DoD's $123M contract with JHU Applied Physics Lab for systems engineering and analysis awarded via sole-source vehicle
Contract Overview
Contract Amount: $122,825,721 ($122.8M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2020-09-25
End Date: 2025-08-31
Contract Duration: 1,801 days
Daily Burn Rate: $68.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SYSTEMS ENGINEERING, OPERATIONAL ANALYSIS OF COMPONENT ARCHITECTURES, TECHNOLOGY CONCEPT EXPLORATION, ANALYSIS AND PERFORMANCE ASSESSMENTS
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $122.8 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: SYSTEMS ENGINEERING, OPERATIONAL ANALYSIS OF COMPONENT ARCHITECTURES, TECHNOLOGY CONCEPT EXPLORATION, ANALYSIS AND PERFORMANCE ASSESSMENTS Key points: 1. Contract focuses on critical systems engineering, operational analysis, and technology concept exploration. 2. Sole-source award to a highly specialized research institution suggests unique capabilities required. 3. Performance period spans nearly five years, indicating a long-term need for these services. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 5. Geographic concentration in Maryland may indicate a nexus with specific DoD research facilities. 6. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, underscoring the specialized nature of the work.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its sole-source nature and specialized technical services. The Cost Plus Fixed Fee structure necessitates rigorous oversight to ensure costs remain reasonable and aligned with the fixed fee. Without comparable sole-source contracts for similar highly specialized R&D and systems engineering, a definitive value-for-money assessment is difficult. However, the duration and scope suggest a significant investment in critical technical expertise.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning JHU Applied Physics Laboratory was the only entity considered for this specific requirement. This approach is typically used when a unique capability or specialized expertise is required that cannot be met through a competitive process. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bidders had competed.
Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the government did not solicit bids from multiple vendors. The justification for a sole-source award needs to be robust to ensure public funds are used efficiently.
Public Impact
The Department of Defense benefits from advanced systems engineering and operational analysis capabilities. Services include technology concept exploration and performance assessments, crucial for future defense capabilities. The primary beneficiary is the DoD's research and development arm, enhancing its technological edge. Workforce implications are likely within highly specialized scientific and engineering fields at JHU APL. Geographic impact is concentrated in Maryland, where JHU APL is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts without stringent oversight.
- Lack of competition limits transparency and potential for cost savings through market forces.
- The broad NAICS code could mask a wide range of potential expenditures.
Positive Signals
- Award to a reputable institution like JHU Applied Physics Laboratory suggests a high likelihood of technical competence.
- Long performance period indicates sustained need and potential for deep integration of services.
- Focus on critical systems engineering and technology exploration aligns with strategic defense priorities.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically under the broad category of 'All Other Professional, Scientific, and Technical Services.' This sector is vital for government operations, providing specialized expertise that agencies often cannot maintain in-house. The market for such services is characterized by a mix of large corporations and specialized research institutions. The value of this contract, at approximately $123 million, is significant within this niche, reflecting the high cost of specialized scientific and engineering talent.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Given the sole-source nature and the specialized capabilities of JHU Applied Physics Laboratory, it is unlikely that subcontracting opportunities for small businesses would be a primary focus or requirement of this award. The contract's structure does not inherently promote small business participation.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the estimated costs and ensure the fixed fee is justified. Transparency may be limited due to the sole-source nature, but internal DoD reviews and potentially Inspector General audits would be the primary accountability mechanisms.
Related Government Programs
- Department of Defense Research and Development Contracts
- Systems Engineering Support Services
- Operational Analysis Contracts
- Technology Concept Exploration Services
- Sole-Source Research and Development Awards
Risk Flags
- Sole-source award lacks competitive pricing.
- Cost Plus Fixed Fee structure requires diligent cost oversight.
- Broad NAICS code may obscure specific service costs.
- Long performance period increases risk of cost escalation or scope creep.
Tags
department-of-defense, systems-engineering, operational-analysis, technology-concept-exploration, jhu-applied-physics-laboratory, sole-source, cost-plus-fixed-fee, professional-scientific-technical-services, maryland, research-and-development, defense-agency, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $122.8 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. SYSTEMS ENGINEERING, OPERATIONAL ANALYSIS OF COMPONENT ARCHITECTURES, TECHNOLOGY CONCEPT EXPLORATION, ANALYSIS AND PERFORMANCE ASSESSMENTS
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 $122.8 million.
What is the period of performance?
Start: 2020-09-25. End: 2025-08-31.
What is the specific justification for awarding this contract on a sole-source basis to JHU Applied Physics Laboratory?
The justification for a sole-source award typically rests on the unique capabilities, specialized knowledge, or proprietary technology possessed by the contractor that cannot be replicated by other sources. For JHU Applied Physics Laboratory, this often relates to their deep expertise in specific defense-related scientific research, advanced engineering, and operational analysis, often developed through prior government contracts and internal investment. The Department of Defense would have had to document that JHU APL is the only responsible source capable of meeting the government's requirements in a timely manner, often citing specific technical requirements or a lack of competition due to the specialized nature of the work.
How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and value for money in this context?
The Cost Plus Fixed Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used for research and development or services where the scope is not precisely defined, allowing for flexibility. However, it places a significant burden on the government to meticulously monitor and audit costs to prevent overruns. Value for money is achieved if the fixed fee is reasonable and the costs incurred are necessary and efficient. Without strong government oversight and clear performance metrics, CPFF contracts can be susceptible to cost escalation, making robust auditing and negotiation critical for ensuring taxpayer funds are used effectively.
What are the potential risks associated with a sole-source award for complex technical services?
The primary risk of a sole-source award is the absence of price competition, which can lead to higher costs for the government compared to a competitively awarded contract. There's also a risk that the contractor may not be as incentivized to innovate or control costs as they would be under competitive pressure. Furthermore, reliance on a single source can create program dependency and limit the government's flexibility if the contractor's performance falters or their capabilities become outdated. Ensuring the sole-source justification is sound and that robust oversight is in place are critical mitigation strategies.
What is the historical spending pattern for similar systems engineering and analysis services within the Department of Defense?
Historical spending on systems engineering and analysis services within the DoD is substantial and spans numerous contracts across various agencies and research institutions. These services are fundamental to the development and sustainment of complex defense systems. Spending patterns vary widely based on the specific technology, program phase (e.g., R&D, acquisition, sustainment), and the nature of the contractor (e.g., large defense primes, specialized research labs, FFRDCs). Contracts can range from millions to billions of dollars, often awarded through competitive processes but also including sole-source awards for highly specialized or unique requirements, similar to this JHU APL contract.
How does the performance period of nearly five years impact the assessment of this contract's value and risk?
A performance period of nearly five years (September 2020 to August 2025) indicates a long-term, strategic need for the services provided by JHU Applied Physics Laboratory. This duration allows for in-depth work and the potential for significant advancements in systems engineering and technology exploration. From a value perspective, it suggests the government anticipates substantial benefits over time. However, a longer period also increases the risk of cost growth, scope creep, and potential misalignment with evolving technological landscapes or defense priorities if not managed proactively. Continuous oversight and performance reviews are essential to ensure value is realized throughout the contract's life.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&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: $134,707,473
Exercised Options: $134,707,473
Current Obligation: $122,825,721
Actual Outlays: $2,989
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $4,474,064
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: 2020-09-25
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2025-09-12
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