DoD awards $298.5M task order to Johns Hopkins APL for critical R&D expertise, raising value-for-money questions
Contract Overview
Contract Amount: $298,509,402 ($298.5M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2022-06-30
End Date: 2026-12-14
Contract Duration: 1,628 days
Daily Burn Rate: $183.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY WILL SUPPORT THE OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR RESEARCH AND ENGINEERING WITH THIS POWER PROJECTION 3 TASK ORDER TO ESTABLISH AND MAINTAIN ESSENTIAL RESEARCH AND ENGINEERING EXPERTISE.
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $298.5 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY WILL SUPPORT THE OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR RESEARCH AND ENGINEERING WITH THIS POWER PROJECTION 3 TASK ORDER TO ESTABLISH AND MAINTAIN ESSENTIAL RESEARCH AND ENGINEERING EXPERTISE. Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. Significant investment in research and engineering expertise suggests a focus on long-term strategic capabilities. 3. Task order duration of over four years indicates a sustained need for specialized support. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, making direct cost comparisons challenging. 5. Performance is tied to the Office of the Under Secretary of Defense for Research and Engineering, highlighting its strategic importance. 6. The cost-plus-fixed-fee contract type allows for cost reimbursement plus a fixed fee, which can incentivize cost control but also carries inherent risk.
Value Assessment
Rating: questionable
The contract's value of $298.5 million over approximately four years for research and engineering expertise is substantial. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The cost-plus-fixed-fee structure means the government reimburses costs plus a fee, which can lead to higher overall expenditures if not carefully managed. The lack of competition is a primary driver for questioning the value for money achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source, 'NOT COMPETED' action. This means that only one source, Johns Hopkins University Applied Physics Laboratory LLC, was solicited. The lack of competition prevents a robust price discovery process and limits the government's ability to secure the most favorable terms and pricing through market forces. It suggests that either unique capabilities were required or that the procurement process did not allow for broader solicitation.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without multiple bids, there is less assurance that the price reflects the best possible value or that cost efficiencies have been fully explored.
Public Impact
The Office of the Under Secretary of Defense for Research and Engineering directly benefits from sustained access to specialized expertise. Essential research and engineering capabilities will be established and maintained, supporting advanced defense technology development. The contract's impact is primarily national, focusing on strategic defense initiatives rather than specific geographic regions. The workforce implications involve highly skilled researchers and engineers, likely contributing to the specialized scientific community.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award limits price discovery and potential cost savings.
- Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
- Broad NAICS code makes it difficult to assess the specificity and necessity of the services procured.
- Long duration may not align with rapidly evolving research and engineering needs.
Positive Signals
- Supports critical research and engineering expertise for national defense.
- Long-term engagement allows for sustained development of strategic capabilities.
- Award to a reputable institution like Johns Hopkins APL suggests access to high-caliber talent.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically supporting research and engineering for the Department of Defense. This sector is characterized by high specialization and significant government investment, particularly in defense applications. Comparable spending benchmarks are difficult to establish due to the unique nature of defense R&D and the broad classification of services. However, the scale of this award indicates a significant commitment to advancing defense technology.
Small Business Impact
This contract does not appear to involve small business set-asides, as indicated by 'sb': false. The large value and specialized nature of the services procured suggest a focus on established research institutions rather than small businesses. There is no explicit information regarding subcontracting plans for small businesses, which could be a missed opportunity for broader economic impact.
Oversight & Accountability
Oversight for this task order would fall under the Department of Defense's established contract management and oversight mechanisms, likely involving the Washington Headquarters Services and potentially the Defense Contract Management Agency. Transparency is facilitated through contract databases, but the specifics of the research and engineering work may be subject to security restrictions. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- Office of the Under Secretary of Defense for Research and Engineering Initiatives
- Advanced Technology Development Contracts
- Scientific and Technical Support Services
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of defined performance metrics in summary data
- Broad service category (NAICS 541990)
Tags
department-of-defense, research-and-development, sole-source, cost-plus-fixed-fee, professional-scientific-and-technical-services, washington-headquarters-services, maryland, defense-research-and-engineering, task-order, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $298.5 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY WILL SUPPORT THE OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR RESEARCH AND ENGINEERING WITH THIS POWER PROJECTION 3 TASK ORDER TO ESTABLISH AND MAINTAIN ESSENTIAL RESEARCH AND ENGINEERING EXPERTISE.
