DoD's $32M Pacific Fleet R&D contract awarded to Booz Allen Hamilton for warfighting readiness

Contract Overview

Contract Amount: $31,973,341 ($32.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-06-18

End Date: 2022-06-17

Contract Duration: 1,460 days

Daily Burn Rate: $21.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TECHNICAL ANALYSES AND STRATEGIC/OPERATIONAL PLANNING FOR MARITIME OPERATIONS AND WARFIGHTING READINESS FOR U.S. PACIFIC FLEET

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.0 million to BOOZ ALLEN HAMILTON INC for work described as: TECHNICAL ANALYSES AND STRATEGIC/OPERATIONAL PLANNING FOR MARITIME OPERATIONS AND WARFIGHTING READINESS FOR U.S. PACIFIC FLEET Key points: 1. Contract focuses on critical R&D for maritime operations and warfighting readiness. 2. Booz Allen Hamilton, a large established firm, secured this significant award. 3. The contract duration of 4 years suggests a sustained need for these services. 4. Research and Development in Physical, Engineering, and Life Sciences is a key sector. 5. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 6. This award represents a substantial investment in naval technological advancement.

Value Assessment

Rating: good

The contract value of approximately $32 million over four years for specialized R&D services appears reasonable given the scope. Benchmarking against similar large-scale R&D contracts for defense readiness is challenging without more specific service details. However, the fixed fee component suggests a degree of cost control, though the cost-plus nature inherently carries some risk of expenditure growth. The contractor's extensive experience in defense contracting likely contributes to efficient service delivery.

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 full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. This approach allows the government to select the best value solution from a wide range of potential contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to the pressure on contractors to be competitive.

Public Impact

The U.S. Pacific Fleet directly benefits from enhanced warfighting readiness and advanced maritime operational capabilities. Services delivered include technical analysis and strategic/operational planning crucial for naval superiority. The geographic impact is primarily focused on the U.S. Pacific Fleet's operational areas. Workforce implications include highly skilled R&D professionals and analysts contributing to national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize profit if not closely monitored.
The long duration of the contract could lead to scope creep or evolving requirements that may not be fully captured in the initial pricing.
Reliance on a single large contractor for critical R&D may limit future competition or innovation from smaller firms.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
Booz Allen Hamilton is a well-established contractor with a proven track record in defense and R&D.
The contract directly supports U.S. national security objectives by enhancing warfighting readiness.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense R&D market is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would typically involve other large-scale R&D contracts awarded by the Department of Defense to support strategic initiatives and operational readiness.

Small Business Impact

As this contract was awarded under full and open competition and Booz Allen Hamilton is a large business, there is no direct small business set-aside. However, the prime contractor may engage small businesses for subcontracting opportunities to fulfill specific aspects of the R&D or support services, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of Defense. Accountability measures are embedded in the contract terms, including performance metrics and reporting requirements. Transparency is facilitated through contract award databases, though detailed project specifics may be classified or sensitive.

Related Government Programs

Naval Research and Development
Pacific Fleet Modernization Programs
Defense Advanced Research Projects Agency (DARPA) Initiatives
Maritime Warfare Technology Development
Strategic Planning for Naval Operations

Risk Flags

Cost-plus contract type may lead to cost overruns.
Long contract duration requires careful management of evolving requirements.
Potential for contractor to prioritize profit over cost efficiency in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.0 million to BOOZ ALLEN HAMILTON INC. TECHNICAL ANALYSES AND STRATEGIC/OPERATIONAL PLANNING FOR MARITIME OPERATIONS AND WARFIGHTING READINESS FOR U.S. PACIFIC FLEET

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 $32.0 million.

What is the period of performance?

Start: 2018-06-18. End: 2022-06-17.

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

Booz Allen Hamilton has an extensive history of securing and executing large, complex contracts with the Department of Defense, including significant work in research and development, strategic planning, and technical analysis. They are a prime contractor on numerous other DoD awards, often involving advanced technologies and operational support. Their experience spans various branches of the military and different R&D domains. While specific details of past performance on contracts directly analogous to this one are not publicly detailed in this summary, their overall profile suggests a strong capability to manage and deliver on such requirements. The company's size and established presence in the defense sector indicate a capacity for handling substantial budgets and long-term projects.

How does the value of this contract compare to other R&D spending for the U.S. Pacific Fleet?

The $31.97 million awarded to Booz Allen Hamilton represents a significant investment in R&D for the U.S. Pacific Fleet over its four-year duration. To provide a precise comparison, one would need to analyze the total R&D budget allocated to the Pacific Fleet during the contract period (2018-2022) and identify other major R&D contracts. However, given the strategic importance of the Pacific theater and the ongoing need for technological advancement in maritime operations, this contract's value is likely commensurate with the critical nature of the services. It suggests a focused effort on enhancing warfighting readiness through specialized technical analysis and strategic planning, rather than broad-based R&D.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially in R&D, is that the 'cost-plus' element can incentivize the contractor to incur higher costs, as their fee is a fixed percentage or amount of those costs. This can lead to cost overruns if not meticulously managed and overseen by the government. For R&D, where the scope and outcomes can be uncertain, it can be challenging to accurately estimate costs upfront. The fixed fee provides the contractor with a guaranteed profit margin, but the government bears the risk of escalating direct and indirect costs. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.

How does this contract contribute to the overall effectiveness and readiness of the U.S. Pacific Fleet?

This contract directly contributes to the effectiveness and readiness of the U.S. Pacific Fleet by providing essential technical analyses and strategic/operational planning. These services are crucial for understanding complex maritime environments, developing advanced warfighting concepts, and ensuring that naval assets are prepared to meet evolving threats. By focusing on R&D for warfighting readiness, the contract aims to equip the fleet with superior capabilities, improved operational strategies, and a deeper understanding of potential challenges. This investment supports the fleet's ability to maintain a credible presence, deter adversaries, and respond effectively to crises in the Indo-Pacific region.

What is the historical spending trend for similar R&D services within the Department of Defense over the past decade?

Historical spending trends for R&D services within the Department of Defense over the past decade show a consistent and substantial allocation of resources. While specific figures fluctuate based on geopolitical priorities and technological advancements, the DoD remains one of the largest government funders of R&D. Spending often increases during periods of heightened national security concerns or when facing rapid technological shifts from potential adversaries. Contracts for technical analysis, strategic planning, and advanced research are common across various military branches. The overall trend indicates a sustained commitment to maintaining a technological edge, with significant portions directed towards areas like maritime operations, cybersecurity, and advanced materials.

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: $34,494,074

Exercised Options: $34,494,074

Current Obligation: $31,973,341

Actual Outlays: $7,355,111

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $10,052,487

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