DoD awards $116M for R&D to JHU APL, a sole-source contract for specialized engineering support

Contract Overview

Contract Amount: $115,905,257 ($115.9M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2012-12-01

End Date: 2019-01-12

Contract Duration: 2,233 days

Daily Burn Rate: $51.9K/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: LAUREL, HOWARD County, MARYLAND, 20723

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $115.9 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: IGF::OT::IGF ENGINEERING AND TECHNICAL SUPPORT Key points: 1. High value contract for critical R&D services. 2. Sole-source award limits competition and potentially price discovery. 3. Long duration suggests complex, ongoing research needs. 4. Contractor is a well-established research institution.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Benchmarking is difficult without comparable sole-source R&D contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach bypasses competitive bidding, potentially leading to higher costs and reduced innovation compared to an open competition.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these specialized R&D services.

Public Impact

Supports critical missile defense research and development. Leverages specialized expertise from a leading research institution. Long-term commitment to a specific research area.

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. Spending in this sector is crucial for technological advancement but requires careful oversight due to its specialized nature and potential for cost growth.

Small Business Impact

This contract was awarded to a large, non-profit research institution and does not appear to involve small business participation. There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution of research objectives. The Missile Defense Agency should monitor costs and performance diligently.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, md, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $115.9 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 $115.9 million.

What is the period of performance?

Start: 2012-12-01. End: 2019-01-12.

What specific factors justified the sole-source award for this critical R&D support, and were alternatives explored?

The justification for a sole-source award typically centers on unique capabilities, specialized knowledge, or urgent needs that only a specific entity can fulfill. For R&D, this often involves proprietary research or highly specialized facilities. The agency should have documented why competition was not feasible or advantageous, and explored if any limited competition options existed before resorting to a sole-source determination.

How is the cost-plus fixed fee structure being managed to mitigate risks of cost overruns in this long-term R&D project?

Effective management of a Cost Plus Fixed Fee (CPFF) contract involves rigorous cost tracking, regular performance reviews, and clear communication between the government and the contractor. The agency must establish robust oversight mechanisms to monitor expenditures against the estimated cost, ensure that all costs are allowable and allocable, and verify that the fixed fee remains appropriate given the work performed and risks encountered.

What are the key performance indicators (KPIs) used to measure the effectiveness and value of the R&D services provided by JHU APL?

Measuring the effectiveness of R&D services can be challenging. KPIs might include the successful completion of research milestones, the development of prototypes or new technologies, the number of patents or publications resulting from the research, and the successful transition of research findings into operational systems. The agency should have clearly defined, measurable, achievable, relevant, and time-bound (SMART) goals and KPIs to assess the value and impact of the contract.

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: $121,082,619

Exercised Options: $121,082,619

Current Obligation: $115,905,257

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: 2012-12-01

Current End Date: 2019-01-12

Potential End Date: 2019-01-12 00:00:00

Last Modified: 2022-04-01

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