JHU Applied Physics Lab's $522M NASA contract for Sun Earth Connection research shows long-term engagement

Contract Overview

Contract Amount: $522,118,990 ($522.1M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2000-12-15

End Date: 2016-07-15

Contract Duration: 5,691 days

Daily Burn Rate: $91.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SUN EARTH CONNECTION LIVING WITH A STAR PROGRAM LETTER CONTRACT

Place of Performance

Location: LAUREL, HOWARD County, MARYLAND, 20723

State: Maryland Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $522.1 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: SUN EARTH CONNECTION LIVING WITH A STAR PROGRAM LETTER CONTRACT Key points: 1. Contract awarded to a single entity suggests potential for specialized expertise or limited market availability. 2. The cost-plus-fixed-fee structure indicates that NASA assumes some financial risk, common in R&D. 3. A long contract duration of nearly 16 years implies a sustained need for the research services. 4. The contract's focus on physical, engineering, and life sciences aligns with NASA's broader exploration goals. 5. Performance context is crucial to understand if the significant investment yielded expected scientific advancements.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and comparable R&D projects. The $522 million over nearly 16 years averages to approximately $32.6 million annually, which for a large-scale, long-term research program, may be within a reasonable range. However, the lack of competition and the cost-plus-fixed-fee structure warrant scrutiny to ensure cost efficiency and prevent potential overruns.

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 justified when a specific contractor possesses unique capabilities, proprietary knowledge, or is the only responsible source. For taxpayers, a sole-source award can mean a lack of price competition, potentially leading to higher costs than if multiple bids were solicited.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses and can result in higher prices due to the absence of competitive pressure to offer the best value.

Public Impact

The primary beneficiaries are NASA and the scientific community, gaining insights into the Sun-Earth connection. Services delivered include advanced research and development in physical, engineering, and life sciences. The geographic impact is primarily at the research institution (Maryland) but scientific findings have global implications. Workforce implications include highly skilled research scientists, engineers, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically focusing on space science and astrophysics. This area is characterized by long-term, high-risk, high-reward projects often funded by government agencies like NASA. The market for such specialized R&D is typically limited to a few highly capable institutions. Comparable spending benchmarks would involve looking at other large NASA science missions or major R&D grants to academic institutions.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of the research likely requires highly specialized, large-scale capabilities typically found in larger research institutions rather than small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under NASA's contracting officer and program management. Given the R&D nature and sole-source award, rigorous oversight of milestones, budget adherence, and scientific progress is critical. Transparency is often limited in sole-source R&D contracts, but NASA's Inspector General would have jurisdiction for audits and investigations if any improprieties were suspected.

Related Government Programs

Risk Flags

Tags

research-and-development, space-science, nasa, johns-hopkins-university-applied-physics-laboratory, definitive-contract, cost-plus-fixed-fee, sole-source, maryland, large-contract, heliophysics

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $522.1 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. SUN EARTH CONNECTION LIVING WITH A STAR PROGRAM 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 $522.1 million.

What is the period of performance?

Start: 2000-12-15. End: 2016-07-15.

What specific scientific advancements or discoveries resulted from this $522 million investment in the Sun-Earth Connection Living With a Star Program?

The 'Living With a Star' (LWS) program, of which this contract was a part, aims to understand the fundamental processes of the Sun and its influence on the solar system and Earth. Specific advancements would be detailed in NASA's scientific publications, conference proceedings, and internal program reviews. JHU Applied Physics Laboratory's involvement suggests contributions to areas like space weather prediction, understanding solar flares, coronal mass ejections, and their impact on satellites and terrestrial systems. Quantifying the exact scientific return on investment for such fundamental research is complex and often measured over decades through peer-reviewed publications and the development of new technologies or predictive models.

How does the annual spending of approximately $32.6 million for this contract compare to other large NASA R&D contracts or similar university-led research initiatives?

The average annual spending of roughly $32.6 million for this contract is substantial, reflecting the scale and long-term nature of NASA's heliophysics research. Comparing it directly requires access to detailed data on other NASA R&D contracts, which are not always publicly available in a comparable format. However, major NASA science missions and large-scale research grants to institutions like JHU APL often run into tens or hundreds of millions of dollars annually. For context, other large NASA programs, such as the James Webb Space Telescope or Mars exploration missions, involve significantly higher budgets, but those are often for hardware development and operations. University-led research initiatives in physics and engineering can vary widely, but this figure suggests a significant, dedicated program.

What were the primary justifications for awarding this contract on a sole-source basis to The Johns Hopkins University Applied Physics Laboratory LLC?

Sole-source awards are typically granted when a specific entity is deemed the only responsible source capable of fulfilling the contract requirements. For JHU APL, this could be due to their unique expertise, established track record in space science and heliophysics, proprietary technologies, or existing infrastructure directly relevant to NASA's 'Living With a Star' program objectives. NASA's justification would likely cite APL's specialized knowledge in understanding the Sun-Earth connection, their prior contributions to similar NASA missions, and the potential disruption or increased cost associated with transitioning such complex research to a different entity. Without NASA's formal justification document, the precise reasons remain speculative but generally fall into categories of unique capability or lack of alternatives.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for a long-term R&D project like this?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for all allowable costs plus a predetermined fixed fee representing profit. For long-term R&D, the primary risk is that the 'cost' component can escalate beyond initial estimates if not rigorously managed. While the fee is fixed, the contractor has less incentive to control costs compared to fixed-price contracts, as their profit margin remains constant regardless of the final cost. NASA bears the financial risk of cost overruns. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the project remains within budget expectations and delivers value.

How has NASA's spending on heliophysics research, particularly related to the Sun-Earth connection, evolved over the period of this contract (2000-2016)?

The period of this contract (2000-2016) saw significant advancements and evolving priorities in NASA's heliophysics research. The 'Living With a Star' program itself was established to focus on the Sun's influence on Earth and the solar system. During this time, NASA continued to launch missions like STEREO, SDO, and Van Allen Probes, all contributing to understanding space weather and the Sun-Earth connection. Funding levels for heliophysics have generally remained robust, reflecting the increasing awareness of space weather impacts on technology and infrastructure. This contract with JHU APL likely represents a consistent, foundational element of NASA's broader strategy to study and predict solar activity.

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: 11100 JOHNS HOPKINS RD, LAUREL, MD, 20723

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

Financial Breakdown

Contract Ceiling: $600,000,000

Exercised Options: $600,000,000

Current Obligation: $522,118,990

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2000-12-15

Current End Date: 2016-07-15

Potential End Date: 2016-07-15 00:00:00

Last Modified: 2022-04-01

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