DoD's $7.2M R&D contract with Johns Hopkins APL for technical expertise shows concentrated sole-source award

Contract Overview

Contract Amount: $7,196,739 ($7.2M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2026-07-31

Contract Duration: 668 days

Daily Burn Rate: $10.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TO PROVIDE TECHNICAL AND PROGRAM EXPERTISE TO SUPPORT THE GOVERNMENT INTEGRATED PRODUCT TEAMS (IPTS) WITH TECHNICAL ANALYSES.

Place of Performance

Location: LAUREL, HOWARD County, MARYLAND, 20723

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $7.2 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: TO PROVIDE TECHNICAL AND PROGRAM EXPERTISE TO SUPPORT THE GOVERNMENT INTEGRATED PRODUCT TEAMS (IPTS) WITH TECHNICAL ANALYSES. Key points: 1. Contract awarded to a single entity, raising questions about competitive pricing and potential for cost efficiencies. 2. Focus on R&D in physical, engineering, and life sciences suggests specialized, high-value technical support. 3. Long duration of 668 days indicates a sustained need for the contractor's expertise. 4. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed fee, which can incentivize cost control but also carries inherent risk. 5. Awarded by the Air Force, this contract aligns with broader defense research and development initiatives. 6. The specific NAICS code (541715) points to a niche market for advanced scientific research services.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable sole-source awards for similar technical expertise. The Cost Plus Fixed Fee structure means the final cost is not fixed upfront, making direct price comparisons difficult. However, the total award amount of $7.2 million over approximately two years suggests a significant investment in specialized R&D support. Further analysis would require understanding the specific deliverables and the market rate for such highly specialized technical analysis.

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 typically occurs when a specific contractor possesses unique capabilities or is the only responsible source. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government compared to a competed contract.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the best possible pricing, potentially resulting in less value for taxpayer dollars.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Integrated Product Teams (IPTs) within the Air Force, who will receive crucial technical and program expertise. The services delivered will involve technical analyses to support government R&D efforts, contributing to advancements in physical, engineering, and life sciences. The geographic impact is centered in Maryland, where the contractor, Johns Hopkins University Applied Physics Laboratory LLC, is located. The contract supports a highly specialized workforce of researchers and technical experts, likely contributing to the scientific and engineering talent pool.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits price competition, potentially increasing costs for taxpayers.
  • Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
  • Lack of transparency inherent in sole-source procurements makes independent value assessment difficult.

Positive Signals

  • Award to a reputable institution (Johns Hopkins APL) suggests access to high-caliber expertise.
  • Contract supports critical R&D functions for the Department of Defense.
  • Long-term engagement indicates a sustained need and potential for deep institutional knowledge transfer.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation. The market for such specialized R&D services is often dominated by a few highly capable research institutions and defense contractors. Comparable spending benchmarks would involve looking at other sole-source or competitively awarded R&D contracts within the DoD for similar technical support services, though direct comparisons are difficult due to the unique nature of R&D.

Small Business Impact

This contract does not appear to involve a small business set-aside, as the awardee is The Johns Hopkins University Applied Physics Laboratory LLC, a large research institution. There is no explicit mention of subcontracting requirements for small businesses. Therefore, this contract is unlikely to have a direct positive impact on the small business ecosystem; rather, it represents a direct award to a large entity for specialized services.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officers and program managers within the Department of the Air Force. Accountability measures would be tied to the performance metrics and deliverables outlined in the contract. Transparency may be limited due to the sole-source nature of the award, but contract details and performance reports are typically available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

  • Department of Defense Research and Development Programs
  • Air Force Science and Technology Investments
  • Applied Physics Research Contracts
  • Technical Support Services for IPTs

Risk Flags

  • Sole-source award justification
  • Potential for cost overruns in CPFF contracts
  • Lack of competitive benchmarking

Tags

department-of-defense, air-force, research-and-development, technical-support, sole-source, cost-plus-fixed-fee, maryland, applied-physics-laboratory, integrated-product-teams, scientific-research

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.2 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. TO PROVIDE TECHNICAL AND PROGRAM EXPERTISE TO SUPPORT THE GOVERNMENT INTEGRATED PRODUCT TEAMS (IPTS) WITH TECHNICAL ANALYSES.

