DoD's $20.18M STRATCOM Analysis Contract Awarded to Booz Allen Hamilton Under Full and Open Competition
Contract Overview
Contract Amount: $20,178,230 ($20.2M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2022-07-18
End Date: 2027-07-24
Contract Duration: 1,832 days
Daily Burn Rate: $11.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: STRATEGIC CAPABILITY AND MISSION ASSURANCE ANALYSIS FOR HEADQUARTERS UNITED STATES STRATEGIC COMMAND
Place of Performance
Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $20.2 million to BOOZ ALLEN HAMILTON INC for work described as: STRATEGIC CAPABILITY AND MISSION ASSURANCE ANALYSIS FOR HEADQUARTERS UNITED STATES STRATEGIC COMMAND Key points: 1. Booz Allen Hamilton, a major defense contractor, secured this contract. 2. The contract falls under R&D in Physical, Engineering, and Life Sciences. 3. Full and open competition was used, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing for flexibility in R&D, carries inherent risks of cost escalation. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates a robust price discovery process. However, the Cost Plus Fixed Fee structure may incentivize higher costs than a fixed-price contract.
Taxpayer Impact: Taxpayer funds are being used for research and development, with the potential for cost overruns due to the contract type.
Public Impact
Supports critical mission assurance for U.S. Strategic Command. Funds research and development in advanced scientific and engineering fields. Contract duration extends to 2027, indicating a long-term strategic need. Awarded by the Department of the Air Force, a major component of DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs.
- Lack of specific performance metrics makes value assessment challenging.
- R&D contracts can have uncertain outcomes and cost trajectories.
Positive Signals
- Full and open competition suggests competitive pricing.
- Supports a critical national security function (STRATCOM).
- Long contract duration indicates sustained requirement.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, excluding specific sub-fields. Spending in this broad R&D category is substantial across the government, particularly within the Department of Defense, for advancing technological capabilities.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Therefore, there is no direct small business participation evident in this specific award.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The Cost Plus Fixed Fee structure necessitates diligent monitoring to control costs and ensure adherence to the fixed fee.
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 contract type.
- Potential for cost overruns in R&D.
- Lack of detailed performance metrics.
- No small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, ne, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.2 million to BOOZ ALLEN HAMILTON INC. STRATEGIC CAPABILITY AND MISSION ASSURANCE ANALYSIS FOR HEADQUARTERS UNITED STATES STRATEGIC COMMAND
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 $20.2 million.
What is the period of performance?
Start: 2022-07-18. End: 2027-07-24.
What specific research and development objectives does this contract aim to achieve for STRATCOM's mission assurance?
The contract aims to provide analysis for strategic capability and mission assurance for U.S. Strategic Command. This likely involves research into advanced technologies, threat assessments, and operational strategies to ensure the effectiveness and security of U.S. strategic assets and command structures.
What are the primary risks associated with the Cost Plus Fixed Fee contract type in this R&D context?
The primary risks with CPFF in R&D include potential cost overruns if the contractor's costs exceed initial estimates, as the government absorbs these costs while the fee remains fixed. This can also reduce the contractor's incentive to control costs rigorously, potentially leading to less efficient use of taxpayer funds.
How effectively does the 'full and open competition' mitigate potential price inflation given the CPFF structure?
Full and open competition is designed to foster a competitive environment, driving down prices. While it helps establish a baseline for fair pricing, the CPFF structure itself can still lead to higher final costs than fixed-price contracts, as the government bears the cost risk. Effective oversight is crucial to manage this.
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: $26,928,911
Exercised Options: $26,928,911
Current Obligation: $20,178,230
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $5,516,684
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: 2022-07-18
Current End Date: 2027-07-24
Potential End Date: 2027-07-24 00:00:00
Last Modified: 2026-01-14
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