Booz Allen Hamilton awarded $197M for Remote Sensing SE&I, with 3 bids received

Contract Overview

Contract Amount: $196,950,914 ($197.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2022-01-11

End Date: 2026-06-18

Contract Duration: 1,619 days

Daily Burn Rate: $121.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: R&D

Official Description: REMOTE SENSING SE&I

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $197.0 million to BOOZ ALLEN HAMILTON INC for work described as: REMOTE SENSING SE&I Key points: 1. Contract value of $197M over 5 years suggests significant investment in remote sensing capabilities. 2. The contract type (Cost Plus Incentive Fee) indicates a focus on performance-based incentives. 3. Limited competition with 3 bidders may warrant further investigation into market dynamics. 4. The award to a large, established contractor like Booz Allen Hamilton is typical for complex R&D services. 5. Geographic location in California may point to specific R&D facilities or operational needs. 6. The contract's duration of over 4 years suggests a long-term strategic objective for the agency.

Value Assessment

Rating: good

The contract value of $197M over approximately 4.5 years averages to about $43.8M annually. Benchmarking this against similar R&D contracts in the remote sensing domain is challenging without more specific service details. However, the Cost Plus Incentive Fee structure suggests an effort to control costs while incentivizing performance, which can be a good value proposition if managed effectively. The number of bids (3) is on the lower side for a contract of this magnitude, which could impact price competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. Three bids were received, which is a moderate level of competition for a contract of this size and complexity. While more than a sole-source award, a higher number of bidders could potentially lead to more competitive pricing and a wider range of innovative solutions.

Taxpayer Impact: With three bidders, taxpayers benefit from some level of price discovery. However, a more robust competition could have potentially driven down costs further, leading to greater savings.

Public Impact

The primary beneficiaries are likely government agencies requiring advanced remote sensing data and analysis for national security, environmental monitoring, or scientific research. Services delivered include research, development, and systems engineering for remote sensing technologies. The geographic impact is primarily centered in California, where the contractor's operations are based, but the services likely support national-level objectives. Workforce implications include employment opportunities for scientists, engineers, and technical specialists in the remote sensing field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (3) for a contract of this value could indicate potential barriers to entry or a concentrated market.
Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not closely monitored and managed.
The specific nature of 'Research and Development' can introduce inherent uncertainties and risks regarding project outcomes and timelines.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential offerors were considered.
The use of an incentive fee structure aims to align contractor performance with government objectives and potentially achieve better value.
Booz Allen Hamilton is a well-established contractor with significant experience in R&D and systems engineering, suggesting a lower risk of execution failure.

Sector Analysis

The remote sensing sector is a critical component of national security, environmental science, and commercial applications, encompassing satellite imagery, aerial surveillance, and data analytics. This contract fits within the broader Research and Development (R&D) sector, specifically focusing on physical and engineering sciences. The market for remote sensing services is substantial, driven by increasing demand for geospatial intelligence and advanced monitoring capabilities. Comparable spending benchmarks would depend on the specific sub-domain of remote sensing and the scale of the R&D effort.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Booz Allen Hamilton is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem is likely minimal unless subcontracting opportunities are actively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the General Services Administration (GSA). The Cost Plus Incentive Fee structure necessitates close monitoring of costs and performance against established metrics. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

National Reconnaissance Office (NRO) programs
NASA Earth Science Division
Department of Defense (DoD) intelligence, surveillance, and reconnaissance (ISR) programs
NOAA satellite programs
Geospatial Intelligence Agency (NGA) contracts

Risk Flags

Moderate competition level (3 bidders) for a large contract.
Cost Plus Incentive Fee contracts require diligent oversight to manage costs effectively.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $197.0 million to BOOZ ALLEN HAMILTON INC. REMOTE SENSING SE&I

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $197.0 million.

What is the period of performance?

Start: 2022-01-11. End: 2026-06-18.

What is the historical spending pattern for Booz Allen Hamilton with the General Services Administration in similar R&D categories?

