Booz Allen Hamilton awarded $120.8M for R&D services, with 3 bids received

Contract Overview

Contract Amount: $120,862,290 ($120.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2012-09-13

End Date: 2018-04-21

Contract Duration: 2,046 days

Daily Burn Rate: $59.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: LABOR IGF::OT::IGF

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $120.9 million to BOOZ ALLEN HAMILTON INC for work described as: LABOR IGF::OT::IGF Key points: 1. Contract value appears reasonable given the scope of R&D services. 2. Full and open competition suggests a healthy market for these services. 3. No immediate risk indicators are apparent from the contract data. 4. Performance context is R&D, a sector often involving complex and evolving requirements. 5. Positioned within the Defense Information Systems Agency's IT and R&D portfolio.

Value Assessment

Rating: good

The contract value of $120.8 million for R&D services over approximately 5.6 years appears to be within a reasonable range for a large federal contract of this nature. Benchmarking against similar R&D contracts awarded by the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that cost risks were largely borne by the contractor, which can be favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bids received, the competition level suggests a moderately competitive environment. This level of competition is generally sufficient to promote price discovery and encourage competitive pricing from the bidders.

Taxpayer Impact: The full and open competition and multiple bidders likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

Benefits the Department of Defense by providing critical research and development services. Services delivered likely contribute to advancements in defense technologies and capabilities. Geographic impact is primarily centered around the contractor's operations, likely in Maryland. Workforce implications include employment for researchers, scientists, and technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating broad market interest.
Firm fixed-price contract type shifts cost risk to the contractor.
Contract duration of over 5 years suggests a stable, long-term need.

Sector Analysis

The contract falls within the Research and Development sector, specifically NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences except Biotechnology). This sector is crucial for technological advancement and national security. Spending in this area by the Department of Defense is substantial, supporting innovation and the development of future defense capabilities. Comparable spending benchmarks would involve analyzing other large R&D contracts within the defense sector.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement for this particular award. However, the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified R&D outcomes within budget. Transparency is generally facilitated through contract award databases, though specific project details may be sensitive.

Related Government Programs

Department of Defense Research and Development Contracts
Information Technology Research and Development
Defense Information Systems Agency Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $120.9 million to BOOZ ALLEN HAMILTON INC. LABOR IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $120.9 million.

What is the period of performance?

Start: 2012-09-13. End: 2018-04-21.

What is the track record of Booz Allen Hamilton with the Department of Defense for R&D contracts?

Booz Allen Hamilton has a long-standing and extensive track record of performing research and development services for the Department of Defense. They are a major government contractor with significant experience across various defense agencies. Their portfolio includes a wide range of R&D efforts, from basic research to applied science and technology development. Historical data indicates they have been awarded numerous contracts for similar services, demonstrating a capacity to manage complex R&D projects and deliver technical solutions. Their performance on these contracts is generally well-documented in federal procurement databases, though specific performance ratings are not detailed here.

How does the $120.8 million contract value compare to similar R&D contracts?

The $120.8 million contract value for R&D services over approximately 5.6 years is substantial but not unusual for large-scale federal R&D efforts, particularly within the Department of Defense. To provide a precise comparison, one would need to benchmark against contracts with similar scope, duration, and technical focus (e.g., physical sciences, engineering). However, given the typical costs associated with specialized research personnel, equipment, and facilities required for R&D, this figure appears to be within a reasonable range. The firm fixed-price nature also suggests that the government secured a defined outcome for this investment.

What are the primary risks associated with this type of R&D contract?

The primary risks associated with this R&D contract include technical risk (the research may not yield the desired outcomes or breakthroughs), schedule risk (delays in research progress), and cost risk (though mitigated by the firm fixed-price structure, unforeseen challenges could still arise). For the government, there's also the risk of the technology becoming obsolete before deployment or not meeting evolving operational requirements. Contractor performance risk, including the potential for inadequate expertise or management, is also a consideration, although the competitive award process and oversight aim to mitigate this.

How effective is full and open competition in ensuring value for R&D contracts?

Full and open competition is generally considered the most effective method for ensuring value in federal contracting, including for R&D. It maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. For R&D, this means that a wider range of technical approaches and solutions can be proposed, increasing the likelihood of finding the most cost-effective and technically superior path. The presence of three bidders in this case suggests that the market was sufficiently robust to support competition, which is a positive indicator for value.

What is the historical spending trend for R&D services by the Defense Information Systems Agency?

Historical spending trends for R&D services by the Defense Information Systems Agency (DISA) generally reflect the agency's mission to provide information technology and communications support to the military. DISA's R&D spending would likely focus on areas such as cybersecurity, network modernization, data management, and emerging communication technologies. While specific year-over-year trends for DISA's R&D portfolio require detailed analysis of historical budget data, it is reasonable to assume consistent investment in these critical areas to maintain technological superiority and operational effectiveness for the DoD.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $135,610,967

Exercised Options: $131,727,748

Current Obligation: $120,862,290

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,078,917

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102808D2015

IDV Type: IDC

Timeline