Booz Allen Hamilton awarded $56.9M for scientific and technical support services by ARPA-E
Contract Overview
Contract Amount: $56,891,412 ($56.9M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Energy
Start Date: 2019-12-01
End Date: 2021-11-30
Contract Duration: 730 days
Daily Burn Rate: $77.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ***** THE ADVANCED RESEARCH PROJECTS AGENCY - ENERGY HAS AN ONGOING REQUIREMENT FOR SCIENTIFIC, TECHNICAL, FINANCIAL AND ADMINISTRATIVE SUPPORT SERVICES. *****
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024
Plain-Language Summary
Department of Energy obligated $56.9 million to BOOZ ALLEN HAMILTON INC for work described as: ***** THE ADVANCED RESEARCH PROJECTS AGENCY - ENERGY HAS AN ONGOING REQUIREMENT FOR SCIENTIFIC, TECHNICAL, FINANCIAL AND ADMINISTRATIVE SUPPORT SERVICES. ***** Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. Sole-source award raises questions about competition and potential for better pricing. 3. Contract duration of two years suggests a focused scope of work. 4. Services include scientific, technical, financial, and administrative support, indicating broad operational needs. 5. The contract is managed by the Department of Energy, a key player in energy research and development. 6. The contract's value is significant, reflecting the importance of ARPA-E's mission.
Value Assessment
Rating: fair
The contract's value of $56.9 million over two years for comprehensive support services appears substantial. Benchmarking against similar contracts for scientific, technical, financial, and administrative support is challenging without more specific service details. The cost-plus-fixed-fee (CPFF) pricing structure, while common for research and development environments where scope can evolve, carries inherent risks of cost escalation compared to fixed-price contracts. The lack of competitive bidding also limits the ability to assess if the pricing reflects optimal value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude a competitive process. The absence of multiple bidders means there was no direct price comparison or negotiation driven by market forces, which could potentially lead to higher costs for the government.
Taxpayer Impact: A sole-source award means taxpayers did not benefit from the potential cost savings that can arise from a competitive bidding process, where multiple companies vie for the contract.
Public Impact
The Advanced Research Projects Agency - Energy (ARPA-E) benefits from essential support services to advance its mission. Scientific, technical, financial, and administrative expertise is provided to facilitate ARPA-E's research and development initiatives. The contract supports the agency's operations, which are crucial for fostering innovation in energy technologies. The primary beneficiaries are ARPA-E's research programs and the broader U.S. energy sector through the advancement of new technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potential taxpayer savings.
- Cost-plus-fixed-fee structure may incentivize higher spending if not closely managed.
- Lack of competition could indicate potential barriers to entry for other qualified firms.
Positive Signals
- Booz Allen Hamilton is a well-established contractor with extensive experience in government support services.
- The contract supports a critical government agency (ARPA-E) focused on energy innovation.
- The services provided are essential for the operational effectiveness of ARPA-E's research programs.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically supporting a government agency focused on energy research and development. The market for such support services is competitive, but sole-source awards can limit visibility into broader market pricing. ARPA-E's unique mission to fund high-potential, high-impact energy technologies means its support needs are specialized. Comparable spending benchmarks would typically be found within other R&D-focused government agencies or large-scale scientific initiatives.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The sole-source nature of the award further reduces the likelihood of direct subcontracting opportunities being mandated or actively sought through a competitive process. This means the direct economic impact on the small business ecosystem from this specific contract is likely minimal.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy, which manages the contract on behalf of ARPA-E. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract databases, though specific performance metrics and detailed financial oversight are internal to the agency. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Energy Research and Development Programs
- Advanced Scientific and Technical Support Services
- Government Administrative and Financial Support Contracts
- Energy Innovation and Technology Development Initiatives
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of small business subcontracting requirements
Tags
research-and-development, department-of-energy, arpa-e, scientific-support, technical-support, administrative-support, financial-support, sole-source, cost-plus-fixed-fee, definitive-contract, booz-allen-hamilton, district-of-columbia
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $56.9 million to BOOZ ALLEN HAMILTON INC. ***** THE ADVANCED RESEARCH PROJECTS AGENCY - ENERGY HAS AN ONGOING REQUIREMENT FOR SCIENTIFIC, TECHNICAL, FINANCIAL AND ADMINISTRATIVE SUPPORT SERVICES. *****
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $56.9 million.
