JHU Applied Physics Lab awarded $107.8M for 'Power Projection' services, a sole-source contract
Contract Overview
Contract Amount: $107,794,839 ($107.8M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2017-02-07
End Date: 2021-06-30
Contract Duration: 1,604 days
Daily Burn Rate: $67.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::CT::IGF SERVICES FOR TWS ENTITLED "POWER PROJECTION"
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $107.8 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: IGF::CT::IGF SERVICES FOR TWS ENTITLED "POWER PROJECTION" Key points: 1. Contract awarded to a single entity suggests potential lack of competitive pricing pressure. 2. The 'Other Scientific and Technical Consulting Services' category is broad, making direct cost comparisons challenging. 3. A 4-year duration indicates a significant, ongoing need for these specialized services. 4. The contract's sole-source nature raises questions about the justification for not seeking broader competition. 5. Performance is located in Maryland, a hub for federal contracting and research institutions. 6. The cost-plus-fixed-fee structure may incentivize cost increases if not closely monitored.
Value Assessment
Rating: fair
Benchmarking the value of this contract is difficult without more specific details on the 'Power Projection' services. However, the $107.8 million award over four years represents a substantial investment. The cost-plus-fixed-fee (CPFF) contract type, while common for research and development, can lead to higher costs if the fixed fee is not adequately calibrated against efficient performance. Without comparable sole-source contracts for similar highly specialized services, it's challenging to definitively assess if the pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning that only one vendor, The Johns Hopkins University Applied Physics Laboratory LLC, was solicited. The justification for this approach is not provided in the data, but sole-source awards typically occur when a unique capability or urgent need exists that only one entity can fulfill. The lack of competition means that taxpayers did not benefit from the price discovery that typically occurs in a competitive bidding process.
Taxpayer Impact: The absence of competition means that the government may not have secured the most cost-effective solution. This could result in taxpayer funds being used less efficiently than if multiple vendors had competed.
Public Impact
The primary beneficiary is likely the Department of Defense, which receives specialized technical consulting services for its 'Power Projection' initiative. Services delivered are in the realm of scientific and technical consulting, crucial for advanced defense capabilities. The geographic impact is concentrated in Maryland, where the contractor is located and likely performs the work. Workforce implications include the employment of highly skilled scientists, engineers, and technical personnel at JHU APL.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits transparency and potential cost savings.
- Cost-plus-fixed-fee structure may not adequately incentivize cost control.
- Lack of competition raises concerns about market responsiveness and innovation.
Positive Signals
- Award to a reputable institution (JHU APL) suggests a high likelihood of technical competence.
- Long-term contract (4 years) indicates a stable and critical need for the services.
- Specialized nature of services may justify a sole-source award in certain defense contexts.
Sector Analysis
The contract falls within the 'Other Scientific and Technical Consulting Services' NAICS code (541690). This sector is characterized by firms providing expertise in a wide range of scientific and technical fields, often supporting government research, development, and analysis. The market size for such services is substantial, particularly within the defense sector, where agencies frequently contract for specialized knowledge not available in-house. This award to JHU APL, a well-known research institution, aligns with the trend of government reliance on expert organizations for complex technical challenges.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus of this award was on the unique capabilities of the prime contractor, and opportunities for small businesses to participate as subcontractors may be limited or not a primary consideration in this specific award.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of Defense's contracting and program management offices. The specific agency is Washington Headquarters Services. Given the cost-plus-fixed-fee structure, robust financial oversight and performance monitoring would be critical to ensure that costs are reasonable and that the contractor is meeting its objectives. Transparency is limited due to the sole-source nature and the lack of detailed public reporting on performance metrics.
Related Government Programs
- Department of Defense Research and Development Contracts
- Scientific and Technical Consulting Services
- Advanced Technology Development Programs
- National Security Initiatives
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of detailed performance metrics in public data
Tags
department-of-defense, johns-hopkins-university-applied-physics-laboratory, washington-headquarters-services, maryland, scientific-and-technical-consulting-services, cost-plus-fixed-fee, sole-source, research-and-development, defense-contracting, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $107.8 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. IGF::CT::IGF SERVICES FOR TWS ENTITLED "POWER PROJECTION"
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 (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $107.8 million.
