DoD's $16.7M ENCORE II IT contract awarded to Booz Allen Hamilton for R&D services

Contract Overview

Contract Amount: $16,689,661 ($16.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2010-01-01

End Date: 2013-05-30

Contract Duration: 1,245 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 26

Pricing Type: LABOR HOURS

Sector: R&D

Official Description: ENCORE II IT SOLUTIONS - FFP

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36116, UNITED STATES OF AMERICA

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to BOOZ ALLEN HAMILTON INC for work described as: ENCORE II IT SOLUTIONS - FFP Key points: 1. Contract awarded for IT solutions, focusing on research and development in physical, engineering, and life sciences. 2. Booz Allen Hamilton, a large defense contractor, secured this full and open competition award. 3. The contract duration was over three years, indicating a substantial project scope. 4. Awarded under the ENCORE II vehicle, suggesting a pre-existing framework for IT services. 5. The contract type was Labor Hours, which can offer flexibility but requires careful monitoring of effort. 6. The geographic location of performance was Alabama.

Value Assessment

Rating: fair

Benchmarking the value of this specific $16.7 million contract is challenging without detailed task orders and performance metrics. However, the award to a large, established contractor like Booz Allen Hamilton suggests a competitive process that likely yielded a fair market price for the services rendered. The Labor Hours contract type allows for flexibility in addressing evolving R&D needs, but it necessitates robust oversight to ensure efficient use of resources and prevent cost overruns. Comparing this to similar R&D contracts within the Department of Defense would provide a clearer picture of its value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 26 bids suggests a robust competitive environment for this requirement. A high number of bidders generally leads to better price discovery and can drive down costs for the government, as contractors vie to win the award by offering competitive terms and pricing.

Taxpayer Impact: The full and open competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award, maximizing the value of federal investment.

Public Impact

The Department of Defense benefits from advanced research and development capabilities in physical, engineering, and life sciences. This contract supports the development of innovative solutions that could enhance national security and technological superiority. The geographic impact is primarily in Alabama, where the contractor's performance is located. The contract likely supports a workforce of skilled researchers, engineers, and technical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor Hours contract type requires diligent monitoring to ensure efficient resource utilization and prevent scope creep.
The broad nature of R&D in physical, engineering, and life sciences can make performance metrics difficult to define and measure.
Reliance on a single large contractor, even with competition, can sometimes limit the infusion of novel approaches from smaller, specialized firms.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield good value.
The contract was awarded to a reputable contractor with a strong track record in defense and R&D.
The ENCORE II vehicle provides a streamlined acquisition process for IT services, potentially reducing administrative burden.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This is a critical area for the Department of Defense, driving innovation and technological advancement. The IT solutions component suggests the application of information technology to support these R&D efforts. Comparable spending in this sector is substantial across the federal government, with significant investments made by agencies like DoD, NASA, and NSF to maintain a technological edge.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Booz Allen Hamilton is a large business, and while they may utilize small business subcontractors, the primary awardee is not a small entity. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, though detailed task order specifics might be less publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

ENCORE II IT Solutions
Department of Defense Research and Development Contracts
IT Services for Federal Agencies
Booz Allen Hamilton Contracts

Risk Flags

Labor Hours contract type requires close monitoring for cost control.
R&D scope can be inherently uncertain, posing performance risks.
Potential for contractor to propose higher labor rates over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to BOOZ ALLEN HAMILTON INC. ENCORE II IT SOLUTIONS - FFP

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 $16.7 million.

What is the period of performance?

Start: 2010-01-01. End: 2013-05-30.

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

Booz Allen Hamilton has a significant and extensive track record of performing R&D and IT services for the Department of Defense. They are a prime contractor on numerous large IDIQ vehicles and have been awarded billions of dollars in contracts across various defense agencies. Their experience spans a wide range of technical disciplines, including advanced research, systems engineering, cybersecurity, and data analytics, often supporting complex scientific and technological development initiatives. This history suggests a deep understanding of DoD requirements, acquisition processes, and the ability to manage large, complex R&D programs effectively. However, like any large contractor, they have also faced scrutiny and audits on specific contracts, underscoring the importance of ongoing performance monitoring.

How does the $16.7 million value of this contract compare to other R&D IT contracts awarded by the DoD?

The $16.7 million value for this specific contract is moderate within the context of large-scale Department of Defense R&D and IT procurements. While not a multi-billion dollar mega-contract, it represents a significant investment for a single award, particularly given its three-year duration. The DoD awards thousands of R&D and IT contracts annually, ranging from small, specialized research grants to massive enterprise-wide system development projects. Contracts in the hundreds of millions or billions are common for major system acquisitions or broad IT service support. Therefore, this $16.7 million award is best viewed as a substantial, but not exceptionally large, contract for focused R&D IT solutions, likely addressing specific technological needs or research objectives within the Air Force.

What are the primary risks associated with a Labor Hours contract for R&D IT services?

The primary risks associated with a Labor Hours contract for R&D IT services revolve around cost control and performance management. Since the contractor is paid based on the hours worked by their personnel, there is an inherent risk of cost escalation if the project takes longer than anticipated or if labor rates are higher than expected. Scope creep is another significant risk; without clearly defined deliverables and fixed pricing, the scope can expand, leading to increased hours and costs. For R&D, defining precise outcomes and effort can be challenging, making it difficult for the government to accurately estimate and control the total cost. Effective oversight, detailed work breakdown structures, and vigilant monitoring of labor hours and progress are crucial to mitigate these risks.

How effective is the ENCORE II vehicle in facilitating competitive R&D IT procurements?

The ENCORE II vehicle was designed as an Indefinite Delivery/Indefinite Quantity (IDIQ) contract to provide IT services to the Department of Defense and other federal agencies. Its structure aims to streamline the procurement process for a wide range of IT requirements, including R&D. By pre-vetting contractors and establishing contract terms, ENCORE II can reduce the time and effort required for individual task order competitions. The fact that this contract was awarded under full and open competition with 26 bids suggests that the vehicle successfully attracted a competitive field for this specific R&D IT requirement. However, the overall effectiveness can vary depending on how well the task orders are structured to encourage meaningful competition and ensure value for money.

What is the typical historical spending pattern for R&D IT services within the Department of the Air Force?

The Department of the Air Force historically spends billions of dollars annually on Research and Development (R&D) and Information Technology (IT) services. Spending patterns are influenced by evolving threats, technological advancements, and strategic priorities. There is a consistent and significant investment in areas such as cybersecurity, data analytics, artificial intelligence, cloud computing, and advanced communications. R&D spending often focuses on developing next-generation capabilities, while IT spending supports maintaining and modernizing existing infrastructure and systems. The Air Force frequently utilizes large IDIQ vehicles like ENCORE II to procure these services efficiently, leading to numerous task orders awarded across various contractors, with significant portions going to large, established defense IT providers.

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: 26

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

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

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $66,256,403

Exercised Options: $18,176,043

Current Obligation: $16,689,661

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102808D2015

IDV Type: IDC

Timeline