DoD's $46M R&D Contract to JHU APL for Missile Defense Tech Faces Limited Competition

Contract Overview

Contract Amount: $46,151,576 ($46.2M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2020-08-20

End Date: 2025-06-30

Contract Duration: 1,775 days

Daily Burn Rate: $26.0K/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 $46.2 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 entity. 2. Missile Defense Agency is the primary customer. 3. Potential for limited competition due to specialized nature. 4. Focus on physical, engineering, and life sciences R&D.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking CPFF contracts in specialized R&D is difficult without more granular data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited source selection. This approach may be justified by unique capabilities but raises concerns about price discovery and potential lack of cost-effectiveness.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, though the specialized nature of the work might necessitate a sole-source or limited approach.

Public Impact

Advanced missile defense research impacts national security. Funding supports critical technological development in a specialized field. Potential for breakthroughs in physical and engineering sciences.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost-plus contract type
  • Long duration

Positive Signals

  • Supports critical national security mission
  • Funds specialized R&D

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is often characterized by high upfront investment and uncertain outcomes, with significant government funding directed towards specialized institutions.

Small Business Impact

The contract is not set aside for small businesses and is awarded to a large, well-established research institution. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The Department of Defense, specifically the Missile Defense Agency, is responsible for oversight. The CPFF contract type requires diligent monitoring to ensure costs are reasonable and fixed fees are earned.

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
  • Cost-plus contract type may lead to higher costs
  • Long contract duration increases risk exposure
  • Potential for scope creep in R&D projects
  • Limited transparency on specific R&D deliverables

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 $46.2 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 $46.2 million.

What is the period of performance?

Start: 2020-08-20. End: 2025-06-30.

What is the justification for not competing this significant R&D contract, given the potential for cost efficiencies through competition?

The justification for not competing likely stems from the highly specialized and unique capabilities required for advanced missile defense research and development. The Applied Physics Laboratory at Johns Hopkins University is known for its expertise in this domain, potentially making it the only entity capable of performing the work to the agency's satisfaction within the required timeframe and technical specifications.

How does the Cost Plus Fixed Fee (CPFF) structure mitigate risks associated with R&D uncertainty while ensuring contractor accountability?

CPFF aims to balance R&D uncertainty with contractor accountability by allowing the contractor to recover all allowable costs plus a predetermined fixed fee. This structure incentivizes efficiency as the fee remains constant regardless of actual costs. However, it requires robust government oversight to prevent cost creep and ensure the fixed fee adequately compensates for the risks undertaken.

What is the long-term strategic value of awarding such a large, non-competed contract for missile defense R&D?

The long-term strategic value lies in maintaining and advancing critical national security capabilities. By partnering with a leading institution like JHU APL, the DoD ensures access to cutting-edge research and development necessary to counter evolving threats. This focused investment can lead to technological superiority, though it relies heavily on the agency's ability to manage the relationship and ensure continued innovation.

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: $67,459,153

Exercised Options: $67,459,153

Current Obligation: $46,151,576

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $4,591,105

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: 2020-08-20

Current End Date: 2025-06-30

Potential End Date: 2025-06-30 00:00:00

Last Modified: 2025-11-20

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