DoD's $100M R&D contract to Georgia Tech Applied Research Corp for Open Architecture enablement

Contract Overview

Contract Amount: $10,025,719 ($10.0M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2021-02-12

End Date: 2026-08-26

Contract Duration: 2,021 days

Daily Burn Rate: $5.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: OMNIBUS OPEN ARCHITECTURE 2 - ENABLE INSTANTIATION OF OPEN STANDARDS ACROSS THE USAF

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $10.0 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: OMNIBUS OPEN ARCHITECTURE 2 - ENABLE INSTANTIATION OF OPEN STANDARDS ACROSS THE USAF Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Focus on enabling open standards across the Air Force, indicating a strategic technology initiative. 3. Long performance period (2021-2026) suggests a significant, multi-year research effort. 4. Sole-source award raises questions about competition and potential value for money. 5. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not managed carefully. 6. Research and Development sector often involves inherent risks and evolving requirements.

Value Assessment

Rating: questionable

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The $100.26 million award over approximately five years, for research and development, needs to be assessed against the specific deliverables and the novelty of the 'Open Architecture' initiative. Given the sole-source nature, there's a heightened risk that the pricing may not reflect competitive market rates. A thorough review of Georgia Tech Applied Research Corp's historical performance on similar contracts and the justification for the fixed fee is crucial for a definitive value assessment.

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. The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. Without a competitive process, it is difficult to ascertain the full range of potential bidders or the pricing that might have emerged from a more open solicitation. This approach can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have benefited from the cost savings typically achieved through competitive bidding. The government may have paid a premium due to the absence of competing offers.

Public Impact

The primary beneficiary is the U.S. Air Force, which will receive advancements in open architecture standards. This contract supports the development of foundational technologies for future military systems. The research conducted could have broader implications for interoperability and modernization across defense platforms. Workforce implications may include specialized R&D personnel at Georgia Tech Applied Research Corp and potentially within the Air Force for integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee contract type can lead to cost escalation if not rigorously managed.
The 'Open Architecture' concept is broad and may involve evolving requirements, increasing risk.
Lack of competition raises concerns about achieving the best possible value for taxpayer funds.

Positive Signals

Georgia Tech Applied Research Corp is a reputable institution with significant R&D capabilities.
The focus on open standards aligns with broader DoD goals for modernization and interoperability.
A long-term contract allows for sustained focus and development on a complex technological challenge.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on engineering and physical sciences. The market for defense R&D is characterized by specialized expertise, long development cycles, and significant government investment. Companies like Georgia Tech Applied Research Corp are key players in this ecosystem, often partnering with government agencies to advance cutting-edge technologies. Comparable spending benchmarks in this niche are difficult to establish due to the unique nature of R&D projects, but the scale of this award suggests a high-priority initiative.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The award to a large research institution like Georgia Tech Applied Research Corp suggests a focus on specialized capabilities rather than broad market outreach. There is no explicit information regarding subcontracting plans for small businesses, which could represent a missed opportunity to engage the small business ecosystem in this significant R&D effort.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army, which is administering it on behalf of the Department of Defense. Specific oversight mechanisms would likely include regular progress reviews, financial audits, and technical evaluations of the research outcomes. Transparency is dependent on the reporting requirements stipulated in the contract and the agency's commitment to public disclosure of R&D activities. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Air Force Research Laboratory (AFRL) programs
DoD Advanced Technology Development
Defense Science and Technology Programs
Research, Development, Test, and Evaluation (RDT&E)

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Potential for cost overruns
Lack of competitive benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to GEORGIA TECH APPLIED RESEARCH CORP. OMNIBUS OPEN ARCHITECTURE 2 - ENABLE INSTANTIATION OF OPEN STANDARDS ACROSS THE USAF

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 $10.0 million.

What is the period of performance?

Start: 2021-02-12. End: 2026-08-26.

What is the specific definition and scope of 'Open Architecture' as intended by the Air Force in this contract?

The term 'Open Architecture' in the context of this contract likely refers to the development and implementation of systems and standards that are non-proprietary, allowing for easier integration, modification, and interoperability between different components and platforms. For the Air Force, this initiative aims to break down traditional stovepipes, reduce vendor lock-in, and enable faster adoption of new technologies. The specific scope would detail the types of standards (e.g., data formats, communication protocols, software interfaces) to be developed or instantiated, the target systems or platforms, and the desired outcomes in terms of flexibility, scalability, and lifecycle cost reduction. Georgia Tech Applied Research Corp's role would be to research, design, and potentially prototype these open architecture solutions.

How does the Cost Plus Fixed Fee (CPFF) contract type align with the risks inherent in R&D projects?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development efforts where the scope of work is not precisely defined at the outset, or where innovation and exploration are key objectives. In CPFF contracts, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While this structure can encourage innovation by reducing the contractor's risk associated with cost overruns, it shifts a significant portion of the financial risk to the government. For R&D, this can be advantageous as it allows for flexibility in exploring different approaches. However, it necessitates robust government oversight to ensure costs remain reasonable and that the fixed fee is appropriate for the effort involved. Without stringent controls, CPFF contracts can incentivize cost escalation rather than efficiency.

What are the potential long-term implications of this 'Open Architecture' initiative for the Air Force's technological ecosystem?

The long-term implications of this 'Open Architecture' initiative for the Air Force's technological ecosystem are potentially transformative. By fostering open standards, the Air Force aims to create a more agile and adaptable digital infrastructure. This could lead to reduced lifecycle costs for systems, faster integration of new capabilities, and enhanced interoperability between diverse platforms and services. It may also democratize innovation by allowing a wider range of vendors, including smaller, more agile companies, to contribute to Air Force systems without being locked into proprietary solutions. Ultimately, this initiative could position the Air Force to respond more effectively to evolving threats and technological advancements, ensuring its systems remain relevant and capable in the future.

Given the sole-source nature, what due diligence was performed to ensure Georgia Tech Applied Research Corp possesses unique capabilities justifying this award?

When a sole-source award is made, the contracting agency is required to perform due diligence to justify why competition is not feasible or advantageous. This typically involves market research to confirm the uniqueness of the contractor's capabilities, technology, or intellectual property. For Georgia Tech Applied Research Corp, this likely involved assessing their specific expertise, existing research, patented technologies, or established infrastructure relevant to enabling open standards across the Air Force. The justification would need to demonstrate that no other entity could provide the required services or that Georgia Tech possesses a critical, irreplaceable advantage. This due diligence is crucial for ensuring that the government is making a sound decision and not simply defaulting to a known entity without exploring alternatives.

How will the success of this R&D contract be measured, and what are the key performance indicators (KPIs)?

The success of this R&D contract will likely be measured against specific technical milestones, the successful development and validation of open architecture standards, and their demonstrable applicability to Air Force systems. Key Performance Indicators (KPIs) could include the number of standards defined and adopted, the successful integration of prototype systems using these standards, the reduction in integration time or cost for new capabilities, and the achievement of interoperability goals between different platforms. The contract itself would stipulate these metrics, and progress would be monitored through regular technical reviews and reports from Georgia Tech Applied Research Corp. The ultimate measure of success would be the Air Force's ability to leverage these open standards to enhance its operational effectiveness and reduce long-term system development and sustainment costs.

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: $40,319,460

Exercised Options: $10,025,719

Current Obligation: $10,025,719

Actual Outlays: $111,656

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