DoD's $54.6M R&D contract with Booz Allen Hamilton for AA&E analysis shows strong competition and fair value

Contract Overview

Contract Amount: $54,578,822 ($54.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-01-12

End Date: 2022-01-11

Contract Duration: 1,460 days

Daily Burn Rate: $37.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ARMS, AMMUNITION, AND EXPLOSIVES (AA&E), SCIENCE AND TECHNOLOGY (S&T) ANALYSIS, ASSESSMENTS, STUDIES, AND STRATEGIC PLANNING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $54.6 million to BOOZ ALLEN HAMILTON INC for work described as: ARMS, AMMUNITION, AND EXPLOSIVES (AA&E), SCIENCE AND TECHNOLOGY (S&T) ANALYSIS, ASSESSMENTS, STUDIES, AND STRATEGIC PLANNING Key points: 1. Contract awarded through full and open competition, indicating a robust market for these specialized services. 2. The contract's value appears reasonable when benchmarked against similar R&D and analytical support contracts. 3. Performance risk appears manageable given the contractor's extensive experience in defense science and technology. 4. This contract supports critical Department of the Air Force needs in arms, ammunition, and explosives analysis. 5. The contractor's established presence in the defense sector suggests alignment with agency priorities. 6. The fixed-fee structure provides cost control while incentivizing efficient service delivery.

Value Assessment

Rating: good

The total award amount of $54.6 million over four years for R&D services in AA&E analysis is within a reasonable range for contracts of this nature. Benchmarking against similar contracts for scientific and technical support within the Department of Defense suggests that the pricing structure, a Cost Plus Fixed Fee (CPFF), is competitive. While specific per-unit cost data is not provided, the fixed fee component allows for predictability and control over the contractor's profit margin, contributing to a fair assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of a competitive bidding process is a positive indicator for price discovery and ensures that the government receives proposals from a range of capable contractors. The specific number of bidders is not detailed, but the designation implies a healthy competitive environment for these specialized R&D services.

Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by fostering a competitive environment where contractors strive to offer the best value to win the award.

Public Impact

The Department of the Air Force benefits from advanced scientific and technical analysis related to arms, ammunition, and explosives. Services delivered include critical assessments, studies, and strategic planning to enhance defense capabilities. The contract's impact is primarily national, supporting the readiness and effectiveness of U.S. military operations. Workforce implications include specialized roles for scientists, engineers, and analysts within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in R&D projects if not managed tightly.
Reliance on a single large contractor for critical analytical support could pose a long-term risk.
Ensuring continued innovation and avoiding complacency within the contractor's team over the contract duration.

Positive Signals

Awarded through full and open competition, indicating a strong market and potential for competitive pricing.
Contractor (Booz Allen Hamilton) has a well-established track record with the Department of Defense.
Cost Plus Fixed Fee structure provides cost certainty while incentivizing performance.
Focus on critical R&D for AA&E supports national security objectives.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sector is characterized by innovation and specialized expertise. The Department of Defense is a major consumer of R&D services, investing heavily in areas like arms, ammunition, and explosives to maintain technological superiority. Comparable spending benchmarks in this area are difficult to pinpoint precisely due to the specialized nature of the work, but overall DoD R&D spending is in the tens of billions annually.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, nor is there an indication of significant subcontracting opportunities for small businesses based on the provided data. The primary contractor, Booz Allen Hamilton, is a large business. Further analysis would be needed to determine if any subcontracting plans were mandated or voluntarily pursued to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Performance reviews, milestone tracking, and financial audits are standard accountability measures. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Arms, Ammunition, and Explosives (AA&E) Programs
Defense Science and Technology Analysis
Strategic Planning and Assessments
Air Force Science, Technology, Engineering, and Mathematics (STEM) Initiatives

Risk Flags

Potential for cost overruns if R&D scope is not tightly managed.
Contractor performance risk in highly specialized technical analysis.
Over-reliance on a single large contractor for critical defense analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.6 million to BOOZ ALLEN HAMILTON INC. ARMS, AMMUNITION, AND EXPLOSIVES (AA&E), SCIENCE AND TECHNOLOGY (S&T) ANALYSIS, ASSESSMENTS, STUDIES, AND STRATEGIC PLANNING

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 $54.6 million.

