Booz Allen Hamilton awarded $95.3M for Army R&D, focusing on ground systems technologies

Contract Overview

Contract Amount: $95,258,087 ($95.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-12-17

End Date: 2022-12-21

Contract Duration: 1,465 days

Daily Burn Rate: $65.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS REQUIREMENT WILL PROVIDE PLANNING, DEVELOPMENT, INTEGRATION, AND GROUND SYSTEMS TECHNOLOGIES AND LABORATORIES FOR THE UNITED STATES ARMY TANK-AUTOMOTIVE RESEARCH, DEVELOPMENT, AND ENGINEERING CENTER

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $95.3 million to BOOZ ALLEN HAMILTON INC for work described as: THIS REQUIREMENT WILL PROVIDE PLANNING, DEVELOPMENT, INTEGRATION, AND GROUND SYSTEMS TECHNOLOGIES AND LABORATORIES FOR THE UNITED STATES ARMY TANK-AUTOMOTIVE RESEARCH, DEVELOPMENT, AND ENGINEERING CENTER Key points: 1. Contract supports critical research and development for Army ground systems. 2. Significant investment in planning, development, and integration of advanced technologies. 3. Booz Allen Hamilton, a large established contractor, holds this award. 4. The contract duration spans over four years, indicating a long-term need. 5. This award falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code. 6. The contract type is Cost Plus Fixed Fee, which can introduce cost variability. 7. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The contract value of $95.3 million over approximately four years suggests a substantial investment in R&D. Benchmarking this against similar large-scale R&D contracts for ground systems is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure implies that Booz Allen Hamilton will be reimbursed for allowable costs plus a fixed fee, which can be less predictable in final cost than fixed-price contracts. The award amount appears reasonable for the scope of planning, development, and integration of complex ground systems technologies.

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 offers. 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. The Department of the Air Force, acting as the contracting agency, likely sought the best value through this process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive pricing and innovative solutions, thereby optimizing the use of public funds.

Public Impact

The United States Army Tank-Automotive Research, Development, and Engineering Center (TARDEC) is the primary beneficiary, receiving advanced technological support. Services delivered include planning, development, integration, and ground systems technologies and laboratories. The geographic impact is primarily within the defense sector, supporting Army modernization efforts. Workforce implications include potential employment for scientists, engineers, and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed carefully.
The long duration of the contract requires sustained oversight to ensure objectives are met.
Reliance on a single large contractor for critical R&D may pose long-term strategic risks.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Supports critical research and development for the U.S. Army.
Booz Allen Hamilton has a significant track record in government contracting.
The contract aims to advance ground systems technologies, a key military capability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the Department of Defense for similar technological advancements in ground vehicle systems or related engineering disciplines.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. As a large prime contract awarded to Booz Allen Hamilton, a major defense contractor, the direct impact on the small business ecosystem is likely limited unless specific subcontracting opportunities are later identified or mandated. The absence of set-asides suggests the requirement was deemed best met through full and open competition among all responsible sources.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency, the Department of the Air Force, on behalf of the Army. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is facilitated through contract award databases, though detailed programmatic oversight information may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Ground Vehicle Modernization Programs
Defense Research and Development Contracts
Advanced Engineering and Technology Services
Department of Defense Science and Technology Programs

Risk Flags

Cost Overrun Risk (CPFF contract type)
Scope Creep Potential
Long-Term Dependency on Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.3 million to BOOZ ALLEN HAMILTON INC. THIS REQUIREMENT WILL PROVIDE PLANNING, DEVELOPMENT, INTEGRATION, AND GROUND SYSTEMS TECHNOLOGIES AND LABORATORIES FOR THE UNITED STATES ARMY TANK-AUTOMOTIVE RESEARCH, DEVELOPMENT, AND ENGINEERING CENTER

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 $95.3 million.

What is the period of performance?

Start: 2018-12-17. End: 2022-12-21.

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

Booz Allen Hamilton has an extensive history of performing research and development services for the Department of Defense across various domains. They are a large, established contractor with significant experience in areas such as systems engineering, technology integration, and scientific research. Their portfolio includes numerous contracts supporting Army R&D initiatives, often involving complex technological development and strategic planning. While specific performance metrics for this exact contract are not detailed here, their general track record suggests a capacity to handle large-scale, technically demanding R&D efforts. Past performance reviews and contract databases would provide more granular insights into their specific successes and challenges on prior DoD R&D projects.

How does the $95.3 million value compare to other R&D contracts for ground systems?

The $95.3 million value for this contract, spanning approximately four years, represents a significant but not unprecedented investment in ground systems R&D. Large-scale R&D efforts for major defense platforms can often range from tens to hundreds of millions of dollars. For instance, contracts for the development of new vehicle platforms, advanced armor, or sophisticated sensor integration can easily reach or exceed this figure. The specific nature of 'planning, development, integration, and ground systems technologies and laboratories' suggests a foundational R&D effort rather than the procurement of a fully developed system. Therefore, while substantial, this value appears aligned with the scope of advanced research and early-stage development within the defense sector.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, like this one, revolve around cost control and potential overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This can incentivize cost-consciousness up to a point, but if the scope of work expands or unforeseen technical challenges arise, the government bears the risk of increased costs. For R&D, where innovation and discovery are key, the path to success is often uncertain, making cost estimation difficult. This structure requires robust government oversight to monitor costs, ensure efficiency, and validate the necessity of expenditures to prevent the 'cost' portion from escalating significantly beyond initial projections.

What is the strategic importance of this contract for the U.S. Army's ground vehicle modernization?

This contract is strategically important as it directly supports the U.S. Army's ongoing efforts to modernize its ground vehicle fleet and associated technologies. By funding research, development, and integration of new ground systems technologies, the Army aims to enhance the capabilities, survivability, and effectiveness of its platforms. This includes advancements in areas such as power and propulsion, autonomous systems, networked communications, and advanced materials. The work performed under this contract contributes to the foundational knowledge and technological building blocks necessary for future vehicle designs and upgrades, ensuring the Army maintains a technological edge and can adapt to evolving battlefield requirements.

How does the NAICS code 541712 (R&D in Physical, Engineering, and Life Sciences) define the scope of this contract?

The North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' broadly defines the scope of this contract. It encompasses establishments primarily engaged in conducting research and development in the natural sciences, engineering, and applied sciences. This includes R&D in areas like aerospace, agricultural, environmental, industrial, and physical sciences, as well as engineering research. For this specific contract, the focus on 'ground systems technologies and laboratories' clearly places it within the engineering and physical sciences sub-categories, indicating that the work involves scientific inquiry and experimentation to create new knowledge and develop practical applications for Army ground vehicles.

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: $96,073,607

Exercised Options: $96,073,607

Current Obligation: $95,258,087

Actual Outlays: $11,835,003

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $24,561,922

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