DoD's $36.6M Contract for Engineering Support to JHU APL Faces Scrutiny for Lack of Competition

Contract Overview

Contract Amount: $36,620,773 ($36.6M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2012-08-22

End Date: 2018-11-15

Contract Duration: 2,276 days

Daily Burn Rate: $16.1K/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 $36.6 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: IGF::OT::IGF ENGINEERING AND TECHNICAL SUPPORT Key points: 1. Significant contract value of $36.6 million awarded to a single entity. 2. The contract was not competed, raising questions about potential price discovery. 3. Research and Development sector, with a focus on physical and engineering sciences. 4. Potential for taxpayer funds to be used inefficiently due to limited competition.

Value Assessment

Rating: questionable

The contract's value of $36.6 million for R&D services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar R&D support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was explicitly marked as 'NOT COMPETED'. This sole-source approach limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a $36.6 million contract means taxpayers may have overpaid, as alternative, potentially more cost-effective, providers were not considered.

Public Impact

Taxpayers may be footing a higher bill due to the absence of competitive bidding. Limited transparency into the justification for awarding the contract to a single entity. Potential impact on innovation if other capable research institutions were not given a chance to compete.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. The $36.6 million value is significant for this sector, especially when awarded without competition, which is a common concern in specialized R&D procurements.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both the 'ss' and 'sb' fields are false. The focus appears to be on large, established research institutions.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement was robust and that the pricing was fair and reasonable, despite the lack of competition.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.6 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 $36.6 million.

What is the period of performance?

Start: 2012-08-22. End: 2018-11-15.

What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?

The provided data does not include the specific justification for the sole-source award. Typically, such justifications would be documented in the contract file and might cite reasons like unique capabilities, urgent needs, or lack of market availability. Further investigation would be required to access and review this documentation to assess its adequacy.

How does the cost of this contract compare to similar R&D support services obtained through competitive means?

Without competitive benchmarks, a direct cost comparison is challenging. However, the absence of competition for a $36.6 million contract raises a red flag. Government agencies often use historical data from competed contracts or conduct market research to establish fair pricing, but the sole-source nature here makes such comparisons less reliable and potentially indicates a higher cost.

What is the long-term impact of awarding large R&D contracts without competition on the broader research ecosystem?

Consistently awarding large R&D contracts without competition can stifle innovation and limit opportunities for emerging or smaller research entities. It may lead to a concentration of funding within a few established institutions, potentially reducing the diversity of research approaches and slowing the overall advancement of scientific and technological capabilities.

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: $38,797,558

Exercised Options: $38,797,558

Current Obligation: $36,620,773

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: 2012-08-22

Current End Date: 2018-11-15

Potential End Date: 2018-11-15 00:00:00

Last Modified: 2022-04-01

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