Booz Allen Hamilton awarded $40.9M for Irregular Warfare analysis, assessment, and capability development

Contract Overview

Contract Amount: $40,902,890 ($40.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-04-22

End Date: 2027-04-25

Contract Duration: 1,829 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IRREGULAR WARFARE (IW) ANALYSIS, ASSESSMENT, AND CAPABILITY DEVELOPMENT FOR JOINT STAFF J7 (JS J7), OFFICE OF IRREGULAR WARFARE AND COMPETITION (OIWC)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20318

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $40.9 million to BOOZ ALLEN HAMILTON INC for work described as: IRREGULAR WARFARE (IW) ANALYSIS, ASSESSMENT, AND CAPABILITY DEVELOPMENT FOR JOINT STAFF J7 (JS J7), OFFICE OF IRREGULAR WARFARE AND COMPETITION (OIWC) Key points: 1. Contract focuses on critical Irregular Warfare (IW) capabilities for the Joint Staff J7. 2. Booz Allen Hamilton, a large incumbent contractor, secured this award. 3. The contract duration of 1829 days suggests a long-term need for these services. 4. Research and Development in Physical, Engineering, and Life Sciences is the relevant NAICS code. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. This award represents a significant investment in understanding and countering irregular threats.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for all allowable costs plus a fixed fee. While CPFF can be appropriate for R&D where scope is uncertain, it requires robust oversight to ensure cost efficiency. Comparing this to similar R&D contracts for strategic analysis within the DoD would provide better context on pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple offerors had the opportunity to bid. The number of bidders is not specified, but this approach generally promotes competitive pricing and allows the government to select the best value. The open competition suggests a healthy market for these specialized analytical services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures the government receives competitive proposals.

Public Impact

The Joint Staff J7 and the Office of Irregular Warfare and Competition (OIWC) are the primary beneficiaries, receiving critical analytical support. Services delivered include analysis, assessment, and capability development related to irregular warfare. The geographic impact is national, supporting joint military operations and strategic planning. Workforce implications include the need for specialized analysts and researchers within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not closely monitored.
Long contract duration may require periodic re-evaluation of scope and pricing.
Reliance on a single large contractor for critical strategic analysis.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Focus on a critical national security area (Irregular Warfare).
Contractor has a significant presence and experience in government contracting.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on defense-related analysis and strategy. The market for defense R&D services is substantial, with numerous large and small businesses competing for government contracts. This specific niche of Irregular Warfare analysis is a growing area of focus for the Department of Defense, driven by evolving global threats. Comparable spending benchmarks would likely be found in other contracts supporting strategic analysis and capability development for joint military commands.

Small Business Impact

The contract was awarded to Booz Allen Hamilton, a large business, and there is no indication of a small business set-aside. Given the nature of the work, it is possible that subcontracting opportunities may exist for specialized small businesses, but this is not explicitly stated. The absence of a set-aside suggests that the primary focus was on securing the most capable prime contractor.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting officer and the program office within the Department of Defense. Robust oversight will be crucial to monitor costs, ensure adherence to the scope of work, and verify the quality of analytical products. Transparency will depend on the DoD's reporting practices for R&D contracts and the availability of performance data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Joint Staff J7 Operations
Office of the Under Secretary of Defense for Policy
Special Operations and Low-Intensity Conflict
Defense Advanced Research Projects Agency (DARPA) Research

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Long contract duration necessitates ongoing performance monitoring.
Potential for scope creep in R&D contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.9 million to BOOZ ALLEN HAMILTON INC. IRREGULAR WARFARE (IW) ANALYSIS, ASSESSMENT, AND CAPABILITY DEVELOPMENT FOR JOINT STAFF J7 (JS J7), OFFICE OF IRREGULAR WARFARE AND COMPETITION (OIWC)

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 $40.9 million.

What is the period of performance?

Start: 2022-04-22. End: 2027-04-25.

