DoD's $10.2M contract for wargaming and training services awarded to Booz Allen Hamilton Inc

Contract Overview

Contract Amount: $10,199,369 ($10.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-01-05

End Date: 2022-06-22

Contract Duration: 1,629 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: WARGAMING, EXPERIMENTATION, TABLE TOP EXERCISE, AND TRAINING FOR THE HEADQUARTERS UNITED STATES STRATEGIC COMMAND (USSTRATCOM) CAPABILITY AND RESOURCE ANALYSIS DIVISION (J81)

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to BOOZ ALLEN HAMILTON INC for work described as: WARGAMING, EXPERIMENTATION, TABLE TOP EXERCISE, AND TRAINING FOR THE HEADQUARTERS UNITED STATES STRATEGIC COMMAND (USSTRATCOM) CAPABILITY AND RESOURCE ANALYSIS DIVISION (J81) Key points: 1. Contract focuses on critical strategic command capabilities and resource analysis. 2. Booz Allen Hamilton Inc. has a significant track record with government contracts. 3. The contract duration spans over 4 years, indicating a substantial need for these services. 4. Services include wargaming, experimentation, and table-top exercises, vital for strategic planning. 5. The contract was awarded under full and open competition, suggesting a competitive bidding process. 6. The primary NAICS code (541712) points to research and development in physical and engineering sciences.

Value Assessment

Rating: good

The contract value of approximately $10.2 million over four years for specialized wargaming and training services appears reasonable when benchmarked against similar complex R&D and analytical support contracts within the Department of Defense. While specific per-unit cost data is not available, the fixed-fee structure on a cost-plus basis suggests an effort to control expenses while ensuring necessary services are rendered. The contractor's extensive experience in this domain likely contributes to efficient service delivery, potentially offsetting higher hourly rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The open nature of the competition suggests that the government sought the best value from a broad range of potential contractors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure specialized strategic analysis and training services at the most advantageous price point, reducing the risk of overpayment.

Public Impact

The primary beneficiary is the United States Strategic Command (USSTRATCOM) Headquarters, specifically its Capability and Resource Analysis Division (J81). Services delivered include wargaming, experimentation, and table-top exercises to enhance strategic planning and decision-making. The geographic impact is primarily within the Department of Defense's strategic operations, with potential implications for national security. Workforce implications include the need for highly skilled analysts and subject matter experts in strategic studies and simulation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex R&D and simulation projects.
Reliance on a single contractor for critical strategic analysis could pose a long-term risk if not managed.
The cost-plus fixed-fee structure requires diligent oversight to ensure cost efficiency.

Positive Signals

Award to an established contractor with a proven track record in defense support.
Full and open competition suggests a robust market for these specialized services.
Contract duration indicates a stable, long-term requirement for strategic analysis capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on analytical and simulation services for national security. The market for such specialized defense-related R&D is significant, driven by the continuous need for advanced strategic planning and threat assessment. Comparable spending benchmarks would typically involve other large-scale simulation, modeling, and analytical support contracts awarded to major defense contractors.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Booz Allen Hamilton Inc. actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant program management office within USSTRATCOM. Accountability measures are embedded in the cost-plus fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements, though specific operational details of the wargaming exercises themselves may be classified.

Related Government Programs

Strategic Command Support Services
Defense Wargaming and Simulation
Capability and Resource Analysis
Department of Defense R&D Contracts
National Security Simulation and Analysis

Risk Flags

Cost-Plus Contract Type
Potential for Scope Creep
Reliance on Specialized Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to BOOZ ALLEN HAMILTON INC. WARGAMING, EXPERIMENTATION, TABLE TOP EXERCISE, AND TRAINING FOR THE HEADQUARTERS UNITED STATES STRATEGIC COMMAND (USSTRATCOM) CAPABILITY AND RESOURCE ANALYSIS DIVISION (J81)

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 $10.2 million.

What is the period of performance?

Start: 2018-01-05. End: 2022-06-22.

What is Booz Allen Hamilton Inc.'s track record with similar Department of Defense contracts, particularly in wargaming and strategic analysis?

Booz Allen Hamilton Inc. has a substantial and long-standing track record with the Department of Defense, frequently securing contracts for a wide array of services including strategic planning, intelligence analysis, cybersecurity, and advanced technology integration. Their experience in wargaming, experimentation, and simulation is well-documented through numerous past awards. For instance, they have been involved in supporting various combatant commands and military branches with similar analytical and training exercises. This extensive history suggests a deep understanding of military operational needs and a proven ability to deliver complex solutions, making them a reliable, albeit high-cost, contractor for critical functions like those required by USSTRATCOM's J81 division.

How does the approximate $10.2 million contract value compare to similar wargaming and strategic analysis contracts within the DoD?

The $10.2 million contract value for over four years of service (approximately $2.55 million per year) for specialized wargaming and strategic analysis appears to be within a reasonable range for complex, high-level support required by a major command like USSTRATCOM. Similar contracts supporting strategic planning, advanced simulation, and large-scale experimentation for entities such as STRATCOM, INDOPACOM, or NORAD-USNORTHCOM often range from several million to tens of millions of dollars annually, depending on the scope and duration. Factors influencing this value include the need for highly specialized expertise, the complexity of the simulations, the security clearances required, and the contractor's established reputation and infrastructure. Without direct per-unit cost comparisons, it's difficult to definitively benchmark, but the overall contract size aligns with the critical nature of the services provided.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks include the potential for cost overruns due to the cost-plus fixed-fee structure, the risk of contractor performance not meeting the highly specialized requirements, and the potential for scope creep in complex wargaming and experimentation scenarios. Mitigation strategies likely involve rigorous oversight by the contracting officer's representative (COR), detailed performance metrics and deliverables outlined in the contract, regular progress reviews, and potentially independent government cost estimates. The contractor's established expertise and the competitive award process also serve as risk mitigators, suggesting a higher likelihood of successful performance. Furthermore, the fixed-fee component provides some incentive for the contractor to manage costs effectively.

How effective are wargaming and simulation exercises, as supported by this contract, in improving strategic command capabilities?

Wargaming and simulation exercises, like those supported by this contract, are considered highly effective tools for improving strategic command capabilities. They provide a controlled environment to test strategies, identify potential weaknesses in plans, explore alternative courses of action, and train commanders and staff under realistic, albeit simulated, conditions. These exercises allow for the evaluation of new concepts, technologies, and organizational structures without the risks and costs associated with real-world operations. For USSTRATCOM, which deals with strategic deterrence, global strike, and command and control, such exercises are crucial for refining deterrence strategies, understanding adversary capabilities, and ensuring readiness across a wide spectrum of potential global contingencies. The data-backed insights generated are vital for resource allocation and capability development.

What are the historical spending patterns for wargaming and strategic analysis support at USSTRATCOM or similar commands?

Historical spending patterns for wargaming and strategic analysis support at USSTRATCOM and similar commands typically show consistent, significant investment. These services are considered essential for maintaining strategic advantage and readiness, leading to recurring contract awards. Spending often fluctuates based on geopolitical events, the introduction of new technologies, and evolving strategic doctrines. Contracts in this domain are frequently awarded to large, established defense contractors like Booz Allen Hamilton, SAIC, or RAND Corporation, often through competitive processes, though sole-source awards can occur for highly specialized or urgent needs. The duration of these contracts can range from one to five years, with values often in the millions to tens of millions of dollars annually, reflecting the complexity and criticality of the support provided.

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: $12,070,508

Exercised Options: $12,070,508

Current Obligation: $10,199,369

Actual Outlays: $2,800,238

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $160,744

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