Booz Allen Hamilton awarded $31.6M for strategic planning and research for Special Operations Command Europe

Contract Overview

Contract Amount: $31,599,297 ($31.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2019-09-27

End Date: 2024-12-26

Contract Duration: 1,917 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: STRATEGIC PLANNING, ASSESSMENT, AND TECHNICAL RESEARCH AND ANALYSIS FOR SPECIAL OPERATIONS COMMAND EUROPE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to BOOZ ALLEN HAMILTON INC for work described as: STRATEGIC PLANNING, ASSESSMENT, AND TECHNICAL RESEARCH AND ANALYSIS FOR SPECIAL OPERATIONS COMMAND EUROPE Key points: 1. Contract focuses on critical R&D and strategic planning for a key European command. 2. Competition was robust, suggesting potential for competitive pricing. 3. Performance period extends over five years, indicating a long-term need. 4. Contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 5. The North American Industry Classification System (NAICS) code 541715 points to significant R&D investment. 6. This award represents a portion of broader Department of Defense R&D spending.

Value Assessment

Rating: good

The contract value of $31.6 million over approximately five years appears reasonable for specialized strategic planning and technical research services for a command like SOCEUR. Benchmarking against similar R&D contracts for defense organizations requires detailed analysis of scope and deliverables, but the duration and nature of the work suggest a fair market value. The Cost Plus Fixed Fee (CPFF) structure, while common in R&D, necessitates diligent cost tracking to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple offerors had the opportunity to bid. With four bidders identified, the competition level appears healthy, which generally supports price discovery and can lead to more favorable pricing for the government. The existence of multiple qualified bidders suggests a competitive market for these specialized services.

Taxpayer Impact: Full and open competition with four bidders is a positive signal for taxpayers, as it increases the likelihood that the government secured competitive pricing and avoided potential overcharges associated with less competitive solicitations.

Public Impact

Special Operations Command Europe (SOCEUR) benefits from enhanced strategic planning and technical research capabilities. The services delivered will support the operational effectiveness and future planning of U.S. European special operations. Geographic impact is primarily focused on the European theater of operations. The contract supports highly skilled research and analysis professionals, potentially impacting the workforce in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to manage costs effectively and prevent potential overruns.
The long performance period necessitates ongoing monitoring to ensure continued alignment with evolving strategic needs.
Reliance on a single contractor for critical strategic planning could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace for these services.
The contractor, Booz Allen Hamilton, has a significant track record in government contracting, suggesting experience and capability.
The contract duration implies a stable, long-term requirement, allowing for in-depth strategic development.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541715, which covers physical, engineering, and life sciences research. The market for defense-related R&D and strategic consulting is substantial, with major defense contractors and specialized firms competing for these high-value awards. Spending in this area is critical for maintaining technological superiority and adapting to evolving geopolitical landscapes. Comparable spending benchmarks would involve analyzing other R&D contracts awarded by DoD components for similar strategic support.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if initiated by the prime contractor. The absence of specific small business provisions means direct impact on the small business ecosystem is limited unless subcontracting occurs.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting officer and program management office within the Department of the Air Force, overseeing the Special Operations Command Europe. Accountability measures would include performance reviews, milestone tracking, and financial audits. Transparency is typically managed through contract reporting mechanisms, though specific public transparency details are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Special Operations Command Europe (SOCEUR) Operations
Department of Defense Research and Development
Strategic Planning Services
Technical Analysis Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract structure requires diligent oversight.
Long performance period necessitates ongoing monitoring.
Potential for cost overruns if not managed effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to BOOZ ALLEN HAMILTON INC. STRATEGIC PLANNING, ASSESSMENT, AND TECHNICAL RESEARCH AND ANALYSIS FOR SPECIAL OPERATIONS COMMAND EUROPE

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 $31.6 million.

What is the period of performance?

Start: 2019-09-27. End: 2024-12-26.

What is Booz Allen Hamilton's track record with similar Cost Plus Fixed Fee (CPFF) R&D contracts for the Department of Defense?

Booz Allen Hamilton has a long and extensive history of performing CPFF contracts for the Department of Defense across various domains, including R&D, strategic planning, and technical analysis. Their extensive experience suggests a deep understanding of DoD requirements, compliance, and the nuances of CPFF contract management. While specific performance metrics for all past contracts are not publicly detailed, their continued success in securing and executing such awards indicates a generally positive track record. However, like any large contractor, past performance reviews and specific contract close-outs would provide a more granular assessment of their effectiveness, cost control, and adherence to requirements on individual projects.

How does the $31.6 million value compare to other strategic planning and R&D contracts for European-focused military commands?

The $31.6 million value for a five-year contract focused on strategic planning and R&D for SOCEUR appears to be within a reasonable range when compared to similar endeavors. Defense R&D and strategic support contracts can vary significantly based on scope, duration, and the specific command's mission complexity. Contracts for major system development or large-scale operational support would naturally be higher. However, for specialized analytical, research, and planning services tailored to a specific command's needs in a complex geopolitical region like Europe, this figure suggests a substantial but not outlier investment. Benchmarking requires access to detailed scope-of-work and deliverable comparisons, which are often not fully public.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk with a CPFF contract structure, especially for R&D and strategic planning, is the potential for cost overruns if not managed diligently. While the 'fixed fee' provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses allowable costs. This can incentivize contractors to incur higher costs, as their fee remains constant. For the government, the risk lies in paying higher-than-necessary costs if oversight is insufficient. Effective risk mitigation involves robust government oversight, detailed cost tracking, clear definition of allowable costs, and strong negotiation of the fixed fee based on realistic projections. Regular audits and performance reviews are crucial.

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

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including specialized R&D services. By allowing all responsible sources to submit proposals, the government maximizes the pool of potential offerors, fostering a competitive environment. This competition drives innovation, encourages efficiency, and puts downward pressure on prices. When multiple bidders, like the four in this case, submit proposals, it allows the government to compare technical approaches and pricing, selecting the best overall value. While specialized R&D can be complex to evaluate, a well-defined solicitation and robust evaluation process under full and open competition significantly increase the likelihood of securing optimal value for taxpayer funds.

What are the implications of the NAICS code 541715 for the type of work being performed and the contractor's expertise?

The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' indicates that the contract's core focus is on scientific and technical research. This implies the work involves hypothesis testing, experimentation, data analysis, and the development of new knowledge or applications within these scientific fields. For Booz Allen Hamilton, this code signifies their engagement in high-level, technically sophisticated activities. It suggests the contractor must possess specialized expertise, skilled personnel (scientists, engineers, researchers), and potentially laboratory or testing facilities relevant to the physical, engineering, or life sciences, aligning with the strategic and technical analysis requirements for SOCEUR.

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: 4

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: $32,392,719

Exercised Options: $32,392,719

Current Obligation: $31,599,297

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $6,632,311

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