DoD awards $29.9M for LVC Test & Training Range modernization, with Georgia Tech Applied Research Corp. as sole contractor

Contract Overview

Contract Amount: $29,934,951 ($29.9M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2022-08-05

End Date: 2026-04-21

Contract Duration: 1,355 days

Daily Burn Rate: $22.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MODERNIZATION AND SUSTAINMENT OF INTEROPERABLE LIVE, VIRTUAL AND CONSTRUCTIVE (LVC) TEST & TRAINING RANGE (TTR) SYSTEMS AND CAPABILITIES

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: MODERNIZATION AND SUSTAINMENT OF INTEROPERABLE LIVE, VIRTUAL AND CONSTRUCTIVE (LVC) TEST & TRAINING RANGE (TTR) SYSTEMS AND CAPABILITIES Key points: 1. Contract focuses on modernizing and sustaining complex live, virtual, and constructive training environments. 2. Sole-source award raises questions about competition and potential for cost efficiencies. 3. Long-term contract duration suggests a need for sustained expertise in simulation and training technology. 4. The award is situated within the broader defense research and development sector, emphasizing advanced simulation capabilities. 5. Performance risk may be mitigated by the contractor's established role in this specialized area.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can incentivize contractor efficiency but also carries inherent risk if costs escalate. Benchmarking this specific contract is challenging due to its specialized nature and sole-source award. However, the fixed fee component provides some level of cost predictability for the government. Without competitive bids, it's difficult to definitively assess if the pricing represents optimal value for money compared to a fully competed scenario.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Georgia Tech Applied Research Corp., was solicited. This approach is typically justified when a unique capability or specialized expertise is required that cannot be met by multiple sources. The lack of competition means there was no direct price comparison or incentive for multiple bidders to offer their best pricing, potentially leading to higher costs for the government.

Taxpayer Impact: The absence of competition means taxpayers did not benefit from the price reductions typically driven by a competitive bidding process. This could result in a higher overall expenditure for the required services.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which will receive enhanced live, virtual, and constructive training capabilities. The contract delivers services essential for modernizing and sustaining interoperable test and training range systems. The geographic impact is primarily within the United States, supporting defense training infrastructure. Workforce implications include the potential for specialized engineering, research, and technical roles at Georgia Tech Applied Research Corp. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Cost Plus Fixed Fee structure can lead to cost overruns if not closely managed.
Long contract duration requires robust oversight to ensure continued relevance and value.
Lack of competition may reduce incentive for innovation from alternative providers.

Positive Signals

Georgia Tech Applied Research Corp. likely possesses specialized expertise crucial for this niche requirement.
Sustained focus on modernization and interoperability addresses critical defense training needs.
The contract aims to improve the effectiveness and realism of military training simulations.

Sector Analysis

This contract falls within the Defense Research and Development sector, specifically focusing on simulation and training technologies. The market for advanced simulation and training systems is highly specialized, often dominated by a few key players with unique technical capabilities. Comparable spending benchmarks are difficult to establish due to the unique nature of LVC TTR systems, but significant investment is typical for maintaining and upgrading such critical infrastructure to meet evolving military requirements.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to Georgia Tech Applied Research Corp., there is no explicit requirement for subcontracting to small businesses mandated within the contract terms. The impact on the small business ecosystem is therefore indirect, depending on Georgia Tech's own subcontracting practices, which are not detailed here.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the contracting officer and administrative contracting officer, along with technical monitors from the Department of Defense. Accountability measures would be tied to the achievement of milestones and deliverables outlined in the contract. Transparency is limited due to the sole-source nature, but contract awards are generally reported in federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Live, Virtual, Constructive (LVC) Training Systems
Defense Simulation and Training Programs
Research and Development Contracts
Test and Training Range Modernization

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to GEORGIA TECH APPLIED RESEARCH CORP. MODERNIZATION AND SUSTAINMENT OF INTEROPERABLE LIVE, VIRTUAL AND CONSTRUCTIVE (LVC) TEST & TRAINING RANGE (TTR) SYSTEMS AND CAPABILITIES

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 $29.9 million.

What is the period of performance?

Start: 2022-08-05. End: 2026-04-21.

What is the specific justification for awarding this contract on a sole-source basis to Georgia Tech Applied Research Corp.?

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For this contract, the justification likely stems from Georgia Tech Applied Research Corp. possessing unique, specialized knowledge, technology, or facilities essential for the modernization and sustainment of the Interoperable Live, Virtual, and Constructive (LVC) Test & Training Range (TTR) Systems and Capabilities. This could involve proprietary technology, extensive prior development, or a unique understanding of the existing complex systems that would make transitioning to another contractor excessively costly or time-consuming, thereby not being in the best interest of the government.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for R&D services in the defense sector?

The Cost Plus Fixed Fee (CPFF) contract type is common in research and development (R&D) and complex service contracts where the scope of work is not precisely defined at the outset, making it difficult to establish a firm fixed price. In CPFF, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of actual costs, offering maximum cost risk to the contractor and potential savings for the government if they perform efficiently. Cost-Plus-Incentive-Fee (CPIF) contracts also reimburse costs but include a fee that is adjusted based on performance against targets. For R&D, CPFF offers flexibility but requires robust government oversight to control costs, as the contractor has less financial incentive to minimize expenses compared to FFP or CPIF.

What are the potential risks associated with the long duration (over 3 years) of this contract?

The extended duration of this contract, from August 2022 to April 2026, presents several potential risks. Firstly, technological obsolescence is a significant concern; the systems being modernized or sustained could be outdated by the time the contract concludes, or new, more effective technologies might emerge. Secondly, cost escalation is a risk, especially with a CPFF structure, as unforeseen challenges or inflation over the contract period could drive up costs beyond initial projections. Thirdly, maintaining contractor performance and focus over a long period can be challenging; the contractor's key personnel might change, or institutional priorities could shift. Finally, the government's ability to adapt requirements or pivot to different solutions may be constrained by the long-term commitment, potentially locking it into a specific technological path.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract to measure success?

While the provided data does not explicitly list performance metrics or KPIs, contracts of this nature, especially those involving modernization and sustainment of critical systems like the LVC TTR, typically include detailed performance standards. These would likely be outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Common KPIs for such contracts might include system uptime and availability, successful integration of new capabilities, reduction in training simulation errors, adherence to cybersecurity protocols, timely delivery of milestones, and user satisfaction feedback from training personnel. The CPFF structure necessitates clear metrics to ensure the fixed fee is earned based on acceptable performance.

How does this spending align with overall Department of Defense investments in simulation and training technologies?

This $29.9 million award for LVC TTR modernization and sustainment represents a focused investment within the broader Department of Defense (DoD) portfolio for simulation and training. The DoD consistently allocates substantial resources to advanced training capabilities, recognizing their importance in preparing personnel for complex operational environments while reducing the costs and risks associated with live training. LVC environments are crucial for bridging the gap between virtual simulations and real-world exercises, offering scalable, cost-effective, and safe training scenarios. This contract's value is modest compared to the total DoD budget for training systems, but it addresses a critical niche requirement for interoperability and modernization, aligning with the DoD's strategic goals of enhancing readiness and technological superiority.

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: $38,990,311

Exercised Options: $29,934,951

Current Obligation: $29,934,951

Actual Outlays: $1,622,522

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $403,880

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