DoD's $44M R&D contract with JHU APL for platform tech prototyping shows limited competition
Contract Overview
Contract Amount: $44,090,860 ($44.1M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2018-08-10
End Date: 2023-09-30
Contract Duration: 1,877 days
Daily Burn Rate: $23.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: PLATFORM AND FORCE LEVEL TECHNOLOGY PROTOTYPING
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $44.1 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: PLATFORM AND FORCE LEVEL TECHNOLOGY PROTOTYPING Key points: 1. Contract awarded to a single entity, raising questions about competitive pricing. 2. Focus on advanced R&D suggests potential for significant technological advancements. 3. Long performance period indicates a sustained need for specialized research capabilities. 4. Sole-source award limits opportunities for other research institutions and businesses. 5. The contract's value is substantial within the R&D sector for this type of work. 6. Performance is concentrated in Maryland, potentially impacting regional economic development.
Value Assessment
Rating: fair
The contract's value of $44 million over five years for R&D services is significant. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The cost-plus-fixed-fee structure allows for cost reimbursement plus a predetermined profit, which can incentivize cost control but also carries risks if initial cost estimates are inaccurate. Further analysis would require access to detailed cost breakdowns and comparison with other sole-source R&D awards.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, The Johns Hopkins University Applied Physics Laboratory LLC, was solicited. This approach is typically used when a unique capability or specialized expertise is required that cannot be met by multiple sources. The lack of competition means that the government did not benefit from a range of proposals or price negotiations that could have potentially driven down costs or fostered innovation through diverse approaches.
Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete for government contracts, potentially reducing overall taxpayer value through lack of price discovery and innovation.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Department of the Navy, which gains access to advanced research and development capabilities. The contract supports the development of prototypes for platform and force level technologies, aiming to enhance military capabilities. Geographic impact is concentrated in Maryland, where The Johns Hopkins University Applied Physics Laboratory is located, potentially benefiting the local research and technology ecosystem. Workforce implications include the employment of highly skilled researchers, engineers, and technical staff at JHU APL.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potential for cost savings.
- Cost-plus-fixed-fee contract type can lead to cost overruns if not managed carefully.
- Lack of transparency in the sole-source justification could hide potential alternatives.
- Long contract duration may not adapt well to rapidly changing technological landscapes.
Positive Signals
- Award to a reputable institution (JHU APL) suggests high technical capability.
- Focus on prototyping advanced technologies aligns with strategic defense modernization goals.
- Sustained funding allows for in-depth research and development, potentially leading to breakthrough innovations.
- The contract addresses critical needs for platform and force level technology development.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is characterized by high specialization, significant government investment, and often involves long-term projects. Comparable spending benchmarks are difficult to establish without more specific details on the technology area, but R&D contracts of this magnitude are common within large defense agencies seeking to maintain a technological edge.
Small Business Impact
This contract does not appear to have a small business set-aside component, as it was awarded sole-source to The Johns Hopkins University Applied Physics Laboratory LLC. There is no indication of subcontracting plans specifically targeting small businesses within the provided data. This means that opportunities for small businesses to participate in this specific R&D effort are likely limited unless they are directly contracted by JHU APL as a subcontractor.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a sole-source award, the justification and approval process would have undergone specific scrutiny. Transparency is limited due to the non-competitive nature. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.
Related Government Programs
- Department of Defense Research and Development
- Naval Technology Development Programs
- Advanced Platform Prototyping Initiatives
- Applied Physics Research Contracts
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Long contract duration
- Lack of competition
Tags
research-and-development, department-of-defense, department-of-the-navy, sole-source, cost-plus-fixed-fee, platform-technology, force-level-technology, prototyping, maryland, university-affiliated-research-center
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.1 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. PLATFORM AND FORCE LEVEL TECHNOLOGY PROTOTYPING
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 $44.1 million.
What is the period of performance?
Start: 2018-08-10. End: 2023-09-30.
