Johns Hopkins Applied Physics Lab awarded $154M R&D contract for Aegis BMD Mission Planner prototype
Contract Overview
Contract Amount: $154,329,529 ($154.3M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2018-11-30
End Date: 2026-11-30
Contract Duration: 2,922 days
Daily Burn Rate: $52.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROVIDE ANALYSIS TO INCLUDE DESIGN, DEVELOP, INTEGRATE, AND TEST AN AEGIS BMD MISSION PLANNER MODEL PROTOTYPE WHICH INCLUDES THE CERBERUS PROJECT IN ACCORDANCE WITH THE SOW, SECTION J, AND EXECUTING THE COMBAT SYSTEMS TASK ORDER TASKS. PSC AC23 EXPENDITURE TYPE 255.0 R&D
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $154.3 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: PROVIDE ANALYSIS TO INCLUDE DESIGN, DEVELOP, INTEGRATE, AND TEST AN AEGIS BMD MISSION PLANNER MODEL PROTOTYPE WHICH INCLUDES THE CERBERUS PROJECT IN ACCORDANCE WITH THE SOW, SECTION J, AND EXECUTING THE COMBAT SYSTEMS TASK ORDER TASKS. PSC AC23 EXPENDITURE TYPE 255.0 R&D Key points: 1. Contract focuses on developing and testing a critical component for missile defense. 2. Significant investment in research and development for advanced defense capabilities. 3. Sole-source award raises questions about potential cost efficiencies and market alternatives. 4. Long contract duration suggests a complex and multi-phased development process. 5. The contract aligns with broader Department of Defense efforts to enhance missile defense systems. 6. The specific nature of the R&D may limit opportunities for broad industry competition.
Value Assessment
Rating: questionable
The contract's value of $154.3 million for a prototype development is substantial. Without comparable sole-source R&D contracts for similar complex defense systems, it is difficult to benchmark the value for money. The cost-plus-fixed-fee structure, while common for R&D, can lead to cost overruns if not managed tightly. The lack of competition inherently reduces the pressure for the contractor to offer the most competitive pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one contractor, The Johns Hopkins University Applied Physics Laboratory LLC, was solicited. This approach is typically used when a specific capability or technology is unique to a single entity, or for urgent requirements where competition is not feasible. The lack of competition means that the government did not benefit from a range of proposals and pricing strategies that could have potentially led to a lower cost.
Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. The government's negotiating position is weakened without alternative offers.
Public Impact
The primary beneficiaries are the Department of Defense and national security, through the advancement of missile defense capabilities. The contract will deliver a functional prototype of an Aegis Ballistic Missile Defense (BMD) Mission Planner. The geographic impact is primarily within the research and development sector, with potential implications for national defense infrastructure. Workforce implications include specialized roles for scientists, engineers, and technical personnel involved in advanced modeling and simulation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potentially increases costs for taxpayers.
- Cost-plus-fixed-fee contract type carries inherent risk of cost overruns.
- Long contract duration (nearly 8 years) requires sustained oversight to ensure progress and prevent scope creep.
- The highly specialized nature of the R&D may create a dependency on a single contractor for this specific capability.
Positive Signals
- The Johns Hopkins University Applied Physics Laboratory has a strong track record in defense research and development.
- The contract addresses a critical national security need for advanced missile defense.
- The R&D focus is on developing cutting-edge technology essential for future defense systems.
- The contract is structured to deliver a tangible prototype, indicating a clear objective.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on advanced defense technologies. The market for missile defense systems is highly specialized, dominated by a few large defense contractors and research institutions. The total addressable market for BMD systems is significant, driven by global security concerns and evolving threats. This contract represents a specific investment within that larger market, aiming to enhance a key component of the Aegis system.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Given the specialized nature of the R&D and the sole-source award to a large research institution, subcontracting opportunities for small businesses may be limited unless specifically incorporated into the prime contractor's plan. The focus is on advanced research rather than broad service delivery where small businesses often play a larger role.
Oversight & Accountability
Oversight for this contract will likely be managed by the Missile Defense Agency (MDA) and the Department of Defense. Accountability measures will be tied to the achievement of milestones outlined in the Statement of Work (SOW) and task orders. Transparency may be limited due to the sole-source nature and the classified or sensitive aspects of missile defense technology. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Aegis Ballistic Missile Defense System
- Missile Defense Agency Research and Development Programs
- Department of Defense Advanced Technology Development
- Ballistic Missile Defense Initiatives
- Naval Warfare Systems Development
Risk Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- High R&D investment
Tags
defense, missile-defense, research-and-development, sole-source, cost-plus-fixed-fee, department-of-defense, missile-defense-agency, maryland, prototype-development, advanced-technology, modeling-and-simulation, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $154.3 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. PROVIDE ANALYSIS TO INCLUDE DESIGN, DEVELOP, INTEGRATE, AND TEST AN AEGIS BMD MISSION PLANNER MODEL PROTOTYPE WHICH INCLUDES THE CERBERUS PROJECT IN ACCORDANCE WITH THE SOW, SECTION J, AND EXECUTING THE COMBAT SYSTEMS TASK ORDER TASKS. PSC AC23 EXPENDITURE TYPE 255.0 R&D
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 $154.3 million.
