ARPA-E's $98.7M contract for scientific and technical support services awarded to Booz Allen Hamilton Inc
Contract Overview
Contract Amount: $98,731,772 ($98.7M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Energy
Start Date: 2012-06-01
End Date: 2017-11-30
Contract Duration: 2,008 days
Daily Burn Rate: $49.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF SCIENTIFIC, ENGINEERING, TECHNICAL, PROFESSIONAL, FINANCIAL, AND ADMINISTRATIVE SUPPORT SERVICES TO ASSIST ARPA-E IN ITS MISSION TO ENHANCE U.S. ENERGY AND ECONOMIC SECURITY AND MAINTAIN U.S. TECHNOLOGICAL LEADERSHIP IN DEVELOPING AND DEPLOYING ADVANCED ENERGY TECHNOLOGIES.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $98.7 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF SCIENTIFIC, ENGINEERING, TECHNICAL, PROFESSIONAL, FINANCIAL, AND ADMINISTRATIVE SUPPORT SERVICES TO ASSIST ARPA-E IN ITS MISSION TO ENHANCE U.S. ENERGY AND ECONOMIC SECURITY AND MAINTAIN U.S. TECHNOLOGICAL LEADERSHIP IN DEVELOPING AND DEPLOYING ADVANCED ENERGY TECHNO… Key points: 1. Contract provides critical support for ARPA-E's mission to advance U.S. energy security and technological leadership. 2. Services encompass scientific, engineering, technical, professional, and administrative support. 3. The contract duration spans over five years, indicating a long-term need for these services. 4. Booz Allen Hamilton Inc. is a large, established contractor with extensive experience in government support services. 5. The contract type, Cost Plus Fixed Fee, allows for flexibility but requires careful oversight of costs. 6. This award represents a significant investment in ARPA-E's operational capacity and program execution.
Value Assessment
Rating: good
The contract value of $98.7 million over approximately five years suggests a substantial but potentially reasonable investment for comprehensive scientific and technical support. Benchmarking against similar large-scale support contracts for R&D agencies would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) structure, while common for complex R&D environments, necessitates robust cost tracking and justification to ensure efficiency and prevent cost overruns. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the scale implies a significant operational requirement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The presence of two bids suggests a reasonable level of competition, though more bidders could potentially drive prices lower. The selection of Booz Allen Hamilton Inc. implies their proposal met or exceeded the technical and cost requirements outlined in the solicitation.
Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a more efficient allocation of resources and potentially lower overall costs through competitive bidding.
Public Impact
The primary beneficiaries are ARPA-E's program managers and researchers, who receive essential support to advance energy technologies. Services delivered include scientific analysis, engineering expertise, technical project management, and administrative functions. The geographic impact is national, supporting ARPA-E's mission to enhance U.S. energy and economic security. Workforce implications include the employment of highly skilled professionals by Booz Allen Hamilton to fulfill contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep under the CPFF contract structure if not rigorously managed.
- Reliance on a single large contractor for critical support functions could pose a risk if performance falters.
- Ensuring the fixed fee remains appropriate throughout the contract lifecycle requires ongoing review.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process for selecting the best value.
- Booz Allen Hamilton Inc. is a reputable contractor with a proven track record in supporting federal agencies.
- The contract supports ARPA-E's vital mission, contributing to national energy security and technological advancement.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on consulting and support for advanced energy research and development. The market for such services is substantial, with numerous firms competing to support government R&D initiatives. ARPA-E's unique mission to fund high-risk, high-reward energy technologies requires specialized expertise, making contracts like this crucial for program execution. Comparable spending benchmarks would involve analyzing other large support contracts awarded to R&D agencies like DOE national labs or NSF.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Booz Allen Hamilton Inc. is a large business. While there is no direct subcontracting requirement specified here, large prime contractors are often encouraged or required to utilize small businesses for a portion of their work. The absence of explicit small business participation goals means the direct impact on the small business ecosystem for this specific contract is likely minimal unless subcontracting opportunities arise organically.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers at ARPA-E. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing costs, especially given the CPFF structure. Transparency is facilitated through contract reporting requirements. While no specific Inspector General jurisdiction is mentioned, the DOE Office of Inspector General typically has oversight over DOE contracts to detect and prevent fraud, waste, and abuse.
