Johns Hopkins Applied Physics Lab awarded $2.16M for Navigation Systems R&D, with no competition
Contract Overview
Contract Amount: $2,166,406 ($2.2M)
Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC
Awarding Agency: Department of Defense
Start Date: 2025-08-05
End Date: 2028-08-04
Contract Duration: 1,095 days
Daily Burn Rate: $2.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: NAVIGATION SYSTEMS RDTE (BNER2)
Place of Performance
Location: LAUREL, HOWARD County, MARYLAND, 20723
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $2.2 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: NAVIGATION SYSTEMS RDTE (BNER2) Key points: 1. Contract awarded to a single entity, raising questions about competitive pricing. 2. Research and Development focus in physical, engineering, and life sciences. 3. Long-term contract duration of three years suggests a sustained need for these services. 4. Sole-source award indicates potential reliance on specialized expertise. 5. Performance period extends into 2028, aligning with long-range defense planning. 6. The contract is a delivery order under a larger indefinite-delivery contract. 7. No small business set-aside was applied to this specific award.
Value Assessment
Rating: questionable
Benchmarking the value of this specific $2.16 million delivery order is challenging without knowing the scope of the underlying indefinite-delivery contract. However, the sole-source nature of this award, coupled with a Cost Plus Fixed Fee (CPFF) pricing structure, warrants scrutiny. CPFF contracts can sometimes lead to higher costs if not carefully managed, as the contractor is reimbursed for all allowable costs plus a fixed fee. Without competitive bids, it's difficult to ascertain if the fixed fee represents a fair market rate for the specialized R&D services provided by Johns Hopkins University Applied Physics Laboratory.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one bidder was solicited. This typically occurs when a specific contractor possesses unique capabilities, proprietary information, or is the only source capable of meeting the government's requirements. The lack of competition means that the Department of the Navy did not explore alternative solutions or pricing from other potential providers, which can limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that typically arise from a competitive bidding process. The government relies on negotiation and oversight to ensure a fair price, which may not be as effective as market forces.
Public Impact
The primary beneficiary is the Department of the Navy, which will receive advanced navigation system research and development. This contract supports critical research in physical, engineering, and life sciences, potentially leading to technological advancements. The geographic impact is centered in Maryland, where the contractor is located. The contract implies a need for highly specialized scientific and engineering personnel within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Cost Plus Fixed Fee structure requires robust government oversight to control costs.
- Lack of transparency in the sole-source justification could hide potential inefficiencies.
- Long contract duration without competition may reduce incentive for cost optimization.
- Specific R&D outcomes are not detailed, making performance assessment difficult upfront.
Positive Signals
- Award to a reputable institution (Johns Hopkins University Applied Physics Laboratory) known for defense research.
- Contract aligns with stated Department of Defense research and development priorities.
- Delivery order structure allows for phased funding and management of R&D efforts.
- Fixed fee component provides some cost predictability compared to other cost-reimbursement types.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is characterized by high specialization, long development cycles, and significant government investment. Comparable spending in this sector often involves large, multi-year contracts with a limited number of highly qualified research institutions and defense contractors. The $2.16 million award is moderate for R&D, but its significance lies in its contribution to advanced navigation technologies, a critical area for military operations.
Small Business Impact
This contract does not appear to have a small business set-aside. The awardee, The Johns Hopkins University Applied Physics Laboratory LLC, is a large research institution. While this specific award does not directly benefit small businesses through a set-aside, the prime contractor may engage small businesses as subcontractors for specialized services or supplies, though this is not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Navy. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure that all costs claimed by the contractor are allowable, reasonable, and allocable. The fixed fee component provides a degree of cost certainty, but the government must still monitor expenditures closely. Transparency is limited due to the sole-source nature, but contract performance reviews and milestone tracking are standard accountability measures.
Related Government Programs
- Navigation Systems Research
- Department of Defense Research and Development
- Applied Physics Research
- Engineering Research Contracts
- Life Sciences Research Contracts
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of defined competition
- Long contract duration without clear performance milestones
Tags
department-of-defense, department-of-the-navy, research-and-development, navigation-systems, sole-source, cost-plus-fixed-fee, indefinite-delivery-contract, delivery-order, maryland, applied-physics-laboratory, johns-hopkins-university, rdte
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.2 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. NAVIGATION SYSTEMS RDTE (BNER2)
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 $2.2 million.
What is the period of performance?
Start: 2025-08-05. End: 2028-08-04.
What is the specific research and development objective for these navigation systems?
The provided data indicates the contract is for 'NAVIGATION SYSTEMS RDTE (BNER2)' and falls under NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences). While the specific objective isn't detailed, RDTE (Research, Development, Test, and Evaluation) suggests the work aims to advance the state-of-the-art in navigation technologies. This could encompass areas like improved accuracy, enhanced resistance to jamming or spoofing, development of new sensor fusion techniques, or integration of novel positioning methods for various operational environments. The 'BNER2' designation likely refers to a specific program or project within the Navy's R&D portfolio.
Why was this contract awarded on a sole-source basis to The Johns Hopkins University Applied Physics Laboratory LLC?
Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's needs. The Johns Hopkins University Applied Physics Laboratory (JHUAPL) is a federally funded research and development center (FFRDC) with a long history of supporting the Department of Defense, particularly the Navy, in advanced research. It's probable that JHUAPL possesses unique expertise, facilities, or intellectual property related to the specific navigation systems R&D required, making it the only viable option for the Navy at this time. The government would have conducted a justification and approval (J&A) process to document this determination.
How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for R&D?
The CPFF structure reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D, this structure is often used when the scope of work is not precisely defined or is expected to evolve. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but can lead to higher costs if not managed well, as the contractor is incentivized to incur costs to cover their base. Compared to Cost Plus Incentive Fee (CPIF), CPFF lacks a direct incentive for the contractor to control costs beyond what's necessary to meet the fixed fee, making robust government oversight critical.
What is the historical spending pattern for navigation systems R&D by the Department of the Navy?
Historical spending on navigation systems R&D by the Department of the Navy is substantial, reflecting the critical nature of precise navigation for naval operations across air, surface, and subsurface platforms. While specific figures for 'BNER2' are not provided, the Navy consistently invests in areas like GPS/GNSS modernization, inertial navigation systems, celestial navigation, and advanced sensor integration. Funding levels can fluctuate based on technological advancements, evolving threats, and strategic priorities. The Navy often utilizes FFRDCs like JHUAPL for cutting-edge research, indicating a pattern of relying on specialized institutions for complex R&D challenges.
What are the potential risks associated with a sole-source, CPFF contract for R&D?
The primary risks associated with a sole-source, CPFF contract for R&D include potential cost overruns, lack of innovation driven by competitive pressure, and contractor performance issues. Since the contractor is guaranteed their costs plus a fee, there's less inherent incentive to find the most cost-effective solutions compared to a competitive environment. The government bears the risk of cost increases if the R&D proves more complex than initially anticipated. Furthermore, without competition, the government relies heavily on the contractor's integrity and the effectiveness of its own oversight mechanisms to ensure value for money and successful project completion.
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: $8,932,125
Exercised Options: $8,932,125
Current Obligation: $2,166,406
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: 2025-08-05
Current End Date: 2028-08-04
Potential End Date: 2028-08-04 00:00:00
Last Modified: 2026-01-08
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