DoD awards $39.8M contract for acoustic swarm research, raising questions on competition and value

Contract Overview

Contract Amount: $39,858,059 ($39.9M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2020-09-25

End Date: 2024-09-25

Contract Duration: 1,461 days

Daily Burn Rate: $27.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TASK ORDER W31P4Q-20-F-0511 (S3I CONTROL NUMBER 275-0A) IS ISSUED IN ACCORDANCE WITH SECTION H-14, ORDERING PROCEDURES OF THE BASIC CONTRACT, FOR THE PERFORMANCE WORK STATEMENT (PWS) ENTITLED, " BEAMFORMING ACOUSTIC TACTICAL SWARM".

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $39.9 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: TASK ORDER W31P4Q-20-F-0511 (S3I CONTROL NUMBER 275-0A) IS ISSUED IN ACCORDANCE WITH SECTION H-14, ORDERING PROCEDURES OF THE BASIC CONTRACT, FOR THE PERFORMANCE WORK STATEMENT (PWS) ENTITLED, " BEAMFORMING ACOUSTIC TACTICAL SWARM". Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can incentivize cost overruns. 2. The contract was not competed, limiting potential for price discovery and cost savings. 3. Research and Development in Physical, Engineering, and Life Sciences is a broad category with varying cost benchmarks. 4. The contract duration of nearly four years suggests a significant scope of work. 5. The specific application of 'Beamforming Acoustic Tactical Swarm' indicates a specialized, potentially high-risk R&D effort. 6. The awardee, Georgia Tech Applied Research Corp, is a known entity in research and development.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure requires careful monitoring to ensure value for money, as it shifts some cost risk to the government. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The total award amount of $39.8 million over four years for specialized R&D in acoustic swarm technology warrants scrutiny to ensure the costs are reasonable and reflect the actual effort and innovation required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This significantly limits the government's ability to leverage competition to drive down prices and ensure the most innovative solutions are considered. The lack of competition means that the pricing and terms were negotiated directly with Georgia Tech Applied Research Corp, without the benefit of market forces.

Taxpayer Impact: The absence of competition means taxpayers may not have received the best possible price for this research and development effort. Without competing bids, there is a risk that the awarded amount is higher than it would have been in a competitive scenario.

Public Impact

The primary beneficiaries are likely the Department of Defense, specifically the Department of the Army, through advancements in acoustic swarm technology. The contract aims to deliver research and development services for 'Beamforming Acoustic Tactical Swarm' capabilities. The geographic impact is primarily within Georgia, where Georgia Tech Applied Research Corp is located, but the technology's application could be global. Workforce implications include specialized research and engineering roles at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited innovation.
Cost-plus-fixed-fee contracts can lead to cost overruns if not managed stringently.
The specialized nature of the R&D may present unforeseen technical challenges and cost increases.

Positive Signals

Georgia Tech Applied Research Corp is a reputable institution with a track record in R&D.
The contract is for a specific, potentially critical, defense technology area.
The fixed fee component provides some level of cost certainty for the contractor's effort.

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 characterized by specialized expertise, long development cycles, and significant government investment. Comparable spending benchmarks are difficult to establish due to the unique nature of 'Beamforming Acoustic Tactical Swarm' technology, but R&D contracts of this magnitude are common within the defense sector, often awarded to universities and specialized research institutions.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The awardee is a large research corporation, indicating the primary focus is on specialized expertise rather than fostering small business participation. This contract is unlikely to have a direct positive impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to the achievement of milestones outlined in the Performance Work Statement (PWS). Transparency may be limited due to the sole-source nature and the classified or sensitive aspects of defense R&D. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Army Advanced Technology Development Contracts
Acoustic and Sensor Technology Research
Unmanned Systems Research

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.9 million to GEORGIA TECH APPLIED RESEARCH CORP. TASK ORDER W31P4Q-20-F-0511 (S3I CONTROL NUMBER 275-0A) IS ISSUED IN ACCORDANCE WITH SECTION H-14, ORDERING PROCEDURES OF THE BASIC CONTRACT, FOR THE PERFORMANCE WORK STATEMENT (PWS) ENTITLED, " BEAMFORMING ACOUSTIC TACTICAL SWARM".

