DoD's $45.8M R&D contract for PACAF's strategic planning awarded to Booz Allen Hamilton

Contract Overview

Contract Amount: $45,779,860 ($45.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2017-09-27

End Date: 2018-09-26

Contract Duration: 364 days

Daily Burn Rate: $125.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: R&D

Official Description: IGF::OT::IGF TECHNOLOGY ANALYSIS AND STRATEGIC/ OPERATIONAL PLANNING FOR FORCE POSTURE AND COMBAT/COMBAT-SUPPORT CAPABILITIES FOR PACIFIC AIR FORCES

Place of Performance

Location: HICKAM AFB, HONOLULU County, HAWAII, 96853

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $45.8 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF TECHNOLOGY ANALYSIS AND STRATEGIC/ OPERATIONAL PLANNING FOR FORCE POSTURE AND COMBAT/COMBAT-SUPPORT CAPABILITIES FOR PACIFIC AIR FORCES Key points: 1. Contract focuses on R&D for physical, engineering, and life sciences, specifically for combat and combat-support capabilities. 2. Booz Allen Hamilton, a large defense contractor, secured this award. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. Performance period was one year, indicating a focused, short-term project. 5. The contract type is Cost No Fee, which means the contractor is reimbursed for allowable costs but does not receive a fee. 6. This award falls under the Research and Development sector, specifically for advanced technological capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparable project data. The Cost No Fee (CNF) contract type suggests the government is primarily focused on reimbursing the contractor for incurred expenses rather than paying for a specific outcome or profit margin. This can sometimes lead to less incentive for cost control by the contractor compared to fixed-price contracts. However, for R&D efforts where the scope can be uncertain, CNF can be appropriate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically suggests a robust bidding environment. However, the provided data does not specify the number of bids received, which is crucial for fully assessing the level of competition. A high number of bids generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple firms.

Public Impact

The primary beneficiary is the Pacific Air Forces (PACAF), which will receive strategic and operational planning support. Services delivered include research and development for force posture and combat/combat-support capabilities. The geographic impact is focused on the Pacific region, where PACAF operates. This contract supports the development of advanced military capabilities, potentially impacting future defense strategies and readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contracts can sometimes lack contractor incentive for cost efficiency.
Limited data on the number of bidders makes it difficult to fully assess competitive pressure.
The R&D nature of the contract implies inherent uncertainty in outcomes and potential for cost overruns if not managed closely.

Positive Signals

Awarded under full and open competition, suggesting a broad search for qualified contractors.
Booz Allen Hamilton is a well-established contractor with significant experience in defense R&D and strategic planning.
The contract supports critical strategic planning for a key geographic theater (Pacific).

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on defense-related technologies and strategic planning. The R&D market for defense is substantial, with significant government investment aimed at maintaining technological superiority. Contracts like this are essential for developing future military capabilities and adapting to evolving geopolitical landscapes. Comparable spending benchmarks would typically be found within broader DoD R&D budgets for strategic analysis and capability development.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and does not mention subcontracting plans. Given the nature of the work and the prime contractor (Booz Allen Hamilton), it is likely that larger, specialized firms were the primary focus. There is no direct indication of small business participation or impact from this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force and potentially the Department of Defense's Inspector General. As a Cost No Fee contract, oversight would likely focus on the allowability and reasonableness of incurred costs, as well as the progress and quality of the research and strategic planning deliverables. Transparency is generally maintained through contract reporting mechanisms, though specific details of R&D efforts can be sensitive.

Related Government Programs

Department of Defense Research and Development
Pacific Air Forces Operations
Strategic Planning Services
Defense Technology Development

Risk Flags

Cost Control Risk (CNF)
Scope Creep Risk (R&D)
Deliverable Quality Risk (Strategic Planning)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.8 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF TECHNOLOGY ANALYSIS AND STRATEGIC/ OPERATIONAL PLANNING FOR FORCE POSTURE AND COMBAT/COMBAT-SUPPORT CAPABILITIES FOR PACIFIC AIR FORCES

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 $45.8 million.

What is the period of performance?

Start: 2017-09-27. End: 2018-09-26.

