Johns Hopkins University Applied Physics Lab awarded $20.4M for Secure Border Initiative System Engineering Support

Contract Overview

Contract Amount: $20,404,440 ($20.4M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Homeland Security

Start Date: 2010-11-01

End Date: 2020-08-30

Contract Duration: 3,590 days

Daily Burn Rate: $5.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SUBJECT MATTER EXPERTS FOR SYSTEM ENGINEERING AND TECHNICAL SUPPORT SERVICES IN SUPPORT OF THE SECURE BORDER INITIATIVE (SBI)SYSTEM'S ENGINEERING PROGRAM OFFICE(SPO)

Place of Performance

Location: ARLINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20598

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.4 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: SUBJECT MATTER EXPERTS FOR SYSTEM ENGINEERING AND TECHNICAL SUPPORT SERVICES IN SUPPORT OF THE SECURE BORDER INITIATIVE (SBI)SYSTEM'S ENGINEERING PROGRAM OFFICE(SPO) Key points: 1. Contract awarded for critical system engineering and technical support to the Secure Border Initiative Program Office. 2. The contract spans nearly a decade, indicating a long-term need for specialized expertise. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code suggests a focus on advanced technical solutions. 4. The award was made on a 'Not Competed' basis, raising questions about potential cost efficiencies and market engagement. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risk. 6. The geographic location of performance is Washington D.C., a hub for federal contracting and policy.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its long duration and specialized nature. The Cost Plus Fixed Fee structure, while common for R&D, can lead to cost overruns if not managed tightly. Without competitive bids, it's difficult to assess if the fixed fee represents a fair market rate for the expertise provided. The absence of competition suggests a potential lack of price discovery, which could impact overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'Not Competed' basis, meaning there was no open competition among potential offerors. This typically occurs when a specific contractor possesses unique capabilities or when urgency dictates a direct award. The lack of competition limits the government's ability to solicit and evaluate multiple proposals, potentially leading to higher prices than if a competitive process had been employed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are the Department of Homeland Security and U.S. Customs and Border Protection, who receive essential technical support for border security initiatives. The contract supports the engineering and program management of the Secure Border Initiative System. Services are performed in the District of Columbia, impacting the local federal contracting workforce. The initiative aims to enhance border security through technological solutions, indirectly benefiting national security and public safety.

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 require robust oversight to prevent cost escalation.
The long contract duration could indicate a lack of readily available alternative solutions or a strategic decision for continuity.

Positive Signals

The award to a well-established institution like Johns Hopkins University Applied Physics Laboratory suggests access to high-caliber expertise.
The contract supports a critical national security program, indicating strategic importance.
The long performance period (nearly 10 years) implies a stable and consistent need for these specialized services.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on engineering and technical support for a large-scale government program. The market for such specialized systems engineering and technical assistance (SETA) services is often dominated by a few highly capable contractors, particularly those with security clearances and a proven track record with government agencies. The total federal spending on R&D services is substantial, and contracts like this represent a significant portion of that investment, often involving complex, long-term projects.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award to a large research institution, it is unlikely to have direct benefits for small businesses unless the prime contractor actively engages them for specialized support, which is not evident from the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and U.S. Customs and Border Protection. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs remain within reasonable bounds and that the contractor meets all technical and programmatic objectives. Transparency is dependent on the agency's reporting practices and any potential Inspector General reviews related to the Secure Border Initiative.

Related Government Programs

Secure Border Initiative
Department of Homeland Security R&D Spending
Systems Engineering and Technical Assistance (SETA) Contracts
Border Security Technology Programs

Risk Flags

Sole-source award
Long contract duration
Cost Plus Fixed Fee contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.4 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. SUBJECT MATTER EXPERTS FOR SYSTEM ENGINEERING AND TECHNICAL SUPPORT SERVICES IN SUPPORT OF THE SECURE BORDER INITIATIVE (SBI)SYSTEM'S ENGINEERING PROGRAM OFFICE(SPO)

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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2010-11-01. End: 2020-08-30.

What is the specific technical expertise provided by Johns Hopkins University Applied Physics Laboratory under this contract?

The contract specifies 'SUBJECT MATTER EXPERTS FOR SYSTEM ENGINEERING AND TECHNICAL SUPPORT SERVICES IN SUPPORT OF THE SECURE BORDER INITIATIVE (SBI) SYSTEM'S ENGINEERING PROGRAM OFFICE(SPO)'. This indicates that JHUAPL provides highly specialized knowledge and technical guidance related to the design, development, integration, and sustainment of the SBI system. This likely includes areas such as systems architecture, requirements analysis, technical assessments, risk management, and program support, all crucial for a complex technological initiative like border security.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for R&D services?

Cost Plus Fixed Fee (CPFF) contracts are common for research and development efforts where the scope of work can be uncertain or evolve. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure aims to provide the contractor with an incentive to control costs, as the fee remains constant regardless of the final cost. However, it differs from fixed-price contracts, where the contractor bears more risk for cost overruns, and from cost-reimbursement contracts with incentive fees, which offer greater potential for profit based on performance metrics. For R&D, CPFF balances the need for flexibility with some level of cost predictability.

What are the potential risks associated with a sole-source award for a decade-long contract?

Sole-source awards, especially for extended periods, carry several risks. Firstly, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, as the government loses the benefit of price discovery. Secondly, it can stifle innovation, as the incumbent contractor may face less pressure to develop novel solutions or improve efficiency. Thirdly, there's a risk of contractor lock-in, making it difficult and costly to switch providers even if performance or pricing becomes unsatisfactory. Finally, sole-source awards can raise perceptions of favoritism or a lack of due diligence in exploring market capabilities.

Can the performance of Johns Hopkins University Applied Physics Laboratory be benchmarked against similar R&D support contracts?

Benchmarking JHUAPL's performance is difficult without access to detailed performance metrics and comparable contract data. However, as an applied physics laboratory affiliated with a major university, JHUAPL has a strong reputation for technical expertise and has historically supported numerous complex government projects, particularly in defense and national security. Its long-standing relationship with various agencies suggests a level of consistent performance. Direct comparison would require analyzing specific deliverables, cost performance indices, and customer satisfaction ratings against other SETA contracts of similar scope and complexity.

What is the historical spending trend for systems engineering and technical support services within the Department of Homeland Security?

Historical spending on systems engineering and technical support (SETA) services within DHS has generally been significant, reflecting the complexity and scale of its mission. SETA contracts are crucial for managing large-scale technology programs, cybersecurity initiatives, and infrastructure projects. While specific trends fluctuate based on program priorities and budget allocations, DHS consistently invests in expertise to support its diverse operational needs. The Secure Border Initiative itself represented a major technological undertaking, necessitating substantial SETA funding during its operational lifespan. Analyzing broader DHS R&D or IT support spending categories would provide context for this specific contract's place within the agency's overall investment strategy.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HSBP1010R0083

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: $26,095,551

Exercised Options: $20,404,440

Current Obligation: $20,404,440

Actual Outlays: $7,990

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline