NASA awards $1.1B+ to Johns Hopkins APL for aerospace R&D, spanning nearly three decades

Contract Overview

Contract Amount: $1,102,140,610 ($1.1B)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: National Aeronautics and Space Administration

Start Date: 1997-10-01

End Date: 2024-12-31

Contract Duration: 9,953 days

Daily Burn Rate: $110.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AEROSPACE RESEARCH, DESIGN, AND DEVELOPMENT TASKS FOR NASA

Place of Performance

Location: LAUREL, HOWARD County, MARYLAND, 20723

State: Maryland Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $1.10 billion to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: AEROSPACE RESEARCH, DESIGN, AND DEVELOPMENT TASKS FOR NASA Key points: 1. Contract value exceeds $1.1 billion over its extensive lifecycle. 2. Long-standing relationship with contractor suggests deep institutional knowledge. 3. Sole-source award raises questions about potential cost efficiencies and market alternatives. 4. Contract duration of over 27 years indicates a critical, ongoing need for these services. 5. Focus on R&D in physical, engineering, and life sciences aligns with NASA's core mission. 6. Geographic concentration in Maryland may have local economic implications.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its unique, long-term nature and sole-source award. The extensive duration suggests a critical need, but without competitive bids, it's difficult to assess if the pricing reflects optimal value for money. The cost-plus-fixed-fee structure allows for cost reimbursement plus a fixed fee, which can incentivize cost control but also carries inherent risks if not closely managed. Comparing it to similar, large-scale, long-duration R&D efforts would be necessary for a more robust assessment.

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 potential bidders. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude full and open competition. The lack of competition means that price discovery through market forces was not a factor in this award, potentially leading to higher costs than if multiple firms had vied for the contract.

Taxpayer Impact: Taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding process. The absence of competition limits the government's ability to negotiate the lowest possible price.

Public Impact

Advances in aerospace research, design, and development directly benefit NASA's exploration and scientific missions. The contract supports critical research in physical, engineering, and life sciences, potentially leading to breakthroughs in space technology and understanding. The primary beneficiary is the U.S. space program and its objectives. Work is concentrated in Maryland, implying a significant local economic impact and workforce engagement in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits price competition and potential taxpayer savings.
  • Extended contract duration of nearly 30 years may indicate a lack of flexibility or innovation from alternative providers.
  • Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not meticulously overseen.

Positive Signals

  • Long-standing relationship with a single, reputable contractor (Johns Hopkins APL) suggests consistent quality and deep expertise.
  • Contract supports critical, long-term research aligned with national space exploration goals.
  • The extensive duration indicates a stable and reliable partnership for NASA's ongoing R&D needs.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on aerospace. The North American Industry Classification System (NAICS) code 541710 covers Research and Development in the Physical, Engineering, and Life Sciences. This is a highly specialized area where long-term investment and deep expertise are crucial. Comparable spending benchmarks would involve other large-scale, multi-year R&D contracts awarded by government agencies, particularly those involved in science and technology.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Given the nature of advanced aerospace research and the sole-source award to a large institution like Johns Hopkins University Applied Physics Laboratory, it is unlikely that small businesses are directly involved as prime contractors. However, there may be opportunities for small businesses to participate as subcontractors, depending on the specific research tasks and APL's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Aeronautics and Space Administration (NASA). As a sole-source award with a cost-plus-fixed-fee structure, rigorous oversight is crucial to ensure that costs are reasonable and that the work aligns with NASA's objectives. NASA's contract officers and technical representatives would be responsible for monitoring performance, expenditures, and adherence to the contract terms. Transparency may be limited due to the sole-source nature, but NASA's Inspector General could provide an independent layer of accountability.

