DoD's $398M Power Projection Contract with JHU APL Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $398,377,467 ($398.4M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2019-06-03
End Date: 2024-05-30
Contract Duration: 1,823 days
Daily Burn Rate: $218.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: POWER PROJECTION 2: PROVIDE ASSESSMENTS AND ALTERNATIVES OF OFFENSIVE CAPABILITIES WITHIN ABOVE DOMAINS, MISSIONS AND WARFARE AREAS
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $398.4 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: POWER PROJECTION 2: PROVIDE ASSESSMENTS AND ALTERNATIVES OF OFFENSIVE CAPABILITIES WITHIN ABOVE DOMAINS, MISSIONS AND WARFARE AREAS Key points: 1. The contract, valued at $398.4 million, is for offensive capabilities assessment. 2. JHU Applied Physics Laboratory LLC is the sole awardee, raising competition concerns. 3. The 'NOT COMPETED' designation suggests limited market exploration. 4. The 'COST PLUS FIXED FEE' pricing structure warrants close monitoring for cost overruns.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these critical defense assessments.
Public Impact
Defense capabilities analysis is crucial for national security, but sole-source awards can limit innovation. The significant value of this contract highlights the importance of ensuring fair pricing and robust oversight. Public trust is eroded when large contracts are awarded without clear evidence of competitive processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Award to a reputable research institution (JHU APL)
- Long-term contract duration suggests ongoing need
Sector Analysis
This contract falls under 'All Other Professional, Scientific, and Technical Services' within the Department of Defense. Spending in this broad category can vary widely, but large sole-source awards warrant scrutiny to ensure efficiency.
Small Business Impact
The contract was not awarded to a small business, and the sole-source nature provides no direct benefit or opportunity for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status necessitates strong oversight from the Department of Defense to ensure the necessity of the sole-source award and the reasonableness of costs.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Limited transparency
- No small business participation
Tags
all-other-professional-scientific-and-te, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $398.4 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. POWER PROJECTION 2: PROVIDE ASSESSMENTS AND ALTERNATIVES OF OFFENSIVE CAPABILITIES WITHIN ABOVE DOMAINS, MISSIONS AND WARFARE AREAS
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 $398.4 million.
What is the period of performance?
Start: 2019-06-03. End: 2024-05-30.
What specific justifications were provided for not competing this significant contract, and were alternatives explored?
The provided data indicates the contract was 'NOT COMPETED.' A thorough review would require access to the justification and approval documents (J&A) that explain why full and open competition was not feasible. This typically involves detailing unique capabilities, urgent needs, or specific circumstances that preclude a competitive process.
How is the 'fixed fee' component of the Cost Plus Fixed Fee (CPFF) contract determined and managed to ensure it remains reasonable?
In a CPFF contract, the fixed fee is negotiated upfront and represents the contractor's profit. Its reasonableness is assessed based on the complexity of the work, the contractor's risk, and market rates. Effective oversight involves monitoring the contractor's performance and costs to ensure the fee remains justified throughout the contract's life.
What mechanisms are in place to ensure the effectiveness and value for money of the 'offensive capabilities' assessments provided by JHU APL?
Effectiveness is typically measured through performance metrics and deliverables outlined in the contract. Value for money is harder to assess without competition but relies on rigorous government review of the quality and utility of the assessments, ensuring they meet the stated requirements and contribute to informed decision-making.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ003419R0009
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: $398,424,463
Exercised Options: $398,424,463
Current Obligation: $398,377,467
Actual Outlays: $30,089,638
Subaward Activity
Number of Subawards: 41
Total Subaward Amount: $7,256,872
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ003419D0006
IDV Type: IDC
Timeline
Start Date: 2019-06-03
Current End Date: 2024-05-30
Potential End Date: 2024-05-30 00:00:00
Last Modified: 2025-09-19
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