DoD's $2.68M contract for UUV System of Systems awarded to Johns Hopkins APL for R&D
Contract Overview
Contract Amount: $2,685,000 ($2.7M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2023-12-27
End Date: 2026-12-26
Contract Duration: 1,095 days
Daily Burn Rate: $2.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SSW UUV SYSTEM OF SYSTEMS
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $2.7 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: SSW UUV SYSTEM OF SYSTEMS Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. The contract is a Cost Plus Fixed Fee type, indicating potential for cost overruns. 3. A long duration of 1095 days suggests a complex and lengthy research project. 4. The contract was not competed, raising questions about potential cost savings and best value. 5. The specific NAICS code (541715) points to a focus on advanced scientific research. 6. The contract is a Delivery Order, implying it's part of a larger contract vehicle.
Value Assessment
Rating: questionable
Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without more detailed cost breakdowns and comparison to similar R&D efforts. The lack of competition limits the ability to assess if the fixed fee is reasonable or if alternative proposals could have offered better value. The total award amount of $2.68 million for a 3-year R&D effort needs further scrutiny to ensure it aligns with industry standards for similar research projects in advanced undersea systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Johns Hopkins University Applied Physics Laboratory LLC. The rationale for this sole-source award is not provided, but it typically suggests that the contractor possesses unique capabilities or is the only source capable of performing the required research and development. The lack of competition means that the government did not explore alternative solutions or pricing from other potential vendors, which could have led to a more competitive price.
Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. Without competition, there is less pressure on the contractor to minimize costs, potentially leading to higher overall expenditure for the research.
Public Impact
The primary beneficiary is the Department of the Navy, which will receive advanced research and development for Unmanned Underwater Vehicle (UUV) systems. The services delivered include research and development in physical, engineering, and life sciences, specifically related to UUV systems. The geographic impact is primarily within Maryland, where The Johns Hopkins University Applied Physics Laboratory LLC is located. Workforce implications may include the employment of highly skilled researchers, engineers, and scientists at the contractor's facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
- The specific nature of R&D makes it difficult to define success metrics upfront, potentially leading to scope creep or unmet objectives.
Positive Signals
- Award to a reputable institution (Johns Hopkins APL) known for advanced research.
- Focus on critical defense technology (UUV systems) which is a strategic priority.
- Long contract duration allows for in-depth research and development without frequent re-competition.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for UUV systems is a rapidly growing segment within defense technology, driven by increasing naval requirements for autonomous underwater capabilities. Comparable spending benchmarks for similar R&D contracts in advanced robotics and autonomous systems can vary widely based on complexity and scope, but multi-million dollar awards for specialized research are common.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the nature of advanced research and development in specialized systems like UUVs, the prime contractor is likely a large research institution. There is no explicit information regarding subcontracting plans for small businesses, which could be an area for potential future engagement or oversight to ensure small business participation.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the Cost Plus Fixed Fee structure and the defined research objectives. Transparency may be limited due to the sole-source nature and the sensitive R&D focus, with detailed cost and progress reporting being key to oversight.
Related Government Programs
- Unmanned Underwater Vehicle (UUV) Programs
- Naval Research and Development
- Autonomous Systems Research
- Defense Science and Technology
Risk Flags
- Sole-source award lacks competitive pricing.
- Cost Plus Fixed Fee structure requires diligent cost oversight.
- Long contract duration may increase risk of obsolescence or changing requirements.
Tags
research-and-development, department-of-defense, department-of-the-navy, unmanned-underwater-vehicle, cost-plus-fixed-fee, sole-source, delivery-order, johns-hopkins-university-applied-physics-laboratory, maryland, science-and-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.7 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. SSW UUV SYSTEM OF SYSTEMS
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 $2.7 million.
What is the period of performance?
Start: 2023-12-27. End: 2026-12-26.
What is the specific research and development objective for the SSW UUV System of Systems?
The provided data does not detail the specific research and development objectives for the 'SSW UUV System of Systems'. However, the contract's classification under 'Research and Development in the Physical, Engineering, and Life Sciences' and its award to The Johns Hopkins University Applied Physics Laboratory LLC (JHU APL) suggests a focus on advancing the capabilities, integration, or operational concepts of Unmanned Underwater Vehicle (UUV) systems. JHU APL is a recognized leader in defense research, often working on complex, cutting-edge projects. The 'System of Systems' designation implies an effort to integrate multiple UUVs or UUV components into a cohesive, functional whole, potentially addressing challenges in command and control, data fusion, or interoperability.
How does the Cost Plus Fixed Fee (CPFF) contract structure impact cost control for this R&D effort?
The Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D efforts like this UUV System of Systems project, CPFF can be advantageous as it allows flexibility to explore unforeseen technical challenges and adapt research paths without constant renegotiation of the fee. However, it also places a significant burden on the government to meticulously monitor and audit the contractor's costs to ensure they are reasonable and allocable to the contract. Without robust oversight, there is a risk that costs could escalate beyond initial expectations, as the contractor has less direct financial incentive to control them compared to fixed-price contracts. The fixed fee itself is negotiated upfront and does not change, providing some predictability on the profit margin.
What are the potential risks associated with awarding a sole-source R&D contract of this duration?
Awarding a sole-source R&D contract of this duration (1095 days) carries several potential risks. Firstly, the lack of competition means the government may not be obtaining the best possible value or price, as alternative solutions and cost proposals were not explored. Secondly, without competitive pressure, the contractor might have less incentive to innovate aggressively or manage costs efficiently throughout the project lifecycle. Thirdly, the long duration increases the risk of technological obsolescence or shifts in strategic priorities, potentially rendering the research outcomes less relevant by the time the contract concludes. Finally, sole-source awards can sometimes raise concerns about fairness and transparency in the procurement process, especially if the justification for uniqueness is not clearly articulated and defended.
What is the significance of the NAICS code 541715 for this contract?
The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' is highly significant for this contract. It precisely categorizes the core activity as fundamental scientific inquiry and applied research within these broad scientific domains. This classification indicates that the contract is not for the production of goods or standard services, but rather for the generation of new knowledge, understanding, and technological advancements. For the Department of the Navy, this code signals an investment in innovation aimed at developing future capabilities, potentially leading to breakthroughs in areas like advanced materials, propulsion, sensor technology, or autonomous systems relevant to UUVs.
How does the 'Delivery Order' status affect the understanding of this contract's total value and scope?
The designation of this award as a 'Delivery Order' implies that it is a task order issued under a previously established contract vehicle, likely a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a Basic Ordering Agreement (BOA). This means the $2.68 million is the value for this specific order, not necessarily the total potential value of the underlying contract vehicle. The underlying contract vehicle would have its own terms, conditions, and potentially a broader scope of work and ceiling value. Therefore, understanding the full context requires knowing the parent contract. A delivery order typically specifies the quantity, price, and delivery schedule for specific goods or services to be provided under the master agreement. It allows for flexibility in acquiring needed items or services incrementally.
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: $9,388,678
Exercised Options: $9,388,678
Current Obligation: $2,685,000
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $35,102
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: 2023-12-27
Current End Date: 2026-12-26
Potential End Date: 2026-12-26 00:00:00
Last Modified: 2026-01-08
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