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
- Lack of competition
- Cost-plus-fixed-fee structure
- Long contract duration
Positive Signals
- Supports critical R&D
- Long-term stability for research
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
- Research and Development in the Physical, Engineering, and Life Sciences
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Lack of competition limits price discovery.
- Cost-plus-fixed-fee structure can incentivize higher costs.
- Long contract duration increases risk of cost escalation.
- Sole-source award requires strong justification.
- Potential for scope creep over extended period.
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 Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › Space 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
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