Army Awards $43M Advanced Avionics Research Contract to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $42,951,927 ($43.0M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2019-08-09

End Date: 2024-04-30

Contract Duration: 1,726 days

Daily Burn Rate: $24.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TO W31P4Q19F0447 IS IAW WITH SECTION H-14, ORDERING PROCEDURES OF THE BASIC CONTRACT, FOR THE PWS ENTITLED, ADVANCED AVIONICS RESEARCH&SYSTEMS ENGINEERING FOR ARMY AVIATION PLATFORMS. POP FROM DATE OF AWARD THROUGH FIVE (5) YEARS.

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $43.0 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: TO W31P4Q19F0447 IS IAW WITH SECTION H-14, ORDERING PROCEDURES OF THE BASIC CONTRACT, FOR THE PWS ENTITLED, ADVANCED AVIONICS RESEARCH&SYSTEMS ENGINEERING FOR ARMY AVIATION PLATFORMS. POP FROM DATE OF AWARD THROUGH FIVE (5) YEARS. Key points: 1. This contract focuses on critical research and systems engineering for Army aviation platforms. 2. The award is a sole-source contract, indicating limited competition. 3. Potential risks include the lack of competitive pricing and the long performance period. 4. The sector is Research and Development, specifically in physical and engineering sciences.

Value Assessment

Rating: questionable

The contract value of $42.95 million over approximately five years is substantial. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar R&D contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition may result in the government paying a premium for these advanced avionics research services.

Public Impact

Enhances the capabilities of Army aviation platforms through advanced research. Supports technological development in a critical defense sector. Potential for innovation in avionics systems that could have broader applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Long contract duration (5 years) increases exposure to potential cost overruns.
Cost-plus fixed fee contract type can incentivize higher costs if not managed closely.

Positive Signals

Addresses critical R&D needs for Army aviation.
Georgia Tech Applied Research Corp is a specialized entity likely possessing unique expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight due to its specialized nature and often complex pricing structures.

Small Business Impact

The contract was awarded to Georgia Tech Applied Research Corp and does not indicate any subcontracting opportunities for small businesses. The sole-source nature further limits the potential for small business participation.

Oversight & Accountability

The contract is a delivery order under a basic contract, implying some level of pre-award oversight. However, the sole-source nature necessitates robust post-award monitoring to ensure cost efficiency and adherence to the PWS.

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
Cost-plus fixed fee contract type
Long performance period
Lack of competitive pricing benchmarks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.0 million to GEORGIA TECH APPLIED RESEARCH CORP. TO W31P4Q19F0447 IS IAW WITH SECTION H-14, ORDERING PROCEDURES OF THE BASIC CONTRACT, FOR THE PWS ENTITLED, ADVANCED AVIONICS RESEARCH&SYSTEMS ENGINEERING FOR ARMY AVIATION PLATFORMS. POP FROM DATE OF AWARD THROUGH FIVE (5) YEARS.

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 $43.0 million.

What is the period of performance?

Start: 2019-08-09. End: 2024-04-30.

What is the justification for the sole-source award, and what steps were taken to ensure the price is fair and reasonable given the lack of competition?

The justification for a sole-source award typically involves a unique capability or proprietary technology held by the contractor. Agencies must document this justification thoroughly. To ensure price reasonableness, the government might use historical pricing data, independent cost estimates, or benchmark against similar, albeit potentially less specialized, contracts. However, without direct competition, achieving optimal price discovery remains challenging.

What are the specific performance metrics and deliverables for this advanced avionics research, and how will their achievement be measured to ensure effectiveness?

Effectiveness will be measured by the successful completion of defined research objectives and system engineering milestones outlined in the Performance Work Statement (PWS). Key deliverables likely include research reports, prototype designs, simulation results, and potentially functional prototypes. The government will monitor progress through regular reviews, technical evaluations of deliverables, and potentially independent verification of research outcomes against established scientific and engineering standards.

Given the Cost Plus Fixed Fee (CPFF) contract type, what controls are in place to manage costs and prevent potential overruns during the five-year performance period?

With a CPFF contract, the government bears the cost, and the contractor receives a fixed fee. To manage costs, stringent oversight is crucial. This includes detailed review of all incurred costs, regular budget reviews, establishing cost ceilings, and potentially implementing award-fee provisions tied to cost control. The government contracting officer must actively monitor expenditures against the estimated cost and the fixed fee to ensure the project stays within budget.

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: $43,663,109

Exercised Options: $42,951,927

Current Obligation: $42,951,927

Actual Outlays: $454,140

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $9,578,255

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