DoD's $7M R&D contract awarded to Johns Hopkins APL for technical development and systems engineering
Contract Overview
Contract Amount: $7,022,000 ($7.0M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2025-05-13
End Date: 2028-05-12
Contract Duration: 1,095 days
Daily Burn Rate: $6.4K/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 $7.0 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 technical development, systems engineering, modeling, simulation, and prototyping. 2. Awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns if not managed closely. 3. Sole-source award raises questions about competition and potential for better pricing. 4. Long duration of 3 years suggests a significant, ongoing need for these specialized services. 5. The contract's value is moderate within the broader R&D landscape. 6. Performance is expected in Maryland, potentially impacting the local high-tech workforce.
Value Assessment
Rating: fair
The contract's value of $7.02 million over three years for R&D services is within a typical range for specialized technical development. However, the cost-plus-fixed-fee structure necessitates careful oversight to ensure costs remain reasonable and do not escalate beyond initial projections. Without comparable sole-source awards for similar scope and complexity, a precise value-for-money assessment is challenging. Benchmarking against competitively awarded contracts for similar R&D services would provide a clearer picture of pricing efficiency.
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 urgency precludes a full and open competition. The lack of competition means that the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process, potentially leading to higher costs than if multiple offers had been considered.
Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive pressure. The justification for a sole-source award should be robust to ensure public funds are used efficiently.
Public Impact
The Department of the Air Force benefits from specialized technical development and systems engineering expertise. Services include modeling, simulation, and hardware/software prototyping to advance defense capabilities. The contract's geographic impact is centered in Maryland, supporting the state's robust defense and R&D ecosystem. Potential workforce implications include the utilization of highly skilled scientists and engineers in the R&D sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potentially increases costs for taxpayers.
- Cost-plus-fixed-fee contract type requires diligent oversight to control expenditures.
- Lack of publicly available performance metrics makes it difficult to assess contractor effectiveness.
- The specific technical requirements are not detailed, making it hard to gauge the true scope and complexity.
Positive Signals
- Award to a well-established institution (Johns Hopkins APL) suggests a high level of technical expertise.
- Focus on critical R&D areas like systems engineering and prototyping aligns with defense modernization goals.
- Long-term contract duration indicates a sustained need and potential for deep technical integration.
- The contract supports advanced scientific and engineering capabilities vital for national security.
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 market for such specialized R&D services is characterized by highly skilled workforces and significant investment in intellectual capital. Comparable spending in this sector often involves long-term engagements with academic institutions or specialized research organizations to push technological frontiers.
Small Business Impact
This contract does not appear to have a small business set-aside component, nor is there information indicating significant subcontracting opportunities for small businesses. The award to a large, established institution like Johns Hopkins Applied Physics Laboratory suggests that the primary focus is on leveraging specialized, in-house expertise rather than distributing work through a broader network of smaller firms. This could limit the direct economic impact on the small business ecosystem for this specific contract.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. As a sole-source award, the justification and terms will be subject to review. Accountability measures will be tied to the cost-plus-fixed-fee structure, requiring detailed reporting and auditing of expenditures. Transparency may be limited due to the sole-source nature and the proprietary aspects of R&D, but contract modifications and performance reviews should be documented.
Related Government Programs
- Department of Defense Research and Development Programs
- Air Force Systems Engineering Initiatives
- Advanced Technology Development Contracts
- Modeling and Simulation Support Services
Risk Flags
- Sole-source award lacks competitive pricing.
- Cost-plus-fixed-fee structure requires robust oversight to manage costs.
- Limited public detail on specific deliverables and performance metrics.
Tags
defense, department-of-defense, air-force, research-and-development, systems-engineering, technical-development, modeling-and-simulation, prototyping, sole-source, cost-plus-fixed-fee, maryland, university-affiliated-research-center
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.0 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 $7.0 million.
What is the period of performance?
Start: 2025-05-13. End: 2028-05-12.
What is the specific technical scope and expected deliverables for this contract?
The provided data indicates the contract is for 'TECHNICAL DEVELOPMENT EXPERTISE, SYSTEMS ENGINEERING AND ANALYSIS, MODELING AND SIMULATION, AND HARDWARE AND SOFTWARE PROTOTYPING.' However, specific deliverables, milestones, and the precise technical objectives are not detailed in the summary. Johns Hopkins Applied Physics Laboratory (APL) is known for its deep expertise in these areas, often supporting complex defense and national security projects. Without further documentation, it's difficult to ascertain the exact nature of the prototypes or the specific systems being engineered. The contract's duration of three years suggests a phased approach to development or a long-term research effort.
How does the $7.02 million contract value compare to similar R&D efforts within the Department of Defense?
The $7.02 million value for a three-year R&D contract is considered moderate within the Department of Defense (DoD). The DoD invests billions annually in research and development, with individual contracts ranging from a few million to hundreds of millions of dollars, depending on the scope, complexity, and technological maturity. Contracts for basic research or early-stage prototyping might fall within this range, especially when awarded to specialized institutions like Johns Hopkins APL. However, larger, more complex system development or acquisition programs would command significantly higher funding. Benchmarking requires comparing contracts with similar NAICS codes, contract types (cost-plus-fixed-fee), and specific R&D focus areas.
What are the potential risks associated with a sole-source, cost-plus-fixed-fee contract for R&D?
A sole-source award eliminates competitive pressure, potentially leading to higher prices than if the contract were competed. The cost-plus-fixed-fee (CPFF) structure, while allowing flexibility for R&D where costs can be uncertain, carries inherent risks. The 'cost-plus' element means the government reimburses the contractor for allowable costs, plus a fixed fee representing profit. This can incentivize cost overruns if not rigorously monitored, as the contractor may incur higher costs to achieve the fixed fee. Effective oversight, detailed cost tracking, and strong program management are crucial to mitigate these risks and ensure value for taxpayer money.
What is the track record of The Johns Hopkins University Applied Physics Laboratory LLC with the Department of Defense?
The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) has a long and extensive track record of supporting the Department of Defense (DoD) and other government agencies. APL operates as a University Affiliated Research Center (UARC), specializing in research, development, and systems engineering for national security. They are consistently awarded significant contracts across various defense domains, including space, cyber, hypersonics, and advanced analytics. Their history suggests a high level of technical competence and reliability in delivering complex solutions. The DoD frequently relies on APL for critical, often sole-source, R&D efforts due to their unique capabilities and trusted status.
What are the implications of this contract's duration and funding structure on program effectiveness?
The contract's duration of three years (1095 days) suggests a sustained effort in technical development and systems engineering, allowing for a methodical approach to complex R&D challenges. The Cost Plus Fixed Fee (CPFF) structure provides flexibility, which is often necessary in R&D where the path to a solution may not be linear or fully predictable at the outset. This structure can facilitate innovation by reducing the contractor's risk associated with cost uncertainty. However, for program effectiveness, rigorous oversight is paramount to ensure that costs remain controlled and that the project stays aligned with its objectives. Without strong management, the flexibility of CPFF could lead to scope creep or inefficient resource allocation, impacting overall effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – 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: $25,622,553
Exercised Options: $10,491,895
Current Obligation: $7,022,000
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $122,724
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: 2025-05-13
Current End Date: 2028-05-12
Potential End Date: 2028-05-12 00:00:00
Last Modified: 2025-12-23
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