DoD's $52.4M contract with Booz Allen Hamilton for Submarine Force R&D faces scrutiny over value and competition
Contract Overview
Contract Amount: $52,430,534 ($52.4M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2021-12-16
End Date: 2026-12-16
Contract Duration: 1,826 days
Daily Burn Rate: $28.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TECHNICAL ANALYSES AND STRATEGIC AND OPERATIONAL PLANNING FOR WARFIGHTING READINESS FOR COMMANDER, SUBMARINE FORCE, UNITED STATES PACIFIC FLEET
Place of Performance
Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $52.4 million to BOOZ ALLEN HAMILTON INC for work described as: TECHNICAL ANALYSES AND STRATEGIC AND OPERATIONAL PLANNING FOR WARFIGHTING READINESS FOR COMMANDER, SUBMARINE FORCE, UNITED STATES PACIFIC FLEET Key points: 1. The contract focuses on critical R&D for warfighting readiness, a high-priority area for the Navy. 2. Booz Allen Hamilton is a major player in defense contracting, indicating significant competition in the sector. 3. The Cost Plus Fixed Fee (CPFF) contract type introduces potential cost overrun risks. 4. Spending in the R&D sector (NAICS 541715) is substantial, making benchmarks crucial for evaluation.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) structure can lead to costs exceeding initial estimates if not managed tightly. Without detailed cost breakdowns, it's difficult to assess if the $52.4M award represents fair value for the research and development services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific impact on price discovery for this specialized R&D service requires further analysis of the proposals received and the negotiation process.
Taxpayer Impact: Taxpayer funds are being used for advanced research, aiming for long-term strategic advantage. The effectiveness of this investment in enhancing warfighting readiness will ultimately determine the taxpayer's return.
Public Impact
Enhances the operational capabilities of the U.S. Pacific Fleet's submarine force. Supports technological advancements crucial for maintaining a strategic edge in undersea warfare. Invests in the future readiness and effectiveness of a key military branch.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type risk
- Potential for cost overruns
- Limited transparency on specific R&D outcomes
Positive Signals
- Full and open competition
- Focus on critical warfighting readiness
- Long-term strategic investment
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is vital for maintaining technological superiority, but often involves complex cost structures and long development cycles.
Small Business Impact
The data indicates this contract was not awarded to a small business. While large, established firms like Booz Allen Hamilton often possess the specialized expertise for complex R&D, opportunities for small businesses in this specific R&D niche may be limited.
Oversight & Accountability
The contract is managed by the Department of the Air Force for the Commander, Submarine Force, United States Pacific Fleet, indicating a multi-agency involvement. Oversight will be critical to ensure the R&D objectives are met efficiently and within budget.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns.
- Lack of specific performance metrics for R&D outcomes.
- Potential for scope creep in long-term R&D projects.
- Limited visibility into the detailed cost breakdown and justification.
Tags
research-and-development-in-the-physical, department-of-defense, hi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.4 million to BOOZ ALLEN HAMILTON INC. TECHNICAL ANALYSES AND STRATEGIC AND OPERATIONAL PLANNING FOR WARFIGHTING READINESS FOR COMMANDER, SUBMARINE FORCE, UNITED STATES PACIFIC FLEET
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 $52.4 million.
What is the period of performance?
Start: 2021-12-16. End: 2026-12-16.
How does the projected cost align with industry benchmarks for similar submarine warfare R&D projects?
Assessing alignment requires detailed comparison with projects of similar scope, complexity, and technological advancement within the defense R&D sector. Benchmarking against historical data for submarine force modernization and specific technological research areas would provide context. Without access to proprietary cost data or specific project details, a precise benchmark is challenging, but the CPFF structure necessitates close monitoring to prevent cost escalation beyond reasonable industry norms.
What specific metrics are in place to measure the success and effectiveness of the warfighting readiness improvements?
Effectiveness is likely measured through a combination of technical milestones, prototype development, and simulated operational testing. Key Performance Indicators (KPIs) would track advancements in areas like sonar performance, stealth technology, or communication systems. Regular progress reviews and operational assessments by the Submarine Force command are crucial for validating that the R&D directly translates into tangible improvements in warfighting readiness.
Are there any identified risks associated with the chosen contractor's ability to deliver on these advanced R&D requirements?
Booz Allen Hamilton is a well-established defense contractor with a strong track record in research and development. However, the inherent risks in advanced R&D, such as unforeseen technical challenges or evolving threat landscapes, always exist. The CPFF contract type suggests a level of trust in the contractor's capabilities, but requires robust government oversight to mitigate risks related to scope creep or inefficient resource allocation.
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: 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: $56,263,170
Exercised Options: $56,263,170
Current Obligation: $52,430,534
Actual Outlays: $15,661,960
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $4,757,674
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
Start Date: 2021-12-16
Current End Date: 2026-12-16
Potential End Date: 2026-12-16 00:00:00
Last Modified: 2025-09-11
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