DoD's $14.5M R&D contract for physical sciences research awarded to Booz Allen Hamilton Inc

Contract Overview

Contract Amount: $14,491,282 ($14.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2009-07-14

End Date: 2013-09-30

Contract Duration: 1,539 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TECHNICAL AREA TASKS

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to BOOZ ALLEN HAMILTON INC for work described as: TECHNICAL AREA TASKS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's duration of over 4 years indicates a significant, long-term research effort. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense innovation. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 5. Awarded to a large, established contractor, Booz Allen Hamilton Inc., known for its extensive government contracting experience. 6. The contract was a single award, indicating a specific need or a highly specialized service.

Value Assessment

Rating: fair

Benchmarking the value of this specific $14.5 million contract is challenging without more granular data on the specific R&D tasks performed. However, Cost Plus Fixed Fee contracts inherently carry a risk of cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. This structure can sometimes lead to less price certainty compared to fixed-price contracts. Comparing this to similar R&D contracts within the Department of Defense for physical sciences would provide a clearer picture of whether the pricing was competitive for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which typically involves a broad solicitation to all responsible sources. The number of bidders is not specified, but this method generally fosters a competitive environment, encouraging multiple companies to submit proposals. This process aims to ensure that the government receives the best value by considering a wide range of capabilities and pricing. The level of competition can influence the final price and the quality of the proposed solution.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages innovation among a wider pool of contractors.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, who will receive advancements in physical, engineering, and life sciences research. The services delivered are research and development tasks, contributing to technological innovation and national security. The geographic impact is primarily within Alabama, where the contract was administered. The contract supports highly skilled research and development professionals within the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize higher spending if not rigorously monitored.
The lack of specific task details makes it difficult to assess the true value for money.
Long contract durations can sometimes lead to scope creep or outdated technology if not managed proactively.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
Booz Allen Hamilton Inc. is a reputable contractor with a strong track record in government R&D.
The contract supports critical research and development for national security objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a crucial area for defense innovation, enabling the development of new technologies and capabilities. The market for R&D services is highly competitive, with numerous firms specializing in scientific and technical support. Comparable spending benchmarks would involve analyzing other DoD contracts for similar R&D services, considering factors like contract type, duration, and specific scientific domains.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). As a result, small businesses were likely not specifically targeted for this award. The prime contractor, Booz Allen Hamilton Inc., is a large business, and there is no explicit information provided regarding subcontracting plans with small businesses. Further analysis would be needed to determine if any small business participation was mandated or occurred voluntarily.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Air Force. The Cost Plus Fixed Fee structure necessitates close monitoring of allowable costs and the contractor's performance to ensure adherence to the contract terms and prevent cost overruns. Transparency is generally facilitated through contract reporting mechanisms, and the Inspector General's office may conduct audits or investigations if concerns arise regarding fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Physical Sciences Research Contracts
Engineering and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
Lack of detailed task information hinders precise value-for-money assessment.
Single award delivery order may limit price discovery for specific tasks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to BOOZ ALLEN HAMILTON INC. TECHNICAL AREA TASKS

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2009-07-14. End: 2013-09-30.

What specific research and development tasks were encompassed by this contract?

The provided data indicates the contract's technical area was 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710). However, the specific tasks performed under this contract are not detailed in the provided data. Booz Allen Hamilton Inc. would have executed a variety of R&D activities relevant to physical sciences, which could include theoretical research, experimental design, data analysis, prototype development, and scientific consultation. The exact nature of these tasks would be elaborated in the contract's Statement of Work (SOW), which is not available here. Understanding the precise R&D focus is crucial for a comprehensive value assessment.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of cost efficiency for the government?

Cost Plus Fixed Fee (CPFF) contracts are often used for research and development where the scope of work is not well-defined, or innovation is the primary goal, making it difficult to estimate costs accurately upfront. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While this structure incentivizes the contractor to perform the work, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as the government bears the cost risk. However, for highly uncertain R&D efforts, CPFF can be more appropriate than fixed-price contracts, which might lead to overly conservative bids or stifle innovation due to cost constraints. The key to cost efficiency with CPFF lies in robust government oversight of incurred costs and effective management of the contract's scope.

What is Booz Allen Hamilton Inc.'s track record with similar R&D contracts within the Department of Defense?

Booz Allen Hamilton Inc. is a major government contractor with extensive experience across various agencies, including the Department of Defense (DoD). They have a significant history of performing research and development services, particularly in areas related to technology, engineering, and strategic consulting. While specific details on their track record for R&D contracts in physical sciences are not provided here, their overall profile suggests a capacity to handle complex R&D projects. A deeper dive into their contract history, including past performance evaluations and any reported issues on similar DoD R&D contracts, would be necessary for a thorough assessment of their track record in this specific domain.

What is the historical spending trend for R&D in physical sciences by the Department of the Air Force?

The provided data only pertains to a single contract award. To assess historical spending trends for R&D in physical sciences by the Department of the Air Force, one would need to analyze aggregated spending data over multiple fiscal years. This would involve examining contract awards across various contractors and research areas within the physical sciences domain. Such an analysis would reveal patterns in investment, identify key research priorities, and provide context for the significance of this $14.5 million contract within the broader R&D landscape of the Air Force. Without access to broader historical spending data, it's impossible to establish a trend from this single data point.

What are the potential risks associated with a single award delivery order under a larger contract vehicle?

A single award delivery order, even under a competitively awarded contract vehicle, can present certain risks. While the initial contract vehicle may have been competed, the specific delivery order might not have undergone further competition, depending on the terms of the base contract. This could limit price discovery for that specific order. Furthermore, if the delivery order represents a significant portion of the contract's value or duration, it could indicate a narrowing of focus or a specific need that wasn't fully anticipated during the initial competition. Risks include potentially higher costs due to reduced competition for the specific task, and a potential lack of flexibility if the contractor's capabilities or pricing become less competitive over time.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: BOOZ ALLEN HAMILTON INC, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,979,681

Exercised Options: $17,979,681

Current Obligation: $14,491,282

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP070003D1380

IDV Type: IDC

Timeline