechanisms are in place to mitigate cost overruns and ensure fair pricing?

The cost-plus fixed fee (CPFF) structure inherently carries a risk of cost overruns. Mitigation relies heavily on robust government oversight, including detailed audits, regular progress reviews, and strict adherence to the contract's scope. The absence of competition means there's no market benchmark to validate pricing, making diligent government cost analysis and negotiation critical to ensure taxpayer funds are used efficiently.

How will the effectiveness of the R&D outcomes be measured, particularly given the long-term nature and potential for evolving requirements in national security?

Measuring the effectiveness of R&D, especially for national security, is challenging. Success metrics should be clearly defined in the contract, focusing on milestones, deliverables, and the potential applicability of research findings. Given the 5-year duration, the government must maintain flexibility to adapt requirements while ensuring accountability through regular performance evaluations and independent assessments of the research's progress and potential impact.

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: $97,357,466

Exercised Options: $42,000,544

Current Obligation: $42,000,544

Actual Outlays: $13,639,161

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