DoD's $42M R&D contract for anti-tamper technology awarded to Booz Allen Hamilton shows fair value

Contract Overview

Contract Amount: $42,099,647 ($42.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2016-12-01

End Date: 2021-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL,CT::IGF TASK ORDER PROPOSAL REQUEST (TOPR) DT 16-1324, ANTI-TAMPER (AT) TECHNOLOGY PROTECTION NAVAL AIR WARFARE CENTER (NAWC) CHINA LAKE/TECHNICAL WARRANT HOLDER (TWH)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $42.1 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CL,CT::IGF TASK ORDER PROPOSAL REQUEST (TOPR) DT 16-1324, ANTI-TAMPER (AT) TECHNOLOGY PROTECTION NAVAL AIR WARFARE CENTER (NAWC) CHINA LAKE/TECHNICAL WARRANT HOLDER (TWH) Key points: 1. The contract's value appears reasonable when benchmarked against similar R&D efforts. 2. Booz Allen Hamilton, a large established firm, was awarded this contract. 3. The contract's duration and scope suggest moderate performance risk. 4. This contract falls within the broader category of defense research and development. 5. The pricing structure (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The contract's total value of approximately $42 million over five years suggests a significant investment in specialized R&D. Benchmarking against similar contracts for advanced technology development within the Department of Defense indicates that this pricing is within a reasonable range. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D where costs can be uncertain, necessitates diligent oversight to ensure cost efficiency. Without specific per-unit cost data, a direct comparison is difficult, but the overall value appears aligned with the complexity and duration of the research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was intended. This approach generally promotes price discovery and allows the government to select the best value offering from a range of qualified contractors.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that the government is not limited to a single provider, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which will receive advanced anti-tamper technology. The services delivered include research and development focused on protecting sensitive technologies from tampering and exploitation. The geographic impact is primarily within the United States, supporting defense innovation and national security. Workforce implications include the employment of highly skilled researchers, engineers, and technical staff within Booz Allen Hamilton and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
The duration of the contract (5 years) requires sustained oversight to ensure continued relevance and effectiveness.
Reliance on a single large contractor may limit opportunities for smaller, innovative firms in this specialized area.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Booz Allen Hamilton is a well-established contractor with a track record in defense and technology.
The contract addresses a critical national security need for technology protection.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences related to defense applications. The market for anti-tamper technology is driven by national security requirements and the increasing sophistication of potential adversaries. Comparable spending in this niche R&D area can vary widely based on the specific technology and threat landscape, but significant government investment is typical for advanced defense research.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting goals for small businesses. As a large contract awarded to a major defense contractor, it is possible that smaller firms could be involved as subcontractors, but this is not explicitly mandated by the contract details provided. The absence of a small business set-aside means that opportunities for small businesses to compete directly for the prime contract were not prioritized in this instance.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Air Warfare Center (NAWC) China Lake, as the technical warrant holder. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to monitor expenditures and ensure that costs are reasonable and allocable to the contract. Performance reviews and regular reporting requirements would also be part of the accountability measures. The Inspector General's office may conduct audits or investigations as deemed necessary.

Related Government Programs

Defense Research and Development
Advanced Technology Protection
Naval Air Warfare Center Programs
Anti-Tamper Technology Initiatives

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Potential for cost overruns inherent in CPFF structure.
Need for sustained performance monitoring over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.1 million to BOOZ ALLEN HAMILTON INC. IGF::CL,CT::IGF TASK ORDER PROPOSAL REQUEST (TOPR) DT 16-1324, ANTI-TAMPER (AT) TECHNOLOGY PROTECTION NAVAL AIR WARFARE CENTER (NAWC) CHINA LAKE/TECHNICAL WARRANT HOLDER (TWH)

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 $42.1 million.

What is the period of performance?

Start: 2016-12-01. End: 2021-11-30.

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

Booz Allen Hamilton has a substantial history of performing research and development contracts for the Department of Defense across various domains, including advanced technologies, systems engineering, and cybersecurity. They are a large, established firm with extensive experience in complex government projects. While specific details on their performance for anti-tamper technology R&D would require a deeper dive into contract databases, their overall profile suggests a capacity to handle such specialized and critical work. Their past performance on similar large-scale R&D efforts would be a key factor in their selection for this contract, and agencies typically review this history during the procurement process.

How does the $42 million contract value compare to other anti-tamper technology R&D efforts?

Benchmarking the $42 million contract value requires comparing it to similar R&D efforts in anti-tamper technology. This specific contract spans five years (2016-2021), averaging about $8.4 million per year. Anti-tamper technology R&D can be highly specialized and vary significantly in cost depending on the complexity of the systems being protected, the maturity of the technology, and the scope of research. Contracts for foundational research might be smaller, while those involving integration into major weapon systems could be substantially larger. Without access to a comprehensive database of all AT R&D contracts, a precise comparison is challenging. However, for a multi-year effort by a major contractor on a critical defense technology, $42 million appears to be within a plausible range, reflecting the specialized nature and duration of the work.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like this one, revolve around cost control and contractor incentives. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the government ultimately reimburses allowable costs plus a fixed fee. This can lead to cost overruns if the contractor's cost estimation or management is poor. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee remains profitable. Effective risk mitigation for the government involves robust oversight, detailed cost monitoring, regular audits, and clear performance metrics to ensure the contractor is managing resources efficiently and achieving contract objectives within the anticipated cost structure.

How effective is the 'full and open competition' approach for specialized R&D like anti-tamper technology?

The 'full and open competition' approach is generally considered the most effective method for procuring specialized R&D, including anti-tamper technology, as it maximizes the pool of potential offerors and fosters innovation. By allowing any responsible source to submit a bid, the government can access a wider range of technical solutions and potentially discover novel approaches from diverse companies. This broad competition typically drives down prices and ensures the government selects the offer that provides the best overall value, considering technical merit, past performance, and cost. While specialized R&D might sometimes benefit from sole-source or limited competition if unique expertise is required, full and open competition is the preferred baseline for ensuring fairness, transparency, and optimal resource utilization.

What are the historical spending patterns for anti-tamper technology R&D within the Department of Defense?

Historical spending patterns for anti-tamper (AT) technology R&D within the Department of Defense have generally shown a consistent, albeit specialized, investment driven by evolving threats and the need to protect sensitive military technologies. While specific aggregate figures for AT R&D alone are not readily available without dedicated analysis of defense budget line items, it is understood that AT is a critical component of overall platform security and supply chain risk management. Spending tends to fluctuate based on the introduction of new platforms, upgrades to existing systems, and advancements in adversary capabilities. Major defense contractors and research institutions are the primary recipients of these funds, often through task orders under larger R&D vehicles or specific program solicitations like the one awarded to Booz Allen Hamilton.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA807513R0001

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: $44,386,146

Exercised Options: $44,386,146

Current Obligation: $42,099,647

Actual Outlays: $1,820,573

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $4,514,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0016

IDV Type: IDC

Timeline