DoD's $35.2M R&D contract for naval ordnance safety and security awarded to Booz Allen Hamilton

Contract Overview

Contract Amount: $35,221,748 ($35.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2021-08-09

End Date: 2026-08-09

Contract Duration: 1,826 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SCIENCE AND TECHNOLOGY ANALYSIS, ASSESSMENTS, STUDIES, AND STRATEGIC PLANNING OF ARMS, AMMUNITION, AND EXPLOSIVES AND ELECTROMAGNETIC ENVIRONMENTAL EFFECTS FOR NAVAL ORDNANCE SAFETY AND SECURITY ACTIVITY

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $35.2 million to BOOZ ALLEN HAMILTON INC for work described as: SCIENCE AND TECHNOLOGY ANALYSIS, ASSESSMENTS, STUDIES, AND STRATEGIC PLANNING OF ARMS, AMMUNITION, AND EXPLOSIVES AND ELECTROMAGNETIC ENVIRONMENTAL EFFECTS FOR NAVAL ORDNANCE SAFETY AND SECURITY ACTIVITY Key points: 1. Contract focuses on critical R&D for naval ordnance safety and security, including arms, ammunition, explosives, and electromagnetic effects. 2. Booz Allen Hamilton, a large, established contractor, secured this award. 3. The contract duration of 1826 days (5 years) indicates a long-term need for these specialized services. 4. Awarded under full and open competition, suggesting a robust bidding process. 5. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee, common in R&D where costs can be uncertain. 6. This contract falls under the Research and Development sector, specifically for physical, engineering, and life sciences. 7. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: good

The contract value of $35.2 million over five years averages to approximately $7 million annually. While specific benchmarks for this niche R&D area are difficult to ascertain without more granular data, Booz Allen Hamilton is a well-established contractor with a significant presence in defense and technology sectors. The CPFF contract type suggests that pricing is managed through cost reimbursement, with a fixed fee negotiated upfront. This structure is typical for R&D where the final scope and costs can evolve, aiming to balance contractor incentive with cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a competitive bidding process was utilized, which typically leads to better price discovery and potentially more favorable terms for the government. The number of bidders is not specified, but the designation implies a market where multiple firms could realistically compete for this type of specialized R&D work.

Taxpayer Impact: A full and open competition process is generally beneficial for taxpayers as it encourages a wider range of proposals and can drive down costs through market forces, ensuring the government receives competitive pricing for its investments.

Public Impact

The primary beneficiaries are the Department of Defense and naval forces, who will receive enhanced safety and security protocols for ordnance. Services delivered include scientific and technical analysis, assessments, studies, and strategic planning related to naval ordnance and electromagnetic effects. The geographic impact is primarily within naval operations, potentially affecting bases and deployed units globally. Workforce implications include specialized roles for scientists, engineers, and analysts within Booz Allen Hamilton and potentially supporting subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to cost overruns if not closely monitored, as the contractor is reimbursed for allowable costs.
The specialized nature of the R&D may limit the pool of qualified small businesses that can participate, either as prime or subcontractors.
Reliance on a single large contractor for critical R&D could pose a long-term risk if their strategic focus shifts or if they encounter significant internal challenges.

Positive Signals

Awarded through full and open competition, indicating a competitive environment that should drive value.
Booz Allen Hamilton has a strong track record in government contracting, suggesting a high likelihood of successful project execution.
The contract addresses critical national security needs related to ordnance safety and security, a vital area for military operations.
The five-year duration allows for sustained focus and development in a complex R&D field.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715 (Other Research and Development in the Physical, Engineering, and Life Sciences). This sector is characterized by innovation and scientific advancement, often involving long-term projects with uncertain outcomes. The market size for defense-related R&D is substantial, with significant government investment aimed at maintaining technological superiority. This contract fits within the broader defense R&D landscape, focusing on a critical niche of naval ordnance safety and security.

Small Business Impact

This contract does not appear to have a small business set-aside (sb: false). Given the specialized nature of R&D in defense and the prime contractor being Booz Allen Hamilton, a large entity, the potential for small business subcontracting exists. However, without specific subcontracting plans or goals outlined in the award data, it's difficult to assess the direct impact on the small business ecosystem. Large prime contractors often engage small businesses for specialized expertise, but the extent of this engagement would need further investigation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force (as the servicing agency for DoD). The Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to ensure allowable costs are properly documented and reimbursed. Performance metrics and milestones would likely be established to track progress. Transparency is generally maintained through contract reporting mechanisms, though specific details of ongoing R&D may be subject to security classifications.

