Applied Physics Lab's $166.7M R&D contract for engineering support awarded by DoD's Missile Defense Agency
Contract Overview
Contract Amount: $166,701,046 ($166.7M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2013-01-01
End Date: 2018-04-30
Contract Duration: 1,945 days
Daily Burn Rate: $85.7K/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 $166.7 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 to a single entity, raising questions about competition and potential cost efficiencies. 2. Significant investment in research and development, indicating a focus on advanced technological solutions. 3. Long contract duration suggests a sustained need for specialized engineering and technical expertise. 4. The contract's value places it within a substantial range for R&D services. 5. Performance context is critical given the sensitive nature of missile defense systems. 6. Sector positioning within defense R&D highlights the strategic importance of this work.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables or comparable sole-source R&D agreements. The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not closely managed, potentially impacting overall value for money. However, for highly specialized R&D, a single-source award might be justified if the contractor possesses unique capabilities essential for the program's success. Further analysis of the fixed fee relative to the total contract value would be beneficial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when a specific contractor possesses unique capabilities, intellectual property, or is the only source capable of meeting the government's requirements. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids were solicited.
Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the government did not leverage multiple offers to secure the best possible value. The justification for a sole-source award needs to be robust to ensure funds are used efficiently.
Public Impact
The primary beneficiaries are the Department of Defense and the Missile Defense Agency, receiving critical research and development services. Services delivered include advanced engineering and technical support essential for missile defense system development and enhancement. Geographic impact is primarily national, supporting U.S. defense capabilities, with potential localized economic impact in Maryland where the contractor is based. Workforce implications include employment for highly skilled scientists, engineers, and technical professionals at The Johns Hopkins University Applied Physics Laboratory.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- CPFF contract type can incentivize cost increases if not rigorously monitored.
- Lack of transparency in the sole-source justification process.
- Long-term nature of the contract requires ongoing performance monitoring.
- Potential for contractor lock-in due to specialized knowledge.
Positive Signals
- Award to a reputable institution (JHU APL) known for defense research.
- Focus on critical national security R&D in missile defense.
- Sustained investment indicates a recognized and ongoing need for these services.
- Potential for significant technological advancements benefiting national security.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. This is a critical area for the defense industry, involving significant investment in innovation to maintain technological superiority. Comparable spending benchmarks in defense R&D are often in the hundreds of millions or billions, depending on the scope and criticality of the technology. The market for specialized defense R&D is often characterized by a limited number of highly capable contractors.
Small Business Impact
This contract does not appear to have a small business set-aside component, as it was awarded to The Johns Hopkins University Applied Physics Laboratory LLC. There is no explicit information regarding subcontracting plans for small businesses. The focus on specialized R&D may limit opportunities for broad subcontracting, though specific technical needs could potentially be met by niche small businesses.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices, with potential involvement from the Missile Defense Agency's Inspector General. The CPFF structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency is generally limited for sole-source awards, but contract performance reviews and milestone tracking are standard accountability measures.
Related Government Programs
- Missile Defense Systems
- Advanced Technology Development
- Engineering Services
- Research and Development Contracts
- Department of Defense Research Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
Tags
department-of-defense, missile-defense-agency, research-and-development, engineering-services, technical-support, sole-source, cost-plus-fixed-fee, university-affiliated-research-center, maryland, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $166.7 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 $166.7 million.
What is the period of performance?
Start: 2013-01-01. End: 2018-04-30.
What is the specific nature of the 'engineering and technical support' provided under this contract?
The contract data indicates 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' (NAICS 541712) and specifies 'ENGINEERING AND TECHNICAL SUPPORT' (Dictionary code IGF::OT::IGF). This suggests the work involves advanced scientific research, design, analysis, testing, and integration related to missile defense systems. It likely encompasses areas such as systems engineering, software development, hardware design, simulation, modeling, and technical assessments to support the development, deployment, and sustainment of various missile defense capabilities. The specific deliverables would be detailed in the contract's Statement of Work (SOW), which is not provided here but would outline the precise tasks and expected outcomes.
How does the $166.7 million contract value compare to similar sole-source R&D contracts in the defense sector?
The $166.7 million value for a sole-source R&D contract is substantial but not uncommon within the defense sector, particularly for programs managed by agencies like the Missile Defense Agency (MDA). Sole-source awards are often justified for highly specialized, mission-critical research where a single entity, like The Johns Hopkins University Applied Physics Laboratory (JHU APL), possesses unique expertise, facilities, or intellectual property. While direct comparisons are difficult without knowing the specific scope and duration, other sole-source R&D contracts for advanced defense technologies can range from tens of millions to hundreds of millions of dollars over their lifecycle. The key factor is the justification for uniqueness and the absence of viable alternatives, which allows for higher contract values due to lack of competition.
What are the primary risks associated with a sole-source Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risks associated with a sole-source CPFF contract for R&D are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher costs than if the contract were competed. The government relies heavily on the contractor's proposed costs and the fixed fee as the primary profit incentive. Secondly, the CPFF structure, while providing flexibility for evolving R&D requirements, carries inherent risks of cost escalation. If the contractor's actual costs exceed estimates, the government bears the burden, and the fixed fee is applied to the total allowable costs. Effective oversight, rigorous cost monitoring, and a well-defined Statement of Work are crucial to mitigate these risks and ensure value for taxpayer money.
What is the track record of The Johns Hopkins University Applied Physics Laboratory LLC in performing defense R&D contracts?
The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) has a long and distinguished track record of performing complex research, development, and systems engineering for the U.S. Department of Defense and other government agencies. JHU APL is a University Affiliated Research Center (UARC) with extensive experience in areas critical to national security, including missile defense, space systems, cybersecurity, and advanced materials. They are known for their deep technical expertise, objective analysis, and ability to tackle challenging scientific and engineering problems. Their consistent performance on numerous high-value, often sole-source, contracts underscores their recognized capabilities and trusted status within the defense acquisition community.
How does the duration of this contract (1945 days) impact the assessment of its value and risk?
The contract duration of 1945 days (approximately 5.3 years) is significant for an R&D effort. A longer duration suggests a sustained, long-term need for the specialized services provided by JHU APL, potentially indicating the complexity and evolutionary nature of missile defense technology. From a value perspective, a longer contract can allow for deeper integration and more comprehensive development, potentially leading to more robust solutions. However, it also increases the risk of cost overruns if not managed effectively, and the potential for requirements to shift over time. Continuous oversight and performance reviews are essential to ensure the contract remains aligned with evolving needs and delivers value throughout its extended period.
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 › C – 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: $168,344,157
Exercised Options: $168,344,157
Current Obligation: $166,701,046
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: 2013-01-01
Current End Date: 2018-04-30
Potential End Date: 2018-04-30 00:00:00
Last Modified: 2022-04-01
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