DoD's $95M Applied Physics Lab Contract for Engineering Support Raises Questions on Competition and Value
Contract Overview
Contract Amount: $94,984,268 ($95.0M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2012-12-01
End Date: 2019-01-01
Contract Duration: 2,222 days
Daily Burn Rate: $42.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 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 $95.0 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: ENGINEERING AND TECHNICAL SUPPORT Key points: 1. Significant contract value of $94.98M awarded to a single entity. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. Research and Development sector, specifically physical and engineering sciences, is a high-value area. 4. The contract spans a considerable duration, impacting long-term resource allocation.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a lack of competition, makes a definitive value assessment difficult. Without competitive bids, it's hard to benchmark pricing against similar R&D services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
Awarded as 'NOT COMPETED' via a delivery order, this indicates a sole-source or limited competition approach. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competitive bidding for a substantial R&D contract may result in inefficient use of taxpayer funds, as market-driven cost reductions are unlikely.
Public Impact
Taxpayers may be overpaying for specialized engineering and technical support due to the lack of competitive bidding. The Missile Defense Agency's reliance on a single contractor for critical R&D could pose a risk if that contractor faces performance issues or financial instability. Innovation in missile defense technology might be stifled if alternative solutions or approaches are not explored through a competitive process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Sole-source award
Positive Signals
- Awarded to a reputable institution (JHU APL)
- Supports critical missile defense research
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences (NAICS 541712). Spending in this sector is crucial for technological advancement but requires careful oversight to ensure value for money, especially in defense applications.
Small Business Impact
The contract was awarded to The Johns Hopkins University Applied Physics Laboratory LLC, which is not typically considered a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The 'NOT COMPETED' status and sole-source nature of this award warrant closer scrutiny from oversight bodies to ensure the justification for non-competition was sound and that the pricing is reasonable.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns due to CPFF structure
- Limited transparency on sole-source justification
- No clear indication of small business participation
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 $95.0 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. 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 $95.0 million.
What is the period of performance?
Start: 2012-12-01. End: 2019-01-01.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, critical national security needs, or the unavailability of other sources. Without further documentation, it's unclear if alternative competitive strategies were explored or deemed infeasible. This lack of transparency hinders a full assessment of the procurement's fairness and potential cost savings.
How does the Cost Plus Fixed Fee structure in this R&D contract ensure cost control and prevent contractor overruns?
Cost Plus Fixed Fee (CPFF) contracts aim to incentivize contractors by providing a fixed fee on top of allowable costs. However, in R&D, cost overruns are common. The fixed fee provides some incentive for efficiency, but the government bears the risk of cost increases. Robust government oversight and clear performance metrics are crucial to manage this risk effectively.
What mechanisms are in place to ensure the effectiveness and successful delivery of research and development outcomes under this contract?
Effectiveness is typically ensured through detailed performance work statements, milestone-based payments, and rigorous government oversight. Regular technical reviews, progress reports, and adherence to defined R&D objectives are key. The Missile Defense Agency would need to actively manage the contract to ensure the contractor meets the specified research goals and delivers valuable outcomes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
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: $100,565,599
Exercised Options: $100,565,599
Current Obligation: $94,984,268
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: 2019-01-01
Potential End Date: 2019-01-01 00:00:00
Last Modified: 2022-04-01
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