DoD's $61.4M R&D contract for Air and Missile Defense Power Projection awarded to Johns Hopkins University Applied Physics Laboratory

Contract Overview

Contract Amount: $61,427,802 ($61.4M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-06

End Date: 2026-06-05

Contract Duration: 1,095 days

Daily Burn Rate: $56.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AIR AND MISSILE DEFENSE POWER PROJECTION

Place of Performance

Location: LAUREL, HOWARD County, MARYLAND, 20723

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $61.4 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: AIR AND MISSILE DEFENSE POWER PROJECTION Key points: 1. Contract focuses on advanced research and development in a critical defense area. 2. Sole-source award to a well-established research institution. 3. Long-term contract duration suggests a sustained need for specialized expertise. 4. Cost-plus-fixed-fee structure allows for flexibility but requires careful oversight. 5. Research and Development in Physical, Engineering, and Life Sciences is a broad category. 6. Geographic concentration in Maryland for contract performance.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and sole-source award. The cost-plus-fixed-fee (CPFF) pricing structure means that actual costs are reimbursed, plus a negotiated fixed fee for profit. While CPFF contracts can be appropriate for research where the scope is not fully defined, they carry a higher risk of cost overruns compared to fixed-price contracts. Without comparable sole-source R&D contracts for similar defense capabilities, it's difficult to definitively assess if the pricing is optimal. The fixed fee component, however, provides some incentive for the contractor to manage costs efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one contractor, The Johns Hopkins University Applied Physics Laboratory LLC, was solicited. Sole-source awards are typically justified when a unique capability or specialized expertise is required, and no other source can meet the need. In this case, the justification likely stems from the specific and advanced nature of 'Air and Missile Defense Power Projection' research. The lack of competition means that price discovery through market forces was bypassed.

Taxpayer Impact: For taxpayers, sole-source awards can potentially lead to higher costs compared to competitively bid contracts, as the government does not benefit from the price reductions that competition often drives. However, if the unique expertise of the awarded contractor is essential for national security, the cost may be justified.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive advanced research and development outputs. The contract supports the advancement of U.S. air and missile defense capabilities. Research outcomes could enhance national security and strategic deterrence. Workforce implications include specialized R&D roles within The Johns Hopkins University Applied Physics Laboratory. Geographic impact is concentrated in Maryland, where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost-plus-fixed-fee structure necessitates robust oversight to manage potential cost escalations.
  • Sole-source award limits opportunities for competitive pricing and may result in higher overall costs.
  • The broad R&D category could lead to scope creep if not precisely managed.
  • Long contract duration requires sustained monitoring of performance and deliverables.

Positive Signals

  • Award to a reputable institution with a proven track record in defense research.
  • Focus on a critical national security area (Air and Missile Defense).
  • Long-term engagement allows for deep development and integration of research findings.
  • Fixed fee component provides a degree of cost predictability for the contractor's profit.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on defense applications. The NAICS code 541715 covers R&D in Physical, Engineering, and Life Sciences. This sector is characterized by high innovation, specialized expertise, and significant government investment, particularly in defense. Comparable spending benchmarks are difficult to establish for highly specialized R&D, but the overall federal R&D spending is in the hundreds of billions annually, with a substantial portion allocated to defense.

Small Business Impact

This contract does not appear to involve a small business set-aside, as it was awarded sole-source to The Johns Hopkins University Applied Physics Laboratory LLC. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy contracting and program management offices. Given the CPFF structure, rigorous financial oversight is crucial to monitor expenditures and ensure that costs are reasonable and allocable to the contract. Performance monitoring will involve tracking progress against research objectives and milestones. Transparency may be limited due to the sole-source nature and the classified or sensitive aspects of defense R&D. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

  • Missile Defense Agency Research Programs
  • Naval Research Laboratory Contracts
  • Advanced Weapons Systems Development
  • Department of Defense Research and Development Funding

Risk Flags

  • Sole-source award may limit cost efficiencies.
  • Cost-plus-fixed-fee structure requires diligent oversight to control costs.
  • Broad R&D scope could pose challenges in defining and meeting specific objectives.
  • Long contract duration increases exposure to potential changes in requirements or technology.

