DoD's $34.4M contract for aircraft survivability R&D awarded to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $34,370,097 ($34.4M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2019-09-27

End Date: 2024-12-06

Contract Duration: 1,897 days

Daily Burn Rate: $18.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TO ISSUED IN ACCORDANCE WITH SECTION H-14, ORDERING PROCEDURES OF THE BASIC CONTRACT FOR PWS ENTITLED, "PROGRAM MANAGEMENT OFFICE (PMO) AIRCRAFT SURVIVABILITY EQUIPMENT (ASE)SYSTEM INTEGRATION LABORATORY (SIL) SUPPORT"

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $34.4 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: TO ISSUED IN ACCORDANCE WITH SECTION H-14, ORDERING PROCEDURES OF THE BASIC CONTRACT FOR PWS ENTITLED, "PROGRAM MANAGEMENT OFFICE (PMO) AIRCRAFT SURVIVABILITY EQUIPMENT (ASE)SYSTEM INTEGRATION LABORATORY (SIL) SUPPORT" Key points: 1. Contract focuses on critical aircraft survivability equipment (ASE) system integration laboratory (SIL) support. 2. Awarded as a delivery order under an existing basic contract, indicating a continuation of services. 3. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. 4. Duration of over 1800 days suggests a long-term, complex project. 5. The specific NAICS code points to research and development in physical, engineering, and life sciences. 6. Georgia Tech Applied Research Corp is a known entity in the research and development sector.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can sometimes lead to higher costs if not managed carefully. Benchmarking the specific value is difficult without more detailed cost breakdowns and comparisons to similar R&D support contracts. The fixed fee component provides some cost control, but the cost-reimbursement aspect requires diligent oversight to ensure efficiency and prevent overspending. The total value of $34.4 million over nearly five years suggests a significant investment in this specialized area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a delivery order under an existing basic contract and was not competed. The data indicates it was awarded 'NOT COMPETED'. This suggests that Georgia Tech Applied Research Corp was likely the only source capable of fulfilling the specific requirements of the PWS, or that the existing contract vehicle was leveraged for expediency. The lack of competition means there was no opportunity for price discovery through a bidding process.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the potentially lower prices that could have resulted from a competitive bidding process.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Department of the Army, through enhanced aircraft survivability. Services delivered include program management office (PMO) support for aircraft survivability equipment (ASE) system integration. The geographic impact is primarily within the United States, supporting defense research and development efforts. Workforce implications include specialized research, engineering, and program management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars.
Cost-plus contracts require robust oversight to ensure costs are reasonable and necessary.
The long duration of the contract could lead to scope creep if not managed effectively.

Positive Signals

Award to Georgia Tech Applied Research Corp suggests access to specialized expertise in R&D.
Delivery order under an existing contract implies a streamlined process and potentially established working relationship.
Focus on aircraft survivability is critical for military operational effectiveness and personnel safety.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is highly specialized, often involving a limited number of contractors with the requisite expertise and security clearances. Spending in this area is driven by national security needs and technological advancements. Comparable spending benchmarks would typically be found within other DoD R&D contracts for similar system integration and laboratory support services.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting goals for this contract. Given the specialized nature of R&D and system integration support for defense applications, it is possible that the prime contractor is a large entity, and subcontracting opportunities for small businesses may be limited or not explicitly mandated in this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to the performance work statement (PWS) and the terms of the Cost Plus Fixed Fee contract. Transparency is generally maintained through contract databases, but detailed cost breakdowns and performance reviews may be less publicly accessible due to the sensitive nature of defense R&D.

Related Government Programs

Aircraft Survivability Equipment (ASE)
System Integration Laboratory (SIL)
Program Management Office (PMO) Support
Department of Defense Research and Development
Cost Plus Fixed Fee Contracts

Risk Flags

Sole-source award may limit price competition.
Cost-plus contract type requires diligent cost oversight.
Long contract duration increases risk of scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.4 million to GEORGIA TECH APPLIED RESEARCH CORP. TO ISSUED IN ACCORDANCE WITH SECTION H-14, ORDERING PROCEDURES OF THE BASIC CONTRACT FOR PWS ENTITLED, "PROGRAM MANAGEMENT OFFICE (PMO) AIRCRAFT SURVIVABILITY EQUIPMENT (ASE)SYSTEM INTEGRATION LABORATORY (SIL) SUPPORT"

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 $34.4 million.

