DoD's $27.7M Avionics R&D Contract Awarded to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $27,714,251 ($27.7M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2026-09-03

Contract Duration: 706 days

Daily Burn Rate: $39.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AVIONICS RESEARCH SYSTEMS DEVELOPMENT ENGINEERING FOR ARMY AVIATION PLATFORMS.

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30318

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $27.7 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: AVIONICS RESEARCH SYSTEMS DEVELOPMENT ENGINEERING FOR ARMY AVIATION PLATFORMS. Key points: 1. Contract focuses on critical avionics research for Army aviation platforms. 2. Sole-source award to a research corporation suggests specialized expertise. 3. Performance period of approximately two years indicates a focused research effort. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility in research but requires careful cost oversight. 5. Research and Development in Physical, Engineering, and Life Sciences is a key area for technological advancement. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging without comparable sole-source awards for similar avionics research. The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed diligently. However, Georgia Tech Applied Research Corp is a known entity in research, suggesting a potentially reasonable price for specialized services. Further analysis would require comparing the fixed fee and estimated costs against industry standards for similar research projects.

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. This typically occurs when a specific contractor possesses unique capabilities or expertise essential for the project. The lack of competition means there was no opportunity for price discovery through a bidding process, which could potentially lead to higher costs for the government compared to a competed contract.

Taxpayer Impact: The absence of competition means taxpayers did not benefit from potential cost savings that could arise from a competitive bidding environment. The government relied on negotiation to secure a fair price.

Public Impact

The U.S. Army Aviation branch will benefit from advancements in avionics technology, potentially leading to improved aircraft performance, safety, and capabilities. The contract will deliver research and development services focused on enhancing avionics systems for current and future Army aircraft. The geographic impact is primarily within Georgia, where Georgia Tech Applied Research Corp is located, though the benefits of the research will extend to Army aviation operations nationwide. The contract may support a specialized workforce of researchers, engineers, and technicians within Georgia Tech Applied Research Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Cost Plus Fixed Fee contract type requires robust oversight to manage potential cost escalations.
Lack of detailed performance metrics in the provided data makes assessing value for money difficult.
The specific nature of 'avionics research' can be broad, requiring clarity on deliverables and milestones.

Positive Signals

Award to a specialized research corporation suggests access to unique and advanced technical capabilities.
Focus on R&D for Army aviation platforms indicates alignment with critical defense modernization efforts.
Georgia Tech Applied Research Corp is likely to have a strong track record in relevant research areas.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on engineering and physical sciences. The market for defense-related R&D is substantial, driven by the need for technological superiority. Comparable spending benchmarks would involve looking at other sole-source or competed R&D contracts awarded by the Department of Defense to research institutions for specialized engineering services, particularly in aerospace and defense technologies.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to a research corporation, it is unlikely to involve significant subcontracting opportunities for small businesses unless the prime contractor voluntarily includes them in their research team. The direct impact on the small business ecosystem is minimal.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Army contracting and technical officers. They will be responsible for monitoring costs, ensuring adherence to the fixed fee, and verifying that research milestones are met. Transparency will depend on the reporting requirements stipulated in the contract and the agency's commitment to public disclosure of contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Army Aviation Modernization Programs
Defense Research and Engineering Contracts
Avionics Systems Development
Cost Plus Fixed Fee Contracts
Sole Source Research Awards

Risk Flags

Sole-source award may limit cost competition.
CPFF contract type requires diligent cost oversight.
Scope of 'avionics research' could be broad, requiring clear definition of deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to GEORGIA TECH APPLIED RESEARCH CORP. AVIONICS RESEARCH SYSTEMS DEVELOPMENT ENGINEERING FOR ARMY AVIATION PLATFORMS.

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 $27.7 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-09-03.

What is the track record of Georgia Tech Applied Research Corp in securing and successfully executing similar sole-source R&D contracts for the Department of Defense?

