JHU Applied Physics Lab awarded $9.7M contract for Cyber Command services, raising questions on competition and value
Contract Overview
Contract Amount: $9,714,767 ($9.7M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-03
End Date: 2026-09-02
Contract Duration: 364 days
Daily Burn Rate: $26.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SPICYELEPHANT
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $9.7 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: SPICYELEPHANT Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Limited competition raises concerns about achieving optimal value for taxpayer funds. 3. The contract duration of one year (with potential for extensions) suggests a need for ongoing specialized services. 4. Performance is tied to U.S. Cyber Command, indicating a critical national security function. 5. The specific NAICS code (541519) points to a broad range of computer-related services, requiring further detail on the scope. 6. The absence of small business set-aside flags suggests larger prime contractors are expected to perform the work.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to the lack of competitive bidding and detailed service descriptions. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not closely managed, as the contractor is reimbursed for all allowable costs plus a fixed fee. Without comparable contract data or a competitive process, it's difficult to definitively assess if the $9.7 million represents a fair market price for the services rendered. Further analysis of the specific deliverables and the contractor's historical performance on similar contracts would be necessary for a more robust value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning that only one contractor, The Johns Hopkins University Applied Physics Laboratory LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves soliciting proposals from multiple vendors. While sole-source awards can be justified for unique capabilities or urgent needs, they inherently limit price discovery and can reduce the pressure on contractors to offer their most competitive pricing. The lack of competition means taxpayers do not benefit from the potential cost savings that a robust bidding process might yield.
Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as there was no opportunity for multiple companies to compete and offer lower bids. This can lead to higher overall government spending for the same services.
Public Impact
The primary beneficiary is the U.S. Cyber Command, which will receive specialized computer-related services essential for its operations. The services delivered are critical for national cybersecurity and defense efforts. The contract is geographically focused in Maryland, where the contractor is located and likely where services will be performed. The contract supports highly skilled technical and analytical workforce roles within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
- CPFF contract type requires diligent oversight to manage costs and prevent overruns.
- Broad NAICS code necessitates clear definition of work to ensure alignment with Cyber Command needs.
- Lack of small business participation may limit opportunities for smaller innovative firms in this critical sector.
Positive Signals
- The Johns Hopkins University Applied Physics Laboratory LLC has a strong reputation and extensive experience in defense and cybersecurity research.
- Contracting with a well-established entity can provide stability and continuity for critical cyber operations.
- The fixed fee component of the CPFF contract provides some level of cost predictability for the government.
Sector Analysis
This contract falls within the broader Information Technology and Professional Services sector, specifically focusing on specialized computer-related services. The market for cybersecurity and cyber defense services is substantial and rapidly growing, driven by increasing global cyber threats. The U.S. government is a major consumer of these services, with significant spending allocated to defense agencies like U.S. Cyber Command. Comparable spending benchmarks are difficult to establish without more specific service details, but contracts for advanced cyber support often involve significant investment due to the specialized expertise and sensitive nature of the work.
Small Business Impact
The contract data indicates that this was not set aside for small businesses (ss: false, sb: false). This suggests that the prime contract is intended for a large, established entity capable of performing complex computer-related services. While there's no direct indication of subcontracting plans, large sole-source awards often have limited subcontracting opportunities for small businesses, particularly if the work requires highly specialized, proprietary knowledge held by the prime. This could mean fewer opportunities for small businesses to participate in this specific contract's value chain.
Oversight & Accountability
Oversight for this contract will likely be managed by the U.S. Cyber Command contracting and program management offices. As a Department of Defense contract, it is subject to oversight from the DoD Inspector General. Transparency regarding the specific services, performance metrics, and cost breakdowns would be crucial for effective accountability. The CPFF structure necessitates rigorous auditing of costs to ensure they are allowable and reasonable. The fixed fee provides a defined profit margin, which is subject to review based on performance.
