DoD's $364M missile and space systems R&D contract awarded to Georgia Tech Applied Research Corp

Contract Overview

Contract Amount: $31,059,871 ($31.1M)

Contractor: Georgia Tech Applied Research Corp

Awarding Agency: Department of Defense

Start Date: 2005-08-09

End Date: 2013-06-29

Contract Duration: 2,881 days

Daily Burn Rate: $10.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200512!502551!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0194 !A!N! !N! ! !20050809!20100809!364124651!364124651!097394084!N!GEORGIA TECH APPLIED RESEARCH !GEORGIA INSTITUTE OF TECHN!ATLANTA !GA!30332!04000!121!13!ATLANTA !FULTON !GEORGIA !+000000100000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !3! ! ! ! ! !20200930!B! ! !A! !D!U!U!1!001!N!1G!Z!N!Z! ! !N!V!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30332

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to GEORGIA TECH APPLIED RESEARCH CORP for work described as: 200512!502551!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0194 !A!N! !N! ! !20050809!20100809!364124651!364124651!097394084!N!GEORGIA TECH APPLIED RESEARCH !GEORGIA INSTITUTE OF TECHN!ATLANTA !GA!30332!04000!121!13!ATLANTA !FULT… Key points: 1. Contract awarded for advanced technology development in missile and space systems. 2. Significant investment in research and development for defense capabilities. 3. Sole-source award raises questions about competition and potential cost efficiencies. 4. Long contract duration suggests a sustained need for specialized R&D services. 5. Geographic concentration of contractor in Georgia may have local economic impacts. 6. Contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract's value of over $364 million over approximately 8 years represents a substantial investment in R&D. Without comparable sole-source contracts for similar advanced missile and space systems development, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility for R&D, carries inherent risks of cost escalation if not rigorously overseen. Benchmarking against other large-scale R&D efforts within the Department of Defense would be necessary for a more 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. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude a competitive process. The lack of competition means that taxpayers did not benefit from potential price reductions or innovative solutions that might have emerged from a bidding process. The justification for a sole-source award would need to be thoroughly reviewed to ensure it was appropriate.

Taxpayer Impact: Sole-source awards can limit opportunities for other businesses and may result in higher costs for taxpayers compared to competitively bid contracts.

Public Impact

The primary beneficiary is the Department of Defense, which receives advanced research and development services for critical missile and space systems. The contract supports the development of cutting-edge technologies that enhance national security and defense capabilities. The geographic impact is primarily centered in Atlanta, Georgia, where Georgia Tech Applied Research Corp. is located, potentially creating or sustaining high-skilled jobs. The contract supports a highly specialized workforce in research and development, particularly in aerospace and defense engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Cost Plus Fixed Fee structure requires robust oversight to prevent cost overruns.
Long contract duration may indicate a lack of readily available alternative solutions.
Lack of publicly available performance metrics makes assessing R&D success difficult.

Positive Signals

Award to a reputable research institution like Georgia Tech suggests access to specialized expertise.
Focus on advanced R&D is crucial for maintaining technological superiority in defense.
Long-term nature of the contract indicates a sustained commitment to critical defense needs.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on missile and space systems. This is a highly specialized area within the broader aerospace and defense industry, characterized by long development cycles, significant capital investment, and a need for highly skilled personnel. The market for such advanced R&D is often dominated by a few key players with proven track records and specialized facilities. Comparable spending benchmarks would likely involve other large-scale, long-term R&D contracts within the Department of Defense or NASA.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. As a sole-source award to a large research institution, the focus is likely on direct research execution rather than broad subcontracting. This means the direct economic impact on the small business ecosystem for this specific contract may be limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Given the R&D nature and sole-source award, rigorous oversight of technical progress, cost expenditures, and adherence to contract terms would be critical. Transparency may be limited due to the nature of defense R&D, but internal DoD oversight mechanisms and potentially Inspector General reviews would be in place to ensure accountability.

