DoD's AEGIS Missile System R&D Contract Awarded to JHU APL for $95M
Contract Overview
Contract Amount: $95,173,296 ($95.2M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2011-06-17
End Date: 2013-09-30
Contract Duration: 836 days
Daily Burn Rate: $113.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: AEGIS BALLISTIC MISSILE DEFENSE-MISSILE SYSTEM
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $95.2 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: AEGIS BALLISTIC MISSILE DEFENSE-MISSILE SYSTEM Key points: 1. Significant investment in advanced missile defense technology. 2. Sole-source award to a specialized research institution. 3. Potential for high impact on national security. 4. Focus on R&D within the physical and engineering sciences.
Value Assessment
Rating: fair
The contract value of $95.2 million for R&D is substantial. Without comparable contracts for similar advanced missile defense systems, a direct pricing assessment is difficult. The Cost Plus Fixed Fee structure suggests potential for cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Johns Hopkins University Applied Physics Laboratory LLC. This approach may be justified by unique expertise but limits price discovery and competitive pressure.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competed.
Public Impact
Enhances national security by advancing missile defense capabilities. Supports cutting-edge research and development in a critical defense area. Potential for technological advancements with broader applications. Impacts the defense industrial base and specialized research sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can lead to higher costs.
- Lack of detailed performance metrics in provided data.
Positive Signals
- Addresses a critical national security need.
- Leverages specialized expertise of a leading research institution.
- Potential for significant technological advancement.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is crucial for technological advancement but can be complex to benchmark due to the specialized nature of the work.
Small Business Impact
The contract was awarded to The Johns Hopkins University Applied Physics Laboratory LLC, a large research institution. There is no indication of small business participation in this specific award, which is common for highly specialized R&D efforts.
Oversight & Accountability
Oversight of this sole-source, cost-plus contract is critical to ensure efficient use of funds and achievement of R&D objectives. The Department of the Navy is responsible for monitoring performance and costs.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
- Potential for cost overruns
- Limited transparency on specific R&D goals
Tags
research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $95.2 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. AEGIS BALLISTIC MISSILE DEFENSE-MISSILE SYSTEM
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $95.2 million.
What is the period of performance?
Start: 2011-06-17. End: 2013-09-30.
What specific technological advancements are expected from this AEGIS missile defense R&D contract, and how will they be measured?
The provided data does not detail the specific technological advancements sought. Typically, such R&D contracts outline key performance parameters, milestones, and deliverables. Effective oversight would involve rigorous tracking of progress against these defined objectives to ensure the $95.2 million investment yields tangible improvements in missile defense capabilities.
Given the sole-source nature, what mechanisms are in place to ensure the cost-plus fixed fee structure remains efficient and avoids unnecessary expenditures?
While sole-source awards limit competitive pressure, robust oversight is essential. The Department of the Navy should implement stringent financial controls, regular audits, and performance reviews. This includes scrutinizing indirect costs, labor rates, and justification for any cost increases to ensure the fixed fee remains appropriate and taxpayer funds are used judiciously.
How does this investment in the AEGIS system contribute to the overall effectiveness and modernization of the U.S. missile defense strategy?
The AEGIS system is a cornerstone of U.S. naval and ballistic missile defense. R&D funding, like this $95.2 million contract, is vital for its continuous improvement, adaptation to evolving threats, and integration with other defense layers. Success in this R&D effort directly enhances the system's effectiveness, ensuring it remains a credible deterrent and protective asset.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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
Financial Breakdown
Contract Ceiling: $95,173,296
Exercised Options: $95,173,296
Current Obligation: $95,173,296
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002403D6606
IDV Type: IDC
Timeline
Start Date: 2011-06-17
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2022-04-01
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