Tags

department-of-defense, department-of-the-navy, research-and-development, air-and-missile-defense, power-projection, sole-source, cost-plus-fixed-fee, johns-hopkins-university-applied-physics-laboratory, maryland, large-contract, long-duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.4 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. AIR AND MISSILE DEFENSE POWER PROJECTION

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 $61.4 million.

What is the period of performance?

Start: 2023-06-06. End: 2026-06-05.

What is the specific research focus within 'Air and Missile Defense Power Projection' for this contract?

The provided data indicates the contract's objective is 'AIR AND MISSILE DEFENSE POWER PROJECTION' under NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences). However, the specific research focus within this broad area is not detailed. This could encompass a wide range of activities, from theoretical physics and materials science relevant to missile defense systems, to the development of advanced power projection technologies for offensive or defensive capabilities, or the integration of various defense systems. Further details would likely be found in the contract's Statement of Work (SOW) or technical exhibits, which are not publicly available in this data snippet. Understanding the precise research aims is critical for assessing the contract's technical objectives and potential impact.

How does the $61.4 million value compare to similar sole-source R&D contracts in air and missile defense?

Directly comparing the $61.4 million value of this sole-source contract to similar ones is challenging without access to a comprehensive database of classified or specialized defense R&D contracts. However, large-scale R&D efforts in advanced defense technologies, particularly those involving unique expertise like that of The Johns Hopkins University Applied Physics Laboratory (JHU APL), often run into tens or hundreds of millions of dollars over their lifecycle. JHU APL is a federally funded research and development center (FFRDC) known for its significant contributions to national security research. Given the critical nature of air and missile defense and the specialized knowledge required, a contract of this magnitude for a multi-year R&D effort is not uncommon within the Department of Defense's research portfolio. The sole-source nature, however, means that competitive pressures that might drive down costs are absent.

What are the key performance indicators (KPIs) or milestones for this contract?

The provided data does not specify the key performance indicators (KPIs) or milestones for this contract. For a research and development contract, especially one awarded on a cost-plus-fixed-fee basis, KPIs and milestones are typically outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These would likely include technical objectives, research deliverables (e.g., reports, prototypes, analyses), project completion dates for specific research phases, and potentially metrics related to innovation or scientific advancement. The contracting officer and technical monitors from the Department of the Navy would be responsible for tracking the contractor's progress against these defined benchmarks to ensure successful execution and value for money.

What is the historical spending pattern for 'Air and Missile Defense Power Projection' research by the Department of the Navy?

The provided data snippet focuses on a single contract and does not offer historical spending patterns for 'Air and Missile Defense Power Projection' research by the Department of the Navy. To analyze historical spending, one would need access to broader contract databases or budget reports covering multiple fiscal years. Such an analysis would involve identifying all contracts related to this specific research area, summing their values, and observing trends over time. This would help determine if the current $61.4 million award represents an increase, decrease, or stable level of investment in this capability. Factors influencing historical spending could include evolving threat assessments, technological advancements, and shifts in strategic priorities within the Navy and DoD.

What is the track record of The Johns Hopkins University Applied Physics Laboratory LLC in delivering on similar defense R&D contracts?

The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) has a long and distinguished track record in conducting research and development for the Department of Defense and other government agencies. As a University Affiliated Research Center (UARC), it is specifically chartered to provide objective, high-impact research and analysis to the U.S. government. JHU APL has been instrumental in numerous critical defense programs, including those related to missile defense, undersea warfare, and space systems. Their expertise is highly regarded, and they frequently receive sole-source awards for complex, cutting-edge research where their unique capabilities are essential. While specific performance metrics for every contract are not publicly detailed, their consistent engagement and significant role in national security R&D suggest a strong history of successful delivery on complex technical challenges.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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, Educational Institution, Higher Education, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private)

Financial Breakdown

Contract Ceiling: $65,028,813

Exercised Options: $65,028,813

Current Obligation: $61,427,802

Actual Outlays: $13,151

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,041,575

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002422D6404

IDV Type: IDC

Timeline

Start Date: 2023-06-06

Current End Date: 2026-06-05

Potential End Date: 2026-06-05 00:00:00

Last Modified: 2026-01-06

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