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

Booz Allen Hamilton has a long and extensive history of performing R&D and strategic planning services for the Department of Defense and other federal agencies. They are a major contractor in this space, frequently awarded contracts for analysis, modeling, simulation, and strategic assessments. Their track record includes work on force structure, future capabilities, and operational planning across various military branches. While specific performance metrics for past contracts are not detailed here, their continued success in winning competitive bids suggests a generally positive performance history and strong client relationships within the defense sector. Their expertise often lies in translating complex technical and strategic requirements into actionable plans and recommendations.

How does the $45.8 million cost compare to similar R&D contracts for strategic planning in the defense sector?

Comparing the $45.8 million cost requires context regarding the scope, duration, and specific deliverables of similar R&D contracts. This particular contract had a duration of one year. Defense R&D contracts can vary significantly in price, from smaller, focused studies to multi-year, large-scale development programs costing hundreds of millions or even billions. For a one-year contract focused on strategic and operational planning for a specific major command like PACAF, $45.8 million appears to be a substantial but not necessarily outlier figure, especially considering the complexity of military strategic planning and the expertise required. Benchmarking would ideally involve looking at contracts with similar objectives, such as force posture analysis, combat capability development, and long-range planning within DoD.

What are the primary risks associated with this Cost No Fee (CNF) contract type for the government?

The primary risk for the government with a Cost No Fee (CNF) contract is the potential lack of contractor incentive to control costs rigorously. Since the contractor is reimbursed for allowable costs without an additional fee or profit margin, there might be less motivation to find the most cost-effective solutions compared to fixed-price contracts. This can lead to higher overall costs if not managed diligently. Additionally, defining and monitoring 'allowable costs' requires robust government oversight to prevent overcharging or inappropriate expense claims. The government also bears the risk if the research outcomes are not as valuable as anticipated, as the contractor is compensated for effort rather than guaranteed success.

How effective is R&D spending on strategic planning in improving combat readiness and force posture?

Spending on R&D for strategic planning is intended to be highly effective in improving combat readiness and force posture by providing foresight, identifying future threats and opportunities, and guiding resource allocation towards optimal capabilities. Strategic planning helps align military investments with national security objectives, ensuring that forces are postured appropriately for potential conflicts and that necessary technological advancements are pursued. Effective strategic R&D can lead to more agile, resilient, and technologically superior forces. However, the actual effectiveness depends heavily on the quality of the research, the accuracy of threat assessments, the relevance of the planned capabilities, and the successful implementation of the strategic recommendations derived from the R&D process.

What are the historical spending patterns for R&D related to Pacific Air Forces strategic capabilities?

Historical spending patterns for R&D related to Pacific Air Forces (PACAF) strategic capabilities would likely show a consistent investment, reflecting the region's strategic importance and the dynamic geopolitical environment. Spending would fluctuate based on perceived threats, technological advancements, and shifts in defense priorities. Major investments might be seen during periods of heightened regional tension or when significant modernization efforts are undertaken. Analyzing historical data would reveal trends in funding for areas such as intelligence, surveillance, reconnaissance (ISR), command and control (C2) systems, air defense, long-range strike capabilities, and cyber warfare relevant to the Pacific theater. This specific $45.8 million contract represents a portion of that ongoing investment.

What is the significance of the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) for this contract?

The NAICS code 541712 signifies that the core activity of this contract is research and development within the physical sciences (e.g., physics, chemistry, materials science), engineering (e.g., aerospace, electrical, mechanical), and life sciences (excluding biotechnology, which has its own code). For this specific contract, it indicates that the work performed by Booz Allen Hamilton involves scientific inquiry and experimentation aimed at discovering or improving knowledge and understanding, and applying that knowledge to develop new or improved materials, devices, systems, or processes relevant to combat and combat-support capabilities for the Pacific Air Forces. This code helps categorize the contract within the broader economic landscape and allows for comparison with other R&D activities.

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 NO FEE (S)

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: $49,937,539

Exercised Options: $49,937,539

Current Obligation: $45,779,860

Actual Outlays: $1,791,074

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,455,222

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