DoD's $39M Booz Allen Hamilton contract for Air Force strategic defense analysis shows strong competition

Contract Overview

Contract Amount: $39,147,685 ($39.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-07-05

End Date: 2027-07-04

Contract Duration: 1,825 days

Daily Burn Rate: $21.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DEFENSE SYSTEM TECHNICAL ANALYSIS AND ASSESSMENT OF SURVIVABILITY, VULNERABILITIES, AND LETHALITY FOR AIR FORCE GLOBAL STRIKE COMMAND STRATEGIC PLANS, PROGRAMS, AND REQUIREMENTS DIRECTORATE

Place of Performance

Location: BARKSDALE AFB, BOSSIER County, LOUISIANA, 71110

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $39.1 million to BOOZ ALLEN HAMILTON INC for work described as: DEFENSE SYSTEM TECHNICAL ANALYSIS AND ASSESSMENT OF SURVIVABILITY, VULNERABILITIES, AND LETHALITY FOR AIR FORCE GLOBAL STRIKE COMMAND STRATEGIC PLANS, PROGRAMS, AND REQUIREMENTS DIRECTORATE Key points: 1. Contract focuses on critical defense systems analysis, enhancing survivability and lethality assessments. 2. Booz Allen Hamilton, a large established firm, holds this contract. 3. The contract is structured as Cost Plus Fixed Fee, which can incentivize cost control. 4. Performance is in Louisiana, a key state for Air Force operations. 5. The contract duration of five years suggests a long-term need for these specialized services. 6. This award represents a significant investment in strategic planning and technical assessment capabilities.

Value Assessment

Rating: good

The contract value of $39.1 million over five years for specialized R&D services appears reasonable given the scope. Benchmarking against similar large-scale defense analysis contracts is challenging without more specific service details, but the fixed fee component suggests an effort to manage costs. The contractor, Booz Allen Hamilton, is a well-established entity with a proven track record in government contracting, which can sometimes lead to premium pricing but also implies a lower risk of performance issues.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of full and open competition is generally a positive sign for price discovery and ensuring the government receives competitive offers. The specific number of bidders is not provided, but the category suggests a robust bidding process.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and improves the quality of services received.

Public Impact

The primary beneficiaries are the Air Force Global Strike Command and the Department of Defense, who will receive enhanced strategic planning and technical assessment capabilities. The services delivered include analysis of survivability, vulnerabilities, and lethality for strategic defense systems. The contract's performance location is Louisiana, a state with significant Air Force installations. This contract supports highly skilled technical and analytical roles within the defense sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
The long duration of the contract may present challenges in adapting to rapidly evolving technological landscapes.
Reliance on a single large contractor for critical analysis could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Booz Allen Hamilton is a reputable contractor with extensive experience in defense R&D.
The contract addresses critical strategic needs for the Air Force Global Strike Command.
The fixed fee component provides a degree of cost certainty for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, driven by the need for continuous technological advancement and strategic advantage. Comparable spending benchmarks would typically involve other large, complex R&D contracts awarded by the DoD for similar analytical and assessment services, often in the tens to hundreds of millions of dollars.

Small Business Impact

This contract was not set aside for small businesses and was awarded to a large business, Booz Allen Hamilton. There is no explicit indication of subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem is likely minimal unless significant subcontracting opportunities arise, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract award databases and reporting requirements, though specific internal oversight mechanisms are not detailed.

Related Government Programs

Air Force Strategic Planning
Defense Systems Analysis
Survivability and Vulnerability Assessment
Lethality Studies
DoD Research and Development Contracts

Risk Flags

Cost Overrun Potential (CPFF)
Long-Term Contract Adaptability
Contractor Performance Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.1 million to BOOZ ALLEN HAMILTON INC. DEFENSE SYSTEM TECHNICAL ANALYSIS AND ASSESSMENT OF SURVIVABILITY, VULNERABILITIES, AND LETHALITY FOR AIR FORCE GLOBAL STRIKE COMMAND STRATEGIC PLANS, PROGRAMS, AND REQUIREMENTS DIRECTORATE

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 $39.1 million.

What is the period of performance?

Start: 2022-07-05. End: 2027-07-04.

What is Booz Allen Hamilton's track record with similar defense analysis contracts?

Booz Allen Hamilton has a long and extensive history of performing complex research, development, and analysis services for the Department of Defense and other federal agencies. They are a major government contractor with significant expertise in areas such as systems engineering, cybersecurity, intelligence analysis, and strategic planning. Their track record includes numerous large-scale contracts involving technical assessments, threat analysis, and support for major defense programs. While specific contract performance details are often proprietary, their consistent presence and success in winning competitive bids for high-value, complex projects suggest a strong capability and a generally positive performance history in delivering on defense-related analytical requirements.

How does the $39.1 million value compare to similar R&D contracts for defense analysis?

The $39.1 million value for this five-year contract for defense systems technical analysis is within the typical range for specialized R&D services supporting major defense commands like the Air Force Global Strike Command. Large, multi-year contracts for complex analytical work, especially those involving strategic planning, survivability, and lethality assessments, often fall into the tens of millions of dollars. For instance, similar contracts for advanced threat modeling, system vulnerability studies, or strategic capability assessments awarded to large defense contractors can range from $10 million to over $100 million, depending on the scope, duration, and criticality of the research. This contract's value appears commensurate with the specialized nature and strategic importance of the services required.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure, like the one awarded to Booz Allen Hamilton, revolve around potential cost overruns and contractor incentives. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' portion means the government reimburses allowable costs incurred by the contractor. If the contractor's costs exceed initial estimates, the government bears that burden, potentially leading to a final contract price higher than anticipated. Effective risk mitigation requires robust government oversight, detailed cost tracking, and clear definition of allowable costs to prevent scope creep and ensure the contractor maintains cost-consciousness. The government's ability to manage and audit these costs is crucial.

How effective is full and open competition in ensuring value for taxpayer money in this context?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in federal contracting, including for complex R&D services like those provided under this contract. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. The government can compare multiple proposals based on technical merit, past performance, and price, selecting the offer that provides the best overall value. In this case, the award to Booz Allen Hamilton under full and open competition suggests that their proposal was deemed the most advantageous after a thorough evaluation process, implying a strong likelihood of achieving good value for the $39.1 million investment.

What are the implications of this contract for the Air Force Global Strike Command's strategic capabilities?

This contract is highly significant for the Air Force Global Strike Command (AFGSC) as it directly supports the enhancement of their strategic capabilities. By providing in-depth technical analysis of survivability, vulnerabilities, and lethality, the contract enables AFGSC to better understand and improve the effectiveness and resilience of its strategic assets. This includes ensuring that weapons systems can withstand potential threats, identifying and mitigating weaknesses, and optimizing their offensive capabilities. The insights gained are crucial for informed decision-making regarding future investments, modernization programs, and operational planning, ultimately bolstering the command's ability to execute its critical deterrence and strike missions.

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: $45,551,443

Exercised Options: $45,551,443

Current Obligation: $39,147,685

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $17,970,181

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