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 $39.9 million.

What is the period of performance?

Start: 2020-09-25. End: 2024-09-25.

What is the specific technical objective of the 'Beamforming Acoustic Tactical Swarm' research?

The specific technical objective of the 'Beamforming Acoustic Tactical Swarm' research, as indicated by the contract title, is to develop and advance capabilities related to coordinated acoustic sensing and potentially action by a group (swarm) of tactical assets. Beamforming is a signal processing technique used to direct or isolate a signal from a specific direction, while acoustic refers to sound. Therefore, this likely involves research into how multiple platforms can use sound to detect, track, or communicate, and how their acoustic sensors can be electronically steered or combined to enhance performance, identify targets, or operate in a coordinated manner. This could have applications in areas such as underwater surveillance, mine detection, or navigation.

How does the cost-plus-fixed-fee (CPFF) contract structure compare to other R&D contract types in terms of risk and value?

The Cost-Plus-Fixed-Fee (CPFF) contract structure is common for research and development efforts where the scope of work is not precisely defined at the outset, making it difficult to establish a firm fixed price. In a CPFF contract, the government agrees to pay the contractor's actual allowable costs plus a fixed fee representing profit. This structure shifts a significant portion of the cost risk to the government, as the final price is not capped. While it allows for flexibility and encourages innovation by removing the contractor's disincentive to incur costs, it can also lead to cost overruns if not rigorously managed. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less price certainty for the government but greater flexibility for the contractor to adapt to evolving research needs. Cost-reimbursement contracts without a fixed fee are even riskier for the government. For R&D, CPFF is often chosen when the technical approach is uncertain, but it necessitates strong government oversight to ensure costs remain reasonable and aligned with project goals.

What are the potential risks associated with awarding a sole-source R&D contract of this magnitude?

Awarding a sole-source R&D contract of $39.8 million carries several potential risks. Firstly, the lack of competition means the government may not be obtaining the best possible price or the most innovative solution available in the market. Without competing proposals, there's a risk of paying a premium. Secondly, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single contractor, potentially stifling broader technological advancement. Thirdly, if the chosen contractor underperforms or encounters unforeseen difficulties, the government has limited recourse to switch to a more capable provider without significant disruption and cost. Finally, sole-source awards can raise perceptions of favoritism or a lack of transparency, potentially impacting public trust and contractor morale.

What is Georgia Tech Applied Research Corp's track record in similar defense R&D contracts?

Georgia Tech Applied Research Corp (GTARC) is a well-established entity affiliated with the Georgia Institute of Technology, known for its extensive work in various research and development fields, including defense. GTARC has a history of securing and successfully executing numerous government contracts, particularly with the Department of Defense and its various branches. Their expertise often lies in areas such as aerospace, defense systems, sensor technology, and advanced materials. While specific details of past contracts require deeper investigation, GTARC's general reputation suggests a strong capability to handle complex R&D projects. Their involvement in defense R&D is substantial, indicating a proven ability to meet technical requirements and manage large-scale research initiatives, though the specifics of their performance on similar acoustic or swarm-related projects would need further examination.

How does the $39.8 million award compare to typical spending on specialized defense R&D projects?

The $39.8 million award for 'Beamforming Acoustic Tactical Swarm' research is a significant but not unusual figure for specialized defense R&D projects. The Department of Defense invests billions annually in research, development, testing, and evaluation (RDT&E). Projects involving cutting-edge technologies like advanced sensor systems, artificial intelligence for defense applications, or novel platform capabilities often fall within this funding range or exceed it. For instance, contracts for developing new unmanned systems, advanced materials, or sophisticated electronic warfare capabilities can easily reach tens of millions of dollars over several years. The 'tactical swarm' aspect suggests a focus on networked, autonomous, or semi-autonomous systems, which is a high-priority area for defense modernization. Therefore, while substantial, this award is consistent with the investment required for developing potentially game-changing defense technologies.

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: $45,654,166

Exercised Options: $45,654,166

Current Obligation: $39,858,059

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