JHU Applied Physics Lab awarded $18.8M for cyber expertise, a sole-source contract by DoD
Contract Overview
Contract Amount: $18,770,695 ($18.8M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2024-09-16
End Date: 2025-09-15
Contract Duration: 364 days
Daily Burn Rate: $51.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: CYBER SUBJECT MATTER EXPERTISE
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $18.8 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: CYBER SUBJECT MATTER EXPERTISE Key points: 1. Contract awarded to a single entity suggests potential lack of competitive pressure on pricing. 2. The cost-plus-fixed-fee structure may incentivize cost increases, requiring robust oversight. 3. Sole-source award raises questions about the availability of alternative providers and market dynamics. 4. The contract duration of one year provides limited long-term visibility into sustained cost-effectiveness. 5. Focus on cyber subject matter expertise aligns with critical national security needs. 6. The awardee's established role may indicate specialized capabilities not readily available elsewhere.
Value Assessment
Rating: fair
Benchmarking the value of this sole-source contract is challenging without comparable bids. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex R&D or services where costs are uncertain, can lead to higher overall expenditures compared to fixed-price contracts. The fixed fee component provides some cost control for the government, but the primary cost driver is the reimbursement of direct and indirect costs. Without a competitive process, it's difficult to ascertain if the government is receiving optimal value for the services rendered. Further analysis would require understanding the specific labor categories, overhead rates, and the fixed fee percentage relative to the estimated costs.
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 typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only responsible source capable of meeting the government's requirements. The lack of competition means that price discovery through market forces was bypassed. While this can be justified for specialized needs, it limits the government's ability to leverage competition to drive down costs and ensure the best possible pricing.
Taxpayer Impact: For taxpayers, a sole-source award means the government may not be achieving the most cost-effective outcome. Without competitive pressure, there is a risk of paying a premium for the services provided. This underscores the importance of rigorous justification for sole-source awards and strong negotiation of terms and pricing.
Public Impact
The Department of Defense benefits from specialized cyber subject matter expertise to address evolving threats. This contract supports critical national security functions by ensuring access to advanced cyber capabilities. The services delivered are likely to enhance the cybersecurity posture of defense systems and operations. The geographic impact is primarily within Maryland, where the contractor is located, but the cyber services have national implications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
- Cost-plus-fixed-fee contract type can incentivize cost escalation if not closely monitored.
- Lack of transparency in the justification for sole-source award could obscure potential alternatives.
- Short contract duration (one year) may not reflect long-term cost-effectiveness or strategic planning.
Positive Signals
- Award to a well-established entity like JHU APL suggests access to highly specialized and critical cyber expertise.
- The contract directly addresses a vital area of national security: cybersecurity.
- The fixed fee component provides a degree of cost certainty for the contractor's profit.
- The contract is managed by Washington Headquarters Services, indicating a centralized approach to critical support services.
Sector Analysis
The cybersecurity sector is a rapidly growing and critical component of the federal IT landscape, driven by increasing digital threats. Federal spending in this area encompasses a wide range of services, from threat detection and prevention to incident response and policy development. Contracts for specialized cyber subject matter expertise, like this one, are essential for maintaining a technological edge and protecting sensitive government data and infrastructure. The market for these services is competitive, but often requires highly specialized knowledge that can lead to sole-source or limited competition awards for specific, advanced capabilities.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The awardee, The Johns Hopkins University Applied Physics Laboratory LLC, is a large research institution. There is no explicit information provided regarding subcontracting opportunities for small businesses. Without specific set-aside goals or subcontracting plans detailed in the award, the direct impact on the small business ecosystem is likely minimal for this particular contract, though large prime contractors are often encouraged or required to have broader subcontracting programs.
Oversight & Accountability
Oversight for this contract is likely managed by the Department of Defense, specifically through the Washington Headquarters Services (WHS). As a Cost Plus Fixed Fee (CPFF) contract, robust financial oversight is crucial to monitor incurred costs and ensure they align with the contract's objectives and the fixed fee. Transparency regarding the justification for the sole-source award and the detailed breakdown of costs would be key indicators of accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- DoD Cyber Security Services
- Research and Development Services
- Professional, Scientific, and Technical Services
- Information Technology Services
- National Security Programs
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of competitive bidding
Tags
it, department-of-defense, washington-headquarters-services, cybersecurity, professional-services, sole-source, cost-plus-fixed-fee, research-and-development, maryland, subject-matter-expertise, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.8 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. CYBER SUBJECT MATTER EXPERTISE
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 (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $18.8 million.
What is the period of performance?
