DoD's $9.1M R&D contract awarded to Johns Hopkins University Applied Physics Laboratory for technical development and systems engineering

Contract Overview

Contract Amount: $9,070,841 ($9.1M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2025-05-12

End Date: 2027-11-12

Contract Duration: 914 days

Daily Burn Rate: $9.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PROVIDE TECHNICAL DEVELOPMENT EXPERTISE, SYSTEMS ENGINEERING AND ANALYSIS, MODELING AND SIMULATION, AND HARDWARE AND SOFTWARE PROTOTYPING.

Place of Performance

Location: LAUREL, HOWARD County, MARYLAND, 20723

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $9.1 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: PROVIDE TECHNICAL DEVELOPMENT EXPERTISE, SYSTEMS ENGINEERING AND ANALYSIS, MODELING AND SIMULATION, AND HARDWARE AND SOFTWARE PROTOTYPING. Key points: 1. Contract focuses on advanced R&D, including technical development, systems engineering, modeling, simulation, and prototyping. 2. Awarded to a single, highly specialized research institution, suggesting a focus on unique expertise. 3. The contract duration of 914 days indicates a significant, multi-year commitment to the research effort. 4. Performance is concentrated in Maryland, potentially impacting the local high-tech workforce and research ecosystem. 5. The Cost Plus Fixed Fee pricing structure is common for R&D where scope can evolve. 6. This award represents a small fraction of the overall federal R&D spending, but is significant within its specific technical domain.

Value Assessment

Rating: good

The contract's value of approximately $9.1 million over roughly two and a half years appears reasonable for specialized R&D services. Benchmarking against similar complex research and development contracts is challenging without more specific scope details. However, given the nature of advanced technical development and systems engineering, the pricing is likely competitive within the niche market of highly specialized research institutions. The Cost Plus Fixed Fee (CPFF) structure allows for flexibility in R&D projects where exact costs may be uncertain, but it requires careful oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Department of the Air Force identified The Johns Hopkins University Applied Physics Laboratory LLC as the only entity capable of performing the required specialized research and development services. This approach is often used when a specific contractor possesses unique knowledge, facilities, or intellectual property essential for the project's success. While it ensures access to critical expertise, it bypasses the competitive bidding process, which could potentially lead to higher costs compared to a fully competed award.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions typically achieved through competitive bidding. This necessitates robust oversight to ensure the awarded price is fair and reasonable.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, who will receive advanced technical development, systems engineering, and prototyping expertise. The contract supports critical research and development activities that could lead to advancements in defense technologies. Work is expected to be performed in Maryland, potentially benefiting the state's high-tech research and development sector and its skilled workforce. The project aims to enhance modeling and simulation capabilities, crucial for testing and validating complex systems before physical implementation.

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 require diligent oversight to prevent cost overruns and ensure efficiency.
  • The specialized nature of the R&D may limit broader applicability or spin-off commercialization opportunities.
  • Concentration of work in a single geographic location (Maryland) may limit broader economic impact.

Positive Signals

  • Award to a reputable institution (JHU APL) known for its technical expertise and track record in defense R&D.
  • Focus on critical areas like systems engineering, modeling, and simulation, which are vital for national security.
  • Contract duration suggests a sustained commitment to a complex and important research objective.
  • Potential for significant technological advancements resulting from the research and prototyping efforts.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The North American Industry Classification System (NAICS) code 541715 covers R&D in these areas, excluding nanotechnology and biotechnology. The federal government is a major investor in R&D, with significant portions allocated to defense and scientific advancement. This contract represents a specific investment in advanced technical development and systems engineering, a critical component of the defense industrial base. Comparable spending benchmarks would typically be found within broader R&D budgets for defense agencies, often measured in billions annually.

Small Business Impact

This contract was not competed and does not appear to have any specific small business set-aside provisions. The awardee, The Johns Hopkins University Applied Physics Laboratory LLC, is a large research institution. There is no explicit indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Air Force contracting and program management offices. Key accountability measures will involve monitoring expenditures against the fixed fee, ensuring progress aligns with project milestones, and verifying the technical quality of deliverables. Transparency is typically maintained through contract reporting requirements and performance reviews. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

  • Department of Defense Research and Development
  • Air Force Systems Engineering
  • Advanced Technology Development
  • Modeling and Simulation Contracts
  • University Research Partnerships

Risk Flags

  • Sole-source award may limit price competition.
  • Cost Plus Fixed Fee requires diligent oversight to manage costs.
  • Potential for contractor dependency and reduced innovation due to lack of competition.