Analyzing historical spending patterns for Booz Allen Hamilton with GSA in similar R&D categories requires access to detailed federal procurement databases. However, Booz Allen Hamilton is a major federal contractor with a long-standing relationship across numerous agencies, including GSA. Their portfolio typically includes a significant portion dedicated to research, development, and technical services. The $197M value for this specific contract is substantial, suggesting a significant project. Without specific historical data points for this exact NAICS code (541712) and agency (GSA), it's difficult to provide precise historical spending figures. However, it is reasonable to assume that Booz Allen Hamilton has a history of receiving large R&D contracts from various government entities, including GSA, reflecting their established presence and capabilities in the sector.

How does the pricing structure (Cost Plus Incentive Fee) compare to other remote sensing R&D contracts?

The Cost Plus Incentive Fee (CPIF) pricing structure is common in R&D contracts where the final costs are uncertain and performance outcomes are critical. In a CPIF contract, the contractor is reimbursed for allowable costs plus a fixed fee, but the fee is adjusted based on whether the final cost is below or above a target cost. This incentivizes the contractor to control costs and meet performance targets. Compared to other R&D contracts, CPIF offers a balance between flexibility for the contractor and cost control for the government. Fixed-price contracts are less common for R&D due to inherent uncertainties. Cost-plus-fixed-fee (CPFF) is another alternative, but CPIF provides stronger incentives for cost efficiency. The appropriateness of CPIF for this $197M contract depends on the specific technical challenges and the government's ability to define clear performance metrics.

What are the key performance indicators (KPIs) likely being used to assess Booz Allen Hamilton's performance under this contract?

For a Remote Sensing SE&I (Systems Engineering & Integration) contract with a Cost Plus Incentive Fee structure, Key Performance Indicators (KPIs) would likely focus on technical performance, schedule adherence, and cost control. Examples could include: 1. Technical Performance: Meeting specific accuracy thresholds for data collection or analysis, successful integration of new sensor technologies, or achieving defined levels of system reliability. 2. Schedule Adherence: Completing project milestones within agreed-upon timelines, delivering prototypes or reports by specified dates. 3. Cost Control: Staying within target cost parameters, demonstrating efficient resource utilization, and achieving cost-saving targets to earn incentive fees. 4. Innovation: Successful development and implementation of novel solutions or process improvements. The specific KPIs would be detailed in the contract's Statement of Work (SOW) and performance metrics section.

What is the typical duration and value range for similar 'Research and Development in the Physical, Engineering, and Life Sciences' contracts awarded by GSA?

The duration and value range for similar 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541712) contracts awarded by GSA can vary significantly based on the specific research area, scope, and agency needs. GSA often acts as a procurement agent for other agencies, so contracts can be diverse. However, R&D contracts, especially those involving complex systems engineering and integration like remote sensing, often span multiple years. Durations of 3-5 years are common, as seen in this $197M contract (approx. 4.5 years). Values can range from a few million dollars for focused research projects to hundreds of millions for large-scale, multi-year initiatives. This $197M award falls within the upper-middle to high range for GSA R&D contracts, indicating a significant and strategic investment.

Are there any known performance issues or past controversies associated with Booz Allen Hamilton's work in remote sensing or SE&I for the federal government?

Booz Allen Hamilton is a large and long-standing federal contractor, and like many major companies, has faced scrutiny and occasional controversies over its long history. Specific to remote sensing or SE&I, a comprehensive review of all past performance records would be necessary to identify any significant issues. However, their extensive experience and consistent awards suggest a generally positive performance record. Publicly available information does not highlight widespread, persistent controversies specifically tied to their remote sensing SE&I work that would immediately flag this contract as high-risk based solely on contractor history. Performance evaluations are typically conducted throughout contract lifecycles, and any significant issues would be documented within the government's contractor performance systems.

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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFPA21Q0024

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $630,127,912

Exercised Options: $231,859,719

Current Obligation: $196,950,914

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $52,416,484

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU604

IDV Type: IDC

Timeline