Johns Hopkins Applied Physics Lab receives $57.2M for missile defense R&D, awarded via sole-source contract

Contract Overview

Contract Amount: $57,229,423 ($57.2M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-28

End Date: 2025-10-30

Contract Duration: 2,589 days

Daily Burn Rate: $22.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ENGINEERING AND TECH SUPPORT RDTE FUNDS IGF::OT::IGF

Place of Performance

Location: LAUREL, HOWARD County, MARYLAND, 20723

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $57.2 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: ENGINEERING AND TECH SUPPORT RDTE FUNDS IGF::OT::IGF Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Significant funding allocated for advanced research and development in missile defense. 3. Long contract duration suggests a sustained need for specialized engineering and technical support. 4. The contractor, a university-affiliated lab, has a strong track record in defense research. 5. Performance is tied to missile defense systems, a critical national security area. 6. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed fee, potentially impacting cost control.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and comparison to similar sole-source R&D efforts. The fixed fee component aims to provide some cost certainty, but the cost-reimbursement nature means actual costs can fluctuate. Given the specialized nature of missile defense R&D and the contractor's unique capabilities, direct price comparisons to other contracts may not be fully representative. However, the absence of competition inherently reduces the pressure for the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor was solicited. This approach is typically justified when a unique capability or specialized knowledge is required that cannot be met by other sources. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through multiple offers. The justification for sole-source procurement would need to demonstrate why other qualified sources could not perform the work.

Taxpayer Impact: Taxpayers may not receive the most cost-effective solution due to the absence of competitive bidding. The government relies on negotiation and oversight to ensure fair pricing in sole-source situations.

Public Impact

The primary beneficiaries are the Department of Defense and national security, through advancements in missile defense capabilities. Services delivered include research, development, testing, and evaluation (RDTE) for critical missile defense technologies. The geographic impact is primarily national, focusing on U.S. defense infrastructure and strategic interests. Workforce implications include highly skilled scientists, engineers, and technical personnel employed by the contractor.

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 overruns if not closely monitored.
  • Long contract duration may indicate a lack of readily available alternative solutions.
  • Specialized R&D focus means results are not guaranteed and may be subject to technical challenges.

Positive Signals

  • Contractor is a highly reputable institution with extensive experience in defense R&D.
  • Missile defense is a critical national security priority, justifying specialized expertise.
  • The contract supports advanced technological development essential for national security.
  • Long-term engagement allows for deep expertise development and sustained program support.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical and engineering sciences related to defense. The market for specialized missile defense R&D is highly concentrated, often dominated by a few key institutions and contractors with unique expertise and security clearances. Comparable spending benchmarks are difficult to establish due to the proprietary and classified nature of much of this work, but significant government investment is consistently directed towards maintaining technological superiority in missile defense.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by the 'sb': false field. The nature of advanced missile defense R&D typically requires highly specialized capabilities that are often found in larger institutions or established defense contractors. There is no explicit information provided regarding subcontracting plans to small businesses, which could be a missed opportunity for broader economic participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Missile Defense Agency (MDA) within the Department of Defense. Accountability measures would be tied to the achievement of research milestones and deliverables outlined in the contract. Transparency is limited due to the sensitive nature of missile defense research, but contract awards and basic details are publicly available through federal procurement databases. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

  • Missile Defense Systems
  • Advanced Technology Development
  • Department of Defense Research and Development
  • National Security Programs

Risk Flags

  • Sole-source award
  • Cost Plus Fixed Fee contract type
  • Long contract duration

Tags

research-and-development, missile-defense, department-of-defense, johns-hopkins-university-applied-physics-laboratory, cost-plus-fixed-fee, sole-source, delivery-order, maryland, national-security, engineering-services, technology-support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.2 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. ENGINEERING AND TECH SUPPORT RDTE FUNDS IGF::OT::IGF

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 $57.2 million.

What is the period of performance?

Start: 2018-09-28. End: 2025-10-30.

What is the historical spending trend for missile defense R&D at the Missile Defense Agency?