Start: 2024-09-16. End: 2025-09-15.
What is the historical spending pattern for cyber subject matter expertise by the Department of Defense, and how does this award compare?
Historical spending by the Department of Defense (DoD) on cyber subject matter expertise has been substantial and steadily increasing, reflecting the growing importance of cybersecurity in national defense. While specific aggregate data for 'cyber subject matter expertise' as a distinct category can be difficult to isolate, overall IT and professional services spending by the DoD runs into the tens of billions of dollars annually. Contracts for specialized cyber capabilities, including R&D, threat analysis, and advanced technical support, represent a significant portion of this. This $18.8 million award, while substantial for a single contract, is a relatively small component within the DoD's vast overall budget for cyber-related activities. However, its sole-source nature and specific focus on advanced expertise warrant close scrutiny to ensure value compared to potentially broader, competed contracts for less specialized services.
What are the specific deliverables or outcomes expected from this 'CYBER SUBJECT MATTER EXPERTISE' contract?
The data provided defines the contract's purpose as 'CYBER SUBJECT MATTER EXPERTISE' but does not detail specific deliverables. Typically, such expertise involves providing advanced technical analysis, strategic guidance, research and development support, threat intelligence interpretation, and consultation on complex cybersecurity challenges. Outcomes could include improved defensive strategies, identification of emerging cyber threats, development of new security protocols, or enhanced understanding of adversary tactics. The 'All Other Professional, Scientific, and Technical Services' NAICS code (541990) is broad, suggesting the scope could encompass a wide array of specialized knowledge application rather than a single, defined product or service. The specific objectives would be detailed in the contract's Statement of Work (SOW).
What is the track record of The Johns Hopkins University Applied Physics Laboratory LLC in performing similar government contracts, particularly sole-source awards?
The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) has a long and extensive history of performing complex research, development, and engineering services for the U.S. government, particularly for the Department of Defense and other national security agencies. They are known for their deep technical expertise in areas such as advanced cyber capabilities, space systems, and strategic defense. JHU APL frequently holds large, sole-source contracts due to its unique federally funded research and development center (FFRDC) status and specialized capabilities that are often not readily available from other sources. Their track record generally indicates successful execution of highly technical and critical missions. However, the specific terms, pricing, and oversight of their sole-source awards are always subject to review to ensure continued value and accountability.
How does the Cost Plus Fixed Fee (CPFF) pricing structure potentially impact the total cost and risk for the government in this contract?
The Cost Plus Fixed Fee (CPFF) pricing structure means the government reimburses the contractor for all allowable costs incurred during performance, plus a predetermined fixed fee representing the contractor's profit. This structure is often used when the scope of work is uncertain or involves significant research and development, making it difficult to estimate costs accurately upfront. For the government, the primary risk is that the total cost can exceed initial estimates if actual costs are higher than anticipated. While the fixed fee provides some predictability for the contractor's profit, it does not cap the total contract cost. Effective oversight is crucial to ensure that costs are reasonable, allocable, and allowable, and that the contractor is making a good-faith effort to control expenses. The government's risk is mitigated by strong contract administration and clear performance metrics.
Given this is a sole-source award, what mechanisms are in place to ensure fair pricing and prevent potential overcharging?
Ensuring fair pricing on sole-source contracts relies heavily on robust government oversight and negotiation, as competitive market forces are absent. Mechanisms include: 1) Detailed Cost Analysis: The government contracting officer must conduct a thorough analysis of the contractor's proposed costs (labor rates, overhead, materials) to determine if they are reasonable and realistic. 2) Price Negotiation: Even without competition, the government can negotiate the fixed fee and potentially other terms to achieve fair and reasonable pricing. 3) Contractor's Certified Cost or Pricing Data: For contracts above certain thresholds, contractors are required to submit certified cost or pricing data, allowing the government to verify cost claims. 4) Past Performance Review: Evaluating the contractor's performance on previous contracts can inform pricing negotiations. 5) Independent Government Cost Estimates (IGCE): Developing an internal estimate of what the work should cost helps in negotiations. Without these measures, sole-source awards carry a higher risk of inflated prices.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ003419R0009
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 11100 JOHNS HOPKINS RD, LAUREL, MD, 20723
Business Categories: Category Business, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,009,570
Exercised Options: $38,009,570
Current Obligation: $18,770,695
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $59,250
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ003419D0006
IDV Type: IDC
Timeline
Start Date: 2024-09-16
Current End Date: 2025-09-15
Potential End Date: 2025-09-15 00:00:00
Last Modified: 2025-08-28
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