Related Government Programs

  • NASA Research and Development Programs
  • Aerospace Engineering Services
  • Applied Physics Research Contracts
  • Space Exploration Technology Development

Risk Flags

  • Sole-source award
  • Long contract duration
  • Cost-plus contract type

Tags

nasa, aerospace, research-and-development, definitive-contract, cost-plus-fixed-fee, sole-source, johns-hopkins-university-applied-physics-laboratory-llc, maryland, large-contract, long-term-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $1.10 billion to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. AEROSPACE RESEARCH, DESIGN, AND DEVELOPMENT TASKS FOR NASA

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: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $1.10 billion.

What is the period of performance?

Start: 1997-10-01. End: 2024-12-31.

What is the historical spending trend for this contract since its inception?

The data indicates a total award value of $1,102,140,609.74, with a start date of 1997-10-01 and an end date of 2024-12-31, spanning nearly 28 years. While the total obligated amount is provided, detailed annual or quarterly spending trends are not available in this summary. However, the sheer longevity and substantial cumulative value suggest consistent and significant funding allocations over the contract's lifespan. The 'br' (base-related) value of 110735 might represent a baseline or initial funding amount, but without further context, it's difficult to interpret its relation to the total spend. A deeper dive into NASA's contract spending databases would be needed to analyze the year-over-year expenditure patterns.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar R&D work?

Cost-Plus-Fixed-Fee (CPFF) contracts are common for research and development efforts where the scope of work is not precisely defined at the outset, making it difficult to establish a fixed price. This structure reimburses the contractor for allowable costs incurred and pays a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government to adapt to evolving research needs but carries a higher risk of cost overruns if not managed diligently. Other contract types like Cost-Plus-Incentive-Fee (CPIF) or Cost-Plus-Award-Fee (CPAF) introduce performance incentives. For highly exploratory R&D, CPFF can be appropriate, but for more defined projects, FFP or CPIF might offer better value and cost control.

What are the specific research areas or projects undertaken under this contract?

The contract broadly covers 'AEROSPACE RESEARCH, DESIGN, AND DEVELOPMENT TASKS FOR NASA' and falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' While the provided data doesn't detail specific projects, Johns Hopkins University Applied Physics Laboratory (APL) is renowned for its work in areas such as space exploration systems, national security, and advanced technologies. Given NASA's mission, this likely includes research into spacecraft design, propulsion systems, materials science, astrophysics instrumentation, Earth observation technologies, and potentially human spaceflight support systems. The long duration suggests a sustained focus on foundational and advanced R&D critical to NASA's strategic objectives.

What is the track record of The Johns Hopkins University Applied Physics Laboratory LLC with NASA contracts?

The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) has a long and established history of supporting NASA's mission. As evidenced by this nearly three-decade-long contract, JHU APL is a trusted partner for complex aerospace research and development. They have been instrumental in numerous NASA missions, contributing expertise in mission design, instrument development, systems engineering, and scientific research across various domains, including planetary science, Earth science, and space technology. Their consistent selection for critical, long-term projects like this one underscores their strong performance, technical capabilities, and reliability in meeting NASA's demanding requirements.

Are there any performance risks associated with this long-term, sole-source contract?

Yes, there are potential performance risks. The primary risk stems from the sole-source nature of the award; without competition, there's less external pressure on the contractor to innovate aggressively or optimize costs beyond the fixed fee. The extended duration (nearly 30 years) could also lead to complacency or a lag in adopting cutting-edge technologies if internal processes aren't robust. Furthermore, the Cost-Plus-Fixed-Fee structure, while flexible, requires diligent oversight to prevent scope creep and ensure efficient use of funds. NASA must maintain strong program management and technical oversight to mitigate these risks and ensure the contract continues to deliver optimal value and performance.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENTSpace R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

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

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,115,968,884

Exercised Options: $1,115,968,884

Current Obligation: $1,102,140,610

Actual Outlays: $39,082,445

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline

Start Date: 1997-10-01

Current End Date: 2024-12-31

Potential End Date: 2024-12-31 00:00:00

Last Modified: 2025-01-08

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