Johns Hopkins Applied Physics Lab receives $33M for missile defense R&D, with significant contract duration
Contract Overview
Contract Amount: $33,014,622 ($33.0M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2018-10-30
End Date: 2025-12-01
Contract Duration: 2,589 days
Daily Burn Rate: $12.8K/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 $33.0 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 to a single entity, raising questions about competitive pricing. 2. Focus on research and development suggests potential for innovation but also inherent risks. 3. Long contract duration may indicate a complex, ongoing need for specialized expertise. 4. Missile Defense Agency's reliance on this contractor highlights its critical role in national security. 5. The specific NAICS code points to advanced scientific research, not routine services.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its specialized R&D nature and sole-source award. Without competitive bids, it's difficult to ascertain if the pricing reflects optimal value for money. The Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can incentivize cost control but also carries risks if initial cost estimates are inaccurate. Further analysis would require comparing the fixed fee percentage and the total estimated cost against similar R&D contracts for missile defense systems.
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 is the only source capable of meeting the requirement. While this can ensure access to specialized expertise, it limits price discovery and may result in higher costs compared to a competitively awarded contract. The absence of competition means potential savings for the government were not explored through market forces.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be benefiting from the most cost-effective solution available in the market. Without competition, there is less pressure on the contractor to offer the lowest possible price.
Public Impact
The primary beneficiary is the Missile Defense Agency, which receives critical research and development support. Services delivered include advanced research and technical support for missile defense systems. The contract's geographic impact is centered in Maryland, where the contractor is located. Workforce implications include the employment of highly skilled scientists and engineers at Johns Hopkins Applied Physics Laboratory.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure, potentially leading to higher costs.
- Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
- Long contract duration (over 7 years) increases exposure to potential scope creep or changing requirements.
- R&D contracts inherently carry a risk of not achieving desired outcomes or technological breakthroughs.
Positive Signals
- Award to a reputable institution (JHU APL) suggests a high level of technical expertise.
- Focus on missile defense R&D addresses a critical national security need.
- The contract supports advanced technological development, potentially leading to future defense capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The Missile Defense Agency operates within the broader defense industry, a significant segment of federal spending. Comparable spending benchmarks for R&D in advanced defense technologies are often high, reflecting the complexity and specialized nature of the work. The market for such specialized R&D is typically concentrated among a few highly capable institutions.
Small Business Impact
This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to a large research institution like Johns Hopkins Applied Physics Laboratory typically means the primary work is performed in-house, with limited direct benefit to the small business ecosystem unless specific R&D components are outsourced.
Oversight & Accountability
Oversight for this contract would primarily fall under the Missile Defense Agency's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee is justified. Transparency may be limited due to the classified or sensitive nature of missile defense research. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.
Related Government Programs
- Missile Defense Systems
- Advanced Research and Development
- Department of Defense Research Contracts
- Applied Physics Research
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
Tags
department-of-defense, missile-defense-agency, research-and-development, sole-source, cost-plus-fixed-fee, university-affiliated-research-center, maryland, applied-physics-laboratory, national-security, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.0 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 $33.0 million.
What is the period of performance?
Start: 2018-10-30. End: 2025-12-01.
What is the track record of The Johns Hopkins University Applied Physics Laboratory LLC in performing similar R&D contracts for the Department of Defense?
The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) has a long and distinguished history of supporting the Department of Defense (DoD) and other government agencies with advanced research, development, and engineering services. JHU APL is a University Affiliated Research Center (UARC) and has consistently been awarded significant contracts for complex defense systems, including missile defense, space systems, and cybersecurity. Their track record is generally characterized by high technical proficiency, successful project execution, and the ability to tackle challenging scientific and engineering problems. They are known for their deep expertise in areas relevant to missile defense, often contributing to foundational research and system integration. Past performance reviews and contract awards data typically reflect a strong capability to meet demanding technical requirements and delivery schedules, making them a preferred partner for critical national security programs.
How does the estimated cost of this contract compare to similar missile defense R&D efforts?
Directly comparing the estimated cost of this $33 million contract to similar missile defense R&D efforts is challenging without access to detailed cost breakdowns and specific project scopes. Missile defense R&D is inherently complex and can vary widely in cost depending on the technology being developed, the phase of research (e.g., basic research vs. advanced prototyping), and the specific threats being addressed. However, given the sole-source nature and the duration of the contract, the $33 million over approximately seven years suggests a focused effort on a particular aspect of missile defense technology. Larger, system-wide R&D programs can easily run into hundreds of millions or even billions of dollars. This contract's value appears to be within a reasonable range for specialized, long-term R&D support provided by a highly capable institution like JHU APL, but a definitive value-for-money assessment would require benchmarking against contracts with identical or highly similar technical objectives and contract types.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for missile defense R&D?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for missile defense R&D revolve around cost control and potential for cost growth. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' component means the government reimburses the contractor's allowable costs. If the initial cost estimates are inaccurate or if unforeseen technical challenges arise during the R&D process, the total cost to the government can escalate significantly beyond initial projections. This risk is amplified in R&D environments where the path to success is often uncertain and technical hurdles can be unpredictable. Effective oversight by the Missile Defense Agency is crucial to scrutinize incurred costs, ensure efficiency, and prevent unnecessary expenditures. The CPFF structure can also incentivize contractors to incur costs to ensure they meet the 'cost' portion of the contract, although the fixed fee aims to mitigate excessive profit-seeking through cost inflation.
What is the expected program effectiveness or outcome based on the contract's description?
The contract's description indicates a focus on 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' for missile defense. The expected program effectiveness is therefore centered on advancing the technological capabilities of the United States' missile defense systems. This could involve developing new sensor technologies, improving interceptor guidance systems, enhancing threat detection algorithms, or exploring novel countermeasures. The ultimate outcome sought is an improved ability to detect, track, and neutralize missile threats, thereby enhancing national security. Given the R&D nature, specific outcomes may not be guaranteed, but the contract aims to push the boundaries of existing technology to provide future defensive capabilities. Success will be measured by the successful completion of research objectives, the development of prototypes or proof-of-concept technologies, and their potential integration into operational systems.
How has historical spending by the Missile Defense Agency on R&D with JHU APL trended over the past five years?
Analyzing historical spending trends by the Missile Defense Agency (MDA) on R&D with The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) requires access to detailed contract databases and spending reports. However, it is generally understood that JHU APL is a significant and consistent recipient of MDA funding for critical research and development initiatives. Given JHU APL's role as a University Affiliated Research Center (UARC) and its specialized expertise in areas vital to missile defense, it is highly probable that MDA's spending with JHU APL has remained substantial and relatively stable over the past five years, reflecting the ongoing need for advanced technological solutions in this domain. Fluctuations might occur based on specific program priorities, budget allocations, and the initiation or completion of major R&D phases. Without specific data, it's reasonable to infer a continuous and significant investment pattern.
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: $34,213,091
Exercised Options: $34,213,091
Current Obligation: $33,014,622
Actual Outlays: $1,092,765
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $899,974
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: 2018-10-30
Current End Date: 2025-12-01
Potential End Date: 2025-12-01 00:00:00
Last Modified: 2025-08-06
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