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 $7.2 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-07-31.

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

The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) has a long-standing and extensive track record of supporting the Department of Defense (DoD) and other government agencies with advanced research, development, and engineering services. They are a recognized leader in various scientific and technical fields, including defense systems, space exploration, and national security. JHU APL has consistently been awarded significant contracts for complex R&D projects, often involving critical national security missions. Their history includes developing and integrating advanced technologies, providing systems engineering, and conducting in-depth technical analyses. Given their established reputation and deep expertise, it is highly probable that they possess the necessary qualifications and experience to successfully execute this specific contract for technical and program expertise to support Integrated Product Teams (IPTs).

How does the pricing structure (Cost Plus Fixed Fee) compare to other R&D contracts of similar scope and duration?

Cost Plus Fixed Fee (CPFF) is a common contract type for research and development efforts where the scope of work may evolve or is not precisely defined at the outset. In a CPFF contract, the government reimburses the contractor for allowable costs incurred, plus a fixed fee representing profit. This structure can be advantageous when innovation and flexibility are paramount, as it allows for adaptation to unforeseen challenges. However, it carries a risk of cost overruns if not managed diligently, as the contractor is incentivized to cover costs. Compared to fixed-price contracts, CPFF generally offers less price certainty for the government. For R&D of similar scope and duration, CPFF is often preferred over fixed-price when the technical risks are high and the final deliverables are uncertain. However, it typically results in higher overall costs than a well-defined, competitively bid fixed-price contract.

What are the specific technical analyses and expertise required under this contract, and are they readily available in the market?

The contract specifies providing 'technical and program expertise to support the Government Integrated Product Teams (IPTs) with technical analyses.' While the exact nature of these analyses is not detailed in the provided data, the NAICS code 541715 ('Research and Development in the Physical, Engineering, and Life Sciences') suggests highly specialized scientific and engineering support. Such expertise is often niche and requires advanced degrees and significant experience in specific scientific domains relevant to defense applications. The fact that this contract was awarded on a sole-source basis to The Johns Hopkins University Applied Physics Laboratory LLC implies that the government determined JHU APL possesses unique or specialized capabilities that are not readily available from multiple sources in the market, or that competition was deemed not practicable.

What is the historical spending trend for similar R&D technical support services within the Department of Defense?

Historical spending trends for R&D technical support services within the Department of Defense (DoD) are substantial and generally increasing, reflecting the continuous need for technological advancement and modernization. The DoD consistently allocates significant portions of its budget to research, development, testing, and evaluation (RDT&E). Specific spending on technical support for IPTs, particularly in areas like physical, engineering, and life sciences (NAICS 541715), can fluctuate based on strategic priorities and emerging threats. While this particular $7.2 million contract is a single award, the overall DoD investment in R&D services across various contractors and research institutions amounts to billions of dollars annually. Analyzing broader DoD RDT&E spending patterns would reveal a consistent demand for specialized technical expertise to drive innovation and maintain a technological edge.

What are the potential risks associated with a sole-source award for specialized R&D services?

The primary risk associated with a sole-source award for specialized R&D services is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bids, the government may not achieve the most cost-effective solution. Another risk is a potential decrease in innovation or urgency, as the contractor may face less pressure to perform exceptionally when there is no direct competition. Furthermore, sole-source awards can raise concerns about fairness and equal opportunity for other capable contractors. In the context of R&D, there's also the risk that the chosen contractor's approach might not be the most optimal, but without alternatives explored through competition, this risk is harder to mitigate. Finally, sole-source awards can sometimes be perceived as less transparent, potentially leading to scrutiny regarding the justification for not competing the requirement.

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: SPECIAL STUDIES/ANALYSIS, NOT R&DSPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $7,245,792

Exercised Options: $7,245,792

Current Obligation: $7,196,739

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA865620D0005

IDV Type: IDC

Timeline

Start Date: 2024-10-01

Current End Date: 2026-07-31

Potential End Date: 2026-07-31 00:00:00

Last Modified: 2025-12-15

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