DoD's $25M R&D contract to Johns Hopkins APL for space test and training complex support

Contract Overview

Contract Amount: $24,944,536 ($24.9M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2022-03-04

End Date: 2025-05-10

Contract Duration: 1,163 days

Daily Burn Rate: $21.4K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NATIONAL SPACE TEST AND TRAINING COMPLEX SUPPORT

Place of Performance

Location: LAUREL, HOWARD County, MARYLAND, 20723

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: NATIONAL SPACE TEST AND TRAINING COMPLEX SUPPORT Key points: 1. Contract awarded for critical research and development in physical, engineering, and life sciences. 2. Focuses on supporting a national space test and training complex, indicating strategic importance. 3. Sole-source award raises questions about competition and potential for price optimization. 4. Long duration suggests a sustained need for specialized research and development services. 5. The contract's value is significant within the R&D sector for specialized scientific support. 6. Performance period spans over three years, indicating a long-term commitment to the project.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns. However, the $24.9 million award for over three years of R&D support for a national space test and training complex suggests a substantial investment. Given the specialized nature of the work and the sole-source award, a direct comparison to similar contracts is difficult. Further analysis would be needed to assess if the fixed fee component adequately incentivizes cost control and efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude a competitive process. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that could arise from a competitive bidding environment.

Taxpayer Impact: The absence of competition for this significant R&D contract means taxpayers may not have received the most cost-effective solution. Without competing offers, there's a reduced incentive for the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the Department of Defense and potentially other government agencies requiring advanced space test and training capabilities. The contract supports the development and maintenance of a national space test and training complex. Services delivered are crucial for advancing research in physical, engineering, and life sciences related to space operations. Geographic impact is centered in Maryland, where the contractor is located, but the ultimate impact is national due to the nature of space programs. Workforce implications include employment for highly skilled researchers, engineers, and technical staff at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits price discovery and potentially increases costs for taxpayers.
  • Cost Plus Fixed Fee contract type may offer less incentive for cost savings compared to fixed-price contracts.
  • Lack of publicly available performance metrics makes it difficult to assess contractor efficiency and effectiveness.
  • The specialized nature of R&D can make it challenging to define clear, measurable outcomes upfront.

Positive Signals

  • Award to a reputable institution like Johns Hopkins Applied Physics Laboratory suggests a high level of expertise.
  • The contract supports a critical national capability in space test and training.
  • Long-term duration indicates a stable and ongoing need for the services provided.
  • The fixed fee component, while not guaranteeing cost savings, provides a defined profit margin.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D market is characterized by innovation, specialized expertise, and often long development cycles. The value of this contract, approximately $25 million over three years, is moderate for a sole-source R&D effort supporting a national strategic asset like a space test and training complex. Comparable spending in this niche would involve other government contracts for advanced scientific research and complex system development.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false' and 'sb: false'. The award is to a large, well-established 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 for this specific award is likely minimal unless subcontracting opportunities arise organically.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, which is the specific agency within the Department of Defense awarding the contract. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure costs are allowable and reasonable. Transparency may be limited due to the sole-source nature and the proprietary aspects of R&D. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

  • National Reconnaissance Office (NRO) Research and Development
  • Space Force Research and Development Programs
  • Defense Advanced Research Projects Agency (DARPA) Contracts
  • NASA Research Grants and Contracts
  • Air Force Research Laboratory (AFRL) Initiatives

Risk Flags

  • Sole-source award may limit cost-effectiveness.
  • CPFF contract type offers less incentive for cost control.
  • Lack of detailed performance metrics hinders assessment.
  • Potential for contractor complacency due to sole-source status.

Tags

department-of-defense, department-of-the-air-force, research-and-development, space-technology, sole-source, cost-plus-fixed-fee, maryland, national-security, scientific-research, long-term-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. NATIONAL SPACE TEST AND TRAINING COMPLEX 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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2022-03-04. End: 2025-05-10.

What is the specific nature of the 'space test and training complex support' being provided under this contract?

The contract data indicates the work involves 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' for a 'NATIONAL SPACE TEST AND TRAINING COMPLEX SUPPORT'. While the precise details of the support are not fully elaborated in the provided data, it implies research activities aimed at enhancing or developing capabilities for testing and training related to space operations. This could encompass areas such as simulation development, advanced sensor research, human factors in space environments, or novel training methodologies. The specific nature of the complex itself is also not detailed, but its designation as 'national' suggests a significant strategic asset.

Why was this contract awarded on a sole-source basis to The Johns Hopkins University Applied Physics Laboratory LLC?

The provided data explicitly states the contract was 'NOT COMPETED', indicating a sole-source award. While the specific justification for this sole-source determination is not included in the abbreviated data, common reasons include the unique capabilities of the contractor, the urgency of the requirement where only one source can reasonably meet it, or if the contract is a follow-on to a previous effort where the original source is the only viable option. The Johns Hopkins University Applied Physics Laboratory (JHU APL) is a well-known research institution with extensive experience in defense and space-related R&D, suggesting they may possess unique expertise or facilities essential for this particular 'national space test and training complex support' requirement.

How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and value for money in this R&D context?

The Cost Plus Fixed Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. In an R&D context, where the scope and outcomes can be uncertain, CPFF can be advantageous for the government as it allows for flexibility to adapt to evolving research needs. However, it provides less incentive for the contractor to control costs compared to fixed-price contracts, as their profit is fixed regardless of the final cost. Effective oversight and clear definition of allowable costs are critical to ensure value for money under a CPFF arrangement. The fixed fee itself should be negotiated to reflect the risk and effort involved.

What are the potential risks associated with a sole-source R&D contract of this duration?

A primary risk of a sole-source R&D contract, especially one spanning over three years (1163 days), is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may not be achieving the best possible price. Another risk is contractor complacency; without the threat of losing future business to competitors, the contractor might be less motivated to innovate or optimize performance. Furthermore, the long duration increases the risk of scope creep or the need for contract modifications if research directions change significantly, potentially leading to cost overruns if not managed tightly. Dependence on a single contractor also poses a risk if they encounter performance issues or face financial instability.

What is the historical spending pattern for similar 'space test and training complex support' R&D contracts?

Analyzing historical spending for 'space test and training complex support' R&D requires access to a broader database of federal contracts. However, based on the provided data, this contract represents a significant investment in a specialized area. Contracts for national-level R&D infrastructure, particularly in sensitive sectors like space and defense, often involve substantial funding due to the complexity, required expertise, and long-term strategic importance. Without specific historical data points for this exact type of support, it's difficult to establish a precise spending pattern. However, R&D spending in the defense and aerospace sectors is typically characterized by large, multi-year awards to specialized institutions.

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 DEVELOPMENTSpace R&D Services

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: $24,944,536

Exercised Options: $24,944,536

Current Obligation: $24,944,536

Actual Outlays: $103,922

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $161,076

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA881918D0009

IDV Type: IDC

Timeline

Start Date: 2022-03-04

Current End Date: 2025-05-10

Potential End Date: 2025-05-10 00:00:00

Last Modified: 2025-03-14

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