Booz Allen Hamilton awarded $27.7M contract for Navy resource model development and sustainment

Contract Overview

Contract Amount: $27,729,617 ($27.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-09-27

End Date: 2023-09-27

Contract Duration: 1,826 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CT 16-1400 NAVY RESOURCE MODEL DEVELOPMENT, SUSTAINMENT, AND MODIFICATION FOR BUREAU OF NAVAL PERSONNEL, PRODUCTION MANAGEMENT OFFICE

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.7 million to BOOZ ALLEN HAMILTON INC for work described as: CT 16-1400 NAVY RESOURCE MODEL DEVELOPMENT, SUSTAINMENT, AND MODIFICATION FOR BUREAU OF NAVAL PERSONNEL, PRODUCTION MANAGEMENT OFFICE Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Significant duration of 1826 days indicates long-term support needs. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. Contract type is Cost Plus Fixed Fee, which can incentivize cost control. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The primary agency is the Department of Defense, with the Department of the Air Force as the servicing agency. 7. The North American Industry Classification System (NAICS) code 541712 points to R&D services.

Value Assessment

Rating: good

The total value of $27.7 million over approximately five years suggests a moderate investment for specialized R&D services. Benchmarking against similar contracts for resource model development and sustainment is challenging without more specific details on the scope and complexity of the models. However, the Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, requires careful oversight to ensure costs remain reasonable and aligned with the fixed fee. The contract's duration and value appear consistent with the nature of R&D support for complex government systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a degree of competition, though the exact number of bidders can vary widely for R&D contracts. Full and open competition is generally expected to yield competitive pricing and encourage innovation by allowing a broad range of contractors to participate.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and ensures the government receives the best value through a wide selection of qualified offerors.

Public Impact

The Bureau of Naval Personnel benefits from improved resource modeling and sustainment capabilities. Services delivered include the development, sustainment, and modification of resource models. The geographic impact is primarily within the Department of Defense's operational areas, with potential implications for personnel management nationwide. Workforce implications may include the need for specialized analysts and researchers within the contractor's organization and potentially within the Navy's production management office.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
The duration of the contract (1826 days) requires sustained performance monitoring.
Reliance on a single contractor for critical resource model sustainment could pose a risk if the contractor's capabilities diminish.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
The contract's focus on R&D aligns with the need for advanced analytical capabilities.
The delivery order structure suggests it is part of a potentially larger, pre-vetted contracting vehicle.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for R&D services supporting defense and government operations is substantial, with numerous firms specializing in areas like modeling, simulation, and data analysis. Comparable spending benchmarks would depend on the specific complexity and novelty of the resource models being developed and sustained, but R&D contracts of this value are common within the defense industrial base.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Booz Allen Hamilton, may engage small businesses as subcontractors if it aligns with their project needs and procurement strategy, though this is not mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force, acting on behalf of the Department of Defense. Accountability measures are inherent in the Cost Plus Fixed Fee structure, which requires detailed reporting and justification of costs against the fixed fee. Transparency is facilitated through contract award databases and reporting requirements, though specific performance metrics and oversight reports are generally not publicly disclosed.

Related Government Programs

Naval Personnel Management Systems
Defense R&D Spending
Resource Allocation Modeling
Government IT and Analytics Support
Department of Defense Research Contracts

Risk Flags

Potential for cost creep in CPFF contracts.
Risk of obsolescence in R&D over a long contract duration.
Limited competition (2 bids) may impact price discovery.
Dependence on contractor's sustained expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to BOOZ ALLEN HAMILTON INC. CT 16-1400 NAVY RESOURCE MODEL DEVELOPMENT, SUSTAINMENT, AND MODIFICATION FOR BUREAU OF NAVAL PERSONNEL, PRODUCTION MANAGEMENT OFFICE

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 $27.7 million.

What is the period of performance?

Start: 2018-09-27. End: 2023-09-27.

What is the specific nature of the 'resource models' being developed and sustained under this contract?

The provided data does not specify the exact nature of the 'resource models.' However, given the context of the Bureau of Naval Personnel and the NAICS code for R&D in physical, engineering, and life sciences, these models likely pertain to optimizing the allocation, deployment, and management of naval personnel and related resources. This could include models for manpower planning, training requirements, personnel readiness, or operational efficiency. The 'sustainment and modification' aspect suggests these models are existing tools that require ongoing updates, maintenance, and adaptation to evolving naval needs and technological advancements.

How does the Cost Plus Fixed Fee (CPFF) structure typically influence contractor behavior and cost control in R&D contracts?

In a Cost Plus Fixed Fee (CPFF) contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to complete the work efficiently to maximize their profit margin, as the fee is fixed regardless of the final cost. However, it also requires robust government oversight to ensure that costs are reasonable and allocable to the contract. Unlike cost-plus-incentive-fee contracts, there's less direct financial incentive for the contractor to aggressively reduce costs below the estimated level, as their profit is fixed. The government bears the risk of cost overruns if actual costs exceed estimates, but the fixed fee provides a level of cost certainty for the government compared to pure cost-plus-fee contracts.

What are the potential risks associated with a long-duration contract (1826 days) for R&D services?

Long-duration R&D contracts, such as this 1826-day (approximately 5-year) award, carry several potential risks. Firstly, the technological landscape and the specific needs of the Bureau of Naval Personnel could evolve significantly over five years, potentially rendering the initial scope or developed models outdated or less relevant. Secondly, maintaining consistent contractor performance and engagement over such an extended period can be challenging. There's a risk of 'contractor drift,' where the focus may shift, or institutional knowledge could be lost if key personnel change. Lastly, the government's ability to adapt to unforeseen requirements or pivot the project's direction might be constrained by the established terms and the contractor's existing commitments, potentially leading to inefficiencies or the need for costly contract modifications.

Given the 'Department of the Air Force' is listed as the servicing agency, how does this interact with the 'Bureau of Naval Personnel' as the primary beneficiary?

The Department of the Air Force acting as the servicing agency for a contract benefiting the Bureau of Naval Personnel (part of the Department of the Navy) is a common practice within the Department of Defense (DoD) for leveraging shared acquisition expertise and resources. The Air Force, through its contracting commands, may possess specialized capabilities or established contracting vehicles that are more efficient for procuring certain types of services, including R&D. This arrangement allows the Navy to benefit from the Air Force's contracting infrastructure while still receiving the intended services for its personnel management needs. Essentially, the Air Force procures the service on behalf of the Navy.

What does the presence of only two bids in a full and open competition suggest about the market for these specialized R&D services?

The submission of only two bids in a full and open competition for this R&D contract could suggest several possibilities. It might indicate a niche market with a limited number of highly specialized firms capable of meeting the stringent requirements. Alternatively, the high barriers to entry (e.g., technical expertise, security clearances, past performance requirements) could deter potential bidders. It could also reflect the specific timing or nature of the solicitation, where perhaps only two companies were actively pursuing this particular opportunity. While two bidders still represent competition, it is less robust than a scenario with numerous offers, potentially leading to less aggressive pricing or fewer innovative solutions compared to a more crowded field.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA807515R0001

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: $33,322,907

Exercised Options: $33,322,907

Current Obligation: $27,729,617

Actual Outlays: $2,475,863

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $5,259,507

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807516D0003

IDV Type: IDC

Timeline