DARPA awards $6.76M for R&D support to Johns Hopkins APL, a sole-source contract
Contract Overview
Contract Amount: $6,760,198 ($6.8M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2023-03-01
End Date: 2027-02-28
Contract Duration: 1,460 days
Daily Burn Rate: $4.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DARPA RESEARCH PROGRAM SUPPORT SERVICES
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $6.8 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: DARPA RESEARCH PROGRAM SUPPORT SERVICES Key points: 1. Contract awarded to a single entity, raising questions about competitive pricing. 2. Significant portion of contract value allocated to research and development services. 3. Long contract duration of 4 years suggests a need for sustained support. 4. Geographic concentration in Maryland for service delivery. 5. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. No small business set-aside, indicating potential missed opportunities for smaller firms.
Value Assessment
Rating: questionable
The contract value of $6.76 million for R&D support services is difficult to benchmark without comparable sole-source awards. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D where scope can be uncertain, carries inherent risks of cost escalation. The absence of competition means there's no direct market comparison to assess if the fixed fee is reasonable or if the overall cost represents good value for money. Further analysis of the labor categories and rates would be needed to provide a more definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach is typically justified when a unique capability or specialized knowledge is required, or in cases of urgent need. The lack of competition limits the government's ability to leverage market forces to drive down costs and ensure the best possible pricing. Without a competitive bidding process, it is challenging to ascertain the full range of potential solutions or the most cost-effective approach.
Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions typically achieved through competitive bidding. This can result in higher overall spending for the government compared to a competed contract for similar services.
Public Impact
The primary beneficiary is the Department of Defense, specifically DARPA, which receives critical research and development support. The contract facilitates advanced research in physical, engineering, and life sciences, contributing to national security innovation. Services are delivered in Maryland, potentially impacting the local workforce and research ecosystem. The contract supports specialized scientific and technical personnel required for cutting-edge research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potential value for taxpayers.
- Cost Plus Fixed Fee contract type carries risk of cost overruns.
- Lack of small business participation may limit opportunities for smaller innovative firms.
Positive Signals
- Award to a well-established research institution (Johns Hopkins APL) suggests a high likelihood of technical expertise and successful project execution.
- Long-term contract duration indicates a strategic investment in ongoing research needs.
- Focus on R&D aligns with DARPA's mission to foster technological surprise.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D sector is characterized by innovation, long development cycles, and often requires specialized expertise. DARPA, as the agency, is known for funding high-risk, high-reward research projects. Comparable spending in this sector involves significant investment in scientific discovery and technological advancement, often through grants and contracts with universities and specialized research organizations.
Small Business Impact
This contract does not include a small business set-aside, nor is there any indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract are limited. While the prime contractor is a large research institution, the absence of set-asides or subcontracting goals may represent a missed opportunity to foster innovation and growth within the small business ecosystem that supports federal R&D efforts.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Defense and DARPA. As a sole-source award, the justification and terms would be subject to review. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to monitor expenditures against the fixed fee and ensure compliance with contract terms. Transparency regarding the specific research objectives and outcomes would be managed through regular reporting requirements, though public disclosure may be limited due to the nature of R&D.
Related Government Programs
- DARPA Research Programs
- Department of Defense Research and Development
- Applied Scientific Research Contracts
- University Research Partnerships
Risk Flags
- Sole-source award may limit cost-effectiveness.
- CPFF contract type carries inherent cost overrun risk.
- Lack of small business participation.
Tags
research-and-development, department-of-defense, darpa, sole-source, cost-plus-fixed-fee, applied-research, maryland, university-affiliated-laboratory, scientific-services, technology-development
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.8 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. DARPA RESEARCH PROGRAM SUPPORT SERVICES
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 $6.8 million.
What is the period of performance?
Start: 2023-03-01. End: 2027-02-28.
What is the specific nature of the 'Research and Development in the Physical, Engineering, and Life Sciences' being supported by this contract?
The contract data indicates the North American Industry Classification System (NAICS) code is 541715, which covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. While the specific project details are not provided in the summary data, DARPA's mission is to fund cutting-edge research that can lead to technological surprise and maintain the U.S. military's technological superiority. Therefore, this contract likely supports advanced research in areas such as advanced materials, robotics, artificial intelligence, quantum computing, or novel sensor technologies, aimed at future defense applications. The Johns Hopkins University Applied Physics Laboratory (APL) is a recognized leader in these fields, suggesting the research is highly specialized and critical to DARPA's strategic objectives.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of risk and value?
The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work is not precisely defined at the outset, making fixed-price contracts impractical. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. The risk is shared: the government bears the risk of cost overruns beyond the estimated cost, while the contractor is incentivized to control costs to protect their fixed fee. Compared to a Cost Plus Incentive Fee (CPIF) contract, CPFF offers less flexibility for performance-based incentives. Compared to a firm-fixed-price (FFP) contract, CPFF shifts more cost risk to the government but allows for greater flexibility in evolving R&D projects. For taxpayers, the value is contingent on effective government oversight to ensure costs remain reasonable and the fixed fee is appropriate for the effort.
What are the implications of awarding this contract on a sole-source basis to Johns Hopkins University Applied Physics Laboratory LLC?
Awarding this contract on a sole-source basis to Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) implies that DARPA determined JHU APL possesses unique capabilities, expertise, or resources essential for the research and development effort that cannot be obtained through a competitive process. JHU APL is a well-established, non-profit university-affiliated laboratory with a long history of supporting national security research. While this ensures access to a highly qualified entity, it means taxpayers do not benefit from the potential cost savings and broader innovation that could arise from a competitive bidding process. The justification for sole-sourcing would typically involve demonstrating that only JHU APL can meet the specific, critical requirements of the program.
What is the historical spending pattern for DARPA research support services, and how does this contract fit within it?
DARPA's historical spending is characterized by significant investment in high-risk, high-reward research and development across a wide spectrum of scientific and technological domains. They frequently engage with leading research institutions, including universities and affiliated laboratories like JHU APL, often through sole-source or limited-competition contracts due to the specialized nature of their programs. The $6.76 million award for a 4-year period is a moderate-sized contract within DARPA's overall budget, which typically runs into billions of dollars annually. This contract appears to align with DARPA's strategy of partnering with established research entities to tackle complex technological challenges, rather than representing an unusually large or anomalous expenditure.
Are there any specific performance metrics or oversight mechanisms mentioned for this contract to ensure accountability?
The provided summary data does not detail specific performance metrics or explicit oversight mechanisms beyond the standard contractual requirements. However, for a Cost Plus Fixed Fee (CPFF) contract, especially one awarded by DARPA, rigorous oversight is generally expected. This typically involves regular progress reports, technical reviews, and financial audits to ensure that costs are allowable, reasonable, and allocable, and that the fixed fee is earned. DARPA is known for its demanding program managers who closely monitor research progress. The contract's duration (1460 days) implies a structured delivery schedule with milestones that would be subject to review. Inspector General (IG) audits are also a standard oversight mechanism within the Department of Defense.
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: $8,911,104
Exercised Options: $7,752,268
Current Obligation: $6,760,198
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: 2023-03-01
Current End Date: 2027-02-28
Potential End Date: 2027-11-07 00:00:00
Last Modified: 2025-12-05
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