Booz Allen Hamilton awarded $70.6M for Joint Staff J7 Force Development Analysis Support

Contract Overview

Contract Amount: $70,575,644 ($70.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2019-04-12

End Date: 2024-06-28

Contract Duration: 1,904 days

Daily Burn Rate: $37.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FORCE DEVELOPMENT ANALYSIS SUPPORT FOR JOINT STAFF J7

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $70.6 million to BOOZ ALLEN HAMILTON INC for work described as: FORCE DEVELOPMENT ANALYSIS SUPPORT FOR JOINT STAFF J7 Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Significant duration of over 1900 days indicates a long-term need for these services. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely managed. 4. The North American Industry Classification System (NAICS) code 541715 points to R&D services. 5. This contract represents a substantial investment in strategic defense analysis. 6. The awardee, Booz Allen Hamilton, is a well-established government contractor. 7. The contract is managed by the Department of the Air Force for the Joint Staff.

Value Assessment

Rating: good

The total contract value of $70.6 million over approximately five years suggests a significant but potentially reasonable investment for specialized force development analysis. Benchmarking against similar R&D support contracts for joint staff functions would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) structure necessitates careful oversight to ensure costs remain aligned with the fixed fee and the overall value delivered. Without specific performance metrics or comparisons to industry standards for similar analytical services, a definitive value assessment is challenging, but the scale implies a critical need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of 3 bids suggests a competitive environment, though the exact number of bidders can vary widely for R&D services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The fact that it was competed openly is a positive sign for market engagement and potential cost-effectiveness.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from a wider pool of contractors.

Public Impact

The primary beneficiaries are the Joint Staff J7, who receive critical analytical support for force development. Services delivered include research and development in physical, engineering, and life sciences, tailored to military applications. The geographic impact is primarily within the Department of Defense's strategic planning functions, with potential implications for national security. Workforce implications include the employment of highly skilled researchers, analysts, and subject matter experts by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation if not managed diligently.
Long contract duration (1904 days) requires sustained oversight to ensure continued relevance and performance.
Reliance on a single large contractor for critical analytical support could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a broad market search and potential for competitive pricing.
The contractor, Booz Allen Hamilton, has extensive experience in government contracting and defense analysis.
The contract supports a critical function (Force Development Analysis) for the Joint Staff, indicating strategic importance.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541715, which covers R&D in physical, engineering, and life sciences. This is a highly specialized area often involving complex analytical modeling, simulation, and strategic planning. The market for such services is dominated by large, established government contractors with deep expertise and security clearances. Comparable spending benchmarks would typically be found within broader DoD R&D budgets or specific program offices focused on future force capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of R&D and force development analysis, it is common for prime contracts to be awarded to large businesses with the requisite expertise and infrastructure. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in this summary data. The focus on large prime contractors in this domain can limit direct opportunities for small businesses unless they are part of a larger team.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting activity (Department of the Air Force) and the requiring activity (Joint Staff J7). The Cost Plus Fixed Fee structure necessitates rigorous financial and performance monitoring to ensure compliance with contract terms and prevent cost overruns. Transparency is typically managed through contract reporting mechanisms and performance reviews. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Joint Staff Support Services
Defense Research and Development
Force Structure Analysis
Strategic Planning Support
Military Operations Research

Risk Flags

Cost Plus Fixed Fee contract type
Long contract duration
Potential for cost overruns in R&D

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.6 million to BOOZ ALLEN HAMILTON INC. FORCE DEVELOPMENT ANALYSIS SUPPORT FOR JOINT STAFF J7

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 $70.6 million.

What is the period of performance?

Start: 2019-04-12. End: 2024-06-28.

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

Booz Allen Hamilton is a long-standing and prominent contractor for the Department of Defense, with extensive experience in providing a wide array of services including R&D, strategic analysis, and force development support. They have a significant portfolio of contracts across various defense agencies, often securing large-value awards due to their established presence, broad capabilities, and security clearances. Their track record generally includes successful execution of complex analytical tasks, though like any large contractor, they have faced scrutiny on specific contracts regarding performance or cost management. For this specific type of contract (Force Development Analysis Support), they are a frequent awardee, indicating a strong competitive position and perceived capability by the government.

How does the $70.6 million value compare to other force development analysis contracts within the DoD?

The $70.6 million value for approximately five years of support for Joint Staff J7 Force Development Analysis is substantial, reflecting the critical nature of strategic planning and future force design. When compared to other DoD R&D and analytical support contracts, this figure is within a common range for high-level advisory and analytical services supporting major commands or joint activities. Contracts for similar functions, such as wargaming, simulation, policy analysis, or long-term strategic planning, can range from tens to hundreds of millions of dollars depending on the scope, duration, and complexity. The value appears commensurate with the strategic importance of the Joint Staff's role in shaping future military capabilities.

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 for R&D services, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. If the R&D effort proves more complex or costly than initially estimated, the government bears the burden of increased costs while the contractor's profit (the fixed fee) remains constant. This can incentivize contractors to be less cost-conscious than in fixed-price arrangements. Effective risk mitigation requires robust government oversight, clear definition of scope, stringent cost tracking, and well-defined performance metrics to ensure the government receives value for the incurred costs.

How effective is full and open competition in ensuring value for money for specialized R&D services?

Full and open competition is generally considered the most effective method for ensuring value for money, even for specialized R&D services. It maximizes the pool of potential offerors, fostering a competitive environment that drives innovation and encourages realistic pricing. For R&D, where outcomes can be uncertain, competition helps identify contractors with the most promising approaches and best-qualified personnel at a given price point. While specialized knowledge is crucial, a broad competition ensures that the government isn't limited to a few incumbents or pre-selected firms, potentially leading to better technical solutions and more competitive bids. The key is ensuring the solicitation clearly defines requirements and evaluation criteria to attract and assess the right capabilities.

What are the historical spending patterns for Force Development Analysis Support within the DoD?

Historical spending patterns for Force Development Analysis Support within the DoD typically show consistent, significant investment, reflecting the ongoing need to adapt military capabilities to evolving threats and technological advancements. Such contracts are often awarded to large, established defense contractors with specialized analytical and research capabilities. Spending levels can fluctuate based on geopolitical conditions, shifts in defense strategy (e.g., focus on near-peer competitors, emerging technologies), and budget allocations. While specific historical data for this exact contract line item isn't provided, the overall trend in DoD spending on strategic analysis, R&D, and future force planning indicates a sustained requirement, often measured in the hundreds of millions or billions of dollars annually across various related programs and contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $70,629,031

Exercised Options: $70,629,031

Current Obligation: $70,575,644

Actual Outlays: $9,285,050

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $7,080,181

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0004

IDV Type: IDC

Timeline