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

Positive Signals

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

Risk Flags

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 ServicesManagement, Scientific, and Technical Consulting ServicesOther Scientific and Technical Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENTGeneral 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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