DoD Awards $40.4M for Electronic Warfare R&D to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $39,024,904 ($39.0M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2019-09-30

End Date: 2024-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $21.4K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS IS A RESEARCH AND DEVELOPMENT SERVICE FOR ELECTRONIC WARFARE RESEARCH AND DEVELOPMENT. THE TOTAL TASK ORDER AMOUNT IS $40,378,496.37 WITH A PERIOD OF PERFORMANCE THROUGH 2 YEARS. THIS TASK ORDER IS INCREMENTALLY FUNDED.

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $39.0 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: THIS IS A RESEARCH AND DEVELOPMENT SERVICE FOR ELECTRONIC WARFARE RESEARCH AND DEVELOPMENT. THE TOTAL TASK ORDER AMOUNT IS $40,378,496.37 WITH A PERIOD OF PERFORMANCE THROUGH 2 YEARS. THIS TASK ORDER IS INCREMENTALLY FUNDED. Key points: 1. The contract focuses on critical Electronic Warfare R&D, a high-priority area for national security. 2. Georgia Tech Applied Research Corp, a non-profit research institute, is the sole awardee. 3. The contract is incrementally funded, suggesting potential for future funding adjustments. 4. The NAICS code 541715 indicates a focus on physical, engineering, and life sciences R&D.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the $40.4 million price is optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to the government compared to a competitive process.

Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds for this significant R&D investment.

Public Impact

Advancement in electronic warfare capabilities is crucial for maintaining military technological superiority. The funding supports research that could lead to next-generation defense systems. Long-term performance period allows for in-depth research and development. The awardee's expertise in applied research is a key factor in this specialized field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Cost-plus fixed-fee contract type carries inherent cost risk.
Incremental funding requires careful monitoring of budget execution.

Positive Signals

Awardee has specialized expertise in a critical R&D area.
Long performance period allows for thorough research.
Focus on electronic warfare aligns with national security priorities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is critical for innovation but requires rigorous oversight to ensure value for money, especially in sole-source awards.

Small Business Impact

This award was made to Georgia Tech Applied Research Corp, which is not a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is meeting performance milestones and that costs are reasonable and allocable. The Department of the Army should ensure robust program management and financial tracking.

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

Lack of competition may lead to inflated costs.
Cost-plus fixed-fee contracts can incentivize cost overruns.
Incremental funding requires careful budget management.
Potential for scope creep in R&D projects.
Ensuring effective knowledge transfer and utilization of research outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.0 million to GEORGIA TECH APPLIED RESEARCH CORP. THIS IS A RESEARCH AND DEVELOPMENT SERVICE FOR ELECTRONIC WARFARE RESEARCH AND DEVELOPMENT. THE TOTAL TASK ORDER AMOUNT IS $40,378,496.37 WITH A PERIOD OF PERFORMANCE THROUGH 2 YEARS. THIS TASK ORDER IS INCREMENTALLY FUNDED.

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 $39.0 million.

What is the period of performance?

Start: 2019-09-30. End: 2024-09-29.

What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities or a lack of available sources. To ensure fair and reasonable pricing, the contracting officer should have conducted a thorough price analysis, potentially using historical data, cost realism analysis, or market research to establish a benchmark. Regular audits and performance reviews are also crucial.

How will the government ensure effective oversight of the Cost Plus Fixed Fee contract to mitigate cost overruns and ensure research objectives are met?

Effective oversight will involve detailed monitoring of contractor expenditures against the fixed fee, regular progress reviews, and independent technical assessments of research outcomes. The government should establish clear performance metrics and milestones, and maintain open communication channels with the contractor to address any emerging issues promptly. Audits of financial records will be essential.

What are the key performance indicators (KPIs) for this R&D contract, and how will their achievement be measured to determine the overall effectiveness of the award?

Key performance indicators could include the successful development of specific electronic warfare technologies, achievement of defined technical performance thresholds, timely delivery of research reports and prototypes, and adherence to budget constraints. Effectiveness will be measured by the government's assessment of whether these KPIs are met and how well the developed technologies contribute to operational capabilities.

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: $40,378,496

Exercised Options: $39,024,904

Current Obligation: $39,024,904

Actual Outlays: $4,113,583

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