DoD's $100M R&D Contract to JHU APL for Missile Defense Tech Faces Scrutiny
Contract Overview
Contract Amount: $100,033,680 ($100.0M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2018-10-30
End Date: 2026-01-30
Contract Duration: 2,649 days
Daily Burn Rate: $37.8K/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 $100.0 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. Significant R&D investment in missile defense technology. 2. Sole-source award to a single, highly specialized entity. 3. Long contract duration raises questions about sustained need and adaptability. 4. Potential for cost overruns given Cost Plus Fixed Fee structure.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to higher costs if not managed tightly. Benchmarking CPFF R&D contracts in the physical sciences is challenging due to unique project scopes, but the $100M value warrants close monitoring.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a belief that only The Johns Hopkins University Applied Physics Laboratory LLC could perform the required research and development. This limits price discovery and competition, potentially leading to higher costs than a competed contract.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for this critical missile defense research and development.
Public Impact
Advancement of critical missile defense capabilities. Potential for technological breakthroughs with national security implications. Concentration of significant R&D funds with one institution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- CPFF contract type can incentivize cost escalation.
- Long contract duration (over 6 years) may not reflect evolving threats.
- Lack of small business participation noted.
Positive Signals
- Addresses critical national security need (Missile Defense).
- Leverages specialized expertise of a renowned institution.
- Long-term funding allows for sustained research efforts.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector, particularly for defense applications, is substantial, but R&D contracts often have unique pricing structures and limited direct benchmarks due to their specialized nature.
Small Business Impact
The data indicates no specific set-aside for small businesses (ss: false, sb: false). This is common for highly specialized R&D contracts awarded to large research institutions, but it represents a missed opportunity for small businesses to contribute and innovate in this area.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of Defense and the Missile Defense Agency to ensure efficient use of funds and alignment with strategic objectives. Regular performance reviews and cost audits are crucial.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Long contract duration
- No small business participation
- Limited transparency on specific R&D objectives
Tags
research-and-development-in-the-physical, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $100.0 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 $100.0 million.
What is the period of performance?
Start: 2018-10-30. End: 2026-01-30.
What is the justification for the sole-source award, and have alternative sources been thoroughly evaluated?
Sole-source awards are typically justified when a specific entity possesses unique capabilities or intellectual property essential for the contract's success. For this contract, the justification likely stems from JHU APL's established expertise in missile defense research. However, a thorough evaluation of potential alternative sources, even for specialized R&D, is crucial to ensure the government isn't missing out on competitive pricing or innovative approaches.
How will the agency ensure cost control and prevent overruns under the Cost Plus Fixed Fee (CPFF) structure for this long-term R&D effort?
Effective cost control under a CPFF contract relies on stringent oversight, detailed performance metrics, and regular audits. The agency must establish clear milestones and deliverables, closely monitor expenditures against the fixed fee, and implement mechanisms to identify and address potential cost escalations early. For a long-term R&D project, adaptive management and transparent communication are key to managing the inherent uncertainties.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effective R&D outcomes?
Key performance indicators for this R&D contract should focus on tangible research outputs, technological advancements, and successful integration into missile defense systems. This could include metrics like the successful development of specific algorithms, prototype testing results, peer-reviewed publications, or the achievement of defined performance thresholds in simulations. Regular technical reviews and independent validation will be essential to measure effectiveness.
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: $106,248,815
Exercised Options: $106,248,815
Current Obligation: $100,033,680
Actual Outlays: $2,619,217
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $1,186,554
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: 2018-10-30
Current End Date: 2026-01-30
Potential End Date: 2026-01-30 00:00:00
Last Modified: 2026-01-14
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