Commerce awards $12.8M for CHIPS R&D office support, with Booz Allen Hamilton Inc. as prime contractor

Contract Overview

Contract Amount: $12,841,936 ($12.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Commerce

Start Date: 2024-06-07

End Date: 2026-03-08

Contract Duration: 639 days

Daily Burn Rate: $20.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CHIPS R&D OFFICE SETA SUPPORT SERVICES IN 1) NOTICE OF FUNDING OPPORTUNITY (NOFO) PROGRAM MANAGEMENT SUPPORT, 2) NOFO TECHNICAL SUPPORT, 3) BUSINESS OPERATIONS AND PROGRAM ARCHITECTURE SUPPORT, AND 4) POLICY AND ANALYTICAL SUPPORT.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $12.8 million to BOOZ ALLEN HAMILTON INC for work described as: CHIPS R&D OFFICE SETA SUPPORT SERVICES IN 1) NOTICE OF FUNDING OPPORTUNITY (NOFO) PROGRAM MANAGEMENT SUPPORT, 2) NOFO TECHNICAL SUPPORT, 3) BUSINESS OPERATIONS AND PROGRAM ARCHITECTURE SUPPORT, AND 4) POLICY AND ANALYTICAL SUPPORT. Key points: 1. Contract focuses on critical support services for the CHIPS R&D office, including program management, technical assistance, business operations, and policy analysis. 2. The award utilizes a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework for services. 3. Competition was full and open, suggesting a robust bidding process. 4. The contract duration extends through March 2026, providing sustained support. 5. Services are categorized under Administrative Management and General Management Consulting Services. 6. The contract is a labor hours type, meaning payment is based on the time spent by personnel.

Value Assessment

Rating: good

The total award amount of $12.8 million for approximately two years of comprehensive support services appears reasonable given the scope. Benchmarking against similar large-scale consulting contracts for federal program offices suggests this falls within expected cost ranges. The BPA Call mechanism likely contributes to efficient pricing through pre-negotiated rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 19 bids received. This high level of competition is a positive indicator, suggesting that multiple capable firms vied for the opportunity. It generally leads to better price discovery and a wider selection of qualified contractors.

Taxpayer Impact: The extensive competition ensures that taxpayer dollars are likely being used efficiently, as contractors were incentivized to offer competitive pricing and strong qualifications to win the award.

Public Impact

The CHIPS R&D office benefits from enhanced program management and technical support, crucial for advancing semiconductor research and development. Services delivered will bolster the operational efficiency and policy development of a key federal initiative. The geographic impact is primarily national, supporting the U.S. semiconductor industry's competitiveness. Workforce implications include the engagement of skilled consultants contributing to critical national technology goals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Reliance on a single prime contractor for diverse support functions could pose risks if performance falters.

Positive Signals

Awarded through full and open competition, indicating a strong pool of qualified bidders.
The BPA Call mechanism suggests established processes and potentially pre-vetted service levels.
Contract duration provides stability for the supported office.

Sector Analysis

This contract falls within the professional services sector, specifically management and consulting. The CHIPS R&D office is a critical component of the U.S. strategy to bolster domestic semiconductor manufacturing and innovation. Spending in this area supports national technological competitiveness and economic security. Comparable spending benchmarks for federal program support services often range from millions to tens of millions annually, depending on the complexity and duration.

Small Business Impact

This contract was not set aside for small businesses, and the prime contractor is a large business. There is no explicit mention of small business subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily includes small businesses in its subcontracting plan.

Oversight & Accountability

Oversight will likely be managed by the National Institute of Standards and Technology (NIST) program officials overseeing the CHIPS R&D office. Accountability measures are inherent in the contract terms and performance expectations. Transparency is facilitated through federal contract databases, though specific performance metrics are not detailed here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

CHIPS Program Office
National Semiconductor Technology Center (NSTC)
National Advanced Packaging Manufacturing Program (NAPMP)
Manufacturing USA Institutes

Risk Flags

Contract performance risk
Scope definition clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $12.8 million to BOOZ ALLEN HAMILTON INC. CHIPS R&D OFFICE SETA SUPPORT SERVICES IN 1) NOTICE OF FUNDING OPPORTUNITY (NOFO) PROGRAM MANAGEMENT SUPPORT, 2) NOFO TECHNICAL SUPPORT, 3) BUSINESS OPERATIONS AND PROGRAM ARCHITECTURE SUPPORT, AND 4) POLICY AND ANALYTICAL SUPPORT.

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2024-06-07. End: 2026-03-08.

What is the track record of Booz Allen Hamilton Inc. in supporting federal R&D and technology initiatives?

Booz Allen Hamilton Inc. has a long and extensive history of supporting federal agencies, including those focused on research and development and technology initiatives. They are a major government contractor with significant experience in areas such as management consulting, systems engineering, cybersecurity, and data analytics. Their portfolio includes work with agencies like the Department of Defense, NASA, and various civilian agencies on complex technological programs. This experience suggests a strong capability to provide the administrative, technical, and policy support required by the CHIPS R&D office. Their established presence and broad expertise position them well to understand the nuances of federal program management and R&D support.

How does the value of this contract compare to similar support services for federal R&D programs?

The $12.8 million award for approximately two years of comprehensive support services for the CHIPS R&D office is in line with typical expenditures for large-scale federal program management and technical assistance contracts. Similar initiatives within agencies like the Department of Energy or the National Science Foundation often involve multi-million dollar contracts for consulting and support services over similar timeframes. The scope, encompassing program management, technical support, business operations, and policy analysis, is substantial. Given the strategic importance and complexity of the CHIPS initiative, this contract value appears to be a reasonable investment for ensuring effective program execution and achieving its ambitious goals.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential performance issues from the contractor, scope creep, and challenges in adapting to evolving R&D priorities. Mitigation strategies are likely embedded within the contract's performance standards, reporting requirements, and oversight mechanisms managed by the NIST. The full and open competition process also mitigates risk by selecting a contractor with a proven track record and competitive pricing. The BPA Call structure may also offer flexibility while maintaining cost controls. Continuous monitoring by government program managers is crucial for identifying and addressing any emerging risks proactively.

How effective is the 'full and open competition' approach for securing specialized R&D support services?

The 'full and open competition' approach is generally considered highly effective for securing specialized R&D support services, especially when the requirements are well-defined. It maximizes the pool of potential bidders, encouraging a wide range of expertise and innovative solutions. The high number of bids received (19 in this case) indicates strong market interest and validates that the requirements were accessible to many qualified firms. This competitive environment typically drives down prices and ensures that the government selects the offer that provides the best value, considering both technical merit and cost. For specialized services, it allows the government to identify niche expertise that might be missed in more restricted solicitations.

What are the historical spending patterns for administrative and management consulting services within NIST or similar technology-focused agencies?

Historical spending patterns for administrative and management consulting services within NIST and similar technology-focused agencies like NSF or DOE often show significant investment in program support, strategic planning, and operational efficiency. These agencies rely heavily on external expertise to manage complex research grants, large-scale initiatives (like CHIPS), and evolving technological landscapes. Annual spending can range from several million to tens of millions of dollars, depending on the agency's size, mission scope, and the number of active major programs. Contracts often involve long-term support for program offices, technical reviews, and policy development, similar to the services outlined in this award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 19

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, 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: $12,841,936

Exercised Options: $12,841,936

Current Obligation: $12,841,936

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,763,099

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1333ND24ANB030016

IDV Type: BPA

Timeline