DoD's SURTASS Program: $666M for R&D, Awarded to JHU APL via Not Competed Method
Contract Overview
Contract Amount: $6,663,378 ($6.7M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2024-06-11
End Date: 2026-09-30
Contract Duration: 841 days
Daily Burn Rate: $7.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SURTASS PRODUCTION SYSTEMS ENGINEERING PROGRAM
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $6.7 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: SURTASS PRODUCTION SYSTEMS ENGINEERING PROGRAM Key points: 1. Significant R&D investment in a specialized defense system. 2. Sole awardee suggests potential lack of competition or unique capabilities. 3. Long-term contract (841 days) indicates ongoing development needs. 4. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive benchmarks, assessing the value for money is difficult.
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 potentially increases costs for taxpayers.
Taxpayer Impact: The lack of competition raises concerns about whether the government secured the best possible price for this R&D effort.
Public Impact
Impacts national security through advanced research and development. Potential for technological advancements in naval systems. Taxpayer funds allocated to a single, non-competed research entity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Award to a reputable research institution
- Focus on critical R&D area
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but requires careful oversight to ensure efficiency.
Small Business Impact
This contract does not appear to involve small business participation, as indicated by the 'sb' field being false.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is performing efficiently and costs are reasonable.
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 competitive bidding
- Potential for cost escalation due to CPFF contract
- Limited transparency in pricing
- No small business participation noted
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 $6.7 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. SURTASS PRODUCTION SYSTEMS ENGINEERING 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 $6.7 million.
What is the period of performance?
Start: 2024-06-11. End: 2026-09-30.
What specific capabilities does JHU APL possess that justify a sole-source award for the SURTASS Production Systems Engineering Program?
The justification for a sole-source award typically rests on unique capabilities, specialized knowledge, or critical infrastructure possessed by a single entity. For the SURTASS program, JHU APL may have proprietary data, existing infrastructure, or highly specialized expertise directly related to the system's development and production that cannot be replicated by other organizations within the required timeframe.
What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D, especially in a sole-source context?
The primary risks of a CPFF contract in a sole-source R&D setting include potential cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Without competition, there's less incentive for the contractor to control costs aggressively. This can lead to higher overall spending than anticipated and a reduced return on investment for taxpayers if the R&D outcomes are not as valuable as projected.
How will the effectiveness of the SURTASS Production Systems Engineering Program be measured given its R&D nature and sole-source award?
Effectiveness will likely be measured against predefined R&D milestones and deliverables outlined in the contract. This includes the successful completion of engineering tasks, system integration, testing, and the achievement of specific technical performance parameters. Regular technical reviews and progress reports will be crucial for assessing the program's progress and ultimate success in meeting its research and development objectives.
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: $9,944,219
Exercised Options: $9,944,219
Current Obligation: $6,663,378
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $1,149,733
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: 2024-06-11
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-18
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