JHU Applied Physics Lab receives $29.3M for R&D, raising questions about competition and value

Contract Overview

Contract Amount: $29,302,587 ($29.3M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2012-08-15

End Date: 2018-05-31

Contract Duration: 2,115 days

Daily Burn Rate: $13.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF ENGINEERING AND TECHNICAL SUPPORT

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: IGF::OT::IGF ENGINEERING AND TECHNICAL SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Significant duration of the contract (2115 days) suggests a long-term need for specialized services. 3. The R&D focus in physical, engineering, and life sciences indicates a high-skill, high-cost service area. 4. Lack of competition may obscure true market value and prevent identification of more cost-effective solutions. 5. The contract's value, while substantial, needs benchmarking against similar R&D efforts to assess value for money. 6. Performance context is limited without specific deliverables or outcome metrics.

Value Assessment

Rating: fair

Benchmarking the value for money on this sole-source contract is challenging without comparable sole-source awards or open-market pricing. The $29.3 million total award value over its period of performance suggests a significant investment in research and development. However, the absence of competition means there's no direct market validation of the pricing structure. Further analysis would require access to the contractor's cost breakdown and comparison with industry benchmarks for similar R&D services, which are not publicly available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Missile Defense Agency did not conduct a competitive procurement process. This typically occurs when a specific contractor possesses unique capabilities or when it's deemed not to be in the government's best interest to compete. The lack of bidders means there were no alternative proposals to consider, potentially leading to higher prices than might be achieved in a competitive environment.

Taxpayer Impact: Sole-source awards limit taxpayer value by bypassing the price-lowering effects of competition. This can result in higher overall spending for the government compared to competitively procured contracts for similar services.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Missile Defense Agency, which receives critical research and development support. Services delivered likely involve advanced scientific research, engineering, and technical analysis related to missile defense systems. The geographic impact is centered around the contractor's facilities, likely in Virginia, but the research outcomes could have national security implications. The contract supports highly skilled scientists, engineers, and technical personnel, contributing to the specialized workforce in defense R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. This is a high-value, knowledge-intensive sector crucial for national security and technological advancement. The market for defense R&D is characterized by specialized firms and academic institutions with unique expertise. Comparable spending benchmarks are difficult to establish due to the proprietary nature of R&D and the unique requirements of defense projects.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' and 'sb' being false. The prime contractor, JHU Applied Physics Laboratory, is a large research institution. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary focus is on the prime contractor's capabilities, and the impact on the small business ecosystem is likely minimal unless specific subcontracting opportunities arise organically.

Oversight & Accountability

Oversight for this contract would typically fall under the Missile Defense Agency's program management and contracting offices. As a sole-source award, there may be enhanced scrutiny from oversight bodies like the Government Accountability Office (GAO) or the Inspector General if concerns arise regarding justification or performance. Transparency is limited due to the sole-source nature and the classified or sensitive R&D work involved.

Related Government Programs

Risk Flags

Tags

research-and-development, department-of-defense, missile-defense-agency, sole-source, cost-plus-fixed-fee, large-contract, scientific-research, engineering-services, virginia, applied-physics-laboratory, non-competed

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. IGF::OT::IGF ENGINEERING AND TECHNICAL SUPPORT

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 $29.3 million.

What is the period of performance?

Start: 2012-08-15. End: 2018-05-31.

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 procurements are justified under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source is available or capable of providing the required services, or when there is a compelling urgency. For R&D contracts of this nature, it often relates to unique capabilities, intellectual property, or prior developmental work that makes a specific entity uniquely qualified. A detailed review of the contract file or agency justifications would be necessary to ascertain the precise reasons.

How does the $29.3 million award value compare to similar R&D contracts awarded by the Missile Defense Agency or other DoD components?

Direct comparison of the $29.3 million award value is challenging without knowing the specific scope of work and duration of comparable contracts. However, R&D contracts for advanced defense systems can range from tens of millions to billions of dollars. The $29.3 million over approximately 5.7 years (2115 days) suggests a significant, but not exceptionally large, investment for specialized R&D. Benchmarking would require identifying contracts with similar technical objectives, contract types (e.g., Cost Plus Fixed Fee), and contractor capabilities within the DoD's R&D portfolio.

What are the key performance indicators or deliverables associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or deliverables for this contract. Research and Development contracts often have deliverables that include technical reports, prototypes, feasibility studies, analyses, and recommendations. Performance is typically assessed based on the successful completion of research objectives, adherence to timelines, and the quality of technical outputs. Without access to the contract's statement of work or performance work statement, specific KPIs remain unknown.

What is the track record of The Johns Hopkins University Applied Physics Laboratory LLC in performing similar R&D contracts for the government?

The Johns Hopkins University Applied Physics Laboratory LLC (JHUAPL) has a long and extensive track record of performing complex R&D and engineering services for the U.S. government, particularly within the Department of Defense. They are known for their work on advanced technology, systems engineering, and scientific research, often supporting critical national security programs. Their history includes significant contributions to areas like missile defense, space systems, and cybersecurity, indicating a high level of expertise and reliability in executing demanding R&D efforts.

What is the historical spending trend for R&D services under NAICS code 541712 by the Missile Defense Agency?

Historical spending data for NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)) by the Missile Defense Agency (MDA) would require a comprehensive analysis of federal procurement databases. While this specific contract represents $29.3 million, the MDA's overall R&D spending fluctuates based on strategic priorities and budget allocations. Generally, the MDA invests heavily in advanced technologies to counter evolving threats, making R&D a significant portion of its budget. Trends would likely show consistent investment in areas like missile defense technology, sensor development, and countermeasure research.

Are there any identified risks or concerns associated with the performance or management of this contract?

The primary risk identified is the sole-source nature of the award, which inherently limits competitive pressure and could lead to suboptimal pricing or less innovation compared to a competed contract. The long duration (2115 days) also presents a risk of scope creep or changing technological requirements that may not be adequately addressed without periodic re-competition or contract modifications. Without specific performance data or oversight reports, other potential risks related to contractor performance, cost overruns, or schedule delays cannot be definitively assessed from the provided data.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except 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: HQ014712R0002

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Johns Hopkins University

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: $34,009,948

Exercised Options: $34,009,948

Current Obligation: $29,302,587

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014712D0004

IDV Type: IDC

Timeline

Start Date: 2012-08-15

Current End Date: 2018-05-31

Potential End Date: 2018-05-31 00:00:00

Last Modified: 2022-04-01

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