Booz Allen Hamilton awarded $71.4M contract for R&D services by the Air Force

Contract Overview

Contract Amount: $71,377,318 ($71.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2019-06-10

End Date: 2024-06-18

Contract Duration: 1,835 days

Daily Burn Rate: $38.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: STRATEGICALLY PLANNED INITIATIVES&KNOWLEDGE ENHANCEMENT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $71.4 million to BOOZ ALLEN HAMILTON INC for work described as: STRATEGICALLY PLANNED INITIATIVES&KNOWLEDGE ENHANCEMENT Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Significant duration of 1835 days indicates a long-term strategic initiative. 3. Awarded under full and open competition, suggesting a robust market. 4. Cost Plus Fixed Fee pricing structure allows for flexibility but requires careful oversight. 5. Contractor has a strong track record in government contracting. 6. Services are strategically planned, implying alignment with long-term agency goals.

Value Assessment

Rating: good

The contract value of $71.4 million over approximately five years represents a substantial investment in R&D. Benchmarking this against similar contracts for 'Research and Development in the Physical, Engineering, and Life Sciences' requires detailed analysis of specific deliverables and research areas. However, the duration and scope suggest a significant undertaking. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, necessitates diligent cost tracking to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process typically fosters competitive pricing and allows the agency to select the best value solution. The presence of two bidders suggests a moderately competitive environment for this specific R&D requirement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs and ensuring the government receives high-quality services at a fair price.

Public Impact

Benefits the Department of the Air Force by advancing scientific and technological capabilities. Delivers research and development services in physical, engineering, and life sciences. Geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include employment for researchers, scientists, and support staff at Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
Long contract duration requires sustained oversight to ensure continued relevance and performance.
Limited number of bidders (2) may indicate a niche market or high barriers to entry.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Contractor (Booz Allen Hamilton) is a well-established entity with significant government contracting experience.
Strategic planning indicates alignment with agency objectives, potentially leading to impactful outcomes.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense agencies seeking technological superiority. The market for such specialized R&D services is often dominated by large, established contractors with deep expertise and security clearances. Comparable spending benchmarks would depend heavily on the specific research domains and the novelty of the work required.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton is a large business, and while they may engage small businesses as subcontractors, the primary awardee is not a small entity. This contract does not appear to directly support the small business ecosystem through a set-aside, but subcontracting opportunities could exist.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would likely involve regular reviews of contractor performance, cost reporting, and adherence to the statement of work by the Department of the Air Force. Accountability measures are built into the contract terms and performance metrics. Transparency is generally maintained through contract award databases and reporting requirements, though specific research details may be sensitive.

Related Government Programs

Research and Development Services
Scientific and Technical Consulting
Department of Defense Research Contracts
Air Force Science and Technology Programs

Risk Flags

Potential for cost overruns under CPFF structure.
Limited competition (2 bidders) may reduce price pressure.
Long contract duration requires sustained oversight.
Unspecified PSC code hinders precise categorization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.4 million to BOOZ ALLEN HAMILTON INC. STRATEGICALLY PLANNED INITIATIVES&KNOWLEDGE ENHANCEMENT

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 $71.4 million.

What is the period of performance?

Start: 2019-06-10. End: 2024-06-18.

What is Booz Allen Hamilton's track record with the Department of the Air Force and similar R&D contracts?

Booz Allen Hamilton is a major government contractor with extensive experience across various agencies, including the Department of Defense and the Air Force. They frequently secure contracts for research and development, consulting, and technology services. Their historical performance data with the Air Force would need to be reviewed in detail, but their established presence suggests a capacity to handle complex R&D projects. Analyzing past performance ratings, contract modifications, and any past performance issues would provide a clearer picture of their reliability and effectiveness in similar R&D endeavors.

How does the $71.4 million value compare to typical R&D contracts in the physical, engineering, and life sciences for the Air Force?

The $71.4 million value over approximately five years is a significant but not unusual amount for a strategic R&D initiative within the Department of the Air Force. R&D contracts can vary widely in value depending on the scope, duration, and technological complexity. Contracts for fundamental research might be smaller, while those involving advanced development and prototyping can reach hundreds of millions. This contract's value suggests a substantial, long-term project likely focused on developing new capabilities or addressing complex scientific challenges critical to Air Force operations. Benchmarking against specific sub-disciplines within physical, engineering, and life sciences would provide more precise comparisons.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risk with a CPFF contract is the potential for cost overruns if the contractor's costs exceed the initial estimate, although the fixed fee provides a ceiling for the contractor's profit. For the government, the risk lies in ensuring that the contractor exercises cost control and efficiency, as the CPFF structure can incentivize higher spending to cover fixed overheads. Given the $71.4 million value and 5-year duration, diligent oversight by the Air Force is crucial to monitor expenditures, validate costs, and ensure the contractor is performing efficiently and effectively towards the research objectives. Scope creep is another risk that needs careful management through robust change control processes.

How does the 'full and open competition' with only two bidders impact price discovery and potential value for taxpayers?

While 'full and open competition' is generally positive, having only two bidders suggests a potentially limited market for this specific R&D requirement. This could be due to the specialized nature of the research, high barriers to entry (e.g., security clearances, specific expertise), or the contract size. With only two bidders, the competitive pressure might be less intense than if there were numerous offers. This could potentially lead to less aggressive pricing compared to a more crowded field. However, if both bidders are highly capable and competitive, taxpayers could still achieve good value. The government's negotiation strategy and the specific technical requirements will play a significant role in determining the final price and overall value.

What are the implications of the PSC code being blank or unspecified for this contract?

The absence of a specific Product or Service Code (PSC) is unusual for a contract of this nature and value. PSC codes are used to classify the goods and services procured by the federal government, aiding in analysis and tracking of spending. A blank PSC might indicate an administrative oversight, a custom classification, or that the system used to record the data did not populate this field correctly. For analytical purposes, it makes it harder to categorize this specific R&D effort within broader government procurement trends and to find directly comparable contracts using standard search parameters. It necessitates relying more heavily on the contract's description and NAICS code (541715) for classification.

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: 2

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: $71,377,318

Exercised Options: $71,377,318

Current Obligation: $71,377,318

Actual Outlays: $5,828,707

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $20,937,191

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