Applied Physics Lab receives $173M for missile defense R&D, highlighting sole-source awards in specialized research
Contract Overview
Contract Amount: $17,317,693 ($17.3M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2019-01-22
End Date: 2025-04-30
Contract Duration: 2,290 days
Daily Burn Rate: $7.6K/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 $17.3 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: ENGINEERING AND TECH SUPPORT RDTE FUNDS Key points: 1. Contract awarded to a single entity suggests unique capabilities or limited market availability for specialized R&D. 2. The duration of the contract (over 2 years) indicates a long-term commitment to ongoing research and development. 3. Focus on R&D in physical, engineering, and life sciences points to foundational work with potential future applications. 4. The 'Not Competed' award type warrants scrutiny regarding the justification for avoiding a broader competition. 5. Missile Defense Agency's reliance on specific contractors may indicate a strategic approach to maintaining critical expertise. 6. The cost-plus-fixed-fee structure allows for flexibility in research but requires careful oversight of expenditures.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its specialized R&D nature and sole-source award. Without comparable contracts or detailed cost breakdowns, it's difficult to definitively assess if the pricing represents excellent value. The cost-plus-fixed-fee structure, while common for R&D, can lead to cost overruns if not managed tightly. Further analysis of the fixed fee relative to the estimated costs would be beneficial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning the Missile Defense Agency did not solicit bids from multiple potential contractors. This typically occurs when a specific entity possesses unique qualifications, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means there was no direct price comparison through bidding, potentially impacting the government's ability to secure the lowest possible price.
Taxpayer Impact: Sole-source awards can limit opportunities for other capable firms and may result in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Missile Defense Agency, which gains access to advanced research and development capabilities. The contract supports research and development in physical, engineering, and life sciences, contributing to advancements in missile defense technology. The geographic impact is centered in Maryland, where The Johns Hopkins University Applied Physics Laboratory is located. This contract likely supports a highly specialized workforce of scientists, engineers, and researchers, contributing to the high-tech sector in Maryland.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and reduced innovation.
- Cost-plus-fixed-fee contracts can incentivize cost escalation if not rigorously monitored.
- The specialized nature of the R&D may limit the pool of potential future contractors.
Positive Signals
- The Johns Hopkins University Applied Physics Laboratory has a strong track record in defense research.
- The contract addresses a critical national security need for advanced missile defense.
- The long-term nature of the award suggests a stable and ongoing need for these specialized services.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for specialized missile defense R&D is often characterized by a limited number of highly qualified contractors, including university-affiliated research centers and defense contractors. Spending in this niche area is driven by national security priorities and technological advancements. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D requirements and the specialized expertise involved.
Small Business Impact
There is no indication that this contract includes small business set-asides. Given the specialized nature of the research and the sole-source award to a large university-affiliated laboratory, it is unlikely that significant subcontracting opportunities for small businesses will be a primary focus. The impact on the small business ecosystem is likely minimal for this specific award.
Oversight & Accountability
Oversight for this contract would primarily fall under the Missile Defense Agency's contracting and program management offices. The cost-plus-fixed-fee structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency may be limited due to the sole-source nature and the classified or sensitive aspects of missile defense research. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- Missile Defense Systems
- Advanced Research Projects Agency (ARPA) Funding
- Department of Defense Research and Development Budgets
- Strategic Defense Initiatives
Risk Flags
- Sole-source award requires strong justification.
- Cost-plus-fixed-fee contracts need diligent cost monitoring.
- Long contract duration may limit research agility.
Tags
research-and-development, missile-defense, department-of-defense, applied-physics-laboratory, johns-hopkins-university, sole-source, cost-plus-fixed-fee, delivery-order, maryland, national-security, engineering, technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.3 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 $17.3 million.
What is the period of performance?
Start: 2019-01-22. End: 2025-04-30.
What is the historical spending trend for The Johns Hopkins University Applied Physics Laboratory with the Missile Defense Agency?
Analyzing historical spending requires access to comprehensive federal procurement databases. However, The Johns Hopkins University Applied Physics Laboratory (JHUAPL) is a well-established research institution with a long history of supporting government R&D, particularly in defense and space. Their work with the Missile Defense Agency (MDA) is likely substantial, given JHUAPL's expertise in areas critical to missile defense, such as sensor technology, advanced materials, and systems engineering. Without specific historical data for this contract vehicle or related awards, it's difficult to quantify the trend. However, it is reasonable to assume a consistent and significant level of funding over the years, reflecting the ongoing need for their specialized research capabilities in national security.
How does the fixed fee in this Cost Plus Fixed Fee (CPFF) contract compare to industry standards for similar R&D efforts?
Determining if the fixed fee is competitive requires detailed knowledge of the contract's scope, complexity, and the specific risks involved, which are not fully detailed in the provided data. CPFF contracts allow the contractor to recover all allowable costs plus a fixed fee representing their profit. The fixed fee is negotiated upfront and does not change with the actual costs incurred. For R&D, fixed fees typically range from 5% to 15% of the estimated cost, depending on the level of risk, innovation, and contractor performance. A fee at the higher end might be justified for highly innovative or risky research, while a lower fee could be expected for more established or lower-risk projects. Without knowing the estimated cost and the negotiated fee percentage, a direct comparison to industry standards is not possible. However, the Missile Defense Agency would have internal benchmarks and guidance for negotiating such fees.
What specific missile defense technologies or research areas does this contract fund?
The provided data indicates the contract is for 'ENGINEERING AND TECH SUPPORT RDTE FUNDS' under NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences). While this specifies the broad category, it does not detail the specific missile defense technologies. The Johns Hopkins University Applied Physics Laboratory (JHUAPL) is known for its work in various defense-related fields, including radar systems, infrared sensing, guidance and control, advanced materials, and systems integration for missile defense. Given the agency (Missile Defense Agency) and the nature of JHUAPL's expertise, this contract likely supports research into next-generation interceptors, advanced sensor technologies for target detection and tracking, countermeasures, and potentially directed energy applications for missile defense. The exact focus would be detailed in the contract's Statement of Work (SOW).
What are the potential risks associated with a sole-source award for critical missile defense R&D?
Sole-source awards for critical R&D, such as in missile defense, carry several potential risks. Firstly, the lack of competition can lead to higher costs for the government, as there is no price pressure from competing bids. Secondly, it can stifle innovation by limiting the exposure of the government to alternative approaches or technologies that other contractors might offer. Thirdly, it can create a dependency on a single contractor, making the program vulnerable if that contractor experiences financial difficulties, personnel changes, or strategic shifts. Finally, it raises concerns about the thoroughness of the justification for sole-sourcing; if competition was feasible but avoided, it could indicate a failure in procurement processes. For critical national security areas like missile defense, these risks are amplified due to the high stakes involved.
How does the contract duration of over two years impact the agility of missile defense research?
A contract duration of approximately 22 months (from January 2019 to April 2025) for R&D suggests a commitment to a specific research path or development cycle. While longer durations can provide stability and allow for in-depth exploration of complex problems, they can also reduce agility. In rapidly evolving technological fields like missile defense, a lengthy, fixed contract might not adapt quickly to emerging threats or new technological breakthroughs discovered by other entities. The Missile Defense Agency might mitigate this by incorporating flexibility clauses, phased reviews, or options for modification within the contract. However, the inherent nature of a fixed-duration contract means that significant pivots in research direction might require new contract actions or amendments, potentially delaying responsiveness.
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: $18,100,089
Exercised Options: $17,330,847
Current Obligation: $17,317,693
Actual Outlays: $1,030,119
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: 2019-01-22
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-03-26
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