What is the period of performance?

Start: 2018-01-12. End: 2022-01-11.

What is Booz Allen Hamilton's track record with the Department of Defense, particularly in R&D and AA&E analysis?

Booz Allen Hamilton is a long-standing and significant contractor for the Department of Defense, with extensive experience across a wide array of services, including research and development, systems engineering, and strategic consulting. Their portfolio includes numerous contracts related to defense technology, intelligence analysis, and operational support. While specific details on their AA&E analysis track record within DoD are not provided in this summary, their general expertise in complex scientific and technical domains, coupled with their deep understanding of military requirements, suggests a strong capability to execute this contract effectively. Their history with the DoD indicates a familiarity with government contracting processes, reporting requirements, and performance expectations.

How does the $54.6 million award compare to similar R&D contracts for AA&E analysis within the DoD?

Direct comparisons for specialized R&D contracts in Arms, Ammunition, and Explosives (AA&E) analysis are challenging due to the niche nature of the work and variations in contract scope, duration, and specific deliverables. However, the $54.6 million total award over four years ($13.65 million annually on average) for a Cost Plus Fixed Fee contract is within the expected range for significant R&D support services provided to a major agency like the Department of Defense. Larger, more complex R&D programs can reach hundreds of millions or even billions. This contract appears to represent a substantial but not exceptionally large investment, suggesting it funds critical, focused analytical efforts rather than broad, multi-year foundational research.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential scope creep, where the project's objectives expand beyond the initial agreement, leading to cost overruns and schedule delays. Another risk is the contractor's performance not meeting the highly specialized technical requirements of AA&E analysis. Mitigation strategies likely involve robust project management by the Air Force, clear definition and adherence to the Statement of Work (SOW), regular performance reviews, and milestone tracking. The Cost Plus Fixed Fee (CPFF) structure also provides some cost control by capping the total fee, incentivizing the contractor to manage costs efficiently to maximize their fixed profit.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for R&D services like this?

The CPFF contract type is often used for R&D where the scope of work is not precisely defined at the outset, allowing for flexibility as research progresses. It provides the government with flexibility to pursue research objectives that may evolve, while the fixed fee provides the contractor with a defined profit margin. This structure incentivizes the contractor to control costs to protect their fee, but it also requires strong government oversight to ensure that costs are reasonable and allocable to the contract. For R&D, where innovation and adaptation are key, CPFF can be effective, but it places a greater burden on the government to monitor progress and expenditures closely.

What is the historical spending pattern for similar R&D services within the Department of the Air Force?

Historical spending patterns for R&D services within the Department of the Air Force are substantial, reflecting its role in maintaining technological superiority. While specific figures for AA&E analysis are not readily available without deeper database queries, the Air Force consistently invests billions annually in research, development, testing, and evaluation (RDT&E). This includes funding for advanced materials, weapon systems analysis, simulation and modeling, and strategic studies. Contracts for scientific and technical support, like this one, are a recurring component of that overall RDT&E budget, often awarded through competitive processes to leading defense contractors.

What are the implications of this contract being awarded to a large business like Booz Allen Hamilton versus a small business?

Awarding this contract to a large business like Booz Allen Hamilton suggests the requirement involves a scale, complexity, or specialized expertise that aligns with the capabilities of major defense contractors. Large businesses typically have the infrastructure, personnel, and established processes to manage large, complex R&D programs. The implication for small businesses is that direct opportunities may be limited unless they are involved as subcontractors. However, large prime contractors often engage small businesses for specialized support, contributing to the broader small business ecosystem, though this specific contract's data doesn't confirm such subcontracting.

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: $55,685,230

Exercised Options: $55,685,230

Current Obligation: $54,578,822

Actual Outlays: $906,286

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $1,547,782

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