Booz Allen Hamilton awarded $30.77M contract for Army transportation systems R&D, with a 5-year performance period

Contract Overview

Contract Amount: $30,769,471 ($30.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2020-05-20

End Date: 2025-05-24

Contract Duration: 1,830 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PROGRAM MANAGEMENT OFFICE TRANSPORTATION SYSTEMS FAMILY OF VEHICLES SUPPORT ARMY PROGRAM EXECUTIVE OFFICE (PEO) COMBAT SUPPORT AND COMBAT SERVICE SUPPORT (CSANDCSS)

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48093

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $30.8 million to BOOZ ALLEN HAMILTON INC for work described as: PROGRAM MANAGEMENT OFFICE TRANSPORTATION SYSTEMS FAMILY OF VEHICLES SUPPORT ARMY PROGRAM EXECUTIVE OFFICE (PEO) COMBAT SUPPORT AND COMBAT SERVICE SUPPORT (CSANDCSS) Key points: 1. Contract value of $30.77M over 5 years suggests a significant investment in transportation systems R&D. 2. Full and open competition indicates a broad market search, potentially leading to competitive pricing. 3. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed fee, balancing flexibility with contractor incentive. 4. Performance period of 1830 days (approx. 5 years) allows for sustained research and development efforts. 5. The R&D focus (NAICS 541715) aligns with the Army's need for advanced transportation solutions. 6. The contract is managed by the Program Executive Office (PEO) Combat Support and Combat Service Support. 7. The award was made by the Department of the Air Force, potentially leveraging its acquisition expertise.

Value Assessment

Rating: good

The contract value of $30.77M over approximately five years for R&D in transportation systems appears reasonable given the scope. Benchmarking against similar large-scale R&D contracts within the Department of Defense for advanced systems would provide further context. The Cost Plus Fixed Fee structure is common for R&D where final costs may be uncertain, but it requires careful oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This approach typically fosters a competitive environment, which can lead to better pricing and innovative solutions. The number of bidders is not specified, but the method itself implies a robust selection process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of offers, potentially driving down costs and improving the quality of services received.

Public Impact

The primary beneficiaries are the U.S. Army's Combat Support and Combat Service Support units, who will receive advancements in transportation systems. The contract supports research and development activities aimed at improving military transportation capabilities. The geographic impact is primarily within the United States, where research and development activities will likely be conducted. The contract may have implications for the specialized workforce in research and engineering within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The specific R&D outcomes and their direct applicability to current operational needs require ongoing assessment.
Reliance on a single contractor for a significant R&D effort could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Long performance period allows for sustained focus on complex R&D challenges.
Contract is managed by a specialized PEO, suggesting alignment with strategic Army needs.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve looking at other large-scale R&D contracts for advanced military platforms and systems within the Department of Defense.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of small business subcontracting requirements or specific impacts on the small business ecosystem from this particular award. Further analysis would be needed to determine if subcontracting opportunities exist.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Program Executive Office (PEO) Combat Support and Combat Service Support. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract databases, though specific R&D details may be sensitive.

Related Government Programs

Army Vehicle Modernization Programs
Defense Research and Engineering
Combat Support Systems Development
Transportation Logistics R&D

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Need for strong government oversight to ensure value for money.
R&D outcomes may have long lead times before operational impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.8 million to BOOZ ALLEN HAMILTON INC. PROGRAM MANAGEMENT OFFICE TRANSPORTATION SYSTEMS FAMILY OF VEHICLES SUPPORT ARMY PROGRAM EXECUTIVE OFFICE (PEO) COMBAT SUPPORT AND COMBAT SERVICE SUPPORT (CSANDCSS)

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 $30.8 million.

What is the period of performance?

Start: 2020-05-20. End: 2025-05-24.

What is the track record of Booz Allen Hamilton in performing similar R&D contracts for the Department of Defense?

Booz Allen Hamilton has a long history of supporting the Department of Defense across various domains, including research and development, systems engineering, and program management. They have been involved in numerous complex projects, often serving in advisory and analytical roles. While specific R&D contract performance data is not detailed here, their extensive experience suggests a capacity to handle such requirements. However, a deeper dive into their past performance ratings, any past performance issues, and the scale of their previous R&D awards would be necessary for a comprehensive assessment of their track record on this specific type of contract.

How does the awarded amount compare to similar R&D contracts for transportation systems within the DoD?

The awarded amount of approximately $30.77 million over five years for R&D in transportation systems is a significant sum, indicative of a substantial project. To benchmark this effectively, one would need to compare it against other large-scale R&D contracts awarded by the DoD for similar technological advancements in military logistics, vehicle systems, or related transportation infrastructure. Factors such as the specific research objectives, the maturity of the technology being developed, and the duration of the contract would influence comparability. Without access to a comprehensive database of comparable contracts, it's challenging to definitively state if this represents a high, low, or average investment.

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

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility for R&D where costs can be uncertain, carry inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as all allowable costs are reimbursed. The fixed fee provides a profit incentive, but it might not be enough to drive aggressive cost reduction if oversight is lax. For the contractor, there's a risk if the fixed fee is too low relative to the effort required, potentially leading to reduced profit margins. Effective risk mitigation relies heavily on robust government oversight, detailed cost tracking, and clear definition of the scope of work to prevent scope creep.

What are the expected outcomes or deliverables from this R&D contract?

The specific outcomes and deliverables for this R&D contract are not detailed in the provided data. However, given the contract's focus on 'PROGRAM MANAGEMENT OFFICE TRANSPORTATION SYSTEMS' for the Army, the expected outcomes likely involve the research, development, and potential prototyping of advanced transportation systems. This could include improvements in vehicle efficiency, survivability, mobility, logistics support, or the development of new operational concepts for military transportation. Deliverables would typically include research reports, feasibility studies, design documentation, prototypes, and potentially testing and evaluation results, all aimed at enhancing the Army's future transportation capabilities.

How has spending on transportation systems R&D by the Army Program Executive Office (PEO) CSandCSS trended over the past five years?

Historical spending data for the Army Program Executive Office (PEO) Combat Support and Combat Service Support (CSandCSS) specifically on transportation systems R&D is not provided in this data snippet. To analyze this trend, one would need to access historical contract databases and financial reports for the PEO CSandCSS, filtering for contracts categorized under transportation systems R&D (e.g., using relevant NAICS codes or procurement descriptions). This would allow for an assessment of whether spending in this area has been increasing, decreasing, or remaining stable, providing context for the current $30.77 million award.

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: $31,172,203

Exercised Options: $31,172,203

Current Obligation: $30,769,471

Actual Outlays: $575,941

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $2,263,299

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