Army Awards $24.7M R&D Contract to Georgia Tech for Air and Missile Defense Support

Contract Overview

Contract Amount: $23,693,162 ($23.7M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2019-07-29

End Date: 2023-09-22

Contract Duration: 1,516 days

Daily Burn Rate: $15.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS IS A RESEARCH AND DEVELOPMENT SERVICES FOR ARMY INTEGRATED AIR AND MISSILE DEFENSE TECHNICAL SUPPORT. THE TOTAL TASK ORDER AMOUNT IS $24,671,488.59 WITH A PERIOD OF PERFORMANCE THROUGH 3 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 $23.7 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: THIS IS A RESEARCH AND DEVELOPMENT SERVICES FOR ARMY INTEGRATED AIR AND MISSILE DEFENSE TECHNICAL SUPPORT. THE TOTAL TASK ORDER AMOUNT IS $24,671,488.59 WITH A PERIOD OF PERFORMANCE THROUGH 3 YEARS. THIS TASK ORDER IS INCREMENTALLY FUNDED. Key points: 1. Significant investment in critical Army air and missile defense capabilities. 2. Sole-source award to Georgia Tech Applied Research Corp, a known entity in defense R&D. 3. Potential for cost overruns due to Cost Plus Fixed Fee contract type. 4. Focus on advanced research and development in a high-priority defense sector.

Value Assessment

Rating: fair

The $24.7 million task order is for R&D services. Without comparable contract data, it's difficult to definitively assess pricing. The Cost Plus Fixed Fee structure carries inherent risk of costs exceeding initial estimates.

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 potentially leads to higher costs compared to a competitive process.

Taxpayer Impact: Taxpayers may bear a higher cost due to the lack of competition, though the specialized nature of the R&D may justify the award to a specific entity.

Public Impact

Enhances national security through advanced air and missile defense technology. Supports a key research institution, fostering innovation in a critical field. Long-term contract duration suggests sustained need for these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
Incremental funding

Positive Signals

Supports critical defense R&D
Award to established research institution

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining technological superiority, particularly in defense applications like missile defense.

Small Business Impact

The awardee, Georgia Tech Applied Research Corp, is not a small business. There is no indication that small business participation was a requirement or a consideration in this sole-source award.

Oversight & Accountability

The incremental funding approach requires careful monitoring to ensure funds are used effectively and that the project stays within budget. Oversight is crucial for Cost Plus Fixed Fee contracts.

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 potential cost savings.
Cost Plus Fixed Fee contract type can lead to cost overruns.
Incremental funding requires diligent oversight to manage budget.
Lack of detailed performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to GEORGIA TECH APPLIED RESEARCH CORP. THIS IS A RESEARCH AND DEVELOPMENT SERVICES FOR ARMY INTEGRATED AIR AND MISSILE DEFENSE TECHNICAL SUPPORT. THE TOTAL TASK ORDER AMOUNT IS $24,671,488.59 WITH A PERIOD OF PERFORMANCE THROUGH 3 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 $23.7 million.

What is the period of performance?

Start: 2019-07-29. End: 2023-09-22.

What is the specific technical scope of the R&D services, and how does it align with current Army air and missile defense priorities?

The provided data lacks specific details on the R&D scope. However, the contract is for 'Army Integrated Air and Missile Defense Technical Support.' This suggests work related to developing, testing, or improving systems designed to detect, track, and intercept aerial threats, aligning with ongoing military needs for advanced defense capabilities.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure value for money?

Specific KPIs are not detailed in the provided data. For a Cost Plus Fixed Fee R&D contract, value is typically assessed through the successful completion of research milestones, technical advancements achieved, and adherence to project timelines. The contracting officer and technical team would monitor progress against the SOW.

Given the sole-source nature, what steps were taken to ensure the fixed fee is reasonable and reflects fair market value for the services?

While the data states 'NOT COMPETED,' the agency likely conducted a price analysis based on historical data, industry benchmarks, or cost proposals from the contractor to determine a reasonable fixed fee. However, without a competitive process, the rigor of this analysis is less transparent.

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: $24,231,360

Exercised Options: $23,693,162

Current Obligation: $23,693,162

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