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 $298.5 million.
What is the period of performance?
Start: 2022-06-30. End: 2026-12-14.
What specific research and engineering expertise is Johns Hopkins Applied Physics Laboratory providing under this task order?
The provided data indicates that Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) will 'establish and maintain essential research and engineering expertise' for the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)). While the exact nature of this expertise is not detailed, it is implied to be critical for OUSD(R&E)'s mission, which typically involves overseeing and guiding the Department of Defense's research, development, and acquisition of advanced technologies. This could encompass a wide range of activities, from fundamental scientific research to applied engineering solutions, strategic technology planning, and policy development within the defense sector. The broad NAICS code (541990 - All Other Professional, Scientific, and Technical Services) further suggests a comprehensive scope of support rather than a narrowly defined technical service.
How does the cost-plus-fixed-fee (CPFF) contract type influence the potential for cost overruns or savings?
A Cost-Plus-Fixed-Fee (CPFF) contract is designed to reimburse the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can be beneficial when the scope of work is not precisely defined or is expected to evolve, as is common in research and development. For the government, the fixed fee provides some predictability in profit. However, CPFF contracts carry a risk of cost overruns because the contractor is incentivized to incur costs to complete the work, as their profit is fixed regardless of the total cost. Effective government oversight, including rigorous cost monitoring and auditing, is crucial to manage this risk and ensure that costs remain reasonable and allocable to the contract objectives. Without strong oversight, the government could end up paying significantly more than anticipated.
What are the implications of awarding this contract on a sole-source basis for taxpayer value?
Awarding a contract on a sole-source basis, as in this case ('NOT COMPETED'), generally has negative implications for taxpayer value. Competitive bidding allows multiple companies to propose solutions and prices, creating a market dynamic that drives down costs and encourages innovation. When only one source is solicited, the government loses the benefit of this competition. This can lead to higher prices than might be achieved in a competitive environment, as the contractor faces less pressure to offer the most cost-effective solution. Furthermore, it limits the government's ability to explore a wider range of potential solutions or identify potentially more capable or efficient contractors. Taxpayers may therefore be overpaying for the services received due to the lack of competitive pressure.
What is the historical spending pattern for similar research and engineering support services within the Department of Defense?
Historical spending on research and engineering support services within the Department of Defense (DoD) is substantial and varied. The DoD consistently ranks as one of the largest government purchasers of R&D services, allocating billions annually across numerous contracts. These contracts often involve complex, long-term projects requiring specialized expertise, frequently awarded to large defense contractors, universities, and research institutions. Spending patterns can fluctuate based on strategic priorities, technological advancements, and geopolitical factors. While specific historical data for 'All Other Professional, Scientific, and Technical Services' supporting OUSD(R&E) is not provided, the overall trend shows a significant and sustained investment in maintaining a technological edge. The non-competitive nature of this specific award, however, deviates from a fully competitive spending pattern.
What are the potential risks associated with the long duration (over 4 years) of this task order?
The long duration of this task order, spanning from June 30, 2022, to December 14, 2026 (approximately 4.5 years), presents several potential risks. Firstly, research and engineering fields are highly dynamic; technologies and strategic needs can evolve rapidly over such a period. The expertise required today might be less relevant or even obsolete by the end of the contract term, potentially leading to diminished value. Secondly, long-term, cost-reimbursable contracts can be susceptible to scope creep and escalating costs if not managed with rigorous oversight. Finally, locking in a single provider for an extended period, especially without competition, might prevent the DoD from capitalizing on new innovations or more cost-effective solutions that emerge during the contract's life. This extended commitment requires continuous monitoring to ensure alignment with evolving defense objectives.
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: HQ003422R0PP3
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: $550,000,000
Exercised Options: $433,894,503
Current Obligation: $298,509,402
Actual Outlays: $253,392
Subaward Activity
Number of Subawards: 67
Total Subaward Amount: $9,326,311
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: 2022-06-30
Current End Date: 2026-12-14
Potential End Date: 2027-06-29 00:00:00
Last Modified: 2025-12-15
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