NASA's $246M R&D Contract with JHU APL: Long-Term, Not Competed

Contract Overview

Contract Amount: $246,031,358 ($246.0M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: National Aeronautics and Space Administration

Start Date: 1997-06-15

End Date: 2013-06-12

Contract Duration: 5,841 days

Daily Burn Rate: $42.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TIMED PHASE C/D/E LETTER CONTRACT

Place of Performance

Location: LAUREL, HOWARD County, MARYLAND, 20723

State: Maryland Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $246.0 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: TIMED PHASE C/D/E LETTER CONTRACT Key points: 1. Significant long-term investment in R&D, indicating critical national interest. 2. Sole-source award suggests unique capabilities or established relationship. 3. High cost-plus-fixed-fee structure warrants scrutiny for cost control. 4. Focus on physical, engineering, and life sciences R&D.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, coupled with its long duration and lack of competition, raises questions about optimal pricing and potential for cost overruns. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive environment. The justification for sole-sourcing is crucial for assessing value.

Taxpayer Impact: The lack of competition and cost-plus structure may lead to higher taxpayer costs than a competitively awarded contract. Transparency in justification and cost controls are essential.

Public Impact

Long-term funding for critical research and development. Potential for groundbreaking discoveries in physical, engineering, and life sciences. Sustained support for a key research institution. Impact on scientific advancement and technological innovation.

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 vital for innovation but can be complex to benchmark due to the unique nature of R&D projects.

Small Business Impact

The awardee is The Johns Hopkins University Applied Physics Laboratory LLC, a large research institution. There is no indication of small business participation in this specific award, suggesting limited opportunities for small businesses.

Oversight & Accountability

The long duration and sole-source nature of this contract necessitate robust oversight from NASA to ensure cost efficiency, adherence to research objectives, and accountability for taxpayer funds.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, national-aeronautics-and-space-administr, md, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $246.0 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. TIMED PHASE C/D/E LETTER CONTRACT

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: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $246.0 million.

What is the period of performance?

Start: 1997-06-15. End: 2013-06-12.

What was the specific justification for awarding this contract on a sole-source basis, and how does it align with NASA's procurement policies for R&D?

The justification for sole-sourcing is critical for understanding the value proposition. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. For R&D, this might be due to unique intellectual property, specialized facilities, or prior development work that makes competition impractical or detrimental to the project's success. NASA's policies likely require a thorough review and justification process to ensure fair and reasonable pricing and to demonstrate that competition was not feasible.

How effectively has the cost-plus-fixed-fee structure managed costs over the contract's extensive lifespan, and what mechanisms were in place to control potential overruns?

The cost-plus-fixed-fee (CPFF) structure inherently carries a risk of cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. Over its 16-year duration, effective cost management would depend on NASA's oversight, including regular audits, performance reviews, and strict adherence to the contract's scope. Mechanisms like target cost reviews, incentive clauses, or phased funding releases could have been employed to mitigate risks and ensure the fixed fee remained appropriate relative to the effort expended.

What tangible research outcomes or technological advancements have resulted from this $246 million investment, and how have they benefited NASA's mission or national interests?

Assessing the tangible outcomes is key to evaluating the effectiveness of this significant R&D investment. Without specific details on the research areas and deliverables, it's difficult to quantify the benefits. However, contracts of this nature typically aim to produce advancements in areas relevant to NASA's strategic goals, such as space exploration, Earth science, aeronautics, or fundamental scientific understanding. Documented breakthroughs, patents, or new technologies deployed in subsequent missions would serve as indicators of success.

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 DEVELOPMENTSpace R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: THE Johns Hopkins University

Address: JOHNS HOPKINS RD, LAUREL

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 1997-06-15

Current End Date: 2013-06-12

Potential End Date: 2013-06-12 00:00:00

Last Modified: 2022-04-01

More Contracts from THE Johns Hopkins University Applied Physics Laboratory LLC

View all THE Johns Hopkins University Applied Physics Laboratory LLC federal contracts →

Other National Aeronautics and Space Administration Contracts

View all National Aeronautics and Space Administration contracts →

Explore Related Government Spending