DoD's $40.8M FOENEX contract awarded to JHU APL for R&D in physical sciences
Contract Overview
Contract Amount: $40,861,506 ($40.9M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2010-06-30
End Date: 2012-07-31
Contract Duration: 762 days
Daily Burn Rate: $53.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: FREE SPACE OPTICAL EXPERIMENTAL NETWORK EXPERIMENT (FOENEX)
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $40.9 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: FREE SPACE OPTICAL EXPERIMENTAL NETWORK EXPERIMENT (FOENEX) Key points: 1. Contract awarded to a single entity, JHU APL, for specialized R&D. 2. Focus on physical sciences research, potentially high-risk, high-reward. 3. No small business participation indicated. 4. Limited competition due to specialized nature of research.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure for R&D can lead to cost overruns if not closely managed. Benchmarking is difficult due to the specialized, experimental nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
Awarded as sole-source, indicating a belief that only JHU APL possessed the necessary expertise. This limits price discovery and competitive pressure, potentially increasing costs.
Taxpayer Impact: Taxpayer funds are directed to a single entity for specialized research, with limited assurance of competitive pricing.
Public Impact
Funding advanced research in optical networks with potential future applications. Investment in specialized scientific expertise at JHU APL. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can inflate costs.
- No small business participation.
Positive Signals
- Supports critical R&D in advanced technologies.
- Leverages expertise of a leading research institution.
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 innovation potential but also inherent risks and long development cycles.
Small Business Impact
The contract does not indicate any provisions or set-asides for small businesses. This suggests that the specialized nature of the research may have precluded small business involvement or that opportunities were not actively sought.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for oversight. The sole-source nature necessitates rigorous monitoring of performance and costs to ensure value for taxpayer money.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Cost-plus contract type increases risk of cost overruns.
- Lack of small business participation.
- Research and Development inherently carries high uncertainty.
Tags
research-and-development-in-the-physical, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.9 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. FREE SPACE OPTICAL EXPERIMENTAL NETWORK EXPERIMENT (FOENEX)
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $40.9 million.
What is the period of performance?
Start: 2010-06-30. End: 2012-07-31.
What is the expected return on investment for this specialized R&D, and how is it being measured?
The return on investment for specialized R&D like FOENEX is typically long-term and difficult to quantify precisely at the outset. It is measured by achieving specific experimental objectives, developing new technologies, and potential future applications. The DoD likely assesses success based on technical milestones and the advancement of scientific knowledge rather than immediate financial returns.
What are the primary risks associated with this sole-source, cost-plus contract, and how are they being mitigated?
The primary risks include potential cost overruns due to the cost-plus structure and lack of competitive pressure, and the risk that the research may not yield desired outcomes. Mitigation involves stringent oversight by DCMA, clear definition of contract milestones, and regular performance reviews to ensure progress and control spending.
How effective is the chosen contract vehicle (Cost Plus Fixed Fee) in driving innovation and ensuring efficient use of funds for this specific R&D project?
A Cost Plus Fixed Fee contract can be effective for R&D where the scope is not fully defined, allowing flexibility for exploration. However, it carries a risk of cost escalation if not managed tightly. Its effectiveness hinges on robust government oversight to ensure the fixed fee remains reasonable and the contractor is incentivized to control costs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Johns Hopkins University
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: $40,861,506
Exercised Options: $40,861,506
Current Obligation: $40,861,506
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-06-30
Current End Date: 2012-07-31
Potential End Date: 2012-07-31 00:00:00
Last Modified: 2022-04-01
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