What specific deliverables are expected under this contract for Irregular Warfare analysis?

The contract details are limited in public scope, but typically, Irregular Warfare (IW) analysis, assessment, and capability development contracts involve producing detailed reports, threat assessments, strategic recommendations, and potentially developing training materials or simulation frameworks. Deliverables would likely include analytical products that inform the Joint Staff J7 and the Office of Irregular Warfare and Competition (OIWC) on the evolving nature of IW threats, adversary tactics, and effective counter-strategies. Specific outputs could range from geopolitical analyses of regions prone to IW to assessments of emerging technologies used by non-state actors or state-sponsored irregular forces. The 'capability development' aspect suggests the contractor may also contribute to conceptualizing or refining tools, doctrines, or organizational structures to better address IW challenges.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D services?

Cost Plus Fixed Fee (CPFF) contracts are common for research and development (R&D) where the scope of work is not precisely defined at the outset, making firm-fixed-price contracts impractical. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred and receives a predetermined fixed fee representing their profit. This differs from Cost Plus Incentive Fee (CPIF), which adjusts the fee based on performance against targets, or Cost Plus Award Fee (CPAF), where the fee is determined by subjective performance evaluations. While CPFF provides flexibility for evolving R&D projects, it places a greater burden on the government to meticulously oversee costs to prevent overspending, as the contractor's profit is fixed regardless of cost efficiency. This contrasts with fixed-price contracts where the contractor bears the risk of cost overruns.

What is the typical track record of Booz Allen Hamilton in providing similar analytical services to the DoD?

Booz Allen Hamilton is a long-standing and major contractor for the Department of Defense and other federal agencies, with extensive experience in providing a wide array of professional services, including strategic analysis, intelligence support, and technology consulting. They have a significant history of supporting military commands and joint staff elements with complex analytical tasks. Their track record includes numerous contracts related to national security, defense strategy, and emerging threats, which aligns closely with the requirements of Irregular Warfare analysis. While specific performance details for individual contracts are often not public, their continued success in winning large, complex awards from the DoD suggests a generally positive performance history and a strong understanding of government requirements and processes.

What are the potential risks associated with a $40.9 million contract for R&D in Irregular Warfare?

Several risks are associated with a contract of this magnitude for R&D in Irregular Warfare. Firstly, the inherent uncertainty in R&D means that deliverables may not fully materialize or meet expectations, potentially leading to wasted investment. The CPFF contract type introduces financial risk, as costs can escalate beyond initial projections if not rigorously managed. There's also a risk of scope creep, where the project expands beyond its original intent, increasing costs and potentially delaying critical outcomes. Furthermore, the effectiveness of the analysis and developed capabilities is crucial; if the contractor's insights are flawed or outdated, it could lead to misinformed strategic decisions with significant national security implications. Finally, over-reliance on a single contractor for such a critical function could pose a risk if their performance falters or if they lack the most current expertise.

How does this contract fit into the broader context of US defense spending on counter-terrorism and asymmetric warfare?

This $40.9 million contract for Irregular Warfare (IW) analysis and capability development fits within a larger, multi-billion dollar defense spending ecosystem dedicated to countering terrorism, asymmetric threats, and hybrid warfare. Following the post-9/11 era and subsequent conflicts in Iraq and Afghanistan, the US military has increasingly recognized the persistent threat posed by non-state actors, insurgencies, and state-sponsored irregular forces. Funding for IW capabilities, intelligence analysis, and strategic foresight has become a critical component of national defense budgets. This contract specifically supports the Joint Staff J7, indicating a high-level, strategic focus on integrating and enhancing the military's ability to operate across the spectrum of conflict, including unconventional and irregular domains. It reflects a sustained commitment to understanding and adapting to evolving threats that fall outside traditional state-on-state warfare paradigms.

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: $41,662,299

Exercised Options: $41,662,299

Current Obligation: $40,902,890

Actual Outlays: $3,829,144

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $17,643,061

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