Navy Reserve Force Mission Assurance contract awarded to Booz Allen Hamilton for over $36.5 million

Contract Overview

Contract Amount: $36,579,053 ($36.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2020-05-01

End Date: 2026-01-31

Contract Duration: 2,101 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MISSION ASSURANCE OF OPERATIONAL FORCES FOR COMMANDER, NAVY RESERVE FORCE (CNRF)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $36.6 million to BOOZ ALLEN HAMILTON INC for work described as: MISSION ASSURANCE OF OPERATIONAL FORCES FOR COMMANDER, NAVY RESERVE FORCE (CNRF) Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Booz Allen Hamilton, a large established contractor, holds this award. 3. The contract duration extends over six years, indicating a long-term need. 4. Awarded under full and open competition, suggesting a robust bidding process. 5. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 6. Virginia is the primary state for performance, impacting regional economic activity.

Value Assessment

Rating: fair

The total award amount of $36.5 million over approximately six years suggests a significant investment in R&D for naval operational forces. Benchmarking this against similar R&D contracts within the Department of Defense is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility for research, can lead to costs exceeding initial estimates if not closely managed. The value proposition hinges on the successful delivery of mission assurance solutions, which are critical but difficult to quantify in dollar terms upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely considered. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions to win the contract. The presence of multiple bidders suggests that the market has sufficient capacity to meet the government's needs, which can lead to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices, preventing potential overspending that could occur with less competitive procurement methods.

Public Impact

The primary beneficiaries are the Commander, Navy Reserve Force (CNRF), receiving enhanced mission assurance. Services delivered likely involve advanced research and development to improve operational readiness and resilience. Performance is concentrated in Virginia, potentially creating or sustaining high-skill jobs in the region. The contract supports the operational effectiveness and readiness of naval reserve forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage potential cost overruns.
The long duration of the contract necessitates ongoing performance monitoring to ensure continued value.
Defining and measuring 'mission assurance' can be complex, requiring clear performance metrics.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Booz Allen Hamilton is a well-established contractor with a significant track record in government services.
The contract addresses a critical need for operational readiness and mission assurance for reserve forces.

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 modernization, aiming to enhance the capabilities and resilience of military forces. The market for such specialized R&D services is competitive, with a mix of large defense contractors and specialized research firms. Spending in this category is often driven by evolving threats and the need for technological superiority.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major contractor, Booz Allen Hamilton, it is unlikely that significant subcontracting opportunities will be specifically earmarked for small businesses unless mandated by the prime contractor's own strategic goals or specific clauses within the contract not detailed here. The focus is likely on specialized R&D capabilities typically found in larger firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Navy. Performance monitoring, financial reviews, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Reserve Force Readiness Programs
Department of Defense Research and Development
Operational Mission Assurance Initiatives
Defense Science and Technology Strategy

Risk Flags

Cost Overruns Risk (CPFF)
Performance Measurement Difficulty (R&D)
Long-Term Contract Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.6 million to BOOZ ALLEN HAMILTON INC. MISSION ASSURANCE OF OPERATIONAL FORCES FOR COMMANDER, NAVY RESERVE FORCE (CNRF)

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 $36.6 million.

What is the period of performance?

Start: 2020-05-01. End: 2026-01-31.

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

Booz Allen Hamilton has an extensive history of performing CPFF contracts, particularly in the R&D and professional services sectors for the Department of Defense. Their track record generally indicates a capacity to manage complex projects and navigate the financial intricacies of CPFF agreements. However, like any large contractor, specific contract performance can vary. Scrutiny of past performance on similar R&D contracts would involve reviewing past performance evaluations (e.g., CPARS reports) to identify any recurring issues related to cost control, schedule adherence, or technical delivery. Their established presence suggests they are generally considered a reliable performer, but detailed analysis would require access to specific performance data beyond the contract award notice.

How does the $36.5 million award compare to other R&D contracts for naval mission assurance?

Comparing the $36.5 million award requires context regarding the scope and duration of similar contracts. This award spans approximately six years (May 2020 - January 2026), making its annual value around $6 million. Naval mission assurance R&D can encompass a wide range of activities, from cybersecurity enhancements to physical infrastructure resilience and operational planning tools. Larger, more comprehensive R&D programs within the DoD can reach hundreds of millions or even billions of dollars. This specific contract appears to be a significant but not exceptionally large award within the broader DoD R&D landscape, likely focused on specific aspects of mission assurance for the Navy Reserve Force. Without more granular data on the specific deliverables and market rates for comparable R&D services, a precise value-for-money assessment is difficult.

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

The primary risk with CPFF contracts, especially for R&D, is the potential for cost overruns. While the contractor receives a fixed fee, the 'cost plus' component means the government reimburses the contractor's allowable costs. If R&D efforts prove more expensive than anticipated due to unforeseen technical challenges, scope creep, or inefficient management, the total cost to the government can escalate significantly beyond initial projections. This necessitates robust government oversight to monitor costs, ensure efficiency, and validate the necessity of expenditures. Another risk is the contractor's incentive to control costs, as their profit is fixed, potentially leading to compromises in quality or scope if not carefully managed and incentivized through performance metrics.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541715) category typically entail for defense applications?

NAICS code 541715 covers establishments primarily engaged in conducting research and development in the physical, engineering, and life sciences, except nanotechnology and biotechnology. For defense applications, this translates to a broad spectrum of activities aimed at enhancing military capabilities. This can include developing new materials for vehicles and equipment, advancing propulsion systems, improving sensor technologies, creating sophisticated simulation and modeling tools for training and analysis, researching human performance optimization, and developing advanced communication systems. The goal is often to create technological advantages, improve operational effectiveness, enhance soldier safety, and reduce lifecycle costs through innovation.

How has federal spending in R&D (NAICS 541715) trended over the past five years, and how does this contract fit?

Federal spending in R&D under NAICS 541715 has generally seen consistent or increasing investment, particularly within the defense sector, driven by national security priorities and technological competition. While specific year-over-year figures fluctuate based on budget allocations and emerging needs, the overall trend reflects a sustained commitment to scientific and technological advancement. This $36.5 million contract, awarded in 2020, aligns with this trend by funding critical R&D for naval operational forces. It represents a specific allocation within the broader DoD R&D budget, contributing to the overall investment in maintaining and enhancing military technological superiority. Its duration suggests a multi-year commitment to a particular research objective within this category.

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: 1

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: $47,574,476

Exercised Options: $47,574,476

Current Obligation: $36,579,053

Actual Outlays: $7,011,761

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $6,231,109

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