DoD's $41M Applied Physics Lab contract for ship self-defense systems awarded via sole-source justification
Contract Overview
Contract Amount: $41,134,149 ($41.1M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2017-06-08
End Date: 2019-09-30
Contract Duration: 844 days
Daily Burn Rate: $48.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF SHIP SELF-DEFENSE INTEGRATED COMBAT SYSTEM ENGINEERING
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $41.1 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: IGF::OT::IGF SHIP SELF-DEFENSE INTEGRATED COMBAT SYSTEM ENGINEERING Key points: 1. Contract awarded to a single entity, raising questions about competitive pricing. 2. Significant investment in R&D for critical defense capabilities. 3. Long-term contract duration suggests ongoing need for specialized expertise. 4. Focus on engineering and physical sciences research is key to technological advancement. 5. Geographic concentration in Maryland for this high-value research effort.
Value Assessment
Rating: fair
The contract's value of $41.1 million over its period of performance is substantial for R&D. However, without a competitive bidding process, it is difficult to benchmark the value for money. The cost-plus-fixed-fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can incentivize cost control but also carries risk if initial cost estimates are inaccurate. Comparisons to similar sole-source R&D contracts in defense would be necessary for a more precise 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 contractor, The Johns Hopkins University Applied Physics Laboratory LLC, was solicited. This approach is typically justified when a unique capability or specialized knowledge is required, and competition is not feasible or advantageous. The lack of multiple bidders means there was no direct price competition, potentially leading to higher costs than if multiple firms had vied for the contract.
Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the government did not explore alternative offers that could have potentially driven down costs for this critical defense research.
Public Impact
The Department of the Navy benefits from advanced research and development in ship self-defense systems. This contract supports the development of sophisticated combat systems to enhance naval security. The primary beneficiaries are the warfighters who will utilize the improved defense capabilities. The contract's impact is concentrated within the defense sector, specifically naval warfare technology. Workforce implications include specialized engineering and scientific roles at the contractor's facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potential cost savings.
- Cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly.
- Lack of competition may reduce incentive for contractor to innovate aggressively on cost.
Positive Signals
- Award to a reputable institution (JHU APL) known for defense research.
- Focus on critical R&D for national security enhances defense capabilities.
- Long-term engagement suggests a strategic investment in a vital technology area.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on engineering and physical sciences related to defense. The market for specialized defense R&D is often characterized by high barriers to entry due to intellectual property, security clearances, and unique expertise requirements. The Johns Hopkins University Applied Physics Laboratory is a well-established entity in this niche, often serving as a go-to for complex defense research projects. Benchmarking would require comparing this to other sole-source R&D contracts for similar advanced systems.
Small Business Impact
This contract does not appear to involve small business set-asides, as it was awarded sole-source to a large research institution. There is no explicit information regarding subcontracting plans for small businesses. The focus on highly specialized R&D may limit opportunities for small businesses unless they possess unique, niche capabilities that align with the prime contractor's needs.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The cost-plus-fixed-fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency is generally limited for sole-source R&D contracts, with details often classified or proprietary. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- Naval Combat Systems Development
- Advanced Weapon Systems Research
- Department of Defense Research and Development Programs
- Shipboard Technology Integration
Risk Flags
- Sole-source award may lead to higher costs.
- Cost-plus-fixed-fee contract type shifts cost risk to the government.
- Lack of competition could reduce incentive for cost-efficiency.
Tags
department-of-defense, department-of-the-navy, research-and-development, sole-source, cost-plus-fixed-fee, ship-self-defense, integrated-combat-system, engineering, maryland, delivery-order, applied-physics-laboratory
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.1 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. IGF::OT::IGF SHIP SELF-DEFENSE INTEGRATED COMBAT SYSTEM ENGINEERING
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $41.1 million.
What is the period of performance?
Start: 2017-06-08. End: 2019-09-30.
What is the specific nature of the 'SHIP SELF-DEFENSE INTEGRATED COMBAT SYSTEM ENGINEERING' being developed?
The contract details indicate 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' with a focus on 'SHIP SELF-DEFENSE INTEGRATED COMBAT SYSTEM ENGINEERING'. This suggests the work involves the design, development, integration, and testing of advanced systems intended to protect naval vessels from threats. This could encompass a wide range of technologies, including sensor fusion, electronic warfare, missile defense, directed energy systems, and command and control software, all engineered to work together seamlessly for effective self-defense in a combat environment. The specific nature is likely classified due to its defense application.
Why was this contract awarded on a sole-source basis to The Johns Hopkins University Applied Physics Laboratory LLC?
Sole-source awards are typically justified when a specific entity possesses unique capabilities, expertise, or intellectual property that cannot be replicated by other sources, or when urgent and compelling circumstances prevent competition. The Johns Hopkins University Applied Physics Laboratory (JHU APL) is a federally funded research and development center (FFRDC) with a long history of supporting the Department of Defense, particularly in advanced research and complex system development. It is plausible that JHU APL holds unique knowledge or proprietary technology related to integrated combat systems for ship self-defense, making them the only viable source for this specific R&D effort at the time of award.
How does the Cost Plus Fixed Fee (CPFF) contract type influence cost management and contractor incentives for this R&D project?
The Cost Plus Fixed Fee (CPFF) contract type means the contractor (JHU APL) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is common for R&D where the scope and final costs are uncertain. It incentivizes the contractor to manage costs effectively because the fee remains constant regardless of the final cost. However, it also places the cost risk primarily on the government. Effective oversight is crucial to ensure costs are reasonable and allocable to the contract. The fixed fee provides a clear profit target, but the government bears the burden of cost overruns beyond the initial estimates.
What is the historical spending pattern for similar ship self-defense system R&D contracts within the Department of the Navy?
Historical spending on ship self-defense system R&D within the Department of the Navy is substantial and spans decades, reflecting the continuous need to counter evolving threats. While specific figures for comparable sole-source R&D efforts are difficult to isolate without detailed contract analysis, the Navy consistently invests billions annually in research, development, testing, and evaluation (RDT&E) for its platforms. This includes areas like combat systems, sensors, electronic warfare, and C4ISR (Command, Control, Communications, Computers, and Intelligence). Contracts awarded to FFRDCs like JHU APL for specialized R&D often represent significant, long-term investments in critical capabilities, frequently justified by unique expertise and national security imperatives.
What are the potential risks associated with a sole-source award for advanced defense R&D?
The primary risk of a sole-source award for advanced defense R&D is the potential for inflated costs due to the absence of competitive pressure. Without competing bids, the government may pay a premium for the goods or services. Another risk is a lack of innovation spurred by competition; the sole contractor might have less incentive to explore novel, cost-saving approaches. Furthermore, reliance on a single source can create vulnerabilities if that contractor faces financial difficulties, operational issues, or if their unique expertise becomes less relevant over time. Ensuring robust government oversight and clear performance metrics becomes even more critical in sole-source situations.
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
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: $41,144,149
Exercised Options: $41,144,149
Current Obligation: $41,134,149
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0002413D6400
IDV Type: IDC
Timeline
Start Date: 2017-06-08
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2022-04-01
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