DoD's $43.7M R&D Contract with JHU APL for Missile Defense Tech Faces Limited Competition
Contract Overview
Contract Amount: $43,723,351 ($43.7M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2018-03-15
End Date: 2025-09-30
Contract Duration: 2,756 days
Daily Burn Rate: $15.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ENGINEERING AND TECH SUPPORT RDTE FUNDS
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $43.7 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: ENGINEERING AND TECH SUPPORT RDTE FUNDS Key points: 1. Significant R&D funding allocated to a single, well-established research institution. 2. Missile Defense Agency is the primary customer, indicating a focus on national security. 3. Limited competition raises questions about potential price discovery and value for taxpayer money. 4. The contract spans multiple years, suggesting a long-term research and development effort.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bids, it's difficult to assess if the pricing is optimal compared to similar R&D efforts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED,' suggesting a sole-source or limited competition award. This limits price discovery and may result in higher costs than if multiple vendors had bid.
Taxpayer Impact: The lack of competition for this substantial R&D funding could mean taxpayers are not receiving the best possible value, potentially leading to inflated costs for critical defense technologies.
Public Impact
Advancement of critical missile defense technologies. Potential for groundbreaking research with national security implications. Sustained funding for a key research institution in a specialized field.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Supports critical national security mission
- Leverages expertise of a renowned research institution
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. The $43.7M award is significant for this niche, especially given the specialized nature of missile defense.
Small Business Impact
The contract was awarded to The Johns Hopkins University Applied Physics Laboratory LLC, which is not typically considered a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
Given the 'NOT COMPETED' status and the cost-plus contract type, robust oversight will be crucial to ensure efficient use of funds and prevent cost overruns. The Missile Defense Agency must actively monitor performance and expenditures.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns due to CPFF structure
- Limited transparency on pricing justification
- Long contract duration increases risk exposure
Tags
research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.7 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. ENGINEERING AND TECH SUPPORT RDTE FUNDS
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 (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $43.7 million.
What is the period of performance?
Start: 2018-03-15. End: 2025-09-30.
What is the justification for awarding this contract on a non-competitive basis, and what steps are being taken to ensure fair pricing?
The justification for a non-competitive award typically stems from unique capabilities or urgent needs. The agency must provide detailed documentation for this decision. To ensure fair pricing, rigorous cost analysis, independent government estimates, and strong contract surveillance are essential, even without multiple bids.
What are the specific performance metrics and milestones for this R&D effort, and how will success be measured?
Success measurement in R&D contracts often involves achieving specific technical objectives, demonstrating prototypes, or completing research phases within defined timelines and budgets. The contract should clearly outline key performance indicators (KPIs), deliverables, and review points to track progress and ensure the research aligns with the agency's strategic goals for missile defense.
How does the cost-plus-fixed-fee structure mitigate risks for both the government and the contractor in this long-term R&D project?
The Cost Plus Fixed Fee (CPFF) structure aims to incentivize the contractor to control costs while allowing for flexibility in R&D where exact costs are unpredictable. The government pays the actual allowable costs plus a fixed fee representing profit. This balances risk by capping the contractor's profit while allowing the project to proceed despite inherent R&D uncertainties.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ014717R0041
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: $45,114,906
Exercised Options: $45,114,906
Current Obligation: $43,723,351
Actual Outlays: $966,380
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ014718D0004
IDV Type: IDC
Timeline
Start Date: 2018-03-15
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-09-12
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