What is the period of performance?
Start: 2017-02-07. End: 2021-06-30.
What specific 'Power Projection' capabilities does this contract aim to enhance for the Department of Defense?
The provided data does not specify the exact nature of the 'Power Projection' services. However, in a defense context, 'Power Projection' generally refers to a nation's ability to deploy and sustain military forces at a distant location. This could encompass a wide range of activities, including strategic planning, development of advanced weapon systems, logistical support analysis, simulation and modeling, or research into new operational concepts. The contract's award to JHU Applied Physics Laboratory LLC, known for its significant contributions to defense research and engineering, suggests that the services are highly technical and likely involve advanced scientific or engineering expertise critical to maintaining or improving the DoD's ability to exert military influence globally.
What is the typical cost structure for 'Other Scientific and Technical Consulting Services' contracts of this magnitude?
Contracts for 'Other Scientific and Technical Consulting Services' can vary significantly in their cost structure depending on the nature of the work, the contractor's expertise, and the level of risk involved. Common contract types include Cost-Plus-Fixed-Fee (CPFF), Cost-Plus-Incentive-Fee (CPIF), Firm-Fixed-Price (FFP), and Time and Materials (T&M). The CPFF structure used here ($107.8M over 4 years) is often employed for research and development or services where the scope is not fully defined at the outset, allowing for flexibility. While it provides a fixed profit margin, it can lead to higher overall costs if not managed diligently, as the government bears the risk of cost overruns. Benchmarking against similar sole-source CPFF contracts for highly specialized R&D services would be necessary for a precise value assessment.
What are the risks associated with a sole-source contract of this value and duration?
The primary risks associated with a sole-source contract of this magnitude ($107.8M over 4 years) are related to cost and competition. Without competitive bidding, there is a reduced incentive for the contractor to offer the lowest possible price, potentially leading to higher costs for taxpayers. The government may not be aware of more innovative or cost-effective solutions that could have been offered by other vendors. Furthermore, reliance on a single source can create vendor lock-in and reduce flexibility if the contractor's performance or strategic direction changes. Robust oversight and clear performance metrics are crucial to mitigate these risks, but the inherent lack of competition remains a significant concern for price discovery and value optimization.
How does the performance location in Maryland impact the contract's execution and oversight?
The performance location in Maryland (ST: MD, SN: MARYLAND) places the contract within a region with a high concentration of federal agencies, defense contractors, and research institutions, including JHU APL itself. This proximity can facilitate communication and collaboration between the contractor and the contracting agency (Washington Headquarters Services). It also means that oversight personnel are likely geographically accessible. However, it does not inherently guarantee better performance or oversight. The effectiveness of oversight depends more on the resources, expertise, and diligence of the contracting officer's representatives (CORs) and program managers assigned to monitor the contract, regardless of location. Maryland's status as a major federal contracting hub means there is a deep pool of talent for both contracting and oversight roles.
What is the historical spending pattern for 'Other Scientific and Technical Consulting Services' by the Department of Defense?
The Department of Defense (DoD) is a significant spender in the 'Other Scientific and Technical Consulting Services' category (NAICS 541690). Historical data indicates consistent and substantial investment in these services, reflecting the DoD's reliance on external expertise for complex research, development, analysis, and strategic planning. Spending in this area often fluctuates based on geopolitical conditions, technological advancements, and specific program requirements. While this specific $107.8M award is a single data point, the DoD's overall engagement with this sector is characterized by long-term, high-value contracts, often awarded to specialized research institutions and large defense contractors. Understanding the broader historical context reveals a strategic dependence on these services to maintain technological superiority and address evolving national security challenges.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ003413R0030
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 11100 JOHNS HOPKINS RD, LAUREL, MD, 20723
Business Categories: Category Business, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $108,229,379
Exercised Options: $108,229,379
Current Obligation: $107,794,839
Actual Outlays: $299,582
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ003413D0003
IDV Type: IDC
Timeline
Start Date: 2017-02-07
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2024-09-12
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