What is the specific justification for awarding this R&D contract on a sole-source basis to The Johns Hopkins University Applied Physics Laboratory LLC?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. Typically, sole-source justifications for R&D contracts are based on factors such as unique capabilities, specialized knowledge, or the need for a specific research facility that only one entity possesses. The Johns Hopkins University Applied Physics Laboratory (JHU APL) is a well-known research center with extensive experience in defense-related R&D. A formal justification would detail why other sources could not meet the requirement, potentially citing proprietary technology, unique facilities, or critical expertise essential for the 'PLATFORM AND FORCE LEVEL TECHNOLOGY PROTOTYPING' objective. Without the official justification document, the precise reasons remain speculative but likely revolve around JHU APL's specialized role and established expertise in this domain.
How does the cost-plus-fixed-fee (CPFF) contract structure compare to other R&D contract types in terms of risk and potential value for the government?
The Cost-Plus-Fixed-Fee (CPFF) structure reimburses the contractor for allowable costs incurred plus a fixed fee representing profit. For R&D, CPFF can be advantageous when the scope of work is not well-defined or is expected to evolve, as it allows flexibility. It incentivizes the contractor to control costs because the fee is fixed, but it also shifts some risk to the government, as the total cost is not predetermined. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but less cost certainty. Compared to Cost-Plus-Incentive-Fee (CPIF), CPFF lacks the explicit incentives for cost reduction tied to performance targets. For the government, the value depends heavily on effective oversight to ensure costs are reasonable and the fixed fee remains appropriate for the work performed. In a sole-source scenario, the government has less leverage to negotiate favorable terms compared to a competitive environment.
What are the potential risks associated with a five-year R&D contract for platform and force level technologies, particularly given the sole-source award?
A five-year R&D contract carries inherent risks, especially in rapidly evolving technological fields. The primary risk is obsolescence; the technologies being prototyped might be surpassed by advancements elsewhere before the contract concludes or is fielded. For the government, a sole-source award exacerbates these risks by limiting exposure to alternative approaches or more cutting-edge solutions that might emerge from a competitive process. There's also the risk of cost escalation if the fixed fee was based on initial estimates that prove too low, or if unforeseen technical challenges arise. Without competition, there's less pressure on the contractor to innovate aggressively or to find the most cost-effective solutions, potentially leading to suboptimal outcomes or higher-than-necessary expenditures over the contract's lifespan.
Can the $44 million contract value be benchmarked against similar R&D efforts in platform and force level technologies?
Benchmarking the $44 million contract value for 'PLATFORM AND FORCE LEVEL TECHNOLOGY PROTOTYPING' is challenging without more specific details on the technological focus and scope. R&D contracts vary widely based on complexity, maturity of the technology, and the specific platforms involved. However, $44 million over approximately five years (1877 days) represents a significant investment, averaging around $8.8 million per year. This level of funding is typical for advanced R&D projects within the Department of Defense, especially those involving complex systems or novel concepts. Comparable contracts might exist within the Navy's or other service branches' R&D portfolios, but direct comparisons require matching the specific technical objectives, deliverables, and the research institution's overhead structure. The sole-source nature further complicates direct benchmarking, as competitive bids often reveal a wider range of pricing.
What is the historical spending pattern for The Johns Hopkins University Applied Physics Laboratory LLC with the Department of Defense, and how does this contract fit?
The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) has a long and substantial history of receiving contracts from the Department of Defense (DoD), particularly the Department of the Navy. JHU APL is a University Affiliated Research Center (UARC) and often serves as a critical R&D arm for the government, working on complex, high-priority national security programs. Historical spending data would likely show consistent, significant awards to JHU APL across various defense technology areas. This $44 million contract for 'PLATFORM AND FORCE LEVEL TECHNOLOGY PROTOTYPING' fits within this established pattern, representing a continuation of JHU APL's role in developing advanced capabilities for the Navy. The specific NAICS code (541712) indicates a focus on physical, engineering, and life sciences R&D, which aligns with JHU APL's core competencies and historical contract work.
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
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: $53,711,846
Exercised Options: $53,711,846
Current Obligation: $44,090,860
Actual Outlays: $4,278,188
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $831,658
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0002413D6400
IDV Type: IDC
Timeline
Start Date: 2018-08-10
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2023-11-20
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