DoD Awards $19M for USAFE Range Systems Sustainment to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $18,961,207 ($19.0M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2020-09-16

End Date: 2026-07-20

Contract Duration: 2,133 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TASK ORDER W31P4Q20F0295 IS ISSUED IN ACCORDANCE WITH SECTION H-14, ORDERING PROCEDURES OF THE BASIC CONTRACT, FOR THE (PWS) ENTITLED "UNITED STATES AIR FORCES IN EUROPE AREA OF RESPONSIBILITY (AOR)/DEPLOYED RANGE SYSTEMS SUSTAINMENT AND SUPPORT."

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: TASK ORDER W31P4Q20F0295 IS ISSUED IN ACCORDANCE WITH SECTION H-14, ORDERING PROCEDURES OF THE BASIC CONTRACT, FOR THE (PWS) ENTITLED "UNITED STATES AIR FORCES IN EUROPE AREA OF RESPONSIBILITY (AOR)/DEPLOYED RANGE SYSTEMS SUSTAINMENT AND SUPPORT." Key points: 1. This contract focuses on sustainment and support for deployed range systems within the USAFE AOR. 2. The award is a delivery order under an existing basic contract. 3. The primary contractor, Georgia Tech Applied Research Corp, specializes in R&D services. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type allows for cost reimbursement plus a fixed fee. Without detailed cost breakdowns and performance metrics, it's difficult to assess if the pricing is competitive against similar contracts. The fixed fee component provides some incentive for the contractor to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating it was likely awarded under specific circumstances, possibly due to the specialized nature of the services or a pre-existing relationship. The lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition for this significant award means taxpayers may not be receiving the best possible price for these critical sustainment services.

Public Impact

Ensures operational readiness of critical deployed range systems for the US Air Forces in Europe. Supports advanced research and development capabilities through Georgia Tech Applied Research Corp. Potential for cost inefficiencies due to the sole-source, cost-plus-fixed-fee contract structure. Impacts the efficiency and effectiveness of military training and operations in the European theater.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
Potential for cost overruns

Positive Signals

Supports critical Air Force operations
Leverages specialized R&D expertise

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for maintaining technological superiority, but requires careful oversight to ensure value for money, especially in sole-source awards.

Small Business Impact

The data indicates this contract was awarded to Georgia Tech Applied Research Corp and does not mention any small business participation. Further investigation would be needed to determine if small businesses were subcontracted.

Oversight & Accountability

The award was made under Section H-14 of the basic contract, suggesting adherence to established ordering procedures. However, the lack of competition warrants close oversight to ensure the contractor is performing efficiently and costs are reasonable.

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 competitive bidding
Potential for cost overruns due to CPFF structure
Limited transparency on pricing justification
Reliance on a single contractor for critical systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to GEORGIA TECH APPLIED RESEARCH CORP. TASK ORDER W31P4Q20F0295 IS ISSUED IN ACCORDANCE WITH SECTION H-14, ORDERING PROCEDURES OF THE BASIC CONTRACT, FOR THE (PWS) ENTITLED "UNITED STATES AIR FORCES IN EUROPE AREA OF RESPONSIBILITY (AOR)/DEPLOYED RANGE SYSTEMS SUSTAINMENT AND 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 $19.0 million.

What is the period of performance?

Start: 2020-09-16. End: 2026-07-20.

What specific technical capabilities does Georgia Tech Applied Research Corp possess that justify a sole-source award for USAFE range systems sustainment?

Georgia Tech Applied Research Corp likely possesses highly specialized expertise and proprietary knowledge related to the specific range systems used by the USAFE. This could include unique engineering skills, access to specialized testing facilities, or a deep understanding of the system's lifecycle maintenance requirements, making them the only viable option for sustainment without significant knowledge transfer costs or delays.

How will the Department of Defense ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded without competition?

The DoD should implement rigorous performance monitoring, regular audits of contractor costs, and establish clear milestones and deliverables. Benchmarking against industry standards for similar services, even if not directly comparable, can provide some cost control. Strong contract management and negotiation by the contracting officer are essential to mitigate risks associated with cost-plus contracts, especially sole-source ones.

What is the long-term strategy for ensuring competitive pricing for future sustainment needs of these range systems?

The DoD should explore options for breaking down future sustainment requirements into more competitive packages or investigate opportunities for technology insertion that could lead to more standardized, less specialized needs. Conducting market research to identify potential new entrants or alternative solutions could also pave the way for future competitive procurements, driving down costs and increasing innovation.

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: $48,719,568

Exercised Options: $18,961,207

Current Obligation: $18,961,207

Actual Outlays: $4,756,560

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,800,152

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