The Missile Defense Agency (MDA) consistently receives substantial funding for research, development, testing, and evaluation (RDT&E) of missile defense systems. While specific annual figures fluctuate based on program priorities and technological advancements, the overall trend indicates a sustained and significant investment in this area over the past decade. For example, historical budget requests and appropriations data show billions of dollars allocated annually to MDA's RDT&E accounts. This consistent funding reflects the ongoing strategic importance of missile defense to national security and the continuous need to counter evolving threats. Analyzing specific contract awards like the one to Johns Hopkins University Applied Physics Laboratory provides granular insight into how these broad RDT&E budgets are utilized for specific research objectives.

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

The Cost Plus Fixed Fee (CPFF) contract type is common in research and development where the scope of work can be uncertain and costs are difficult to estimate precisely. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee, which represents their profit. This structure aims to provide some cost control by fixing the profit margin, unlike Cost Plus Incentive Fee (CPIF) contracts which can adjust profit based on performance against targets. However, CPFF contracts can still lead to cost overruns if the initial cost estimates are inaccurate or if the contractor does not manage expenses efficiently, as the government bears the risk of actual costs. Compared to Firm-Fixed-Price (FFP) contracts, CPFF generally offers less cost certainty for the government but provides more flexibility for the contractor to adapt to evolving R&D challenges. For highly complex or exploratory R&D, CPFF can be more appropriate than FFP, but it requires robust government oversight to ensure value for money.

What are the specific research areas within missile defense that Johns Hopkins APL is likely focusing on under this contract?

While the specific details of research conducted under this contract are likely proprietary and sensitive, Johns Hopkins University Applied Physics Laboratory (APL) has a broad and deep expertise in numerous areas critical to missile defense. This typically includes advanced sensor development (e.g., radar, infrared, electro-optical), target discrimination algorithms, guidance, navigation, and control (GNC) systems for interceptors, threat assessment and modeling, countermeasure development, and system integration. Given their historical work, APL is likely involved in foundational research and early-stage development for next-generation missile defense capabilities, potentially encompassing hypersonic threats, advanced ballistic missile defense, and integrated air and missile defense systems. The contract's focus on 'ENGINEERING AND TECH SUPPORT RDTE FUNDS' suggests a blend of theoretical research, applied engineering, and technical support for existing or developmental systems.

What is the typical track record of Johns Hopkins University Applied Physics Laboratory in performing government R&D contracts?

Johns Hopkins University Applied Physics Laboratory (APL) has an extensive and highly regarded track record in performing complex research, development, test, and evaluation (RDT&E) for the U.S. government, particularly within the Department of Defense and intelligence community. APL is known for its significant contributions to national security programs, including space exploration (e.g., NASA missions), advanced sensor technology, cyber security, and, notably, missile defense. They have a history of successfully managing large-scale, technically challenging projects, often involving cutting-edge science and engineering. Their performance is generally viewed as excellent, characterized by innovation, technical expertise, and reliable delivery. Government contract databases and performance reviews typically reflect a high level of satisfaction with APL's capabilities and outcomes on similar R&D endeavors.

What are the potential risks associated with a sole-source award for advanced R&D in a critical defense area?

Sole-source awards for advanced R&D in critical defense areas, such as missile defense, carry several potential risks. The most prominent risk is the lack of price competition, which can lead to the government paying a premium compared to what might be achieved through a competitive bidding process. This can result in less efficient use of taxpayer funds. Another risk is the potential for complacency by the sole-source contractor, as there is no immediate threat of losing future business to competitors. This could potentially impact innovation or responsiveness. Furthermore, relying on a single source may limit the government's access to a broader range of technological solutions or alternative approaches that might emerge from a more open market. Finally, the justification for sole-source procurement must be rigorously scrutinized to ensure it is truly warranted and not a result of poor planning or an unwillingness to explore competitive options.

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: $63,326,292

Exercised Options: $63,326,292

Current Obligation: $57,229,423

Actual Outlays: $1,820,219

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $212,790

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: 2018-09-28

Current End Date: 2025-10-30

Potential End Date: 2025-10-30 00:00:00

Last Modified: 2025-09-29

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