Air Force awards $24M R&D contract for safety system analysis to Booz Allen Hamilton

Contract Overview

Contract Amount: $24,027,799 ($24.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2020-07-28

End Date: 2025-07-30

Contract Duration: 1,828 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AIR FORCE SAFETY AUTOMATED SYSTEM ANALYSIS

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $24.0 million to BOOZ ALLEN HAMILTON INC for work described as: AIR FORCE SAFETY AUTOMATED SYSTEM ANALYSIS Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Booz Allen Hamilton, a large incumbent contractor, secured this award. 3. The contract duration is over 5 years, indicating a long-term need. 4. Awarded via full and open competition, suggesting a broad search for qualified bidders. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. The primary place of performance is New Mexico.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and performance metrics. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility for R&D, carries inherent risks of cost escalation. Comparing the total award amount of $24 million over five years to similar R&D efforts in safety systems requires access to proprietary data. However, the duration and scope suggest a significant investment in developing or improving critical safety analysis capabilities for the Air Force.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that the Department of the Air Force sought proposals from all responsible sources. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, allowing for price discovery and potentially better value. The use of full and open competition suggests that the agency did not identify specific barriers to entry or limitations on the pool of potential offerors.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government explores a wide range of solutions.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive enhanced capabilities for safety system analysis. This contract supports research and development activities, potentially leading to advancements in safety protocols and technologies. The geographic impact is primarily New Mexico, where the performance is expected to occur. The contract may indirectly impact the aerospace and defense technology workforce through potential employment opportunities and skill development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize fee.
Long contract duration (over 5 years) increases the risk of scope creep and cost overruns.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the R&D.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Contract addresses a critical area of Air Force operations: safety analysis.
The contractor, Booz Allen Hamilton, is a large, established firm with significant experience in government contracting.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The North American Industry Classification System (NAICS) code 541715 covers R&D in these areas. The market for such services is characterized by specialized expertise, significant investment in intellectual capital, and often long-term engagements with government agencies. Comparable spending benchmarks would involve analyzing other R&D contracts within the Department of Defense and other federal agencies focused on scientific and engineering advancements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton is a large business. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses as subcontractors, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and progress to ensure adherence to the fixed fee and prevent unnecessary expenditures. Transparency is generally facilitated through contract reporting mechanisms, but specific details on public access to performance reports or cost data are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Safety Programs
Department of Defense Research and Development
Aerospace Engineering Services
Systems Analysis Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration increases potential for scope creep and budget challenges.
Lack of specific performance metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to BOOZ ALLEN HAMILTON INC. AIR FORCE SAFETY AUTOMATED SYSTEM ANALYSIS

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 $24.0 million.

What is the period of performance?

Start: 2020-07-28. End: 2025-07-30.

What is Booz Allen Hamilton's track record with similar Air Force R&D contracts?

Booz Allen Hamilton has a substantial history of performing R&D and professional services contracts for the Department of Defense, including the Air Force. Their track record often involves large, complex projects requiring expertise in various scientific and engineering disciplines. While specific details on past safety system analysis R&D contracts are not provided here, their extensive experience suggests a capacity to handle such work. Performance evaluations on previous contracts, often available through sources like the Federal Procurement Data System (FPDS) or CPARS (Contractor Performance Assessment Reporting System), would offer a more granular view of their past successes and challenges in delivering on similar R&D efforts.

How does the $24 million award compare to typical R&D spending for Air Force safety systems?

Directly comparing the $24 million award to typical R&D spending for Air Force safety systems is difficult without access to specific budget allocations and historical spending data for this particular domain. However, $24 million spread over approximately five years ($4.8 million annually) represents a significant, but not extraordinary, investment for a specialized R&D effort within a large organization like the Air Force. This figure suggests a focused initiative rather than a broad, systemic overhaul. To provide a more precise comparison, one would need to analyze the total R&D budget for the Air Force's safety directorate or equivalent, and identify the proportion allocated to similar analytical and developmental projects over comparable timeframes.

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) revolve around cost control and potential for overruns. While the fixed fee provides the contractor with an incentive to control costs (as the fee is a fixed amount regardless of actual costs), the 'cost-plus' element means the government reimburses all allowable costs. If the R&D effort encounters unforeseen technical challenges or scope changes, costs can escalate significantly, leading to a higher total contract value than initially anticipated. Effective oversight, clear definition of allowable costs, and robust change management processes are crucial to mitigate these risks. The government bears the financial risk if costs exceed projections, while the contractor is incentivized to complete the work within a reasonable cost structure to protect their fixed fee.

How might this contract impact the development of future Air Force safety technologies?

This contract has the potential to significantly impact the development of future Air Force safety technologies by funding critical research and analysis. The R&D activities undertaken could lead to novel methodologies, improved analytical tools, or enhanced understanding of safety-critical systems. Successful outcomes could result in the implementation of new safety protocols, predictive maintenance capabilities, or advanced warning systems, thereby reducing risks and improving operational readiness. The insights gained and technologies developed under this contract could serve as a foundation for subsequent acquisition programs or further R&D initiatives, shaping the trajectory of safety engineering within the Air Force for years to come.

What historical spending patterns exist for R&D in physical, engineering, and life sciences within the Department of Defense?

The Department of Defense (DoD) consistently allocates substantial funding towards R&D in physical, engineering, and life sciences, reflecting its mission to maintain technological superiority. Historical spending patterns show a strong emphasis on areas like advanced materials, aerospace engineering, cybersecurity, artificial intelligence, and biotechnology. Budgets for R&D within the DoD often fluctuate based on strategic priorities, geopolitical landscapes, and technological advancements. Agencies like DARPA (Defense Advanced Research Projects Agency) and various service-specific research labs are key drivers of this spending. While specific figures vary year-to-year, R&D in these scientific domains represents a significant portion of the overall defense budget, underscoring its critical importance to national security.

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: $26,649,451

Exercised Options: $26,649,451

Current Obligation: $24,027,799

Actual Outlays: $2,658,324

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $735,500

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