Air Force awards $9.1M R&D contract to Booz Allen Hamilton for mission equipment systems

Contract Overview

Contract Amount: $9,134,094 ($9.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2021-03-11

End Date: 2026-03-16

Contract Duration: 1,831 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MISSION EQUIPMENT SYSTEMS BRANCH (MESB) RESEARCH, DEVELOPMENT, ENGINEERING, AND DEMONSTRATION

Place of Performance

Location: NATICK, MIDDLESEX County, MASSACHUSETTS, 01760

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $9.1 million to BOOZ ALLEN HAMILTON INC for work described as: MISSION EQUIPMENT SYSTEMS BRANCH (MESB) RESEARCH, DEVELOPMENT, ENGINEERING, AND DEMONSTRATION Key points: 1. Contract focuses on research, development, engineering, and demonstration of mission equipment systems. 2. Booz Allen Hamilton, a large established contractor, secured this award. 3. The contract duration is over 5 years, indicating a long-term need. 4. Awarded under full and open competition, suggesting a competitive process. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 6. This award falls under R&D in Physical, Engineering, and Life Sciences. 7. The specific NAICS code points to specialized scientific research services.

Value Assessment

Rating: good

The contract value of $9.1 million over approximately five years appears reasonable for specialized R&D services. Benchmarking against similar contracts for mission equipment systems R&D is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure, while offering flexibility, requires careful oversight to ensure cost efficiency and prevent scope creep. The fixed fee component provides some incentive for the contractor to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bids suggests a moderate level of competition for this specialized R&D requirement. While not a large number of bidders, it demonstrates that multiple firms were interested and capable of performing the work, which generally aids in price discovery and achieving a fair market price.

Taxpayer Impact: Full and open competition, even with a moderate number of bidders, is generally favorable for taxpayers as it encourages competitive pricing and potentially leads to better value for the government's investment.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive advanced mission equipment systems. Services delivered include research, development, engineering, and demonstration of critical systems. The geographic impact is likely concentrated within Air Force facilities and research centers. Workforce implications may include specialized engineers, scientists, and technical personnel employed by Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts require diligent oversight to manage costs and prevent overruns.
The limited number of bidders (3) could indicate a niche market or high barriers to entry.
Specific performance metrics and deliverables need to be closely monitored to ensure R&D objectives are met.

Positive Signals

Awarded through full and open competition, promoting a fair marketplace.
Booz Allen Hamilton is a well-established contractor with a track record in government R&D.
The long contract duration suggests a stable, ongoing need for these specialized services.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on research and development for mission-critical systems. The NAICS code 541715 covers R&D in physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority and operational effectiveness. Comparable spending benchmarks would typically be found within defense R&D budgets for similar system development efforts, often involving significant investment in innovation and advanced technology.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Booz Allen Hamilton is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific set-aside goals or subcontracting requirements, the direct impact on the small business ecosystem for this particular award is likely minimal, though large prime contractors often engage small businesses for specialized support.

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. Accountability measures will be tied to the achievement of R&D milestones and adherence to the contract's terms and conditions. Transparency is generally maintained through contract award databases and reporting requirements, though detailed R&D progress reports may be considered sensitive.

Related Government Programs

Defense Research and Development
Mission Systems Engineering
Aerospace Technology Development
Air Force Science and Technology Programs

Risk Flags

Cost Overruns Risk (CPFF)
Scope Creep Risk
Performance Measurement Difficulty (R&D)
Limited Competition Pool

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.1 million to BOOZ ALLEN HAMILTON INC. MISSION EQUIPMENT SYSTEMS BRANCH (MESB) RESEARCH, DEVELOPMENT, ENGINEERING, AND DEMONSTRATION

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 $9.1 million.

What is the period of performance?

Start: 2021-03-11. End: 2026-03-16.