What is the period of performance?
Start: 2019-12-01. End: 2021-11-30.
What is Booz Allen Hamilton's track record with the Department of Energy and ARPA-E?
Booz Allen Hamilton Inc. has a long-standing and extensive track record as a government contractor, including significant work with the Department of Defense and various civilian agencies. Their engagement with the Department of Energy (DOE) and specifically the Advanced Research Projects Agency - Energy (ARPA-E) is demonstrated by this contract. Historically, Booz Allen has secured numerous contracts across a wide spectrum of services, including scientific, technical, management, and administrative support. Their experience often involves complex projects requiring deep analytical capabilities and strategic planning, aligning with ARPA-E's mission to foster disruptive energy technologies. While this specific contract is sole-source, their broader portfolio suggests a capacity to fulfill such requirements effectively, though performance specifics would require deeper analysis of past deliverables and agency feedback.
How does the $56.9 million value compare to similar ARPA-E support contracts?
Direct comparison of the $56.9 million value for this specific contract to 'similar' ARPA-E support contracts is challenging without more granular data on the scope and duration of those other contracts. ARPA-E's needs can vary significantly based on the specific research programs being supported. However, given that this is a two-year definitive contract (730 days) for comprehensive scientific, technical, financial, and administrative support, the value appears substantial and in line with the significant operational requirements of a high-impact R&D agency. Larger, multi-year prime contracts for broad support services at federal agencies often fall within this range or higher. The sole-source nature, however, prevents a direct value-for-money assessment against competitive bids.
What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract for ARPA-E?
The primary risks associated with this sole-source, cost-plus-fixed-fee (CPFF) contract are twofold. Firstly, the sole-source nature means the government did not benefit from a competitive bidding process, potentially leading to a higher price than might have been achieved otherwise. This limits price discovery and negotiation leverage. Secondly, the CPFF structure, while providing flexibility for evolving R&D needs, carries the risk of cost escalation. The contractor is reimbursed for allowable costs plus a fixed fee, which can incentivize spending if not rigorously monitored. Effective oversight by the Department of Energy is crucial to mitigate these risks, ensuring costs remain reasonable and the fixed fee adequately compensates for the contractor's effort without excessive profit.
How effective is the current contract in supporting ARPA-E's mission of advancing energy technologies?
The effectiveness of this contract in supporting ARPA-E's mission is primarily determined by the quality and timeliness of the scientific, technical, financial, and administrative services provided by Booz Allen Hamilton. As a sole-source award, its effectiveness is presumed based on the contractor's established capabilities and the agency's determination that they are the sole source capable of meeting the requirement. ARPA-E's success in funding and advancing high-potential energy technologies relies heavily on the robust operational and analytical support it receives. Without specific performance metrics or program outcomes directly tied to this contract, a definitive assessment of its effectiveness is limited. However, the continued engagement of experienced contractors like Booz Allen suggests a functional, albeit non-competitively determined, support structure.
What are the historical spending patterns for scientific and technical support services at ARPA-E?
Historical spending patterns for scientific and technical support services at ARPA-E, and by extension the Department of Energy, generally reflect the agency's mission to fund high-risk, high-reward energy research. Such support is critical for managing complex R&D portfolios, conducting technical reviews, and providing program management. Spending in this category can fluctuate based on the number and scale of research initiatives launched and the need for specialized expertise. While specific historical figures for ARPA-E's support contracts require detailed database queries, agencies like ARPA-E typically allocate significant portions of their budget towards enabling research through expert services. The $56.9 million for this two-year contract represents a substantial, ongoing investment in operational capacity.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $61,048,675
Exercised Options: $61,048,675
Current Obligation: $56,891,412
Actual Outlays: $27,389,546
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $205,906
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-12-01
Current End Date: 2021-11-30
Potential End Date: 2021-11-30 00:00:00
Last Modified: 2022-06-24
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