Booz Allen Hamilton awarded $37.7M for maritime R&D, supporting U.S. Pacific Fleet operations

Contract Overview

Contract Amount: $37,668,032 ($37.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-06-13

End Date: 2027-06-13

Contract Duration: 1,826 days

Daily Burn Rate: $20.6K/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 MARITIME OPERATIONS AND WARFIGHTING FOR U.S. USPACFLT

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $37.7 million to BOOZ ALLEN HAMILTON INC for work described as: TECHNICAL ANALYSES AND STRATEGIC AND OPERATIONAL PLANNING FOR MARITIME OPERATIONS AND WARFIGHTING FOR U.S. USPACFLT Key points: 1. Contract focuses on advanced research and development for maritime warfare. 2. Significant investment in strategic and operational planning for the Pacific theater. 3. Performance period spans five years, indicating long-term strategic importance. 4. Contract type suggests a focus on innovation and evolving requirements. 5. Awarded by the Department of Defense, highlighting national security implications. 6. Research area is specialized, focusing on physical, engineering, and life sciences.

Value Assessment

Rating: good

The contract value of $37.7 million over five years for specialized R&D is within a reasonable range for complex defense projects. Benchmarking against similar contracts for strategic planning and technical analysis in the defense sector suggests this is a competitive price point. The cost-plus-fixed-fee structure allows for flexibility in research while managing overall expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition process generally fosters price discovery and encourages competitive proposals. This approach aims to secure the best value and technical solution for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that government funds are used efficiently by selecting the most cost-effective and technically superior offer.

Public Impact

Enhances the warfighting capabilities of the U.S. Pacific Fleet. Supports strategic and operational planning for maritime dominance in the Indo-Pacific region. Contributes to technological advancements in naval warfare and defense systems. Benefits the U.S. military by providing cutting-edge research for complex operational environments. Impacts national security by strengthening defense readiness in a critical geopolitical area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed tightly.
The specialized nature of R&D may present inherent risks in achieving desired outcomes within budget and timeline.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Long-term performance period indicates a stable and important requirement for the agency.
Contractor has a strong track record in providing advanced technical and strategic services to the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences applied to maritime operations. The defense R&D market is substantial, with significant government investment aimed at maintaining technological superiority. This contract aligns with broader defense strategies for the Indo-Pacific, a region of increasing strategic importance.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses and the prime contractor is a large business. There is no explicit information on subcontracting plans for small businesses. However, large defense contracts often involve subcontracting opportunities, which could potentially benefit small businesses in specialized R&D areas.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Defense, with specific program managers ensuring adherence to contract terms and performance objectives. The cost-plus-fixed-fee structure necessitates careful financial oversight to manage expenditures. Transparency is generally maintained through contract reporting requirements and potential reviews by the Government Accountability Office (GAO) or Inspector General.

Related Government Programs

Naval Research and Development
Pacific Fleet Operations Support
Defense Strategic Planning
Maritime Warfare Technology
Advanced Scientific Research

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage potential cost escalations.
Research and Development inherently carries uncertainty regarding outcomes and timelines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.7 million to BOOZ ALLEN HAMILTON INC. TECHNICAL ANALYSES AND STRATEGIC AND OPERATIONAL PLANNING FOR MARITIME OPERATIONS AND WARFIGHTING FOR U.S. USPACFLT

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 $37.7 million.

What is the period of performance?

Start: 2022-06-13. End: 2027-06-13.

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

Booz Allen Hamilton has a long and extensive history of securing and successfully executing complex research and development contracts for the Department of Defense and other federal agencies. They are known for their expertise in areas such as systems engineering, advanced analytics, cybersecurity, and strategic planning. Their portfolio includes numerous contracts similar in scope and nature to this award, focusing on enhancing military capabilities through technological innovation. The company's consistent performance and ability to adapt to evolving defense requirements have made them a preferred contractor for high-stakes R&D initiatives, often involving sensitive national security objectives.

How does the $37.7 million value compare to other maritime R&D contracts?

The $37.7 million contract value for five years of R&D services for maritime operations is considered moderate within the broader defense R&D landscape. Larger, more complex programs can easily reach hundreds of millions or even billions of dollars. However, for specialized technical analysis and strategic planning focused on specific operational needs like those of the U.S. Pacific Fleet, this amount is substantial and reflects the critical nature of the work. Comparable contracts for similar R&D efforts in advanced naval technologies or strategic support often fall within a similar range, depending on the scope, duration, and specific technological focus.

What are the primary risks associated with this type of cost-plus-fixed-fee R&D contract?

Cost-plus-fixed-fee (CPFF) contracts, while offering flexibility for R&D where scope can evolve, carry inherent risks. For the government, the primary risk is potential cost overruns if the contractor's actual costs exceed initial estimates significantly, although the fixed fee provides some predictability. Scope creep, where the project's objectives expand beyond the initial agreement, can also drive up costs. For the contractor, the risk lies in underestimating costs, which could reduce their profit margin on the fixed fee. Effective oversight, clear communication, and robust change management processes are crucial to mitigate these risks and ensure the project stays within budget and meets its objectives.

How effective is full and open competition in ensuring value for money in defense R&D?

Full and open competition is generally considered the most effective method for ensuring value for money in defense R&D. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. Multiple bidders are incentivized to offer their best technical solutions at the most competitive prices to win the contract. This process allows the government to compare a wider range of proposals, assess different approaches, and select the option that offers the best combination of technical merit, performance, and cost. While R&D inherently involves uncertainty, competition helps mitigate risks by ensuring a thorough vetting of capabilities and pricing.

What is the historical spending trend for maritime R&D by the Department of Defense?

Historical spending by the Department of Defense on maritime R&D has been substantial and generally increasing, reflecting the strategic importance of naval power and the need for technological superiority. Investments are directed towards areas such as advanced propulsion, autonomous systems, electronic warfare, cyber capabilities, and strategic C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) for naval platforms. The focus on the Indo-Pacific region, as highlighted by this contract's support for the U.S. Pacific Fleet, suggests continued or heightened investment in maritime R&D relevant to that theater. Trends show a consistent allocation of resources to maintain a technological edge against potential adversaries.

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: $41,962,169

Exercised Options: $41,962,169

Current Obligation: $37,668,032

Actual Outlays: $5,798,810

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $12,207,967

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