DoD Awards $52M ISR Payloads Contract to Booz Allen Hamilton for Naval Air Warfare

Contract Overview

Contract Amount: $52,122,802 ($52.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-06-16

End Date: 2027-06-21

Contract Duration: 1,831 days

Daily Burn Rate: $28.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: INTELLIGENCE SURVEILLANCE RECONNAISSANCE PAYLOADS ARCHITECTURES AND COMMUNICATIONS ANALYSIS FOR NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION WEBSTER OUTLYING FIELD SHIP AND AIR INTEGRATED WARFARE

Place of Performance

Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $52.1 million to BOOZ ALLEN HAMILTON INC for work described as: INTELLIGENCE SURVEILLANCE RECONNAISSANCE PAYLOADS ARCHITECTURES AND COMMUNICATIONS ANALYSIS FOR NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION WEBSTER OUTLYING FIELD SHIP AND AIR INTEGRATED WARFARE Key points: 1. Contract focuses on Intelligence, Surveillance, and Reconnaissance (ISR) payloads and architectures. 2. Booz Allen Hamilton, a large defense contractor, secured the award. 3. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 4. Awarded via full and open competition, indicating a competitive bidding process.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking per-unit costs for ISR payloads and architectures is complex due to the specialized nature of the technology and varying project scopes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting multiple bidders participated. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: The competitive nature of the award aims to ensure taxpayer funds are used efficiently for critical defense capabilities.

Public Impact

Enhances naval air warfare capabilities through advanced ISR technology. Supports national security objectives by improving intelligence gathering and situational awareness. Potential for technological advancements in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Lack of specific performance metrics makes it difficult to assess value for money upfront.
The specialized nature of ISR payloads may limit the pool of truly comparable contracts for benchmarking.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Contract duration of over 5 years allows for sustained development and integration.
Supports critical naval intelligence and surveillance capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical and engineering sciences related to defense. Spending in this area is crucial for maintaining technological superiority but can be subject to long development cycles and evolving requirements.

Small Business Impact

The contract was awarded to Booz Allen Hamilton, a large business. There is no explicit indication of small business participation or subcontracting goals within the provided data, suggesting limited direct impact on small businesses for this prime contract.

Oversight & Accountability

The Department of Defense's contracting processes generally include oversight mechanisms. However, the specific oversight for this Cost Plus Fixed Fee contract, particularly regarding cost control and performance monitoring, would require further investigation.

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 scope creep in R&D projects.
Dependence on a single large prime contractor.
Limited visibility into specific performance metrics.
Complexity of ISR technology development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.1 million to BOOZ ALLEN HAMILTON INC. INTELLIGENCE SURVEILLANCE RECONNAISSANCE PAYLOADS ARCHITECTURES AND COMMUNICATIONS ANALYSIS FOR NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION WEBSTER OUTLYING FIELD SHIP AND AIR INTEGRATED WARFARE

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 $52.1 million.

What is the period of performance?

Start: 2022-06-16. End: 2027-06-21.

What is the expected return on investment for this $52 million ISR payload development contract?

Quantifying the ROI for R&D contracts like this is challenging as benefits are often long-term and strategic. Success will be measured by enhanced naval ISR capabilities, improved threat detection, and potential technological advancements that provide a future advantage. The true value will be realized through effective deployment and operational impact, rather than immediate financial returns.

What are the primary risks associated with the Cost Plus Fixed Fee contract structure for this ISR project?

The main risk with a Cost Plus Fixed Fee structure is the potential for cost overruns. The contractor is incentivized to control costs to maximize their fixed fee, but the government bears the risk of increased costs beyond the initial estimate. Effective oversight and clear scope definition are crucial to mitigate this risk and ensure the project stays within budget.

How will the effectiveness of the developed ISR payloads be measured and validated?

Effectiveness will likely be measured through a combination of technical performance testing, operational demonstrations, and integration into existing naval warfare systems. Validation will involve assessing the payloads' ability to meet specified intelligence, surveillance, and reconnaissance requirements under realistic operational conditions. Feedback from end-users and performance against defined metrics will be key indicators.

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: $86,510,278

Exercised Options: $86,510,278

Current Obligation: $52,122,802

Actual Outlays: $489,220

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $30,810,182

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