Booz Allen Hamilton awarded $35.4M contract for ARPA-E support services by Department of Energy
Contract Overview
Contract Amount: $35,359,574 ($35.4M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Energy
Start Date: 2023-06-01
End Date: 2024-04-30
Contract Duration: 334 days
Daily Burn Rate: $105.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SCIENTIFIC, TECHNICAL, PROFESSIONAL, FINANCIAL AND ADMINISTRATIVE SUPPORT SERVICES FOR ARPA-E. BASE: AWARD LETTER CONTRACT TO BOOZ ALLEN HAMILTON.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024
Plain-Language Summary
Department of Energy obligated $35.4 million to BOOZ ALLEN HAMILTON INC for work described as: SCIENTIFIC, TECHNICAL, PROFESSIONAL, FINANCIAL AND ADMINISTRATIVE SUPPORT SERVICES FOR ARPA-E. BASE: AWARD LETTER CONTRACT TO BOOZ ALLEN HAMILTON. Key points: 1. Contract awarded to a single, large incumbent contractor, raising questions about competition and potential for cost savings. 2. The cost-plus-fixed-fee contract type may incentivize higher spending if not carefully managed. 3. The duration of 334 days suggests a focused scope of work, but requires monitoring for scope creep. 4. The contract is for scientific, technical, professional, financial, and administrative support, indicating a broad range of services. 5. The award to Booz Allen Hamilton, a major federal contractor, suggests a reliance on established relationships. 6. The lack of small business set-aside indicates this contract did not prioritize small business participation.
Value Assessment
Rating: fair
The contract's value of $35.4 million for approximately one year of support services for ARPA-E needs careful benchmarking. Without specific performance metrics or comparable contracts for similar specialized support, it's difficult to definitively assess value for money. The cost-plus-fixed-fee structure, while common for complex services, can lead to higher costs if not rigorously managed. Further analysis would require comparing the specific services rendered against industry standards and the pricing of similar support contracts awarded to other large firms.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Booz Allen Hamilton. The absence of a competitive bidding process means that the Department of Energy did not explore offers from other potential contractors. This approach can be justified for specific reasons, such as unique capabilities or urgent needs, but it limits the opportunity for price discovery and potentially higher quality solutions that might emerge from a competitive environment.
Taxpayer Impact: Taxpayers may not be receiving the best possible price or value due to the lack of competition. Without a bidding process, there is less pressure on the contractor to offer the most cost-effective solution.
Public Impact
The primary beneficiaries are the Advanced Research Projects Agency-Energy (ARPA-E) and its research initiatives, which will receive essential support services. Services delivered include scientific, technical, professional, financial, and administrative support, crucial for the efficient operation of ARPA-E. The geographic impact is primarily within the District of Columbia, where the Department of Energy is headquartered. Workforce implications include the employment of Booz Allen Hamilton staff, contributing to the federal contracting workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition could lead to higher costs for taxpayers.
- Cost-plus-fixed-fee contract type may not incentivize cost efficiency.
- Sole-source award limits transparency and potential for better value.
- Reliance on a single large contractor may not foster innovation.
Positive Signals
- Award to an experienced contractor like Booz Allen Hamilton suggests a high likelihood of successful service delivery.
- The contract supports ARPA-E, a critical agency for advancing energy technologies.
- The fixed fee component provides some cost certainty for the government.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, a broad category encompassing a wide range of specialized expertise. The market for these services is highly competitive, with numerous large and small firms vying for government contracts. Spending in this sector is substantial across various federal agencies, supporting everything from research and development to administrative functions. The specific niche here is support for an energy research agency, which requires a blend of scientific understanding, project management, and administrative acumen.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this specific contract are likely limited. The award to a large incumbent contractor suggests that the primary focus was on leveraging existing capabilities rather than fostering small business growth through this particular procurement.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's contracting officers and program managers. As a cost-plus-fixed-fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that funds are used appropriately and that objectives are met. Transparency would be enhanced through regular reporting requirements from the contractor and potential audits by the Department of Energy's Inspector General, although specific IG jurisdiction for this contract is not detailed here.
Related Government Programs
- ARPA-E Research and Development Programs
- Department of Energy Administrative Support Contracts
- Federal Scientific and Technical Support Services
- Professional Services Contracts
Risk Flags
- Sole-source award lacks competitive pricing.