Related Government Programs
- ARPA-E Program Management Support
- Department of Energy Scientific and Technical Services
- Federal Research and Development Support Contracts
- Energy Technology Innovation Programs
Risk Flags
- Cost Management Risk (CPFF)
- Performance Dependency
- Scope Creep Potential
Tags
research-and-development, department-of-energy, arpa-e, scientific-consulting, technical-consulting, professional-services, administrative-support, cost-plus-fixed-fee, full-and-open-competition, booz-allen-hamilton, district-of-columbia, definitive-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $98.7 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF SCIENTIFIC, ENGINEERING, TECHNICAL, PROFESSIONAL, FINANCIAL, AND ADMINISTRATIVE SUPPORT SERVICES TO ASSIST ARPA-E IN ITS MISSION TO ENHANCE U.S. ENERGY AND ECONOMIC SECURITY AND MAINTAIN U.S. TECHNOLOGICAL LEADERSHIP IN DEVELOPING AND DEPLOYING ADVANCED ENERGY TECHNOLOGIES.
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 $98.7 million.
What is the period of performance?
Start: 2012-06-01. End: 2017-11-30.
What is the track record of Booz Allen Hamilton Inc. in supporting ARPA-E or similar energy research initiatives?
Booz Allen Hamilton Inc. has a long-standing history of supporting various U.S. federal agencies, including the Department of Energy, across a wide spectrum of scientific, technical, and management consulting services. Their extensive experience encompasses supporting research and development programs, strategic planning, and operational efficiency initiatives. For ARPA-E specifically, their involvement likely centers on providing the expertise needed to manage and evaluate high-risk, high-reward energy technology projects. This includes tasks such as technical due diligence, market analysis, program development support, and administrative functions essential for the agency's mission. Their broad capabilities and established presence in the government contracting space suggest a strong capacity to fulfill the requirements of this contract effectively, though specific performance metrics on past ARPA-E contracts would offer a more granular view.
How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar R&D support services?
The Cost Plus Fixed Fee (CPFF) pricing structure is common for research and development contracts where the scope of work can be complex and evolve over time, making it difficult to establish a firm fixed price upfront. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee does not increase with higher costs. However, it requires robust oversight from the government to ensure costs are reasonable and allocable. Compared to other structures like Firm-Fixed-Price (FFP), CPFF offers more flexibility for the government in evolving R&D environments but carries a higher risk of cost growth if not managed diligently. For specialized scientific and technical support services supporting innovation, CPFF is often considered an appropriate model, balancing flexibility with cost control mechanisms.
What are the key performance indicators (KPIs) used to measure the success of this contract?
While the provided data does not explicitly list Key Performance Indicators (KPIs) for this specific contract, typical KPIs for scientific, engineering, and technical support services under a CPFF structure would focus on several areas. These often include the timely delivery of technical reports and analyses, the quality and accuracy of scientific and engineering assessments, the effectiveness of project management support provided to ARPA-E program directors, and adherence to budget and schedule milestones where applicable. Performance might also be measured by the successful execution of administrative tasks, the responsiveness of the contractor's team, and the achievement of specific project milestones defined within the contract's statement of work. Government performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS), would likely track these metrics.
What is the historical spending trend for similar support services at ARPA-E or the Department of Energy?
Historical spending on scientific, engineering, and technical support services by ARPA-E and the broader Department of Energy (DOE) has been substantial, reflecting the agencies' core missions. ARPA-E, established in 2009, has consistently required significant external expertise to manage its portfolio of high-risk, high-reward energy research projects. Annual spending on support services can fluctuate based on program priorities and the initiation of new research solicitations. The DOE, as a whole, spends billions annually across various research, development, and operational activities, a portion of which is allocated to professional and technical support. This $98.7 million contract, spanning over five years, represents a significant but not necessarily anomalous investment for a key agency like ARPA-E, aligning with the general trend of federal R&D agencies leveraging external expertise.
Are there any identified risks associated with the contractor's performance or the nature of the services provided?
Potential risks associated with this contract include the inherent complexities of supporting cutting-edge energy research, where project outcomes can be uncertain. For the contractor, Booz Allen Hamilton, risks might involve managing a large, diverse team of experts and ensuring consistent quality across all service areas. Under the CPFF structure, there's a risk of cost escalation if project requirements change significantly or if cost controls are not rigorously applied, necessitating close government oversight. Furthermore, reliance on external expertise for critical functions means that any disruption in service delivery, such as key personnel turnover or performance issues, could impact ARPA-E's program execution. The dynamic nature of energy technology development also presents a risk that the support services may need to adapt rapidly to new scientific discoveries or market shifts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-SOL-0003228
Offers Received: 2
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: $100,193,530
Exercised Options: $100,193,530
Current Obligation: $98,731,772
Actual Outlays: $35,214
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-06-01
Current End Date: 2017-11-30
Potential End Date: 2017-11-30 00:00:00
Last Modified: 2024-09-27
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