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

Positive Signals

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

Risk Flags

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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENTOTHER 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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