DoD's $49.5M Contract for Advanced Prosthetics Research with JHU APL Faces Scrutiny

Contract Overview

Contract Amount: $49,554,608 ($49.6M)

Contractor: THE Johns Hopkins University Applied Physics Laboratory LLC

Awarding Agency: Department of Defense

Start Date: 2010-06-30

End Date: 2020-08-31

Contract Duration: 3,715 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 245

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SERVICES IAW SOW - REVOLUTIONIZING PROSTHETICS, PHASE 3

Place of Performance

Location: LAUREL, HOWARD County, MARYLAND, 20723

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $49.6 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC for work described as: SERVICES IAW SOW - REVOLUTIONIZING PROSTHETICS, PHASE 3 Key points: 1. Significant investment in advanced prosthetics research over a decade. 2. JHU APL, a well-established research institution, is the contractor. 3. Potential for high impact on military and civilian healthcare. 4. Research and Development in Biotechnology sector, NAICS 541711.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure for R&D can lead to cost overruns. Without clear performance metrics tied to cost, value for money is difficult to assess. The long duration and significant funding raise questions about efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long-term nature and specialized R&D focus might limit the pool of truly comparable bids over its lifespan.

Taxpayer Impact: Taxpayer funds are supporting cutting-edge research with potential long-term benefits, but the cost-plus nature necessitates careful oversight to ensure efficiency and prevent waste.

Public Impact

Advancements in prosthetics could significantly improve the quality of life for amputees, including wounded service members. Research outcomes may lead to new medical technologies and treatments. Potential for spin-off technologies benefiting broader healthcare applications. Long-term investment in a critical area of medical science.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee structure for R&D
  • Long contract duration (10 years)
  • Lack of specific cost-per-unit benchmark for research outcomes

Positive Signals

  • Awarded under full and open competition
  • Contractor is a reputable research institution (JHU APL)
  • Focus on critical medical advancement

Sector Analysis

This contract falls within the Research and Development in Biotechnology sector (NAICS 541711), a field characterized by long development cycles and high innovation potential. Federal spending in this area often supports foundational research with uncertain but potentially high returns.

Small Business Impact

The contract was awarded to The Johns Hopkins University Applied Physics Laboratory LLC, a large research institution. There is no indication of small business participation in this specific contract award.

Oversight & Accountability

The Cost Plus Fixed Fee contract type requires robust oversight to manage costs and ensure deliverables align with the SOW. The long duration necessitates continuous monitoring of progress and adherence to research objectives by the Department of the Navy.

Related Government Programs

  • Research and Development in Biotechnology
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost Plus Fixed Fee structure can lead to cost escalation.
  • Long contract duration (10 years) increases risk of scope creep or obsolescence.
  • R&D projects inherently carry scientific and technical uncertainty.
  • Lack of specific performance metrics tied to cost efficiency.

Tags

research-and-development-in-biotechnolog, department-of-defense, md, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.6 million to THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC. SERVICES IAW SOW - REVOLUTIONIZING PROSTHETICS, PHASE 3

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 $49.6 million.

What is the period of performance?

Start: 2010-06-30. End: 2020-08-31.

How effectively were research milestones achieved within the allocated budget over the contract's 10-year period?

Assessing the effectiveness of R&D spending is challenging without detailed milestone reports and performance metrics. The Cost Plus Fixed Fee structure allows for flexibility but requires diligent oversight to ensure funds are used efficiently towards achieving the defined research objectives in prosthetics.

What specific risks were identified and mitigated during the execution of this long-term R&D contract?

Potential risks in R&D include scientific feasibility, technological hurdles, and cost overruns. Given the 10-year duration, risks related to changing research landscapes or contractor performance would need proactive management. The 'full and open' competition suggests initial risk mitigation through a competitive process.

Does the final prosthetic technology developed justify the $49.5 million investment in terms of innovation and practical application?

The justification hinges on the tangible advancements made in prosthetics technology and their potential impact. Evaluating the return on investment requires comparing the developed solutions against the initial SOW objectives and assessing their contribution to the field of biotechnology and patient care.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in Biotechnology

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 245

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Johns Hopkins University

Address: 11100 JOHNS HOPKINS RD, LAUREL, MD, 20723

Business Categories: Category Business, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,554,608

Exercised Options: $49,554,608

Current Obligation: $49,554,608

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2010-06-30

Current End Date: 2020-08-31

Potential End Date: 2020-08-31 00:00:00

Last Modified: 2022-04-01

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