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 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: $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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