Related Government Programs
- Cybersecurity Services
- Information Technology Support
- Defense Research and Development
- National Security Programs
- Computer Systems Design Services
Risk Flags
- Sole-source award
- Lack of defined performance metrics
- Broad service category (NAICS 541519)
Tags
it, defense, cybersecurity, sole-source, cost-plus-fixed-fee, professional-services, computer-related-services, maryland, us-cyber-command, department-of-defense, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.7 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. SPICYELEPHANT
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 $9.7 million.
What is the period of performance?
Start: 2025-09-03. End: 2026-09-02.
What is the specific scope of 'Other Computer Related Services' being procured for U.S. Cyber Command under this contract?
The NAICS code 541519, 'Other Computer Related Services,' is a broad category encompassing services not classified under other computer-related NAICS codes. For U.S. Cyber Command, this could range from cybersecurity analysis, threat intelligence, network defense, software development support, IT infrastructure management, to specialized cyber operations support. Without a detailed Statement of Work (SOW) or Performance Work Statement (PWS), the exact nature of the services remains undefined. Given the agency, it is highly probable that the services are directly related to cyber defense, offensive cyber capabilities, or intelligence analysis supporting cyber operations. The $9.7 million value suggests a significant scope of work over the one-year period.
How does the $9.7 million contract value compare to historical spending on similar services for U.S. Cyber Command?
Direct comparison of this $9.7 million contract value to historical spending is difficult without knowing the precise services rendered under the NAICS code 541519. However, U.S. Cyber Command is known to procure substantial amounts of advanced cyber support services. Historical data from sources like USASpending.gov would need to be filtered by agency, relevant NAICS codes, and contract types to identify comparable awards. Given the critical and specialized nature of cyber defense, annual spending in the millions for such support is common for major defense agencies. The sole-source nature of this award, however, prevents a direct comparison to competitively bid contracts, which might reveal cost efficiencies.
What are the key performance indicators (KPIs) or metrics used to evaluate the performance of The Johns Hopkins University Applied Physics Laboratory LLC under this contract?
The specific Key Performance Indicators (KPIs) or metrics for this contract are not publicly detailed in the provided data. However, for a contract supporting U.S. Cyber Command under the 'Other Computer Related Services' category, KPIs would likely focus on areas such as threat detection rates, response times to cyber incidents, accuracy of intelligence analysis, system uptime and availability, successful implementation of security measures, and timely delivery of project milestones. The Cost Plus Fixed Fee (CPFF) structure often ties the fixed fee payout to the achievement of certain performance standards or milestones, making these metrics crucial for both contractor compensation and government oversight.
What is the track record of The Johns Hopkins University Applied Physics Laboratory LLC in performing similar cyber-related services for the Department of Defense?
The Johns Hopkins University Applied Physics Laboratory LLC (JHUAPL) has a long and distinguished track record of supporting the Department of Defense (DoD) and other government agencies, particularly in advanced research, development, and systems engineering, often in sensitive areas like national security and space. They are well-regarded for their technical expertise and ability to handle complex, mission-critical projects. While specific details on past cyber-related contracts might be classified or not readily available, JHUAPL's overall reputation suggests a high capability to perform complex computer-related services. Their work often involves cutting-edge technology and strategic planning, aligning with the needs of an organization like U.S. Cyber Command.
Given the sole-source nature, what is the justification for awarding this contract without competition?
The justification for a sole-source award typically falls into specific categories outlined in federal acquisition regulations, such as: (1) the agency is only able to award the contract to a specific source due to unique capabilities or proprietary information; (2) there is a compelling urgency of need, and delaying competition would cause unacceptable delays; or (3) the contract is a follow-on effort to a previously competed contract where only one source is capable of providing the required services. Without the specific Justification for Other Than Full and Open Competition (JOFOC) documentation, the exact reason remains unknown. However, for specialized cyber services, unique technical expertise or proprietary tools held by JHUAPL could be the basis.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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: $74,228,897
Exercised Options: $16,402,027
Current Obligation: $9,714,767
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: 2025-09-03
Current End Date: 2026-09-02
Potential End Date: 2029-09-02 00:00:00
Last Modified: 2025-12-10
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