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

Booz Allen Hamilton has a substantial history of performing research and development services for the Department of Defense across various domains. They are a large, established government contractor known for expertise in areas such as systems engineering, technology strategy, and advanced analytics. While specific details on past mission equipment systems R&D contracts would require deeper analysis of their portfolio, their overall experience suggests a strong capability to handle complex R&D requirements. Their extensive work with various military branches indicates familiarity with defense acquisition processes and R&D lifecycle management. Performance on previous contracts, as reflected in past performance evaluations, would be a key indicator of their suitability for this current award.

How does the $9.1 million value compare to similar R&D efforts for mission equipment systems?

Directly comparing the $9.1 million value to similar R&D efforts for mission equipment systems is challenging without more granular data on the specific technologies and scope of work. However, for specialized R&D contracts that involve significant engineering, prototyping, and testing over a multi-year period (like the 1831 days duration here), this value appears within a reasonable range. Larger, more complex system developments could easily run into tens or hundreds of millions of dollars. Conversely, smaller, more focused research tasks might be awarded for less. The Cost Plus Fixed Fee (CPFF) structure also means the final cost could vary slightly based on actual expenses, capped by the fixed fee. Benchmarking would ideally involve looking at contracts with similar NAICS codes (541715) and contract types within the defense sector.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risks associated with a CPFF contract, like this one, revolve around cost control and contractor performance. For the government, the main risk is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to pay allowable incurred costs plus a fixed fee. This can lead to cost overruns if not managed diligently. Scope creep is another significant risk; if the requirements are not clearly defined or if changes are introduced without proper control, costs can escalate. For the contractor, the risk lies in accurately estimating the effort required to achieve the fixed fee and ensuring that all incurred costs are allowable under the contract terms. Effective oversight, clear communication, and robust performance monitoring are crucial to mitigate these risks.

How effective is full and open competition likely to be in ensuring value for this R&D contract?

Full and open competition is generally the most effective method for ensuring value in government contracting, including for R&D. It allows the widest possible pool of potential offerors to compete, driving innovation and potentially lowering prices through market forces. In this case, with 3 bids received, there was a degree of competition, which is positive. The effectiveness in ensuring value will depend on the clarity of the solicitation's requirements, the evaluation criteria used, and the capabilities of the competing firms. If the solicitation was well-defined and the evaluation process robust, the competition should have yielded a fair price and a capable contractor. However, the specialized nature of R&D can sometimes limit the number of truly qualified bidders, making the 'full and open' aspect more about process than a guarantee of numerous participants.

What are the implications of the contract being for 'Research and Development in the Physical, Engineering, and Life Sciences'?

This classification (NAICS 541715) signifies that the contract is focused on scientific inquiry and experimentation aimed at discovering or interpreting facts, principles, or theories for application to practical uses. It implies a higher degree of uncertainty and innovation compared to contracts for established services or product delivery. R&D contracts often involve iterative processes, testing, and potential failures as part of the learning curve. This means performance metrics might be geared towards progress, knowledge gained, and feasibility demonstrations rather than fixed outputs. The CPFF structure is often employed in R&D because the exact costs and effort required can be difficult to predict upfront, allowing flexibility while maintaining a defined profit margin for the contractor.

What is the significance of the contract duration (1831 days)?

A duration of 1831 days, which is approximately five years, indicates a long-term commitment by the Air Force to the research, development, engineering, and demonstration of these mission equipment systems. This extended timeframe suggests that the project is complex, requires sustained effort, and likely involves multiple phases or technological advancements. Long-term R&D contracts allow for deeper exploration of concepts, iterative development, and thorough testing, which can be crucial for creating sophisticated and reliable systems. It also provides stability for the contractor, enabling them to allocate resources and personnel effectively over the project's life. For the government, it signifies a strategic investment in future capabilities.

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 › C – National Defense R&D Services

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: $12,855,889

Exercised Options: $12,855,889

Current Obligation: $9,134,094

Actual Outlays: $1,441,801

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $342,603

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