Georgia Tech Research Institute receives $22.4M for informatics and engineering support to CDC

Contract Overview

Contract Amount: $22,369,836 ($22.4M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2022-09-27

End Date: 2027-09-26

Contract Duration: 1,825 days

Daily Burn Rate: $12.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: GEORGIA INSTITUTE OF TECHNOLOGY, GEORGIA TECH RESEARCH INSTITUTE (GTRI) INFORMATICS AND ENGINEERING SUPPORT TO THE CENTERS FOR DISEASE CONTROL AND PREVENTION (CDC)

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $22.4 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: GEORGIA INSTITUTE OF TECHNOLOGY, GEORGIA TECH RESEARCH INSTITUTE (GTRI) INFORMATICS AND ENGINEERING SUPPORT TO THE CENTERS FOR DISEASE CONTROL AND PREVENTION (CDC) Key points: 1. Contract awarded to a single, non-profit research institute, raising questions about competition. 2. Focus on R&D in physical, engineering, and life sciences suggests specialized technical expertise. 3. Long duration of nearly 5 years indicates a sustained need for these services. 4. Cost-plus-fixed-fee contract type may incentivize cost overruns if not closely monitored. 5. Awarded by the Department of the Army, but services are for the CDC, indicating inter-agency support. 6. No small business set-aside or subcontracting reported, potentially limiting broader economic impact.

Value Assessment

Rating: fair

The contract value of $22.4 million over five years averages to approximately $4.5 million annually. Benchmarking this against similar informatics and engineering support contracts for federal health agencies is challenging without more specific service details. However, given the specialized nature of R&D support for an agency like the CDC, the pricing may reflect unique expertise. The cost-plus-fixed-fee structure requires careful oversight to ensure value for money and prevent unnecessary cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to the Georgia Tech Applied Research Corporation (GTAC), operating as the Georgia Tech Research Institute (GTRI). This indicates that the agency identified GTRI as the only responsible source capable of meeting the requirement. The lack of competition means that the government did not explore alternative providers or leverage a competitive bidding process to potentially secure lower pricing or more innovative solutions.

Taxpayer Impact: Sole-source awards limit opportunities for taxpayers to benefit from competitive pricing and may result in higher overall costs compared to a competed contract.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from specialized informatics and engineering support. Services likely contribute to public health initiatives, data analysis, and research infrastructure. The geographic impact is primarily centered in Georgia, where GTRI is located, but the benefits extend nationally through CDC's mission. The contract supports a highly specialized workforce within GTRI, contributing to the STEM sector.

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 requires robust oversight to manage costs effectively.
Lack of small business participation may limit broader economic benefits and subcontracting opportunities.

Positive Signals

Award to a reputable research institution like Georgia Tech suggests access to high-quality expertise.
Long-term contract indicates a critical and ongoing need for the services provided.
Inter-agency support model (Army contracting for CDC) can streamline procurement for specialized needs.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for R&D support services for federal health agencies is highly specialized, often involving academic institutions and dedicated research organizations. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the informatics and engineering tasks, but R&D contracts can range significantly in value depending on the scope and duration.

Small Business Impact

This contract was not competed and did not include a small business set-aside. There is no indication of subcontracting requirements for small businesses. This means that the primary economic benefit will flow to the large research institution, Georgia Tech Research Institute, with limited direct opportunities for small businesses to participate in this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting agency (Department of the Army) and the program office at the CDC. As a cost-plus-fixed-fee contract, robust financial oversight and performance monitoring are crucial to ensure that costs are reasonable and allocable, and that the fixed fee is earned. Transparency would depend on the agency's reporting practices and any public disclosures related to the contract's performance and outcomes.

Related Government Programs

CDC Informatics and Data Services
Army Research and Development Contracts
Federal Health IT Support
Applied Scientific Research Services

Risk Flags

Sole-source award lacks competitive pricing.
Cost-plus-fixed-fee requires diligent cost oversight.
Limited transparency on specific service deliverables.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.4 million to GEORGIA TECH APPLIED RESEARCH CORP. GEORGIA INSTITUTE OF TECHNOLOGY, GEORGIA TECH RESEARCH INSTITUTE (GTRI) INFORMATICS AND ENGINEERING SUPPORT TO THE CENTERS FOR DISEASE CONTROL AND PREVENTION (CDC)

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 $22.4 million.

What is the period of performance?

Start: 2022-09-27. End: 2027-09-26.

What specific informatics and engineering services are being provided to the CDC under this contract?

The contract broadly covers 'Informatics and Engineering Support.' While specific details are not provided in the summary data, this typically includes services related to data management, analysis, software development, system integration, and engineering solutions tailored to public health challenges. For the CDC, this could involve supporting disease surveillance systems, developing analytical tools for epidemiological research, managing large health datasets, or providing engineering expertise for laboratory infrastructure and public health response.

Why was this contract awarded on a sole-source basis to Georgia Tech Research Institute?

Sole-source awards are typically justified when a specific entity possesses unique capabilities, expertise, or resources that are essential for meeting the government's requirements, and no other source can provide them. In this case, the Department of the Army likely determined that Georgia Tech Research Institute (GTRI) had specialized knowledge, facilities, or personnel critical for the CDC's informatics and engineering needs that could not be replicated by other potential contractors within the required timeframe or scope. This often occurs in highly specialized R&D or technical support scenarios.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to cover all allowable costs plus a predetermined fixed fee. While the fixed fee provides some incentive for efficiency, it doesn't directly tie the contractor's profit to cost savings. This necessitates rigorous government oversight of expenditures, regular audits, and clear performance metrics to ensure that costs remain reasonable and that the contractor is delivering the expected value for the fixed fee.

How does this contract align with the Department of the Army's procurement strategy for supporting civilian agencies like the CDC?

This contract exemplifies an inter-agency support mechanism where one federal agency (Department of the Army) leverages its contracting expertise and infrastructure to procure specialized services for another agency (CDC). This can be an efficient approach when the procuring agency has established relationships, contracting vehicles, or expertise that the requiring agency lacks. It allows the CDC to access critical R&D and technical support without needing to manage the entire procurement process itself, potentially streamlining acquisition for complex scientific needs.

What is the historical spending pattern for similar informatics and engineering support services at the CDC?

Analyzing historical spending patterns for similar services at the CDC would require access to detailed federal procurement databases and specific categorization of 'informatics and engineering support.' Without that granular data, it's difficult to provide a precise comparison. However, federal agencies like the CDC consistently invest significant resources in IT, data analytics, and research infrastructure to fulfill their public health missions. Spending can fluctuate based on emerging health threats, technological advancements, and specific research priorities, often involving multi-year contracts with academic and research institutions.

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: $81,091,608

Exercised Options: $22,369,836

Current Obligation: $22,369,836

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $569,833

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