DoD's $81M R&D Contract with Johns Hopkins APL for Missile Defense Research Faces Limited Competition

Contract Overview

Contract Amount: $81,133,487 ($81.1M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2018-12-28

End Date: 2025-10-31

Contract Duration: 2,499 days

Daily Burn Rate: $32.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: LABOR -ABT

Place of Performance

Location: LAUREL, HOWARD County, MARYLAND, 20723

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $81.1 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: LABOR -ABT Key points: 1. Significant investment in advanced missile defense research. 2. Sole-source award raises questions about competition and potential cost savings. 3. Contract duration extends over 6 years, indicating a long-term project. 4. Focus on physical, engineering, and life sciences R&D, excluding specific advanced fields.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes it difficult to benchmark pricing effectively against similar contracts. Without competitive bids, there's a risk of inflated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may prevent the government from securing the best possible price through market competition.

Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a competitively awarded contract.

Public Impact

Advancement in critical missile defense technology. Potential for breakthroughs in physical and engineering sciences. Long-term commitment to a specific research institution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight due to its complex nature and often non-standard deliverables.

Small Business Impact

The contract was awarded to The Johns Hopkins University Applied Physics Laboratory LLC, which is not a small business. There is no indication that small businesses were subcontracted, missing an opportunity to support the small business industrial base.

Oversight & Accountability

The sole-source nature of this award warrants close oversight from the Department of Defense to ensure cost reasonableness and effective execution of research objectives. Transparency in reporting and milestone tracking will be crucial.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $81.1 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. LABOR -ABT

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 $81.1 million.

What is the period of performance?

Start: 2018-12-28. End: 2025-10-31.

What is the justification for awarding this significant R&D contract on a sole-source basis, and what steps are being taken to ensure cost efficiency?

The justification for a sole-source award typically involves unique capabilities or critical national security needs that cannot be met by other sources. To ensure cost efficiency, the Department of Defense should be employing rigorous cost analysis, detailed milestone tracking, and performance-based incentives within the Cost Plus Fixed Fee structure. Regular audits and reviews are also essential.

What are the specific risks associated with a long-term, sole-source, cost-plus contract in advanced R&D, and how are they being mitigated?

Risks include potential cost overruns due to the cost-plus nature, lack of innovation driven by competition, and vendor lock-in. Mitigation strategies involve strong government oversight, clearly defined performance metrics, independent cost estimates, and phased funding tied to achievable milestones. Periodic reviews should assess the continued necessity of the sole-source approach.

How will the effectiveness of the research conducted under this contract be measured, particularly given the R&D focus and sole-source award?

Effectiveness will be measured through clearly defined research objectives, deliverables, and key performance indicators (KPIs) established in the contract. Regular technical reviews, peer assessments, and demonstration of prototypes or validated theories will be crucial. The Applied Physics Laboratory's track record and the tangible outcomes of the research will also serve as indicators of effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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: $83,087,773

Exercised Options: $83,087,773

Current Obligation: $81,133,487

Actual Outlays: $1,964,549

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: 2018-12-28

Current End Date: 2025-10-31

Potential End Date: 2025-10-31 00:00:00

Last Modified: 2025-09-11

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