DoD's AEGIS Combat Systems Program: $14M Awarded to Johns Hopkins APL for R&D

Contract Overview

Contract Amount: $13,981,169 ($14.0M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-29

End Date: 2023-09-30

Contract Duration: 731 days

Daily Burn Rate: $19.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AEGIS COMBAT SYSTEMS PROGRAM

Place of Performance

Location: LAUREL, HOWARD County, MARYLAND, 20723

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: AEGIS COMBAT SYSTEMS PROGRAM Key points: 1. Significant R&D investment in a critical defense system. 2. Sole source award to a highly specialized entity. 3. Potential for cost overruns given Cost Plus Fixed Fee contract type. 4. Focus on advanced physical and engineering sciences.

Value Assessment

Rating: questionable

The contract type (Cost Plus Fixed Fee) can lead to higher costs as the contractor is reimbursed for expenses plus a fixed fee. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar R&D efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayer funds are directed to a single entity without competitive pressure, potentially increasing the overall cost of the AEGIS program.

Public Impact

Enhances national security through advanced combat system development. Supports specialized research and development capabilities. Potential for technological advancements with broad defense applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost-plus contract type
  • Limited transparency on R&D efficiency

Positive Signals

  • Award to a reputable research institution
  • Focus on critical defense technology

Sector Analysis

This award falls under Research and Development in Physical, Engineering, and Life Sciences. The $14M award is substantial for a single contract but needs to be viewed within the context of the overall AEGIS program's lifecycle costs.

Small Business Impact

This contract was awarded to The Johns Hopkins University Applied Physics Laboratory LLC, which is not typically considered a small business. There is no indication of small business subcontracting opportunities in the provided data.

Oversight & Accountability

The Department of the Navy awarded this contract. Oversight would focus on ensuring the R&D objectives are met efficiently and within the cost parameters of the Cost Plus Fixed Fee structure.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Lack of competitive bidding
  • Cost-plus contract structure
  • Potential for cost overruns
  • Limited transparency on R&D value

Tags

research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. AEGIS COMBAT SYSTEMS PROGRAM

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 $14.0 million.

What is the period of performance?

Start: 2021-09-29. End: 2023-09-30.

What is the specific R&D objective and how does it contribute to the AEGIS system's effectiveness?

The specific R&D objective is not detailed in the provided data. However, it is crucial for understanding how this $14M investment will enhance the AEGIS Combat System's capabilities, such as radar performance, missile defense, or electronic warfare. Effective R&D in this area directly impacts the warfighter's ability to counter evolving threats and maintain technological superiority.

What are the risks associated with a sole-source, cost-plus contract for advanced R&D?

Sole-source awards eliminate competitive pressure, potentially leading to inflated costs and reduced innovation. Cost-plus contracts, while flexible for R&D, can incentivize spending without strict cost controls, increasing the risk of budget overruns. The lack of transparency in R&D efficiency further compounds these risks for taxpayers.

How will the effectiveness of this R&D investment be measured and validated?

Effectiveness measurement should involve clearly defined milestones, deliverables, and performance metrics tied to the R&D objectives. Validation could include rigorous testing, peer review of research findings, and demonstration of improved system capabilities. Regular progress reports and independent technical reviews are essential to ensure the investment yields tangible advancements for the AEGIS Combat System.

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

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: $25,532,679

Exercised Options: $25,532,679

Current Obligation: $13,981,169

Actual Outlays: $129,398

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,391,486

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: 2021-09-29

Current End Date: 2023-09-30

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

Last Modified: 2025-09-29

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