DoD's $19.8M Quantum Computing Research Contract Awarded to Johns Hopkins APL
Contract Overview
Contract Amount: $19,815,626 ($19.8M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2022-06-06
End Date: 2026-01-31
Contract Duration: 1,335 days
Daily Burn Rate: $14.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: UNDEREXPLORED SYSTEMS FOR UTILITY-SCALE QUANTUM COMPUTING (US2QC) PROGRAM
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $19.8 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: UNDEREXPLORED SYSTEMS FOR UTILITY-SCALE QUANTUM COMPUTING (US2QC) PROGRAM Key points: 1. Contract focuses on advancing utility-scale quantum computing capabilities. 2. Research and Development in Physical, Engineering, and Life Sciences is a key area for innovation. 3. The contract is structured as Cost Plus Fixed Fee, allowing for flexibility in research. 4. A single award indicates limited competition for this specialized research area. 5. The duration of the contract spans over three years, suggesting a long-term research commitment. 6. The geographic location of the contractor is Maryland.
Value Assessment
Rating: fair
The contract value of $19.8 million for research and development in quantum computing is difficult to benchmark without more specific details on the scope of work and deliverables. As a Cost Plus Fixed Fee contract, the final cost is subject to the actual expenses incurred by the contractor, plus a predetermined fixed fee. This structure can lead to cost overruns if not managed carefully. Comparing it to similar contracts in the highly specialized field of quantum computing is challenging due to the nascent nature of utility-scale systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning that only one contractor, The Johns Hopkins University Applied Physics Laboratory LLC, was solicited. This approach is typically used when a specific entity possesses unique capabilities, expertise, or intellectual property essential for the project. While it ensures access to specialized knowledge, it limits the potential for price competition and may not yield the most cost-effective outcome for the government.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from competitive bidding to drive down prices.
Public Impact
The primary beneficiary is the Department of Defense, which stands to gain advancements in quantum computing technology. The contract supports research and development in a cutting-edge scientific field. The geographic impact is concentrated in Maryland, where the contractor is located. The contract may foster innovation and expertise within the quantum computing research community.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure.
- Limited competition may result in a higher price than a competitively bid contract.
- The specialized nature of quantum computing research makes oversight and performance measurement complex.
Positive Signals
- Leverages the expertise of a well-established research institution (Johns Hopkins APL).
- Focuses on a critical emerging technology with potential national security implications.
- Long contract duration allows for sustained research and development efforts.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering. The market for utility-scale quantum computing is still in its early stages, characterized by significant investment from both government and private entities. This contract represents a strategic investment by the Defense Advanced Research Projects Agency (DARPA) to push the boundaries of this nascent technology, aiming to secure a future technological advantage. Comparable spending benchmarks are difficult to establish given the unique and emerging nature of this field.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the specialized nature of quantum computing research and the sole-source award to a large research institution, there are likely limited opportunities for direct subcontracting to small businesses unless they possess highly specialized niche capabilities. The primary focus is on advancing fundamental research rather than commercial product development where small business participation is often more prevalent.
Oversight & Accountability
Oversight for this contract will likely be managed by the Defense Advanced Research Projects Agency (DARPA). As a Cost Plus Fixed Fee contract, rigorous financial oversight will be crucial to monitor expenditures and ensure that costs are reasonable and allocable to the contract. Performance oversight will involve tracking research progress against defined milestones and deliverables. Transparency may be limited due to the sensitive nature of advanced research, but DARPA typically has established reporting requirements for its research projects.
Related Government Programs
- Advanced Quantum Computing Initiatives
- National Quantum Initiative Act Programs
- Defense Research and Engineering Projects
- Emerging Technology Research Contracts
Risk Flags
- Sole-source award limits competitive pricing.
- Cost Plus Fixed Fee structure requires diligent oversight to manage costs.
- Nascent technology field makes performance benchmarking difficult.
Tags
department-of-defense, defense-advanced-research-projects-agency, darpa, research-and-development, quantum-computing, cost-plus-fixed-fee, sole-source, maryland, university-affiliated-research-center, emerging-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.8 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. UNDEREXPLORED SYSTEMS FOR UTILITY-SCALE QUANTUM COMPUTING (US2QC) PROGRAM
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 Advanced Research Projects Agency).
