DoD awards $11.8M contract for cyber command services to Johns Hopkins APL, a sole-source action
Contract Overview
Contract Amount: $11,783,369 ($11.8M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2024-05-01
End Date: 2026-04-30
Contract Duration: 729 days
Daily Burn Rate: $16.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: KOMODO DRAGON
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $11.8 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: KOMODO DRAGON Key points: 1. Contract awarded to a single entity suggests limited market exploration. 2. Performance period spans two years, indicating a need for ongoing support. 3. The cost-plus-fixed-fee structure may incentivize cost overruns. 4. Cyber command services are critical for national security operations. 5. Geographic concentration in Maryland raises questions about broader talent access. 6. The absence of small business set-asides warrants further investigation.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its sole-source nature and specialized services. The cost-plus-fixed-fee (CPFF) pricing structure, while common for research and development, can lead to higher costs if not meticulously managed. Without competitive bids, it's difficult to ascertain if the fixed fee represents a fair return for the contractor or optimal value for the government compared to potential market alternatives. The duration of the contract (729 days) suggests a significant scope of work, but the lack of detailed performance metrics makes a definitive value assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning the government did not conduct a competitive procurement process. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government than if multiple bidders had vied for the contract.
Taxpayer Impact: Sole-source awards limit taxpayer value by removing the downward pressure on pricing that competition provides. This can result in higher overall spending for essential services.
Public Impact
The U.S. Cyber Command benefits from specialized services essential for national defense. This contract supports critical cybersecurity operations and intelligence gathering. The primary beneficiaries are national security agencies and the personnel operating within them. Workforce implications include the continued employment of highly skilled technical personnel at Johns Hopkins APL. Geographic impact is concentrated in Maryland, where the contractor is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential innovation.
- Cost-plus-fixed-fee structure may not be the most cost-efficient for all services.
- Lack of small business participation could limit broader economic impact.
Positive Signals
- Award to a reputable institution like Johns Hopkins APL suggests a focus on expertise.
- Contract duration indicates a commitment to sustained support for critical functions.
- Specialized nature of cyber services often necessitates unique provider capabilities.
Sector Analysis
The cybersecurity sector is a rapidly growing and critical component of the defense and national security landscape. This contract falls within the 'Other Computer Related Services' NAICS code, encompassing a broad range of IT support and consulting. Spending in this area is driven by increasing cyber threats and the need for advanced defense capabilities. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of cyber command support, but overall IT services spending by the DoD is in the billions annually.
Small Business Impact
This contract does not appear to include any small business set-asides, nor is the primary contractor a small business. The absence of subcontracting requirements for small businesses means that opportunities for smaller firms to participate in this significant federal spending are limited. This could reduce the overall economic impact on the small business ecosystem within the cybersecurity sector.
Oversight & Accountability
Oversight for this contract would primarily fall under the U.S. Cyber Command and the Department of Defense's contracting and financial management offices. The Inspector General of the Department of Defense may also conduct audits or investigations into the contract's performance and financial execution. Transparency is facilitated through contract databases, but detailed performance metrics and cost breakdowns are often not publicly disclosed for national security reasons.
Related Government Programs
- Cybersecurity Services
- Information Technology Support
- Research and Development Services
- National Defense Contracts
- Department of Defense IT Spending
Risk Flags
- Sole-source award
- Cost-plus pricing structure
- Lack of small business participation
Tags
it, defense, cyber-command, department-of-defense, cost-plus-fixed-fee, sole-source, maryland, research-and-development, computer-related-services, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.8 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. KOMODO DRAGON
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 (U.S. Cyber Command).
What is the total obligated amount?
The obligated amount is $11.8 million.
What is the period of performance?
Start: 2024-05-01. End: 2026-04-30.
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-standing and extensive track record of supporting the Department of Defense (DoD) and other government agencies. They are known for their expertise in research, development, and systems engineering, particularly in areas critical to national security, such as advanced cyber capabilities, space systems, and strategic defense. JHU APL frequently receives sole-source contracts due to their unique capabilities and established relationships. Their historical performance with the DoD is generally characterized by technical proficiency and the delivery of complex solutions, often in highly specialized and sensitive domains. Reviewing their contract history reveals numerous awards across various DoD components, underscoring their role as a key research and development partner.
How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar cyber services?
The Cost Plus Fixed Fee (CPFF) contract type is often used for research, development, or complex services where the scope of work is not precisely defined at the outset, or where innovation is a key component. In this structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF generally offers less price certainty for the government and can incentivize higher spending if cost controls are weak. However, FFP contracts may not be suitable for highly uncertain R&D or cyber defense work where requirements evolve. Other types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives that can better align contractor and government interests than a simple fixed fee. For highly defined cyber services, FFP might be more cost-effective, but for the exploratory or advanced nature often associated with cyber command, CPFF is a common, albeit riskier, choice.
What are the primary risks associated with a sole-source award for critical cyber command services?
