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 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

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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