- Cost-plus-fixed-fee contract type requires diligent oversight to control costs.
- Potential for contractor to maximize costs due to contract type.
Tags
professional-services, scientific-support, technical-support, administrative-support, department-of-energy, arpa-e, booz-allen-hamilton, definitive-contract, cost-plus-fixed-fee, sole-source, district-of-columbia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $35.4 million to BOOZ ALLEN HAMILTON INC. SCIENTIFIC, TECHNICAL, PROFESSIONAL, FINANCIAL AND ADMINISTRATIVE SUPPORT SERVICES FOR ARPA-E. BASE: AWARD LETTER CONTRACT TO BOOZ ALLEN HAMILTON.
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 $35.4 million.
What is the period of performance?
Start: 2023-06-01. End: 2024-04-30.
What is the track record of Booz Allen Hamilton with the Department of Energy and ARPA-E specifically?
Booz Allen Hamilton has a long-standing and extensive track record of providing a wide array of services to the Department of Energy (DOE) and its various agencies, including ARPA-E. Their engagements typically span scientific, technical, management consulting, and IT support. Given their status as a major federal contractor, they have likely supported numerous projects within ARPA-E, contributing to program management, strategic planning, and operational efficiency. The continuity of such contracts often reflects a perceived ability to deliver specialized expertise and manage complex projects effectively. However, a detailed review of past performance metrics, any past performance issues, and the specific nature of their previous work with ARPA-E would be necessary for a comprehensive assessment.
How does the $35.4 million value compare to similar support contracts for ARPA-E or other R&D agencies?
Benchmarking the $35.4 million value requires understanding the scope and duration of services provided. For a one-year contract (approximately 334 days), this amount suggests a significant level of support, likely involving a team of specialized professionals. Comparing it to similar contracts for ARPA-E or other research and development agencies like NSF or DARPA, it appears to be within a reasonable range for comprehensive scientific, technical, and administrative support. However, without detailed breakdowns of labor categories, hours, and specific deliverables, a precise value-for-money assessment is challenging. The absence of competition further complicates direct price comparisons, as market rates established through bidding are not available.
What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract of this magnitude?
The primary risks associated with this sole-source, cost-plus-fixed-fee (CPFF) contract are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher costs than might be achieved through a competitive bidding process. The government does not benefit from the price discovery that competition provides. Secondly, the CPFF contract type, while offering flexibility for evolving requirements, can incentivize the contractor to incur more costs, as their fixed fee is a percentage of the total allowable costs. This necessitates robust government oversight to scrutinize costs, prevent scope creep, and ensure that the contractor is operating efficiently and effectively to meet ARPA-E's objectives without unnecessary expenditure.
How effective is the Department of Energy's oversight for contracts awarded on a sole-source basis?
The effectiveness of the Department of Energy's (DOE) oversight for sole-source contracts, like this one awarded to Booz Allen Hamilton, is contingent on several factors, including the resources allocated to contract management, the expertise of contracting officers and program managers, and the robustness of internal controls. DOE has established policies and procedures for contract administration, which include monitoring performance, reviewing invoices, and ensuring compliance with contract terms. For sole-source awards, heightened scrutiny is often applied to justify the lack of competition and to ensure fair pricing. The presence of an Inspector General's office within DOE also provides an independent layer of oversight to detect fraud, waste, and abuse. However, the actual effectiveness can vary depending on the specific contract and the diligence of the oversight personnel involved.
What is the historical spending pattern 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 DOE, generally show a consistent need for external expertise to supplement in-house capabilities. ARPA-E, by its nature as an agency focused on high-risk, high-reward research, relies heavily on specialized knowledge that may not always be available internally. Consequently, contracts for technical, scientific, and program management support are common. Spending in this area can fluctuate based on the agency's strategic priorities, the number and scale of research programs initiated, and the availability of federal funding. While this specific $35.4 million contract represents a significant award, it should be viewed within the broader context of ongoing investments in R&D support services necessary for ARPA-E's mission.
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, 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: $41,467,642
Exercised Options: $40,957,537
Current Obligation: $35,359,574
Actual Outlays: $34,822,905
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $327,810
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-06-01
Current End Date: 2024-04-30
Potential End Date: 2024-04-30 00:00:00
Last Modified: 2025-10-28
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