The primary risks associated with a sole-source award for critical cyber command services include a lack of competitive pricing, which can lead to inflated costs for taxpayers. Without competition, there is reduced incentive for the contractor to innovate or become more efficient, as there is no market pressure. Furthermore, reliance on a single provider can create strategic vulnerabilities; if the contractor experiences performance issues, financial instability, or decides to discontinue services, the government may face significant disruption in critical operations. There's also a risk of 'vendor lock-in,' where the government becomes overly dependent on the contractor's proprietary systems or knowledge, making future transitions difficult and costly. Finally, the absence of a competitive process can obscure potential conflicts of interest or suboptimal resource allocation.
What is the historical spending pattern for similar cyber command support services by the Department of Defense?
Historical spending patterns for similar cyber command support services by the Department of Defense indicate a significant and growing investment in this area. The DoD consistently allocates substantial budgets towards cybersecurity, cyber operations, and intelligence support. This spending has increased over the years due to the escalating threat landscape and the increasing reliance on digital infrastructure for military operations. Contracts for cyber support often involve research and development, system integration, threat analysis, and operational support. While specific figures for 'cyber command services' can be embedded within broader IT or R&D categories, the overall trend shows a multi-billion dollar annual expenditure by the DoD in cyber-related activities. This sustained high level of spending reflects the perceived criticality of cyber capabilities for national security.
How does the geographic concentration in Maryland impact the government's ability to access a broader talent pool for cyber services?
The geographic concentration of this contract in Maryland, specifically near major defense installations and intelligence agencies, can have a dual impact on talent pool access. On one hand, Maryland, particularly the Baltimore-Washington corridor, is a hub for cybersecurity expertise, with a high concentration of skilled professionals, research institutions, and defense contractors. This proximity can facilitate recruitment and collaboration. However, over-reliance on contractors located solely within this region may limit access to a broader, potentially more diverse, national or even global talent pool. It could also lead to increased competition for limited local talent, potentially driving up labor costs. For highly specialized cyber roles, the government might benefit from encouraging or requiring contractors to leverage remote work capabilities or establish satellite operations in other regions to tap into wider talent markets.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
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: $27,920,465
Exercised Options: $17,040,039
Current Obligation: $11,783,369
Actual Outlays: $1,618,987
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HB000124D0001
IDV Type: IDC
Timeline
Start Date: 2024-05-01
Current End Date: 2026-04-30
Potential End Date: 2029-04-30 00:00:00
Last Modified: 2025-11-12
More Contracts from THE Johns Hopkins University Applied Physics Laboratory LLC
- Dragonfly Extended Phase B Mission Under 80msfc20d0004 Aerospace Research, Development and Engineering Support (ardes) II — $1.3B (National Aeronautics and Space Administration)
- Aerospace Research, Design, and Development Tasks for Nasa — $1.1B (National Aeronautics and Space Administration)
- Solar Probe Plus (SPP) Phase a Activities the Contractor Shall Perform the Work That IS Designated in Task Orders Issued by the Contracting Officer. the Overall Scope of Work to BE Performed Will Support ALL of Nasa's Mission Directorates. These Efforts CAN BE Characterized AS Aerospace Research, Development, and Engineering Support (ardes). the General Nature of the Tasks to BE Developed Will BE to Conduct Supporting Research and Advanced Technology Development Designed to Make Contributions to Space Science and Space Exploration and Assist Nasa in the Formulation and Execution of ITS Programs by Providing Nasa With Technical Advice, Studies, and Reports of Investigations. Efforts Undertaken by the Contractor, in the Performance of the Assigned Tasks, Which Include Technology Transfer, Partnering and Commercialization Activities, Shall Seek to Enhance the Value and Contribution of Technology to the Nation S Technological Competitiveness, Prosperity, Quality of Life, and Other National Priorities. Individual Task Orders Will Fall Within ONE of TWO Broad Categories: 1) Essential Research Capability of Space Systems Engineering, and Related Work in the Supporting Essential Research Capabilities of Systems Test and Evaluation, Information Technology, and Simulation, Modeling and Operations Analysis. Task Orders Within the Category of Essential Research Capabilities ARE Intended to Preserve the Nation S Capabilities to Perform Robotic Space Missions Over the Full Mission Life Cycle From Concept Formulation Through Mission Operations and Data Analysis. Nasa IS Contracting for Support in Several KEY Research, Engineering and Development Competencies That ARE Fundamental to the Performance of These Missions. 2) Other Aerospace Research, Development, and Engineering Support. Task Orders Within the Category of Other Aerospace Research, Development and Engineering Support ARE Intended to Include a Broad Base of Scientific and Technical Capabilities Relevant to Nasa Program Responsibilities and Assignments. Regardless of Category, Task Orders MAY BE Issued Related to Autonomous Deep-Space and Earth-Orbiting Spacecraft or Major Subsystems, Experiments, Instruments or Other Devices That MAY BE Carried AS Payloads on the Space Shuttle or on Other Spacecraft. Task Assignments Will Explicitly Describe a Broad Range of Hardware, Software, Systems Engineering, Scientific Analysis, and Management Efforts Including Program and Project Management and Administration — $894.5M (National Aeronautics and Space Administration)
- SUN Earth Connection Living With a Star Program Letter Contract — $522.1M (National Aeronautics and Space Administration)
- Interstellar Mapping and Acceleration Probe (imap) Phase CD — $400.0M (National Aeronautics and Space Administration)
View all THE Johns Hopkins University Applied Physics Laboratory LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)