DoD awards $11.8M for R&D and engineering support to Johns Hopkins University Applied Physics Laboratory

Contract Overview

Contract Amount: $11,835,174 ($11.8M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-15

End Date: 2026-09-14

Contract Duration: 364 days

Daily Burn Rate: $32.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ANALYSIS, RESEARCH, DEVELOPMENT AND SYSTEM ENGINEER SUPPORT.

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: ANALYSIS, RESEARCH, DEVELOPMENT AND SYSTEM ENGINEER SUPPORT. Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant portion of contract value allocated to research and development activities. 3. Performance period of one year suggests a focused scope of work. 4. The contractor, Johns Hopkins University Applied Physics Laboratory, has a strong track record in defense research. 5. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement with a negotiated profit. 6. Geographic location of performance is Maryland.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specialized nature and sole-source award. The Cost Plus Fixed Fee structure can lead to higher costs if not carefully managed, but it is often used for R&D where costs are uncertain. Without comparable sole-source R&D contracts, a definitive value-for-money assessment is difficult. The fixed fee component provides some incentive for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder was solicited. This significantly limits competition and may result in higher prices than if the contract had been competed openly. The justification for a sole-source award would typically involve unique capabilities or a critical need that only the selected contractor can fulfill.

Taxpayer Impact: Taxpayers may not receive the best possible price due to the lack of competitive bidding. The absence of competition means there is less downward pressure on costs.

Public Impact

The primary beneficiary is the Department of Defense, which receives critical research and development support. Services delivered include advanced research, development, and systems engineering. The geographic impact is concentrated in Maryland, where the contractor is located. The contract supports highly skilled scientific and engineering personnel at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
  • Cost Plus Fixed Fee contracts can incentivize cost overruns if not rigorously monitored.
  • Lack of transparency in the sole-source justification process.

Positive Signals

  • Award to a reputable institution (JHU APL) with a proven history in defense R&D.
  • Contract supports critical research and development needs for national security.
  • Fixed fee component provides a defined profit margin, offering some predictability.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, excluding nanotechnology and biotechnology. This is a highly specialized area often dominated by a few key research institutions and companies with unique expertise. The market size for such specialized R&D is substantial, driven by government and private sector investment in innovation and technological advancement. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D contracts and the specific requirements of the Department of Defense.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of the research and development services and the award to a large university-affiliated laboratory, subcontracting opportunities for small businesses may be limited unless specific requirements are identified and flowed down by the prime contractor. The absence of a set-aside means small businesses are not directly targeted for this specific award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Washington Headquarters Services (WHS) within the Department of Defense. Accountability measures would be tied to the performance objectives outlined in the contract and the Cost Plus Fixed Fee structure, which requires detailed financial reporting. Transparency may be limited due to the sole-source nature of the award, but contract performance and expenditures are subject to standard DoD oversight and potential Inspector General reviews.

Related Government Programs

  • Department of Defense Research and Development Programs
  • Applied Physics Laboratory Contracts
  • Systems Engineering Support Services
  • Cost Plus Fixed Fee Contracts
  • Washington Headquarters Services Contracts

Risk Flags

  • Sole-source award may limit price competition.
  • Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
  • Lack of transparency in the sole-source justification process.

Tags

department-of-defense, research-and-development, systems-engineering, cost-plus-fixed-fee, sole-source, johns-hopkins-university-applied-physics-laboratory, washington-headquarters-services, maryland, delivery-order, applied-research, 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. ANALYSIS, RESEARCH, DEVELOPMENT AND SYSTEM ENGINEER SUPPORT.

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 $11.8 million.

What is the period of performance?

Start: 2025-09-15. End: 2026-09-14.

What is the specific justification for awarding this contract on a sole-source basis to The Johns Hopkins University Applied Physics Laboratory LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when a unique capability, critical need, or lack of competition among other sources is demonstrated. For R&D contracts, this often relates to highly specialized knowledge, proprietary technology, or a long-standing, unique relationship that makes the incumbent contractor the only viable option. A full justification would usually be documented by the procuring agency, outlining the rationale and market research conducted to support the sole-source determination.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of cost efficiency for the government?

Cost Plus Fixed Fee (CPFF) contracts are common for R&D where the scope of work is not well-defined, and costs are difficult to estimate accurately upfront. The government agrees to pay the contractor's actual costs plus a fixed fee representing profit. While this allows for flexibility in R&D, it can be less cost-efficient than fixed-price contracts if costs escalate significantly, as the government bears the risk of cost overruns. However, the fixed fee provides a ceiling on profit, offering some cost predictability compared to cost-plus-award-fee or cost-plus-incentive-fee contracts, which can have variable fees based on performance.

What is the historical spending pattern for similar R&D and system engineering support contracts awarded by the Department of Defense?

The Department of Defense (DoD) is a significant investor in Research and Development (R&D) and systems engineering support. Historical spending in this area is substantial, often running into billions of dollars annually across various agencies and research arms. Contracts for these services are frequently awarded to a mix of large defense contractors, specialized research institutions (like university-affiliated labs), and think tanks. Spending patterns are influenced by national security priorities, technological advancements, and geopolitical events. Analyzing specific historical data for similar NAICS codes (like 541715) and contract types (CPFF, sole-source) would reveal trends in award values, contractor types, and duration.

What are the potential risks associated with a sole-source award for specialized R&D services?

The primary risk associated with a sole-source award for specialized R&D services is the lack of competitive pressure, which can lead to inflated prices and reduced innovation. Without competing bids, the government may not secure the most cost-effective solution. There's also a risk that the sole-source contractor may not be the most capable or that alternative, potentially superior, solutions are overlooked. Furthermore, sole-source awards can create a perception of favoritism or a lack of transparency, potentially impacting broader contractor relations and market dynamics.

What is the track record of The Johns Hopkins University Applied Physics Laboratory LLC in performing similar government contracts?

The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) has a long and distinguished track record of performing complex research, development, and systems engineering for the U.S. government, particularly the Department of Defense and NASA. They are known for their expertise in areas such as strategic systems, space science, national security, and applied research. JHU APL consistently receives high ratings for technical performance and program management on its government contracts. Their extensive experience and established infrastructure make them a frequent choice for critical, high-stakes R&D projects.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $121,727,736

Exercised Options: $21,304,423

Current Obligation: $11,835,174

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $387,884

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HQ003425G0001

IDV Type: BOA

Timeline

Start Date: 2025-09-15

Current End Date: 2026-09-14

Potential End Date: 2030-09-14 00:00:00

Last Modified: 2026-01-05

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