Over $46.5M Awarded to Johns Hopkins University Applied Physics Laboratory for R&D Support

Contract Overview

Contract Amount: $46,516,507 ($46.5M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2012-07-19

End Date: 2018-09-30

Contract Duration: 2,264 days

Daily Burn Rate: $20.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF ENGINEERING AND TECHNICAL SUPPORT

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $46.5 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: IGF::OT::IGF ENGINEERING AND TECHNICAL SUPPORT Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Significant duration of over 6 years for contract performance. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. Awarded by the Missile Defense Agency, indicating a focus on national security research. 5. The contractor, a well-established university-affiliated laboratory, suggests a high level of technical expertise. 6. Lack of competition raises questions about potential price efficiencies and market responsiveness.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable projects. The Cost Plus Fixed Fee (CPFF) structure means the government pays costs plus a fixed fee, which can incentivize cost increases if not tightly controlled. While the contractor is a reputable institution, the absence of competitive bidding means there's no market validation of the pricing. Further analysis would require understanding the scope of work and the reasonableness of the fee relative to the effort expended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This typically occurs when a specific contractor possesses unique capabilities or when urgency precludes a competitive process. The lack of competition means that the government did not benefit from multiple proposals to drive down costs or improve terms. It is important to understand the justification for this sole-source award to ensure it was appropriate and that the government obtained fair value.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. It also limits opportunities for other qualified contractors to secure government work.

Public Impact

The primary beneficiaries are likely the Department of Defense and the Missile Defense Agency, receiving advanced research and development services. Services delivered include research and development in physical, engineering, and life sciences, crucial for advancing defense technologies. The geographic impact is primarily within Virginia, where the contractor is located, but the research outcomes have national security implications. Workforce implications include employment of highly skilled researchers and engineers at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for such specialized R&D services is often dominated by a few highly capable institutions and companies. The Missile Defense Agency's spending in this area is critical for maintaining technological superiority in missile defense systems. Comparable spending benchmarks would typically involve other large-scale R&D contracts awarded to similar institutions for defense-related research.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is also no indication of subcontracting plans specifically for small businesses. This means that opportunities for small businesses to participate in this specific contract are likely limited, and the primary focus is on the capabilities of the large, prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Missile Defense Agency. Given the R&D nature and the contractor's affiliation, oversight would likely focus on technical progress, adherence to research plans, and financial management of costs and fees. Transparency is often limited for classified or sensitive R&D projects, but regular reporting and reviews are standard. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Risk Flags

Tags

research-and-development, department-of-defense, missile-defense-agency, cost-plus-fixed-fee, sole-source, university-affiliated-research-center, virginia, national-security, applied-physics-laboratory, long-term-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.5 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. IGF::OT::IGF ENGINEERING AND TECHNICAL SUPPORT

Who is the contractor on this award?

The obligated recipient is THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $46.5 million.

What is the period of performance?

Start: 2012-07-19. End: 2018-09-30.

What specific research and development projects were undertaken under this contract?

The provided data does not detail the specific research and development projects undertaken. However, given the awarding agency (Missile Defense Agency) and the contract's classification (Research and Development in the Physical, Engineering, and Life Sciences), the projects likely pertained to advancing technologies relevant to missile defense systems. This could include areas such as sensor technology, interceptor development, guidance systems, threat detection, or advanced materials. Further details would typically be found in contract statements of work, technical reports, or agency program documentation, which are not included in the provided dataset.

How does the $46.5 million award compare to other R&D contracts for similar services?

Comparing this $46.5 million award requires context on the duration and scope. The contract spanned over 6 years (July 2012 to September 2018), averaging approximately $7.75 million per year. This figure is substantial but not extraordinary for large-scale, long-term R&D efforts undertaken by major research institutions for defense agencies. For instance, other contracts for advanced technology development or system engineering support for programs like the Ground-based Midcourse Defense (GMD) or Aegis Ballistic Missile Defense (BMD) could range from tens to hundreds of millions of dollars over similar or longer periods. The 'not competed' status also means direct price comparisons are difficult.

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, like this one, revolve around cost control and contractor incentives. For the government, the risk is that the contractor may not be sufficiently motivated to control costs, as all allowable costs are reimbursed, and the fee is fixed regardless of the final cost. This can lead to cost overruns if the initial cost estimates are inaccurate or if unforeseen technical challenges arise. For the contractor, the risk is that the fixed fee might not adequately compensate them if the project proves more complex or costly than anticipated, potentially leading to disputes or reduced profit margins. Effective oversight and clear definition of scope are crucial to mitigate these risks.

What is the significance of the contractor being The Johns Hopkins University Applied Physics Laboratory LLC?

The Johns Hopkins University Applied Physics Laboratory (JHU APL) is a nationally recognized University Affiliated Research Center (UARC). UARCs are typically established to provide R&D support to the government in areas of critical national interest, often with a focus on defense and space. Their designation as a UARC implies a strong track record, deep technical expertise, and a commitment to objective, non-profit research. Awarding contracts to entities like JHU APL often signifies the government's need for highly specialized, cutting-edge research and development capabilities that may not be readily available in the commercial sector. Their involvement suggests a high degree of confidence in their ability to meet complex technical challenges.

What does the 'not competed' status imply for the Missile Defense Agency's procurement strategy?

The 'not competed' status for this contract implies that the Missile Defense Agency (MDA) likely determined that only one source was capable of meeting the requirement, or that there was a compelling justification for a sole-source award, such as urgency or the unique nature of the required services. This could stem from the highly specialized expertise required for advanced missile defense R&D, where JHU APL possesses unique institutional knowledge or facilities. While sole-sourcing can expedite acquisition, it bypasses the competitive process that typically ensures best value and price. The MDA would have had to document the justification for this approach, adhering to federal acquisition regulations regarding non-competitive procurements.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ014712R0002

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Johns Hopkins University

Address: 11100 JOHNS HOPKINS RD, LAUREL, MD, 20723

Business Categories: Category Business, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,499,727

Exercised Options: $47,499,727

Current Obligation: $46,516,507

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014712D0004

IDV Type: IDC

Timeline

Start Date: 2012-07-19

Current End Date: 2018-09-30

Potential End Date: 2018-09-30 00:00:00

Last Modified: 2022-04-01

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