DoD's $37.8M Electronic Warfare R&D contract awarded to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $37,810,863 ($37.8M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2021-09-22

End Date: 2026-09-30

Contract Duration: 1,834 days

Daily Burn Rate: $20.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ELECTRONIC WARFARE RESEARCH AND DEVELOPMENT

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $37.8 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: ELECTRONIC WARFARE RESEARCH AND DEVELOPMENT Key points: 1. Contract awarded to a single entity, raising questions about competitive pricing. 2. Focus on advanced physical and engineering sciences research, indicating a specialized need. 3. Long performance period suggests a complex, multi-phase research and development effort. 4. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns. 5. Research area is critical for national security and technological advancement. 6. Geographic concentration in Georgia for this significant R&D investment.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and the lack of direct comparable contracts. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, carries inherent risks of cost escalation. Without more data on the specific deliverables and milestones, a definitive value-for-money assessment is difficult. However, the significant investment suggests a high perceived value by the Department of the Army for the research outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when a specific contractor possesses unique capabilities, intellectual property, or is the only responsible source. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple bids were solicited.

Taxpayer Impact: Taxpayers may not have received the benefit of the lowest possible price due to the absence of competitive bidding. The government relied on negotiation to establish a fair price, which can be less effective than market-driven pricing.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Army, which will receive advanced electronic warfare capabilities. The contract supports cutting-edge research and development in a critical defense technology area. The geographic impact is concentrated in Georgia, where Georgia Tech Applied Research Corp. is located, potentially creating local high-skill jobs. The workforce implications include employment for highly skilled scientists, engineers, and researchers.

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 overruns if not managed tightly.
Long contract duration increases the risk of scope creep or evolving requirements.
Lack of transparency in the sole-source justification process.

Positive Signals

Award to a reputable research institution (Georgia Tech) suggests strong technical capability.
Focus on a critical defense technology area (Electronic Warfare) aligns with national security priorities.
The contract supports innovation and advancement in a key scientific field.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The electronic warfare market is a highly specialized and critical segment within the broader defense technology industry. Spending in this area is driven by the need for technological superiority in contested electromagnetic spectrums. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D contracts and the specific capabilities of institutions like Georgia Tech.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Georgia Tech voluntarily engages small businesses as subcontractors for specialized support.

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 research milestones and deliverables outlined in the contract. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Army Advanced Technology Programs
Electronic Warfare Systems Development
Applied Research and Development Services

Risk Flags

Sole-source award lacks competitive pricing pressure.
Cost Plus Fixed Fee contract type carries risk of cost overruns.
Long contract duration increases potential for scope changes.
Limited public information on specific deliverables and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.8 million to GEORGIA TECH APPLIED RESEARCH CORP. ELECTRONIC WARFARE RESEARCH AND DEVELOPMENT

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 $37.8 million.

What is the period of performance?

Start: 2021-09-22. End: 2026-09-30.

What specific electronic warfare capabilities is this contract intended to develop?

The provided data does not specify the exact electronic warfare capabilities being developed. However, 'ELECTRONIC WARFARE RESEARCH AND DEVELOPMENT' suggests a broad scope encompassing areas such as electronic attack, electronic protection, electronic support, and spectrum management technologies. This could include research into new jamming techniques, advanced radar countermeasures, improved signal intelligence gathering, or novel methods for operating in contested electromagnetic environments. The specific focus would be detailed in the Statement of Work (SOW) which is not publicly available in this dataset.

How does the $37.8 million cost compare to similar electronic warfare R&D efforts?

Directly comparing the $37.8 million cost to similar electronic warfare R&D efforts is challenging without access to a comprehensive database of classified or proprietary R&D contracts. However, for large-scale, multi-year R&D projects in critical defense technology areas, this figure is substantial but not unprecedented. The value is highly dependent on the complexity, novelty, and strategic importance of the research. Given the sole-source nature and the long performance period (2021-2026), the cost reflects a significant investment in specialized expertise and potentially unique research infrastructure.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D include potential cost overruns and reduced contractor incentive for efficiency. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. If costs exceed projections, the government bears the burden, while the contractor still receives their predetermined profit. This can disincentivize cost control. For R&D, where outcomes are uncertain, CPFF is often used to encourage innovation and attract contractors for high-risk projects, but it requires robust government oversight to manage costs effectively.

What is the track record of Georgia Tech Applied Research Corp. in defense R&D?

Georgia Tech Applied Research Corp. (GTARC) has a long and established track record of performing research and development for government agencies, including the Department of Defense. As a component of the Georgia Institute of Technology, it leverages significant academic and research infrastructure. GTARC is known for its expertise in various engineering and scientific fields, often undertaking complex, cutting-edge projects. While specific contract details and performance reviews are not publicly detailed here, GTARC's consistent engagement with defense R&D suggests a strong capability and a history of successful project execution in areas relevant to national security.

What are the implications of this contract being sole-source for taxpayer value?

A sole-source award means that the contract was not competed among multiple potential vendors. This typically occurs when only one vendor is deemed capable of performing the required work, often due to unique expertise, intellectual property, or proprietary technology. For taxpayers, the implication is a potential lack of price competition. While the government negotiates the price, the absence of competing bids means taxpayers may not benefit from the lowest possible price that could have been achieved through a competitive bidding process. This necessitates strong government negotiation and oversight to ensure fair pricing.

How does this contract fit into the broader landscape of US electronic warfare spending?

This $37.8 million contract represents a specific investment within the much larger ecosystem of US electronic warfare (EW) spending. The US Department of Defense allocates billions annually to EW capabilities, encompassing research, development, procurement, and sustainment of systems across all military branches. This contract focuses on the R&D phase, aiming to develop foundational technologies or advanced concepts that may later transition into fielded systems. It contributes to the overall strategic goal of maintaining information dominance and countering adversary EW threats, fitting into a broader national security strategy that prioritizes technological superiority in the electromagnetic spectrum.

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: $53,990,749

Exercised Options: $37,810,863

Current Obligation: $37,810,863

Actual Outlays: $1,159,315

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,116,196

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