DoD's $19.6M STRATCOM contract awarded to Booz Allen Hamilton for R&D services
Contract Overview
Contract Amount: $19,619,969 ($19.6M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2019-06-13
End Date: 2024-06-12
Contract Duration: 1,826 days
Daily Burn Rate: $10.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: STRATEGIC CAPABILITY AND MISSION ASSURANCE ANALYSIS FOR HEADQUARTERS UNITED STATES STRATEGIC COMMAND
Place of Performance
Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $19.6 million to BOOZ ALLEN HAMILTON INC for work described as: STRATEGIC CAPABILITY AND MISSION ASSURANCE ANALYSIS FOR HEADQUARTERS UNITED STATES STRATEGIC COMMAND Key points: 1. Booz Allen Hamilton secured a significant contract for strategic command analysis. 2. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is 5 years, indicating a long-term need for these services.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee structure may limit the direct price discovery benefits of competition.
Taxpayer Impact: Taxpayer funds are being used for critical R&D supporting strategic command capabilities. The effectiveness of spending depends on the successful delivery of strategic analysis and mission assurance.
Public Impact
Supports the critical mission of the U.S. Strategic Command. Funds advanced research and development in a key national security area. Ensures the U.S. maintains a strategic advantage through robust analysis. Contract awarded through a competitive process, aiming for best value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize higher costs.
- Lack of specific performance metrics makes value assessment challenging.
- Long contract duration may not adapt to rapidly changing strategic needs.
Positive Signals
- Awarded via full and open competition.
- Supports a vital national security function.
- Experienced contractor likely to deliver quality services.
Sector Analysis
This contract is in the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority and national security, with benchmarks varying widely based on the specific research domain.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. This suggests large businesses dominated the bidding process for this specific requirement.
Oversight & Accountability
The Department of the Air Force, under the Department of Defense, is responsible for oversight. The contract's duration and cost-plus nature necessitate diligent monitoring to ensure funds are used effectively and for intended purposes.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee structure
- Long contract duration
- Lack of specific performance metrics
- Potential for cost overruns
- No small business participation noted
Tags
research-and-development-in-the-physical, department-of-defense, ne, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.6 million to BOOZ ALLEN HAMILTON INC. STRATEGIC CAPABILITY AND MISSION ASSURANCE ANALYSIS FOR HEADQUARTERS UNITED STATES STRATEGIC COMMAND
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 $19.6 million.
What is the period of performance?
Start: 2019-06-13. End: 2024-06-12.
How effectively will the awarded services contribute to the U.S. Strategic Command's mission assurance and capability development over the contract's five-year term?
The effectiveness hinges on the contractor's ability to deliver insightful analysis and adapt to evolving strategic threats. While the contract supports a critical mission, the Cost Plus Fixed Fee structure requires robust oversight to ensure value for money. Success will be measured by tangible improvements in strategic planning and operational readiness derived from the research and development provided.
What are the primary risks associated with the Cost Plus Fixed Fee contract type for this R&D effort, and how are they being mitigated?
The primary risk is potential cost escalation, as the contractor is reimbursed for all allowable costs plus a fixed fee. Mitigation relies on stringent government oversight, detailed cost tracking, and clear performance expectations. The fixed fee provides some incentive for efficiency, but the government bears the brunt of cost uncertainty in this R&D context.
Does the full and open competition guarantee optimal taxpayer value, or could the contract structure limit potential savings?
Full and open competition is a positive step towards achieving optimal taxpayer value by encouraging multiple bids. However, the Cost Plus Fixed Fee structure inherently introduces cost uncertainty. While competition may drive down the initial fixed fee, the overall cost is subject to the actual expenses incurred, potentially limiting the direct price discovery benefits seen in fixed-price 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: 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: $20,211,098
Exercised Options: $20,211,098
Current Obligation: $19,619,969
Actual Outlays: $6,419,484
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $4,831,364
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
Start Date: 2019-06-13
Current End Date: 2024-06-12
Potential End Date: 2024-06-12 00:00:00
Last Modified: 2026-03-12
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