DoD's $1.45B R&D contract to Johns Hopkins APL for technical capability development

Contract Overview

Contract Amount: $14,482,551 ($14.5M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2007-01-16

End Date: 2008-12-31

Contract Duration: 715 days

Daily Burn Rate: $20.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: R&D

Official Description: TECHNICAL CAPABILITY: DTCWC

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: TECHNICAL CAPABILITY: DTCWC Key points: 1. Contract awarded for critical technical capability development, indicating a focus on advanced research. 2. The sole-source nature of this award warrants scrutiny regarding potential cost efficiencies and market alternatives. 3. A long duration suggests a complex, multi-year research effort with evolving requirements. 4. The award falls within the R&D sector, aligning with government priorities for innovation and technological advancement. 5. Performance context is limited without specific deliverables, but the contractor's affiliation suggests a high level of expertise.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its R&D nature and sole-source award. Without competitive bids, it's difficult to ascertain if the $1.45 billion represents a fair market price. The long duration (715 days) and the specific technical capability (DTCWC) suggest a significant investment, but the lack of comparative data makes a definitive value assessment difficult. Further analysis would require understanding the specific research outcomes and their market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when there is an urgent need that cannot be met through competition. The lack of competition here means that price discovery through market forces was bypassed, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing offers, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially national security interests, through the development of advanced technical capabilities. The services delivered are research and development focused on a specific technical capability (DTCWC). The geographic impact is primarily within the United States, where the research and development activities will be conducted. Workforce implications include highly skilled researchers, scientists, and engineers employed by The Johns Hopkins University Applied Physics Laboratory LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pressure, potentially increasing costs.
  • Lack of detailed performance metrics makes it difficult to assess the return on investment.
  • The broad nature of 'technical capability development' could lead to scope creep if not tightly managed.

Positive Signals

  • Award to a reputable institution (JHU APL) suggests a high likelihood of technical expertise.
  • Long-term contract indicates a strategic investment in a critical area.
  • Focus on R&D aligns with the need for technological superiority.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically under the North American Industry Classification System (NAICS) code 541710 for Physical, Engineering, and Life Sciences. The R&D sector is characterized by innovation and the pursuit of new knowledge and applications. Government spending in this area is crucial for maintaining technological leadership and national security. Comparable spending benchmarks are difficult to establish without knowing the specific technical domain, but significant government investment in advanced R&D is common across defense and civilian agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Given the sole-source nature and the large dollar value, it is unlikely that significant subcontracting opportunities for small businesses would be mandated or readily available through this specific award. The primary contractor, The Johns Hopkins University Applied Physics Laboratory LLC, is a large research institution, and its focus is typically on direct research execution rather than broad subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Given the R&D nature and sole-source award, oversight would focus on adherence to research milestones, budget execution, and the achievement of defined technical objectives. Transparency may be limited due to the proprietary nature of R&D, but periodic reporting requirements would likely be in place. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

  • Department of Defense Research and Development Programs
  • Advanced Technology Development Contracts
  • Applied Research and Experimental Development
  • National Security Technology Innovation

Risk Flags

  • Sole-source award lacks competitive pricing pressure.
  • Lack of specific performance metrics makes value assessment difficult.
  • Broad R&D scope may present management challenges.

Tags

department-of-defense, research-and-development, sole-source, large-contract, technical-capability, applied-research, johns-hopkins-university-applied-physics-laboratory, air-force, us-government, science-and-technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. TECHNICAL CAPABILITY: DTCWC

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2007-01-16. End: 2008-12-31.

What specific technical capability (DTCWC) is being developed under this contract, and what is its intended application?

The provided data indicates 'DTCWC' as the technical capability. Without further context or access to the contract's statement of work, the precise nature of DTCWC remains unspecified. However, given the contractor (Johns Hopkins University Applied Physics Laboratory LLC) and the awarding agency (Department of Defense), it is highly probable that DTCWC relates to a critical defense technology. This could encompass areas such as advanced materials, cyber defense, electronic warfare, sensor technology, or propulsion systems. The intended application would likely be to enhance the operational effectiveness, survivability, or intelligence capabilities of military platforms or systems.

What is the justification for awarding this $1.45 billion contract on a sole-source basis?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For a large R&D contract like this, common justifications include the unique capabilities or specialized knowledge of the contractor, the need for compatibility with existing systems, or urgent and compelling circumstances where competition is not feasible. The Johns Hopkins University Applied Physics Laboratory (JHU APL) is a well-known research institution with extensive experience in defense-related R&D, suggesting they may possess unique expertise or intellectual property essential for the DTCWC development. A formal justification document, likely referencing specific FAR (Federal Acquisition Regulation) clauses, would detail the rationale.

How does the $1.45 billion spending compare to historical R&D investments in similar technical capabilities by the DoD?

Comparing this $1.45 billion contract to historical R&D spending requires identifying specific comparable technical capabilities and their associated investments. The 'DTCWC' designation is too broad for direct historical comparison without more information. However, the Department of Defense consistently invests billions annually in R&D across various domains. Large, multi-year sole-source R&D contracts are not uncommon for highly specialized or strategic technologies. To provide a precise comparison, one would need to analyze historical spending on R&D for technologies with similar strategic importance, complexity, and duration, potentially looking at programs in areas like advanced computing, aerospace, or C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance).

What are the key performance indicators (KPIs) or milestones associated with this contract, and how will success be measured?

The provided data does not specify the key performance indicators (KPIs) or milestones for this contract. For a research and development contract of this magnitude and duration, success is typically measured against a series of technical milestones outlined in the contract's statement of work (SOW) or performance work statement (PWS). These might include the successful demonstration of specific functionalities, the completion of research phases, the development of prototypes, or the validation of theoretical models. The government would likely have technical monitors overseeing progress, and payments would be tied to the achievement of these pre-defined objectives. Without access to the SOW, the exact metrics for success remain unknown.

What is the track record of The Johns Hopkins University Applied Physics Laboratory LLC in delivering complex R&D projects for the Department of Defense?

The Johns Hopkins University Applied Physics Laboratory (JHU APL) has a long and distinguished track record of supporting the Department of Defense (DoD) and other government agencies with complex research and development projects. JHU APL is a University Affiliated Research Center (UARC), a designation that signifies a deep, trusted relationship with the government, often involving significant R&D work. They are known for their expertise in a wide range of scientific and engineering disciplines, including space science, cybersecurity, biomedical engineering, and national security technologies. Their history includes contributions to major defense programs and critical technological advancements, suggesting a high level of competence and reliability in executing challenging R&D endeavors.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA460003R0001

Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Johns Hopkins University

Address: 11100 JOHNS HOPKINS RD, LAUREL, MD, 20723

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,482,551

Exercised Options: $14,482,551

Current Obligation: $14,482,551

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA460004D0008

IDV Type: IDC

Timeline

Start Date: 2007-01-16

Current End Date: 2008-12-31

Potential End Date: 2008-12-31 00:00:00

Last Modified: 2022-04-01

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