Georgia Tech Applied Research Corp (GTARC) has a well-established history of performing research and development for government agencies, including the Department of Defense. While specific data on their sole-source contract win rate for R&D is not publicly detailed, GTARC is a recognized leader in applied research, often collaborating with Georgia Tech's academic strengths. They have a proven capacity to handle complex engineering and scientific projects. To fully assess their track record for this specific contract, one would need to examine past performance reviews, project completion rates, and any documented successes or failures on similar avionics or defense-related R&D efforts. The fact that they were awarded this sole-source contract suggests a pre-existing relationship or a recognized unique capability that the Army deemed essential.

How does the estimated cost of this contract compare to similar sole-source avionics R&D efforts awarded by the DoD in the past two years?

Direct comparison of the $27.7 million total contract value to similar sole-source avionics R&D efforts is challenging without access to a comprehensive database of all DoD sole-source awards and their specific technical scopes. Sole-source contracts are inherently less transparent regarding pricing benchmarks. However, the value appears substantial, suggesting a project of significant scope or complexity. To perform a robust comparison, one would need to identify contracts with similar research objectives (e.g., advanced flight control systems, navigation enhancements, sensor integration), contract types (CPFF), and durations. Factors like the specific technologies involved, the maturity of the research, and the required level of engineering expertise would heavily influence cost. Without such detailed comparative data, assessing whether this contract represents good value for money is difficult.

What are the primary risks associated with a sole-source Cost Plus Fixed Fee contract for avionics research, and how are they being mitigated?

The primary risks associated with this contract are cost overruns and a lack of competitive pressure. For a Cost Plus Fixed Fee (CPFF) contract, the government pays the contractor's allowable costs plus a fixed fee representing profit. If costs escalate beyond initial estimates, the government bears the burden, especially if the fixed fee is substantial. The sole-source nature means there's no competitive incentive for the contractor to minimize costs. Mitigation strategies typically involve stringent government oversight of expenditures, detailed review of cost proposals, clear definition of allowable costs, and robust performance monitoring to ensure research objectives are met efficiently. The Army's contracting officers and technical representatives must actively manage the contract, scrutinize invoices, and ensure the fixed fee remains appropriate for the work performed.

What specific advancements in avionics technology are expected from this $27.7 million investment, and how will they impact Army aviation capabilities?

The provided data indicates the contract is for 'AVIONICS RESEARCH SYSTEMS DEVELOPMENT ENGINEERING FOR ARMY AVIATION PLATFORMS.' While the exact nature of the advancements is not specified, this typically involves research into areas such as next-generation flight control systems, enhanced sensor fusion for improved situational awareness, advanced navigation and communication technologies, improved electronic warfare capabilities, or more resilient and efficient power management systems for aircraft electronics. The expected impact on Army aviation capabilities could be significant, potentially leading to safer flight operations, improved mission effectiveness in contested environments, reduced pilot workload, enhanced platform survivability, and the integration of new operational concepts. The development engineering aspect suggests a focus on translating research findings into practical, engineering-ready solutions for future integration.

How does the $27.7 million spending on this avionics R&D contract compare to the Army's overall R&D budget or spending on similar research areas in previous fiscal years?

Comparing this single $27.7 million contract to the Army's overall R&D budget requires context from the Army's annual budget requests and appropriations. The Army's R&D budget typically spans billions of dollars across various modernization priorities. This contract represents a specific investment within the broader 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541715). To assess its relative significance, one would need to examine the Army's R&D spending trends for avionics and related engineering fields over the past several fiscal years. If the Army consistently allocates significant funds to avionics R&D, this contract might be a standard-sized investment. If spending in this area has been lower, it could indicate a heightened focus or a new strategic initiative. Without broader budget data, its precise place in the overall spending landscape remains unclear.

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: $97,229,755

Exercised Options: $27,714,251

Current Obligation: $27,714,251

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,235,000

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