What is the total obligated amount?
The obligated amount is $19.8 million.
What is the period of performance?
Start: 2022-06-06. End: 2026-01-31.
What specific milestones or deliverables are expected under this contract for the "UNDEREXPLORED SYSTEMS FOR UTILITY-SCALE QUANTUM COMPUTING (US2QC) PROGRAM"?
While the specific technical milestones and deliverables are not publicly detailed in the provided data, contracts for research and development programs like US2QC typically involve phased objectives. These often include theoretical advancements, proof-of-concept demonstrations, development of specialized hardware or software components, and rigorous testing and validation. For utility-scale quantum computing, milestones might involve achieving specific qubit coherence times, improving error correction techniques, developing scalable architectures, or demonstrating the feasibility of running complex algorithms. The Cost Plus Fixed Fee structure implies that the contractor will be reimbursed for allowable costs incurred in pursuing these objectives, plus a negotiated fixed fee, with oversight focused on progress towards these research goals.
How does the Cost Plus Fixed Fee (CPFF) contract structure influence the government's ability to control costs for this quantum computing research?
The Cost Plus Fixed Fee (CPFF) structure provides flexibility for research projects where the exact scope and costs are difficult to predict upfront, such as in advanced R&D. The government reimburses the contractor for all allowable costs incurred, plus a fixed fee that represents the contractor's profit. While the fixed fee provides some cost certainty regarding profit, the total cost is variable and depends on the actual expenses. Effective cost control relies heavily on robust government oversight to ensure that incurred costs are reasonable, allocable, and necessary for the research. Without stringent monitoring and clear performance metrics, CPFF contracts can be susceptible to cost overruns compared to fixed-price contracts.
What is the track record of The Johns Hopkins University Applied Physics Laboratory LLC in managing large-scale, complex research and development contracts for the Department of Defense?
The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) has a long and distinguished history of managing complex research and development programs for the Department of Defense and other government agencies. JHU APL is a University Affiliated Research Center (UARC) known for its expertise in a wide range of scientific and engineering disciplines, including advanced computing, space systems, and national security technologies. They have consistently demonstrated the capability to handle large, multi-year R&D efforts, often involving cutting-edge technologies and significant national security implications. Their track record suggests a strong capacity for technical innovation, program management, and collaboration with government sponsors on challenging scientific endeavors.
Are there any comparable government investments or contracts in utility-scale quantum computing that can serve as a benchmark for this $19.8 million award?
Benchmarking this $19.8 million award for utility-scale quantum computing is challenging due to the nascent and highly specialized nature of the field. While various government agencies, including DARPA, NSF, and DOE, invest in quantum information science, direct comparisons for 'utility-scale' systems are scarce. Most public funding is directed towards foundational research, quantum sensing, or specific quantum computing applications rather than the development of large-scale, fault-tolerant systems. The National Quantum Initiative Act has spurred significant investment across the US, but specific contract values for large-scale system development are often not publicly disclosed or are part of broader, multi-agency initiatives. Therefore, this award represents a significant, albeit specific, investment in a frontier technology.
What are the potential risks associated with the 'sole-source' nature of this contract award?
The primary risk associated with a sole-source contract award is the potential lack of competitive pressure, which can lead to higher prices than might be achieved through a competitive bidding process. Without multiple bidders vying for the contract, the government may not benefit from the most cost-effective solutions or innovative approaches that competition often fosters. Furthermore, sole-source awards can sometimes raise concerns about fairness and transparency in the procurement process. In this specific case, the award to JHU APL suggests a belief that they possess unique capabilities essential for the program, but the absence of competition means these assumptions are not tested against the market.
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
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 11100 JOHNS HOPKINS RD, LAUREL, MD, 20723
Business Categories: Category Business, Educational Institution, Higher Education, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private)
Financial Breakdown
Contract Ceiling: $60,411,419
Exercised Options: $20,089,564
Current Obligation: $19,815,626
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HR001122D0001
IDV Type: IDC
Timeline
Start Date: 2022-06-06
Current End Date: 2026-01-31
Potential End Date: 2027-10-31 00:00:00
Last Modified: 2026-01-15
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