Booz Allen Hamilton awarded $75M R&D contract for Naval Air Warfare Center technology protection

Contract Overview

Contract Amount: $74,906,871 ($74.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2020-07-21

End Date: 2025-07-21

Contract Duration: 1,826 days

Daily Burn Rate: $41.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TECHNOLOGY PROTECTION (TP) FOR NAVAL AIR WARFARE CENTER (NAWC) CHINA LAKE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $74.9 million to BOOZ ALLEN HAMILTON INC for work described as: TECHNOLOGY PROTECTION (TP) FOR NAVAL AIR WARFARE CENTER (NAWC) CHINA LAKE Key points: 1. Contract focuses on critical research and development for naval aviation. 2. Competition was full and open, suggesting a robust market. 3. Contract duration of five years indicates a long-term need. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 5. This award falls under the broad category of physical, engineering, and life sciences R&D. 6. The specific NAICS code (541715) points to specialized scientific research services.

Value Assessment

Rating: good

The total award of approximately $75 million over five years for technology protection services at NAWC China Lake appears reasonable given the specialized nature of R&D in defense. Benchmarking against similar R&D contracts for advanced technology development within the Department of Defense suggests that this pricing is within expected ranges. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, necessitates diligent oversight to ensure costs remain controlled and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of three bidders suggests a competitive environment, which generally benefits the government by driving down prices and encouraging innovation. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the strength of the competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it maximizes the pool of potential offerors, leading to potentially better pricing and a wider range of innovative solutions, thereby ensuring government funds are used efficiently.

Public Impact

Naval aviation forces will benefit from enhanced technology protection measures. Services delivered include research and development in physical, engineering, and life sciences. The geographic impact is centered around Naval Air Warfare Center China Lake, a key research facility. This contract supports a highly specialized workforce in scientific research and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
The long duration of the contract requires ongoing monitoring of performance and evolving technological needs.
Reliance on a single awardee for a critical function like technology protection warrants close performance evaluation.

Positive Signals

Awarded under full and open competition, indicating a healthy market and potential for competitive pricing.
The contract addresses a critical need for technology protection within naval aviation.
The contractor, Booz Allen Hamilton, has a significant track record in government contracting and R&D.

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 for advanced technology development contracts within the Department of Defense often range in the tens to hundreds of millions of dollars, depending on the scope and duration. This contract's value aligns with typical investments in specialized scientific research for defense applications.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors. However, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the specific technical requirements of the work. Further analysis of subcontracting goals would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program office within the Department of the Air Force, overseeing the Naval Air Warfare Center. Accountability measures are inherent in the Cost Plus Fixed Fee structure, which requires detailed reporting and justification of costs. Transparency is typically facilitated through contract award databases and performance reporting, though specific details of ongoing oversight are not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Department of Defense Research and Development Programs
Naval Technology Development Contracts
Advanced Engineering Services Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring (Long Duration)
Technological Obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.9 million to BOOZ ALLEN HAMILTON INC. TECHNOLOGY PROTECTION (TP) FOR NAVAL AIR WARFARE CENTER (NAWC) CHINA LAKE

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 $74.9 million.

What is the period of performance?

Start: 2020-07-21. End: 2025-07-21.

What is Booz Allen Hamilton's track record with similar R&D contracts for the Department of Defense?

Booz Allen Hamilton has a extensive history of securing and performing on large-scale research and development contracts for the Department of Defense and its various branches. They are a well-established government contractor with significant expertise in areas such as systems engineering, cybersecurity, and advanced technology research. Their portfolio includes numerous contracts related to defense modernization, intelligence analysis, and scientific research. While specific performance metrics for past contracts are not detailed here, their continued success in winning competitive bids suggests a generally positive track record and capability to meet complex government requirements. Analyzing their past performance ratings and any reported issues on similar contracts would provide a more granular understanding of their reliability and effectiveness in executing R&D projects.

How does the $75 million value compare to other technology protection R&D contracts?

The $75 million total award value for this five-year contract for technology protection R&D at NAWC China Lake is within a common range for specialized defense research and development efforts. Contracts of this nature, particularly those involving advanced engineering and scientific research for critical defense applications, can easily reach tens of millions of dollars over their lifecycle. For instance, similar R&D initiatives in areas like advanced materials, electronic warfare, or aerospace systems often have total values ranging from $50 million to over $200 million, depending on the complexity, duration, and number of research phases. The value here suggests a significant but not exceptionally large investment in a focused area of technology protection, consistent with the needs of a major naval research facility.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for Research and Development (R&D) primarily revolve around cost control and potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D, where the scope and technical challenges can be uncertain, there's a risk that actual costs may significantly exceed initial estimates. If not managed diligently, this can lead to the government paying more than anticipated. Another risk is the contractor's incentive to control costs, as their profit is fixed regardless of the actual expenses. Effective oversight, robust cost accounting systems, and clear definition of allowable costs are crucial to mitigate these risks and ensure value for the government.

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

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in defense R&D. By allowing all responsible sources to submit bids, it maximizes the potential for a wide range of innovative solutions and competitive pricing. This broad participation increases the likelihood that the government will receive the best technical approach at the most reasonable cost. Furthermore, a competitive environment incentivizes contractors to propose efficient methods and cost-effective solutions to win the contract. While R&D inherently involves uncertainty, a competitive process helps establish a benchmark for pricing and performance, making it harder for any single contractor to overcharge or underperform without consequence.

What are the implications of the NAICS code 541715 for the type of services being procured?

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 services procured under this contract are highly specialized and technical. This code covers establishments primarily engaged in conducting research and experimental development in these scientific fields. This implies that the work will involve scientific inquiry, experimentation, and the application of advanced engineering principles to solve complex problems. It suggests the contractor will employ highly skilled scientists, engineers, and researchers to investigate, design, test, and potentially prototype new technologies or improve existing ones relevant to naval air warfare. The exclusion of nanotechnology and biotechnology means the focus is on broader physical and engineering sciences.

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: 3

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: $76,708,746

Exercised Options: $76,708,746

Current Obligation: $74,906,871

Actual Outlays: $10,879,406

Subaward Activity

Number of Subawards: 73

Total Subaward Amount: $28,424,982

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