DoD Awards $9.7M for SM Engineering, Sole-Sourced to Johns Hopkins APL
Contract Overview
Contract Amount: $9,704,213 ($9.7M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2023-05-03
End Date: 2026-05-02
Contract Duration: 1,095 days
Daily Burn Rate: $8.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SM ENGINEERING & EVALUATION FOR SM-2 BLK IIIC
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $9.7 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: SM ENGINEERING & EVALUATION FOR SM-2 BLK IIIC Key points: 1. Contract awarded to a single entity, limiting competitive pricing. 2. Focus on R&D in physical and engineering sciences, a specialized field. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Significant taxpayer investment in advanced defense technology development.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to higher costs if not closely managed. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.
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 a higher price than if multiple vendors had competed.
Taxpayer Impact: The lack of competition for this $9.7 million contract means taxpayers may not be receiving the best possible value, as pricing was not tested against market alternatives.
Public Impact
Development of advanced defense capabilities directly impacts national security. Investment in specialized R&D supports technological superiority. The use of a sole-source award raises questions about efficient use of taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Lack of small business participation noted.
Positive Signals
- Award to a reputable institution (Johns Hopkins APL) for specialized R&D.
- Contract supports critical defense technology development.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but requires careful oversight to ensure value for money.
Small Business Impact
The contract data indicates no specific set-aside for small businesses, and the prime contractor is not a small business. This suggests limited direct opportunities for small businesses on this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight by the Department of the Navy to ensure the fixed fee is reasonable and costs are controlled throughout the contract duration.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee structure
- No small business participation
- Specialized R&D area may have limited contractor pool
Tags
research-and-development-in-the-physical, department-of-defense, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.7 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. SM ENGINEERING & EVALUATION FOR SM-2 BLK IIIC
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 $9.7 million.
What is the period of performance?
Start: 2023-05-03. End: 2026-05-02.
What is the justification for the sole-source award, and how was the fixed fee determined to be fair and reasonable?
The justification for a sole-source award typically involves unique capabilities or critical national security needs that only one entity can fulfill. The fixed fee is determined through negotiation, often referencing historical data, labor rates, and anticipated overhead, with the agency's contracting officer responsible for ensuring its fairness and reasonableness based on available information and market research, if applicable.
What are the key performance indicators (KPIs) for this R&D contract, and how will their achievement be measured to ensure effectiveness?
Key performance indicators for R&D contracts often include technical milestones, prototype development, successful testing phases, and adherence to research objectives. Effectiveness is measured through rigorous evaluation of deliverables against predefined technical requirements, peer reviews, and demonstration of successful application or integration of the developed technology. The contracting officer and technical monitors will track progress against these KPIs.
How does the Applied Physics Laboratory's unique expertise justify the $9.7 million sole-source award compared to potential alternative solutions?
The justification for a sole-source award to Johns Hopkins APL likely stems from their established, unique expertise and infrastructure in specific advanced engineering and evaluation domains critical to the SM-2 BLK IIIC program. This could include proprietary knowledge, specialized facilities, or a proven track record that makes them the only viable option for meeting the government's specific, urgent requirements, thereby justifying the investment over exploring less specialized or potentially slower alternative solutions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – 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: $9,704,213
Exercised Options: $9,704,213
Current Obligation: $9,704,213
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $377,892
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: 2023-05-03
Current End Date: 2026-05-02
Potential End Date: 2026-05-02 00:00:00
Last Modified: 2026-01-08
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