Tags

research-and-development, department-of-defense, air-force, maryland, sole-source, cost-plus-fixed-fee, technical-development, systems-engineering, modeling-and-simulation, prototyping, university-affiliated-research-center

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.1 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. PROVIDE TECHNICAL DEVELOPMENT EXPERTISE, SYSTEMS ENGINEERING AND ANALYSIS, MODELING AND SIMULATION, AND HARDWARE AND SOFTWARE PROTOTYPING.

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 $9.1 million.

What is the period of performance?

Start: 2025-05-12. End: 2027-11-12.

What is the historical spending pattern with The Johns Hopkins University Applied Physics Laboratory LLC by the Department of Defense?

The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) has a long-standing and substantial relationship with the Department of Defense (DoD). JHU APL is a University Affiliated Research Center (UARC) that primarily serves the DoD and other government agencies. Historically, JHU APL has received billions of dollars in contracts from the DoD across a wide range of research, development, test, and evaluation (RDT&E) activities. Their work often involves highly specialized, complex systems engineering, advanced concept development, and prototyping for national security applications. Analyzing specific historical spending requires access to detailed contract databases, but it is well-established that JHU APL is a critical R&D partner for the DoD, consistently securing significant funding for its unique technical capabilities and objective research environment.

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

The Cost Plus Fixed Fee (CPFF) pricing structure is a common and often appropriate choice for research and development contracts where the scope of work may be uncertain or evolve significantly during performance. In CPFF contracts, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. Compared to other R&D contract types like Cost Plus Incentive Fee (CPIF) or Firm-Fixed-Price (FFP), CPFF offers flexibility but requires robust government oversight to ensure costs are reasonable and allocable. FFP contracts offer the most price certainty but are less suitable for exploratory R&D. CPIF introduces performance incentives, which may not always be applicable or easily defined in early-stage R&D. Therefore, CPFF is often selected for its balance of flexibility and cost control for complex, evolving R&D efforts.

What are the key performance indicators (KPIs) likely used to assess the success of this contract?

For this contract focused on technical development, systems engineering, and prototyping, key performance indicators (KPIs) would likely revolve around technical achievement, schedule adherence, and cost management. Specific KPIs could include the successful completion of defined technical milestones, the accuracy and fidelity of models and simulations developed, the functionality and performance of hardware/software prototypes against specified requirements, and the quality of systems engineering analyses. Schedule adherence would be measured by meeting interim deadlines and the final delivery date. Cost management KPIs would involve tracking actual costs against the estimated cost base and ensuring the project remains within the overall budget allocated for allowable costs, while the fixed fee ensures a defined profit margin. Deliverable quality, innovation demonstrated, and the successful transfer of knowledge or technology to the government would also be critical assessment areas.

What is the typical lead time or process for awarding a sole-source R&D contract of this nature?

Awarding a sole-source R&D contract typically involves a justification process that demonstrates why full and open competition is not feasible or not in the government's best interest. This often begins with the agency identifying a specific need that can only be met by a particular contractor due to unique capabilities, intellectual property, or prior development. The agency must then prepare a Justification for Other Than Full and Open Competition (JOFOC), which details the rationale and provides supporting evidence. This justification is reviewed and approved by appropriate levels of authority within the agency, often requiring higher-level concurrence for larger dollar values. The process can take several weeks to months, depending on the complexity of the justification, the agency's internal review procedures, and the need for public notice (though exceptions exist). For highly specialized R&D, the lead time is often driven by the time required to formally document and approve the unique capability argument.

What are the potential risks associated with relying on a single contractor for advanced R&D services?

Relying on a single contractor for advanced R&D services, as in this sole-source award, carries several potential risks. Firstly, there's a risk of complacency or reduced innovation from the contractor, knowing they face no direct competition for follow-on work. Secondly, the government may overpay due to the lack of competitive pressure on pricing. Thirdly, there's a dependency risk; if the contractor experiences financial difficulties, personnel departures, or strategic shifts, the project could be severely disrupted. Fourthly, the absence of diverse perspectives from multiple bidders might limit the exploration of alternative technical approaches or solutions. Finally, without competitive benchmarking, it can be more challenging for the government to objectively assess the contractor's performance and the true value received.

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

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: $16,000,000

Exercised Options: $16,000,000

Current Obligation: $9,070,841

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $69,344

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA881924DB002

IDV Type: IDC

Timeline

Start Date: 2025-05-12

Current End Date: 2027-11-12

Potential End Date: 2027-11-12 00:00:00

Last Modified: 2025-12-12

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