DoD's $36.5M R&D Contract with JHU APL Faces Scrutiny for Limited Competition

Contract Overview

Contract Amount: $36,481,174 ($36.5M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-23

End Date: 2026-09-23

Contract Duration: 1,188 days

Daily Burn Rate: $30.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY SUPPORT TO THE INTEGRATED CAPABILITIES DIRECTORATE

Place of Performance

Location: LAUREL, HOWARD County, MARYLAND, 20723

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $36.5 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY SUPPORT TO THE INTEGRATED CAPABILITIES DIRECTORATE Key points: 1. The contract awarded to Johns Hopkins University Applied Physics Laboratory (JHU APL) for R&D support is valued at $36.5 million. 2. Competition was limited, raising questions about potential price discovery and taxpayer value. 3. The R&D sector, particularly in physical and engineering sciences, often involves specialized expertise, but the lack of broad competition warrants review. 4. Oversight mechanisms will be crucial to ensure effective use of funds and achievement of research objectives.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against similar R&D support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed, indicating a sole-source or limited competition award. This limits the government's ability to leverage market forces for better pricing and potentially restricts access for other qualified entities.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been openly competed, potentially reducing the overall value for money.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. Limited competition could stifle innovation by excluding other potential research institutions. The effectiveness of the R&D outcomes will be a key measure of public value. Transparency in how JHU APL utilizes these funds is essential for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost-plus contract type
  • Long duration

Positive Signals

  • Awarded to a reputable institution (JHU APL)
  • Supports critical R&D in physical, engineering, and life sciences

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is critical for technological advancement but requires careful oversight due to its specialized nature and potential for high costs.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The focus appears to be on a large, established research institution.

Oversight & Accountability

Given the limited competition and cost-plus nature, robust oversight by the Department of the Air Force is critical. This includes monitoring costs, ensuring progress, and verifying the achievement of research objectives to ensure accountability.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Lack of competitive bidding
  • Potential for cost overruns due to contract type
  • Limited transparency on justification for sole-source award
  • Difficulty in benchmarking pricing
  • No apparent small business participation

Tags

research-and-development-in-the-physical, department-of-defense, md, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.5 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY SUPPORT TO THE INTEGRATED CAPABILITIES DIRECTORATE

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 $36.5 million.

What is the period of performance?

Start: 2023-06-23. End: 2026-09-23.

What specific factors justified the limited competition for this R&D support contract, and were alternatives explored?

The justification for limited competition is not provided in the data. Typically, such justifications cite unique capabilities, urgent needs, or the unavailability of other sources. Exploring alternatives, such as phased competitions or pre-qualification of multiple sources, could have potentially enhanced competition and ensured better value.

How will the Department of Defense ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded without competition?

Effective cost control will rely on stringent oversight, detailed cost tracking, and performance metrics. The government must actively monitor expenditures against the fixed fee and ensure that the research objectives are met efficiently. Regular audits and performance reviews are essential to validate the value derived from the investment.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to assess the effectiveness of the R&D support?

Key performance indicators should be clearly defined in the contract, focusing on research milestones, deliverables, and scientific outcomes. Measurement will likely involve technical reviews, peer assessments, and evaluation of the impact of the research. The government must ensure these KPIs are objective and directly linked to the stated R&D goals.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Educational Institution, Higher Education, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $55,573,419

Exercised Options: $55,573,419

Current Obligation: $36,481,174

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $516,094

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2023-06-23

Current End Date: 2026-09-23

Potential End Date: 2026-09-23 00:00:00

Last Modified: 2026-01-16

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