What is the period of performance?

Start: 2019-09-27. End: 2024-12-06.

What is the track record of Georgia Tech Applied Research Corp with the Department of Defense, particularly in R&D contracts?

Georgia Tech Applied Research Corp (GTARC) has a significant history of working with the Department of Defense (DoD) and other federal agencies on research and development projects. As a component of the Georgia Institute of Technology, GTARC leverages academic expertise and resources to conduct advanced research. Their track record typically includes a wide range of scientific and engineering disciplines relevant to defense, such as aerospace, materials science, and systems engineering. Specific to contracts like this one, GTARC often engages in complex system integration, testing, and analysis. While this specific contract is a delivery order under a basic contract, GTARC's broader history suggests a capacity to handle substantial R&D efforts. Detailed performance reviews and past performance information would be available through federal procurement databases, but generally, GTARC is recognized as a capable research institution for defense-related work.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other R&D contract types in terms of value for money?

The Cost Plus Fixed Fee (CPFF) contract structure is common for research and development efforts where the scope of work can be uncertain or evolve. In a CPFF contract, the contractor is reimbursed for allowable costs incurred, plus a fixed fee representing profit. This structure aims to provide flexibility for R&D projects that may encounter unforeseen challenges or require adjustments. From a value-for-money perspective, CPFF can be advantageous when innovation and exploration are paramount, as it incentivizes the contractor to perform the work without being overly constrained by a fixed price that might stifle creativity. However, it also carries a risk of cost overruns if not managed diligently, as the government bears the cost risk. Compared to Firm-Fixed-Price (FFP) contracts, CPFF generally offers less price certainty for the government but more flexibility for the contractor. For R&D, the value is often in the outcome and the knowledge gained, which CPFF can facilitate, but rigorous oversight is crucial to ensure costs remain reasonable and the fixed fee is justified.

What are the primary risks associated with a sole-source award for a contract of this magnitude and duration?

The primary risks associated with a sole-source award for a contract valued at $34.4 million over nearly five years are centered around cost and performance. Without competition, there is a reduced incentive for the contractor to offer the most competitive pricing, potentially leading to higher costs for the government than if the contract had been competed. This lack of price discovery is a significant risk. Furthermore, a sole-source award can sometimes indicate a lack of available qualified sources or a reliance on a single entity, which can create dependency and limit future options. Performance risks also exist; while Georgia Tech Applied Research Corp is likely a capable entity, the absence of competitive pressure might, in some cases, reduce the urgency to innovate or optimize performance. Robust contract management, clear performance metrics, and strong oversight are essential to mitigate these risks.

How does the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) typically influence contract performance and oversight?

The NAICS code 541715 signifies that this contract is for research and development activities in the physical, engineering, and life sciences, excluding nanotechnology and biotechnology. This classification typically implies a focus on scientific inquiry, experimentation, and the development of new knowledge or technologies. Contracts under this code often involve complex, long-term projects with uncertain outcomes. Consequently, performance is usually measured against milestones, deliverables, and the achievement of specific research objectives rather than easily quantifiable outputs. Oversight for such contracts requires specialized technical expertise to assess the progress and quality of the research. Contract managers need to understand the scientific methodologies being employed and evaluate the validity of the findings. The CPFF structure, often used for R&D, necessitates close monitoring of costs and effort to ensure efficiency and prevent scope creep, as the path to achieving research goals can be unpredictable.

What are the potential implications of this contract on the broader market for aircraft survivability R&D?

This contract, awarded to Georgia Tech Applied Research Corp, represents a significant investment in aircraft survivability R&D by the Department of the Army. As a sole-source award under an existing basic contract, its immediate impact on market competition is limited. However, it signals continued government focus and funding in this critical area. For Georgia Tech Applied Research Corp, it reinforces their position as a key player in defense R&D. The long duration and substantial value suggest a stable, albeit non-competitive, revenue stream for the contractor. Broader market implications might include influencing research priorities and attracting talent to the field of aircraft survivability. If this contract leads to significant technological advancements, it could shape future requirements and potentially open up new avenues for competition in subsequent contract vehicles or related R&D areas once the current contract concludes.

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: $46,032,176

Exercised Options: $34,370,097

Current Obligation: $34,370,097

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