DoD's $27.4M contract for integrated combat systems research awarded to Johns Hopkins APL

Contract Overview

Contract Amount: $27,434,082 ($27.4M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2021-03-26

End Date: 2023-09-30

Contract Duration: 918 days

Daily Burn Rate: $29.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SSDS INTEGRATED COMBAT SYS (BMAC6)

Place of Performance

Location: LAUREL, HOWARD County, MARYLAND, 20723

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $27.4 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: SSDS INTEGRATED COMBAT SYS (BMAC6) Key points: 1. Contract awarded to a single entity, raising questions about competitive pricing. 2. Research and Development focus suggests potential for innovation but also inherent risks. 3. Long contract duration of 918 days indicates a complex, multi-phase project. 4. The contract type (Cost Plus Fixed Fee) may incentivize cost overruns. 5. Awarded by the Department of the Navy, indicating a specific defense application. 6. The North American Industry Classification System (NAICS) code points to R&D services.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its specialized R&D nature and sole-source award. Without competitive bids, it's difficult to assess if the fixed fee adequately reflects market rates for similar research. The cost-plus structure, while common for R&D, carries a risk of escalating costs if not tightly managed. The total award amount of $27.4 million over approximately 3 years suggests a significant investment in a specific technological area.

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 considered. This approach is typically used when a specific capability or expertise is required that only one entity possesses, or in cases of urgent need. However, the lack of competition means there was no opportunity for price discovery through bidding, potentially leading to a higher cost for the government.

Taxpayer Impact: Sole-source awards limit taxpayer value by bypassing competitive processes that typically drive down prices. This means taxpayers may not be getting the best possible price for the research services procured.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive advanced integrated combat system research. This contract supports the development of advanced technologies crucial for national defense. The research is likely to be conducted in Maryland, where The Johns Hopkins University Applied Physics Laboratory is located. The contract may indirectly impact the defense technology workforce by funding specialized R&D roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pressure on pricing.
  • Cost-plus contract type can lead to cost escalations if not managed stringently.
  • Long duration may indicate project complexity and potential for scope creep.
  • Lack of transparency in the sole-source justification process.

Positive Signals

  • Award to a reputable research institution (JHU APL) known for defense-related R&D.
  • Focus on integrated combat systems addresses critical defense needs.
  • Contract duration allows for thorough research and development phases.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is characterized by high specialization, long development cycles, and significant government investment. Comparable spending benchmarks are difficult to establish due to the unique nature of integrated combat systems, but overall defense R&D spending represents a substantial portion of the federal budget.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it was awarded sole-source to a large research institution. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary focus is on leveraging the specialized capabilities of the prime contractor rather than promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Given the R&D nature and sole-source award, rigorous oversight of technical progress, cost expenditures, and adherence to the fixed fee is crucial. Transparency may be limited due to the sole-source nature, but contract performance reviews and milestone reporting are standard accountability measures.

Related Government Programs

  • Naval Research Laboratory Contracts
  • Defense Advanced Research Projects Agency (DARPA) Projects
  • Department of Defense Research and Development Spending
  • Combat Systems Development Programs

Risk Flags

  • Sole-source award
  • Cost-plus contract type
  • Lack of competition

Tags

department-of-defense, department-of-the-navy, research-and-development, integrated-combat-systems, sole-source, cost-plus-fixed-fee, johns-hopkins-university-applied-physics-laboratory, maryland, large-business, defense-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. SSDS INTEGRATED COMBAT SYS (BMAC6)

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 $27.4 million.

What is the period of performance?

Start: 2021-03-26. End: 2023-09-30.

What is the specific technological area of 'integrated combat systems' being researched under this contract?

The term 'integrated combat systems' generally refers to the complex network of sensors, weapons, command and control, and communication systems that work together to enable a military platform (like a ship, aircraft, or ground vehicle) to effectively engage targets and defend itself. For the Department of the Navy, this could encompass advancements in areas such as radar technology, missile defense, electronic warfare, data fusion, artificial intelligence for targeting, and networked warfare capabilities. The specific focus of this $27.4 million contract with Johns Hopkins Applied Physics Laboratory (APL) would likely be detailed in the contract's statement of work, which is not publicly available in this data snippet. However, APL's historical work suggests a focus on advanced naval warfare technologies and systems engineering.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of risk and potential for cost overruns?

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. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it carries a risk of cost overruns if the government's estimate of the total cost is inaccurate or if unforeseen technical challenges arise, leading to higher-than-anticipated expenses. Compared to fixed-price contracts, CPFF offers more flexibility for R&D but less cost certainty for the government. It is generally considered less risky for the contractor than fixed-price contracts but potentially more costly for the government if not managed diligently.

What is the track record of The Johns Hopkins University Applied Physics Laboratory LLC in performing similar R&D contracts for the Department of Defense?

The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) has a long and distinguished track record of performing complex research and development for the Department of Defense (DoD) and other government agencies. APL is a University Affiliated Research Center (UARC) and is known for its expertise in areas such as national security, space science, and advanced engineering. They have consistently been awarded significant contracts for developing and integrating sophisticated systems, often in areas requiring deep scientific understanding and engineering prowess. Their history includes contributions to missile defense, undersea warfare, cyber security, and strategic systems. Given their status as a UARC, they are often chosen for sole-source or limited-competition contracts due to their unique capabilities and established relationship with the government, suggesting a high likelihood of successful performance on this integrated combat systems contract.

What are the potential implications of a sole-source award for taxpayer value in defense R&D?

Sole-source awards in defense R&D can have mixed implications for taxpayer value. On one hand, they allow the government to engage highly specialized contractors, like JHU APL, who possess unique expertise essential for cutting-edge research that might not be available elsewhere or requires a long-standing relationship. This can lead to faster progress on critical national security technologies. On the other hand, the absence of competition means there's no direct price comparison through bidding, potentially leading to higher costs than if multiple firms competed. Taxpayers may bear a premium for this specialized capability. Effective oversight and negotiation by the contracting agency are crucial to ensure that the fixed fee and overall costs are reasonable and represent good value, even without a competitive bidding process.

How does the $27.4 million contract value compare to historical spending on integrated combat systems research by the Navy?

Determining how $27.4 million compares to historical Navy spending on integrated combat systems research requires access to detailed historical contract data and budget allocations, which is not provided in this snippet. However, $27.4 million represents a substantial investment for a single contract, particularly for R&D. The Navy invests billions annually in research, development, testing, and evaluation (RDT&E) across numerous programs. Contracts for advanced combat systems can range from tens of millions to billions of dollars, depending on the phase (basic research, applied research, advanced development, prototyping, etc.) and the scope. A $27.4 million award for applied research or advanced development by a specialized entity like JHU APL is within the expected range for significant technological advancement projects within the broader context of the Navy's overall R&D budget.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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

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: $38,951,322

Exercised Options: $38,951,322

Current Obligation: $27,434,082

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $145,060

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: 2021-03-26

Current End Date: 2023-09-30

Potential End Date: 2023-09-30 00:00:00

Last Modified: 2023-04-10

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