Related Government Programs

Naval Weapons Systems Research
Ordnance Safety and Handling
Electromagnetic Compatibility Engineering
Defense Research and Development
Naval Technology Development
Arms and Ammunition Research

Risk Flags

Cost Overruns Risk (CPFF)
Technical Feasibility Uncertainty (R&D)
Reliance on Prime Contractor Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.2 million to BOOZ ALLEN HAMILTON INC. SCIENCE AND TECHNOLOGY ANALYSIS, ASSESSMENTS, STUDIES, AND STRATEGIC PLANNING OF ARMS, AMMUNITION, AND EXPLOSIVES AND ELECTROMAGNETIC ENVIRONMENTAL EFFECTS FOR NAVAL ORDNANCE SAFETY AND SECURITY ACTIVITY

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 $35.2 million.

What is the period of performance?

Start: 2021-08-09. End: 2026-08-09.

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

Booz Allen Hamilton has an extensive history of performing R&D and technical services for the Department of Defense across various branches. They are a major contractor known for expertise in areas like systems engineering, cybersecurity, data analytics, and strategic planning. For R&D contracts specifically, they have a proven ability to manage complex projects, often involving advanced scientific and technical challenges. Their past performance typically includes a wide range of research efforts, from basic science to applied technology development. While specific contract values and performance ratings for every past R&D endeavor are not detailed here, their overall profile suggests a strong capability to execute contracts like this one, focusing on delivering analytical and strategic insights for critical defense needs.

How does the $35.2M contract value compare to similar R&D efforts in naval ordnance safety?

Benchmarking this $35.2 million contract value against similar R&D efforts in naval ordnance safety is challenging without access to a comprehensive database of classified or specialized defense R&D contracts. However, considering the five-year duration and the specialized nature of the work (arms, ammunition, explosives, and electromagnetic effects), the annual average of approximately $7 million appears reasonable for a significant R&D initiative. Larger, multi-year R&D programs for advanced weapon systems or foundational research can easily reach hundreds of millions or even billions of dollars. This contract seems to represent a focused effort within a specific niche of naval safety and security, rather than a broad, system-level development program. Its value is likely commensurate with the scope of specialized analysis, assessment, and strategic planning required.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure, particularly for R&D, revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with an incentive to manage costs efficiently (as the fee is predetermined), the government bears the risk of reimbursing all allowable costs incurred. If the R&D project encounters unforeseen technical challenges or requires extensive experimentation, costs can escalate beyond initial estimates. There's also a risk that the contractor might not be sufficiently motivated to control costs if they are confident that all reasonable expenses will be reimbursed. Effective oversight, clear definition of allowable costs, and robust progress monitoring are crucial to mitigate these risks and ensure the government receives good value.

How effective are the current oversight mechanisms for ensuring program effectiveness in this R&D area?

The effectiveness of oversight for this specific R&D contract hinges on the established processes within the Department of Defense and the servicing agency (Department of the Air Force). Standard oversight mechanisms include regular progress reviews, technical evaluations, milestone tracking, and financial audits. For R&D, establishing clear, measurable objectives and Key Performance Indicators (KPIs) is critical but can be difficult due to the exploratory nature of the work. The CPFF structure necessitates diligent financial oversight to prevent cost overruns. Program effectiveness is ultimately judged by whether the research yields actionable insights, improved safety protocols, or technological advancements that meet the strategic goals for naval ordnance safety and security. The presence of an Inspector General within DoD provides an additional layer of accountability.

What are historical spending patterns for naval ordnance safety and security R&D within the DoD?

Historical spending patterns for naval ordnance safety and security R&D within the DoD are complex and often embedded within broader defense budgets for research, development, testing, and evaluation (RDT&E). Direct, isolated figures for 'naval ordnance safety and security R&D' are not readily available in public datasets. However, it's understood that the Navy and DoD as a whole consistently allocate significant resources to ensure the safe handling, storage, and deployment of ordnance, as well as to mitigate risks associated with aging systems and new technologies. Spending in this area would fluctuate based on emerging threats, technological advancements, and specific program requirements. Contracts like this one represent a portion of that ongoing investment, focusing on specific analytical and strategic needs rather than large-scale hardware development.

What is the strategic importance of R&D in electromagnetic environmental effects for naval ordnance?

Research and development into electromagnetic environmental effects (EEE) for naval ordnance is strategically critical for modern warfare. Ordnance systems, like all electronic equipment, can be susceptible to interference from electromagnetic sources, including friendly electronic warfare systems, natural phenomena, or adversary electronic attacks. Understanding and mitigating these effects ensures that ordnance functions reliably when needed and does not inadvertently detonate or malfunction due to electromagnetic interference. This R&D helps in designing ordnance that is resilient to the complex electromagnetic spectrum environments encountered at sea and in combat zones, thereby enhancing operational safety, mission success, and the overall effectiveness of naval power projection.

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: 2

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: $40,938,964

Exercised Options: $40,938,964

Current Obligation: $35,221,748

Actual Outlays: $6,843,326

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $5,106,572

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