Related Government Programs

Missile Defense Agency (MDA) Programs
Advanced Technology Development Contracts
Aerospace Research and Development
Department of Defense Research Contracts
Space Systems Development

Risk Flags

Sole-source award may limit cost savings.
CPFF contract type carries risk of cost overruns.
Lack of competition reduces transparency in pricing.
Long duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to GEORGIA TECH APPLIED RESEARCH CORP. 200512!502551!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0194 !A!N! !N! ! !20050809!20100809!364124651!364124651!097394084!N!GEORGIA TECH APPLIED RESEARCH !GEORGIA INSTITUTE OF TECHN!ATLANTA !GA!30332!04000!121!13!ATLANTA !FULTON !GEORGIA !+000000100000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !3! ! ! ! ! !202

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 $31.1 million.

What is the period of performance?

Start: 2005-08-09. End: 2013-06-29.

What is the specific technical scope and expected deliverables for this contract?

The contract data indicates the scope is 'Research and Development in the Physical, Engineering, and Life Sciences,' with a specific focus on 'MISSILE AND SPACE SYSTEMS-ADV TECH DEV' and 'MDA SUPPORT.' While the exact deliverables are not detailed in the provided data, such contracts typically involve research, analysis, design, prototyping, and testing of advanced technologies related to missile systems, space launch capabilities, satellite technology, and potentially defensive counter-measures. The goal is to advance the state-of-the-art in these critical defense areas, providing the DoD with future technological options and capabilities.

How does the $364 million contract value compare to similar R&D efforts in missile and space systems?

Directly comparing the $364 million value is challenging without access to a comprehensive database of sole-source R&D contracts for missile and space systems. However, this figure represents a significant investment, indicative of complex, long-term research requiring specialized expertise. Large-scale R&D programs within the DoD, such as those managed by the Missile Defense Agency or DARPA, often involve hundreds of millions, sometimes billions, of dollars over several years. The sole-source nature of this award means it cannot be directly benchmarked against competitive bids, but its scale suggests it addresses a high-priority, technologically demanding area.

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

The primary risk with a CPFF contract, especially in R&D, is the potential for cost overruns. While the 'fixed fee' provides the contractor with a target profit, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the R&D effort encounters unforeseen technical challenges or requires more resources than initially estimated, the total cost to the government can escalate significantly beyond initial projections. Effective oversight is crucial to monitor costs, ensure efficiency, and prevent scope creep that inflates expenses without commensurate technical advancement.

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

Georgia Tech Applied Research Corp. (GTARC), often operating under the Georgia Institute of Technology, has a long and established track record in defense-related research and development. They are known for their expertise in various engineering and scientific fields, including aerospace, materials science, cybersecurity, and advanced manufacturing. GTARC frequently collaborates with government agencies, including the Department of Defense, on complex research projects. Their involvement in missile and space systems R&D is consistent with their institutional strengths and historical contributions to national security initiatives.

What are the implications of this contract being awarded as sole-source?

A sole-source award implies that the contracting agency determined that only one responsible source was capable of meeting the government's needs. This can occur due to unique capabilities, proprietary technology, or urgent requirements where competition is not feasible. For taxpayers, the implication is a potential lack of price competition, which could lead to higher costs than if multiple bids were solicited. It also means that other qualified companies did not have an opportunity to compete for this work, potentially limiting market dynamism and innovation spurred by competition.

How does this contract fit into the broader landscape of US missile and space defense spending?

This contract represents a component of the significant US government spending dedicated to maintaining and advancing its missile and space defense capabilities. Such spending is driven by evolving geopolitical threats, the need for technological superiority, and the development of next-generation systems. Contracts like this, focused on advanced R&D, are crucial for future defense planning, ensuring the US military has access to cutting-edge technologies. It complements spending on procurement of existing systems and operational support, forming a critical part of the defense acquisition lifecycle.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Georgia Tech Research Corp (UEI: 097394084)

Address: GEORGIA INSTITUTE OF TECHN, ATLANTA, GA, 30332

Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline