Booz Allen Hamilton awarded $41.7M for environmental analysis and assessment services to SOCCENT

Contract Overview

Contract Amount: $41,671,633 ($41.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-08-20

End Date: 2022-03-19

Contract Duration: 1,307 days

Daily Burn Rate: $31.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ENVIRONMENTAL ANALYSIS AND ASSESSMENT SPECIAL OPERATIONS COMMAND CENTRAL (SOCCENT) J5 DIRECTORATE OF STRATEGIC PLANS, POLICY, INFORMATION OPERATIONS, AND ASSESSMENT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.7 million to BOOZ ALLEN HAMILTON INC for work described as: ENVIRONMENTAL ANALYSIS AND ASSESSMENT SPECIAL OPERATIONS COMMAND CENTRAL (SOCCENT) J5 DIRECTORATE OF STRATEGIC PLANS, POLICY, INFORMATION OPERATIONS, AND ASSESSMENT Key points: 1. Contract awarded for specialized research and development in physical, engineering, and life sciences. 2. Services support the J5 Directorate of Strategic Plans, Policy, Information Operations, and Assessment. 3. Contract duration spans over three years, indicating a sustained need for these services. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 6. The contractor, Booz Allen Hamilton, is a large, established firm with significant federal contracting experience.

Value Assessment

Rating: good

The contract value of $41.7 million over approximately 3.5 years for specialized R&D services appears reasonable given the contractor's expertise and the nature of the work. Benchmarking against similar contracts for strategic planning and assessment services within the Department of Defense is challenging due to the specific nature of SOCCENT's requirements. However, the Cost Plus Fixed Fee structure suggests that the government aims to control costs while allowing for flexibility in research scope. Further analysis would require detailed cost breakdowns and comparison to industry standards for similar research and development efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the competitive nature of the award suggests that the government sought the best value through a transparent process. This approach generally leads to more favorable pricing and innovative solutions compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a marketplace where contractors compete on price and performance, potentially leading to cost savings and higher quality services.

Public Impact

The primary beneficiary is the Special Operations Command Central (SOCCENT), which will receive enhanced strategic planning, policy development, and operational assessment capabilities. Services delivered include research and development in physical, engineering, and life sciences, tailored to support SOCCENT's unique mission requirements. The geographic impact is likely focused on areas relevant to SOCCENT's operational theaters, though the specific locations are not detailed. The contract supports a highly specialized workforce within Booz Allen Hamilton, contributing to employment in the defense and R&D sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored, as the contractor is reimbursed for allowable costs plus a fixed fee.
The specialized nature of the R&D may make it difficult to precisely define scope and deliverables upfront, potentially leading to contract modifications and increased costs.
Reliance on a single large contractor for critical strategic assessment functions could pose a risk if performance issues arise or if the contractor's priorities shift.

Positive Signals

Award to a large, experienced contractor like Booz Allen Hamilton suggests a high likelihood of successful performance and delivery of quality services.
The contract's duration indicates a stable, long-term requirement, providing continuity for SOCCENT's strategic planning efforts.
Full and open competition increases the probability of selecting a contractor with the most suitable expertise and competitive pricing.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541712. This is a critical area for defense agencies, supporting innovation and advanced capabilities. The market for such services is competitive, with large, established firms like Booz Allen Hamilton often dominating large-scale federal contracts due to their resources, expertise, and past performance. Spending in this sector is substantial across the federal government, particularly within the Department of Defense, to maintain technological superiority.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The award to a large prime contractor like Booz Allen Hamilton suggests that subcontracting opportunities may exist for small businesses with specialized expertise relevant to the R&D requirements. However, the extent of small business participation would depend on the prime contractor's subcontracting plan and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force, acting on behalf of the Department of Defense and SOCCENT. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure that all costs incurred are allowable and reasonable. Performance monitoring would likely involve regular reviews of deliverables, progress reports, and adherence to project milestones. Transparency is generally maintained through contract reporting mechanisms, though specific details of the R&D may be sensitive.

Related Government Programs

Department of Defense Strategic Planning Support
Special Operations Command Research and Development
Intelligence Community Support Services
Defense Policy Analysis Contracts
Federal R&D Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Research and Development contracts can have uncertain scope and deliverables.
Special Operations Command requirements are often highly specialized and sensitive.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.7 million to BOOZ ALLEN HAMILTON INC. ENVIRONMENTAL ANALYSIS AND ASSESSMENT SPECIAL OPERATIONS COMMAND CENTRAL (SOCCENT) J5 DIRECTORATE OF STRATEGIC PLANS, POLICY, INFORMATION OPERATIONS, AND ASSESSMENT

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 $41.7 million.

What is the period of performance?

Start: 2018-08-20. End: 2022-03-19.

What is the specific nature of the 'environmental analysis and assessment' services required by SOCCENT J5?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' supporting SOCCENT's J5 Directorate of Strategic Plans, Policy, Information Operations, and Assessment. While 'environmental analysis and assessment' is mentioned in the description, the specific nature of these services within the R&D context is not detailed. It could encompass a wide range of activities, from analyzing the operational environment (political, social, physical) to assessing the impact of specific policies or operations, or even conducting research into environmental factors relevant to special operations. Given the R&D focus, it likely involves developing new methodologies, tools, or insights rather than routine environmental compliance.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types for similar R&D services?

Cost Plus Fixed Fee (CPFF) contracts are common for research and development where the scope is not fully defined at the outset, allowing for flexibility. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This differs from Fixed Price contracts, where the price is set regardless of costs, and Cost Plus Incentive Fee (CPIF) contracts, which include incentives for meeting cost or performance targets. For R&D, CPFF offers flexibility but requires strong government oversight to manage costs. Other contract types like Time and Materials (T&M) might be used for smaller, less defined tasks, while Firm-Fixed-Price (FFP) is less suitable for exploratory R&D due to inherent uncertainties.

What is Booz Allen Hamilton's track record with similar Department of Defense R&D contracts?

Booz Allen Hamilton is a major federal contractor with extensive experience supporting the Department of Defense (DoD) across various domains, including research and development, strategic planning, and intelligence analysis. They have a long history of securing and performing on large, complex contracts for agencies like SOCCENT, DARPA, and various military branches. Their track record typically involves providing advanced analytical, technical, and consulting services. While specific performance metrics for this particular contract are not detailed here, Booz Allen Hamilton's established presence and significant award volume suggest a generally positive track record in delivering complex R&D and strategic support services to the DoD.

What are the potential risks associated with a $41.7 million R&D contract awarded under CPFF?

The primary risks with a $41.7 million CPFF contract for R&D revolve around cost control and scope definition. Since the contractor is reimbursed for costs plus a fixed fee, there's an inherent incentive for costs to rise if not managed diligently by the government. The 'R&D' nature means the exact outcomes and effort required might be uncertain, potentially leading to scope creep or the need for contract modifications, which can increase the total cost. Furthermore, ensuring the 'fixed fee' remains appropriate relative to the effort and risk undertaken by Booz Allen Hamilton requires careful negotiation and oversight. Effective government oversight, clear milestones, and robust cost monitoring are crucial to mitigate these risks.

How does this contract's value compare to overall federal spending on R&D in the physical, engineering, and life sciences?

The $41.7 million awarded to Booz Allen Hamilton for SOCCENT's environmental analysis and assessment falls within the broader federal spending on Research and Development (R&D) in the physical, engineering, and life sciences (NAICS 541712). Federal R&D spending is substantial, often exceeding hundreds of billions of dollars annually across various agencies, with the Department of Defense being a significant contributor. While $41.7 million is a considerable sum for a single contract, it represents a small fraction of the total federal R&D budget. This contract specifically targets specialized R&D needs for a particular command (SOCCENT), highlighting the targeted nature of federal R&D investments rather than broad-based funding.

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: $43,908,733

Exercised Options: $43,908,733

Current Obligation: $41,671,633

Actual Outlays: $5,173,107

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $2,496,237

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