DoD awards $146.6M engineering services contract to Johns Hopkins University Applied Physics Laboratory LLC
Contract Overview
Contract Amount: $146,606,298 ($146.6M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2023-07-24
End Date: 2026-10-27
Contract Duration: 1,191 days
Daily Burn Rate: $123.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES.
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $146.6 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: ENGINEERING SERVICES. Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant duration of 1191 days suggests a long-term need for specialized services. 3. Cost-Plus-Fixed-Fee pricing structure may incentivize cost overruns. 4. The contract is for engineering services, a critical component of defense research and development. 5. Geographic concentration in Maryland could indicate regional economic impact.
Value Assessment
Rating: fair
Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and comparison to similar sole-source engineering services. The fixed fee component provides some cost control, but the overall cost-plus nature requires careful oversight to ensure efficiency. The awarded amount of $146.6 million over approximately three years suggests a substantial investment in specialized engineering expertise.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that could arise from a competitive bidding process.
Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. The government's negotiating position is weakened without alternative offers.
Public Impact
The primary beneficiary is the Department of Defense, which will receive critical engineering services. The contract supports advanced research and development efforts, potentially leading to technological advancements. The geographic impact is concentrated in Maryland, where the contractor is located. The contract likely supports a highly skilled workforce in specialized engineering fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
- Cost-plus-fixed-fee contract type can incentivize higher spending if not closely monitored.
- Lack of transparency in the justification for sole-source award.
Positive Signals
- Award to a reputable institution (Johns Hopkins University Applied Physics Laboratory LLC) known for its expertise.
- Long-term contract duration indicates a sustained need for critical services.
- Focus on engineering services is vital for national security and technological advancement.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by high demand for specialized expertise, particularly in areas like defense, aerospace, and research and development. The market size for engineering services is substantial, with government contracts forming a significant portion. Benchmarking this specific award against other large-scale, sole-source engineering contracts within the defense sector would provide further context on its relative size and value.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. Consequently, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, Johns Hopkins University Applied Physics Laboratory LLC, is a large research institution, and its internal procurement practices would determine any indirect opportunities for small businesses.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of the Air Force, a component of the Department of Defense. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring will be crucial to ensure that costs are controlled and that the fixed fee is justified by the work performed. Transparency regarding the justification for the sole-source award and ongoing performance reports will be key accountability measures.
Related Government Programs
- Department of Defense Research and Development Contracts
- Engineering and Technical Services
- Sole-Source Defense Procurements
- Johns Hopkins University Applied Physics Laboratory Contracts
Risk Flags
- Sole-source award lacks competitive justification.
- Cost-plus contract type carries inherent cost overrun risk.
- Long contract duration requires sustained oversight.
Tags
defense, department-of-defense, air-force, engineering-services, sole-source, cost-plus-fixed-fee, research-and-development, maryland, large-contract, professional-scientific-and-technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $146.6 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. ENGINEERING SERVICES.
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 Air Force).
What is the total obligated amount?
The obligated amount is $146.6 million.
What is the period of performance?
Start: 2023-07-24. End: 2026-10-27.
What is the specific justification for awarding this contract on a sole-source basis to The Johns Hopkins University Applied Physics Laboratory LLC?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For The Johns Hopkins University Applied Physics Laboratory LLC, this often relates to their unique capabilities in advanced research, development, and systems engineering, particularly in areas critical to national security where they may possess specialized knowledge, facilities, or intellectual property that cannot be readily replicated by other entities. A full justification would likely detail these unique qualifications and the specific nature of the engineering services required.
How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar engineering services, and what are the associated risks?
The Cost Plus Fixed Fee (CPFF) structure is common for research and development or complex services where the scope of work is not precisely defined at the outset. It reimburses the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers flexibility but carries a higher risk of cost overruns for the government, as the contractor is incentivized to incur costs to achieve the fixed fee. However, the fixed fee itself provides some cost certainty. Risks include potential for scope creep and the need for robust government oversight to manage costs effectively. Other contract types like Firm-Fixed-Price (FFP) offer greater cost certainty but are less suitable for undefined scopes, while Cost Plus Incentive Fee (CPIF) can better align contractor and government interests by adjusting the fee based on performance.
What is the historical spending pattern for engineering services by the Department of the Air Force, and how does this award compare?
The provided data does not contain historical spending patterns for engineering services by the Department of the Air Force. To assess how this $146.6 million award compares, one would need to analyze historical contract awards for similar engineering services. Key metrics for comparison would include the total annual spending on engineering services, the average contract value, the prevalence of sole-source versus competed awards, and the types of contractors typically engaged. Without this historical context, it is difficult to determine if this award represents a significant increase, a typical expenditure, or an outlier in the Air Force's procurement of engineering support.
What are the key performance indicators (KPIs) or deliverables expected under this engineering services contract, and how will performance be measured?
The provided data does not specify the key performance indicators (KPIs) or deliverables for this contract. In a Cost Plus Fixed Fee contract for engineering services, performance is typically measured against milestones, technical objectives, quality standards, and adherence to schedules. Deliverables could include technical reports, design specifications, prototypes, analyses, and recommendations. The contract would outline a Performance Work Statement (PWS) detailing these requirements and the methods for evaluating the contractor's performance, which would then inform the assessment of whether the fixed fee is earned.
What is the track record of The Johns Hopkins University Applied Physics Laboratory LLC in delivering similar engineering services to the Department of Defense?
The Johns Hopkins University Applied Physics Laboratory LLC (JHUAPL) has a long-standing and extensive track record of delivering advanced research, development, and engineering services to the Department of Defense (DoD) and other government agencies. They are particularly known for their work in areas such as strategic systems, space technology, and national security. Their history includes numerous complex projects requiring deep scientific and engineering expertise. While specific performance metrics for past contracts are not detailed here, JHUAPL's continued engagement with the DoD on critical programs suggests a consistent ability to meet demanding technical requirements and deliver high-quality engineering solutions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 11100 JOHNS HOPKINS RD, LAUREL, MD, 20723
Business Categories: Category Business, Educational Institution, Higher Education, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $165,914,899
Exercised Options: $165,914,899
Current Obligation: $146,606,298
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $4,992,210
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA820421D0001
IDV Type: IDC
Timeline
Start Date: 2023-07-24
Current End Date: 2026-10-27
Potential End Date: 2026-10-27 00:00:00
Last Modified: 2025-11-25
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