DoD's $35.5M contract for engineering and tech support awarded to Johns Hopkins APL, with 2+ years remaining
Contract Overview
Contract Amount: $35,491,527 ($35.5M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2018-09-24
End Date: 2025-06-30
Contract Duration: 2,471 days
Daily Burn Rate: $14.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ENGINEERING AND TECH SUPPORT- LABOR
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $35.5 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: ENGINEERING AND TECH SUPPORT- LABOR Key points: 1. Contract awarded to a single entity, raising questions about competitive pricing. 2. Significant portion of contract value allocated to research and development in physical sciences. 3. Long contract duration suggests a need for sustained technical expertise. 4. Performance is concentrated in Maryland, indicating a regional economic impact. 5. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely managed. 6. No small business set-aside, potentially limiting opportunities for smaller firms.
Value Assessment
Rating: fair
The contract's value of $35.5 million for engineering and technical support over its period of performance appears substantial. Without direct comparable contracts for similar specialized R&D services from the Missile Defense Agency, a precise value-for-money assessment is challenging. However, the Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility in research, carries inherent risks of cost escalation if not rigorously monitored. Benchmarking against industry standards for similar highly specialized R&D services would be necessary for a more definitive value assessment.
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 approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude a competitive process. The lack of competition means that pricing was not subjected to market forces, potentially leading to higher costs for the government compared to a competed scenario. The justification for this sole-source award would need to be thoroughly reviewed to ensure it aligns with federal procurement regulations.
Taxpayer Impact: The absence of competition means taxpayers did not benefit from potential cost savings that could arise from a bidding process. This could result in a higher overall expenditure for the services rendered.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Missile Defense Agency, which receives critical engineering and technical support. Services delivered include research and development in physical, engineering, and life sciences, crucial for advancing missile defense capabilities. The geographic impact is concentrated in Maryland, where the contractor is located and likely where the work is performed. The contract supports highly skilled technical and scientific workforce within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potential cost savings.
- CPFF contract type poses a risk of cost overruns without stringent oversight.
- Lack of small business participation may limit broader economic impact.
- Concentration of work in one location could be a single point of failure for specific expertise.
Positive Signals
- Award to a well-established research institution (Johns Hopkins APL) suggests access to specialized expertise.
- Long contract duration indicates a recognized need for ongoing, critical support.
- Focus on R&D aligns with strategic defense objectives.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for specialized defense R&D is often characterized by a limited number of highly qualified contractors capable of undertaking complex, mission-critical projects. The Missile Defense Agency's spending in this area is crucial for maintaining technological superiority. Comparable spending benchmarks would typically involve analyzing other large, sole-source R&D contracts awarded by defense agencies for similar scientific disciplines.
Small Business Impact
This contract does not appear to include a small business set-aside. The sole-source nature of the award further limits opportunities for small businesses to participate, either as prime contractors or through subcontracting, unless specifically mandated by the prime contractor. This could mean that the economic benefits of this contract are less distributed within the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense and the Missile Defense Agency. Given the sole-source nature and CPFF type, rigorous oversight of cost, performance, and adherence to the statement of work is critical. Transparency may be limited due to the non-competitive award, but contract performance reviews and financial audits by the agency and potentially the Inspector General would be key accountability measures.
Related Government Programs
- Missile Defense Systems Research
- Advanced Technology Development
- Department of Defense Research and Development
- Engineering Services Contracts
- Applied Physics Research
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
Tags
department-of-defense, missile-defense-agency, engineering-and-tech-support, research-and-development, sole-source, cost-plus-fixed-fee, maryland, applied-physics-laboratory, large-contract, non-small-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.5 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. ENGINEERING AND TECH SUPPORT- LABOR
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 $35.5 million.
What is the period of performance?
Start: 2018-09-24. End: 2025-06-30.
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 procurements are justified under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For a contract of this magnitude and duration, the justification would likely involve unique capabilities, specialized knowledge, or a critical need that cannot be met by other entities. A thorough review of the contract file and associated documentation would be necessary to ascertain the precise rationale.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for similar R&D services in terms of cost control?
The Cost Plus Fixed Fee (CPFF) contract type is common for research and development where the scope of work may evolve and precise costs are difficult to estimate upfront. It reimburses the contractor for allowable costs incurred plus a fixed fee representing profit. While it offers flexibility, it can incentivize cost overruns if the government does not maintain strong oversight, as the contractor's profit (the fixed fee) remains constant regardless of the final cost. Other arrangements like Firm-Fixed-Price (FFP) offer greater cost certainty but are less suitable for R&D with undefined outcomes. Cost-Plus-Incentive-Fee (CPIF) contracts share costs and profits based on performance targets, potentially offering better cost control than CPFF.
What are the key performance indicators (KPIs) used to measure the success of this engineering and technical support contract?
The provided data does not specify the key performance indicators (KPIs) for this contract. However, for engineering and technical support contracts, particularly in R&D for defense, KPIs typically revolve around technical performance (e.g., meeting design specifications, achieving research milestones), schedule adherence (e.g., timely delivery of reports, completion of phases), cost control (e.g., staying within budget projections), and quality of deliverables (e.g., accuracy of analysis, innovation). The Missile Defense Agency would establish these KPIs in the contract's Statement of Work (SOW) and monitor them through regular progress reports and reviews.
What is the historical spending trend for engineering and technical support services by the Missile Defense Agency in recent years?
The provided data only pertains to a single contract and does not offer historical spending trends for the Missile Defense Agency (MDA) in general or for engineering and technical support services specifically. To analyze historical spending, one would need access to broader federal procurement databases (like USASpending.gov) to aggregate and review MDA's contract awards over several fiscal years. This would allow for identification of patterns, average contract values, dominant contract types, and key contractors within this service category.
What is the track record of The Johns Hopkins University Applied Physics Laboratory LLC in performing similar government contracts, particularly with the Department of Defense?
The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) has a long-standing and extensive track record of performing complex research, development, and engineering services for the U.S. government, particularly the Department of Defense and various intelligence agencies. They are renowned for their work in areas such as missile defense, space systems, undersea warfare, and cybersecurity. Their history includes numerous large, critical programs, often involving advanced scientific and technical challenges. While specific performance metrics for individual contracts are not detailed here, their continued selection for significant sole-source and competed contracts suggests a strong performance history and a high level of trust from their government sponsors.
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: $37,681,033
Exercised Options: $37,681,033
Current Obligation: $35,491,527
Actual Outlays: $1,340,089
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $114,014
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: 2018-09-24
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-05-28
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