Johns Hopkins Applied Physics Lab receives $105.5M for missile defense R&D, with contract awarded via sole-source justification
Contract Overview
Contract Amount: $105,525,926 ($105.5M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2018-06-29
End Date: 2027-01-11
Contract Duration: 3,118 days
Daily Burn Rate: $33.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ENGINEERING AND TECH SUPPORT RDTE FUNDS IGF::OT::IGF
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $105.5 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: ENGINEERING AND TECH SUPPORT RDTE FUNDS IGF::OT::IGF Key points: 1. Contract awarded to a single entity suggests potential lack of competitive pressure on pricing. 2. Significant funding allocated to research and development indicates a focus on innovation and future capabilities. 3. The long duration of the contract (over 8 years) implies a sustained need for specialized expertise. 4. Missile Defense Agency's reliance on this contractor may point to unique capabilities or historical performance. 5. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code covers a broad range of technical activities. 6. Cost-plus-fixed-fee contract type can lead to cost overruns if not carefully managed.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging without comparable sole-source awards for similar R&D efforts. The cost-plus-fixed-fee structure, while common for R&D, carries inherent risks of cost escalation. Without competitive bids, it's difficult to ascertain if the fixed fee represents a fair profit margin or if the overall cost structure is optimized for value. The absence of competition raises concerns about whether the government is securing the most cost-effective solution for its missile defense research needs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. The justification for this approach is not provided in the data, but it typically implies that only one responsible source is capable of meeting the requirement. This lack of competition limits the government's ability to explore alternative solutions or leverage market dynamics to achieve lower prices. The absence of multiple bidders means price discovery through competitive bidding was not utilized.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This may result in less efficient use of public funds compared to a competed contract.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Missile Defense Agency, which will receive advanced research and development services. The contract supports the development of technologies and strategies crucial for national missile defense. Geographic impact is primarily concentrated in Maryland, where The Johns Hopkins University Applied Physics Laboratory is located. The contract likely supports a highly specialized workforce of scientists, engineers, and researchers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in higher costs for taxpayers.
- Cost-plus-fixed-fee contracts can be susceptible to cost overruns.
- Sole-source awards limit the government's ability to explore diverse technical approaches.
Positive Signals
- Award to a well-established research institution like Johns Hopkins APL suggests access to high-caliber expertise.
- Long-term funding indicates a critical and ongoing need for the services provided.
- Focus on R&D supports advancement of national security capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The Missile Defense Agency's spending in this area is critical for maintaining a technological edge in national security. Comparable spending benchmarks would typically involve other large-scale, sole-source R&D contracts awarded to Federally Funded Research and Development Centers (FFRDCs) or other specialized research institutions for defense-related projects. The market for such specialized R&D is often limited to a few highly capable organizations.
Small Business Impact
There is no indication that this contract includes small business set-asides. Given the specialized nature of the R&D and the sole-source award to a large institution, it is unlikely that small businesses would be directly involved as prime contractors. Subcontracting opportunities for small businesses may exist, but this would depend on the specific technical requirements and the prime contractor's subcontracting plan, which is not detailed here.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense and the Missile Defense Agency. As a sole-source award, there may be heightened scrutiny on cost management and performance metrics. Transparency might be limited due to the non-competitive nature, but reporting requirements within the cost-plus-fixed-fee structure would still apply. Inspector General jurisdiction would cover potential fraud, waste, or abuse.
Related Government Programs
- Missile Defense Systems
- Advanced Research Projects
- Department of Defense Research and Development
- Applied Physics Research
- Engineering Services
Risk Flags
- Sole-source award may limit competitive pricing.
- Cost-plus-fixed-fee contract type carries risk of cost overruns.
- Lack of transparency regarding sole-source justification.
Tags
research-and-development, missile-defense-agency, department-of-defense, sole-source, cost-plus-fixed-fee, engineering-services, maryland, applied-physics, national-security, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $105.5 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. ENGINEERING AND TECH SUPPORT RDTE FUNDS IGF::OT::IGF
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 (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $105.5 million.
What is the period of performance?
Start: 2018-06-29. End: 2027-01-11.
What is the specific justification for awarding this contract on a sole-source basis to The Johns Hopkins University Applied Physics Laboratory LLC?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is capable of providing the required goods or services. This could be due to unique capabilities, proprietary technology, or a critical need that cannot be met through competition within a reasonable timeframe. For a contract of this magnitude and nature, the justification would likely be detailed in a formal document released by the Missile Defense Agency, outlining why competitive bidding was not feasible or advantageous.
How does the cost-plus-fixed-fee structure of this contract compare to other R&D contracts within the Missile Defense Agency?
The cost-plus-fixed-fee (CPFF) structure is common for research and development contracts where the scope of work is not fully defined at the outset, making it difficult to establish a firm fixed price. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While this structure allows for flexibility in R&D, it carries a risk of cost overruns if the contractor's costs exceed projections. Without access to the agency's broader contract portfolio and specific R&D project types, a direct comparison of CPFF structures is difficult. However, agencies often use CPFF for exploratory research and development where innovation and adaptation are paramount, balancing flexibility with cost control through oversight and fee negotiation.
What are the key performance indicators (KPIs) or milestones associated with this contract, and how is performance being measured?
The provided data does not specify the key performance indicators (KPIs) or milestones for this contract. For a research and development contract, especially one awarded on a sole-source basis, performance measurement would likely focus on technical progress, adherence to research plans, achievement of specific research objectives, and timely delivery of reports or prototypes. The Missile Defense Agency would establish these metrics within the contract's statement of work. Regular progress reviews and technical evaluations would be conducted to ensure the contractor is meeting expectations and advancing the missile defense capabilities as intended.
What is the historical spending pattern for missile defense R&D by the Missile Defense Agency, and how does this award fit into that pattern?
The provided data focuses on a single contract and does not offer historical spending patterns for the Missile Defense Agency's R&D efforts. However, the Missile Defense Agency consistently receives substantial funding for research and development as part of the Department of Defense's overall budget. This $105.5 million award for engineering and technical support for R&D funds represents a significant investment in a specific area of missile defense. Such awards are typical for advancing complex defense systems, and the agency often relies on long-term partnerships with specialized research institutions to achieve its technological objectives.
What are the potential risks associated with relying on a single contractor for critical missile defense research and development?
Relying on a single contractor for critical missile defense R&D presents several risks. Firstly, it can lead to a lack of innovation if the contractor becomes complacent or if alternative technological approaches are not explored. Secondly, it creates a dependency, making the agency vulnerable if the contractor faces financial difficulties, operational issues, or personnel changes. Thirdly, as noted, the absence of competition can result in higher costs and potentially less efficient resource allocation. Finally, it limits the government's leverage in contract negotiations and oversight, as there are no alternative sources to pivot to if performance or cost issues arise.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ014717R0041
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: $140,225,142
Exercised Options: $140,225,142
Current Obligation: $105,525,926
Actual Outlays: $3,089,886
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $126,151
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ014718D0004
IDV Type: IDC
Timeline
Start Date: 2018-06-29
Current End Date: 2027-01-11
Potential End Date: 2027-01-11 00:00:00
Last Modified: 2026-01-14
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