What is the period of performance?
Start: 2018-11-30. End: 2026-11-30.
What is the specific technical expertise that makes Johns Hopkins University Applied Physics Laboratory the sole source for this contract?
The Johns Hopkins University Applied Physics Laboratory (JHU APL) is a University Affiliated Research Center (UARC) with a long-standing history of supporting the Department of Defense, particularly in areas of advanced research and systems engineering. For the Aegis BMD Mission Planner prototype, JHU APL likely possesses unique, proprietary knowledge, existing infrastructure, or prior developmental work directly related to the CERBERUS project and the integration requirements of the Aegis system. UARCs often hold specialized expertise and are trusted partners for complex, sensitive R&D efforts where competition might be impractical or detrimental to program continuity and technical integrity. The specific 'design, develop, integrate, and test' requirements for a mission planner prototype, especially one tied to a specific project like CERBERUS, suggests a need for deep, established institutional knowledge that JHU APL has cultivated.
How does the 'Cost Plus Fixed Fee' (CPFF) contract type influence the potential for cost overruns in this R&D project?
The Cost Plus Fixed Fee (CPFF) contract type means the contractor (JHU APL) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost is variable. This structure incentivizes the contractor to control costs to maximize their profit margin, as any savings below the estimated cost would increase their effective profit. However, it also places the risk of cost overruns on the government. If the project encounters unforeseen technical challenges, scope changes, or inefficiencies, the government bears the additional cost. For complex R&D like this, where the technical path may not be fully defined, CPFF contracts can lead to significant cost increases if not rigorously managed and overseen by the contracting agency to ensure costs remain reasonable and allocable to the contract objectives.
What are the key performance indicators (KPIs) or milestones expected for this Aegis BMD Mission Planner prototype development?
While the specific KPIs and milestones are detailed within the Statement of Work (SOW) and task orders, typical indicators for an R&D prototype contract of this nature would include the successful design and integration of core mission planning algorithms, the development of a functional user interface for operators, the ability to simulate various threat scenarios, and the successful testing and validation of the prototype against defined performance criteria. Milestones would likely be phased, such as completion of preliminary design review (PDR), critical design review (CDR), prototype integration, and final testing and demonstration phases. The contract's success hinges on the prototype's ability to accurately model and plan responses to Aegis BMD missions, demonstrating its potential effectiveness in a real-world operational context.
Given the sole-source nature, what mechanisms are in place to ensure the contractor remains accountable for delivering the required capabilities?
Accountability in a sole-source R&D contract is primarily driven by the contract's performance requirements, milestones, and the government's oversight. The Missile Defense Agency (MDA) will assign a Contracting Officer's Representative (COR) responsible for monitoring technical progress, ensuring adherence to the SOW, and verifying that deliverables meet quality standards. Regular progress reviews, technical interchange meetings, and formal milestone reviews are critical. The fixed fee component of the CPFF contract provides a financial incentive for performance, but the government also retains rights to withhold payment or terminate the contract for non-performance or breach. Robust government oversight and clear, measurable performance standards within the SOW are the key accountability mechanisms.
How does this $154M investment in an Aegis BMD Mission Planner prototype fit into the broader context of US missile defense spending?
This $154 million contract represents a focused investment within the much larger umbrella of US missile defense spending, which annually runs into tens of billions of dollars across various programs (e.g., Ground-based Midcourse Defense, THAAD, Patriot, Aegis Ashore, and space-based sensors). The Aegis BMD system itself is a cornerstone of naval and land-based missile defense. Investments in mission planners, simulation tools, and advanced modeling are crucial for optimizing the effectiveness of these expensive interceptor systems and ensuring they can counter evolving threats. This specific contract aims to enhance the 'brain' of the Aegis BMD system, improving its ability to detect, track, and engage targets by providing a more sophisticated planning capability. It's a critical, albeit specific, component supporting the overall strategic goal of layered missile defense.
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: $189,418,451
Exercised Options: $189,408,854
Current Obligation: $154,329,529
Actual Outlays: $5,846,002
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $597,151
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: 2018-11-30
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2026-01-13
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