DoD's $44M R&D contract for Future Vertical Lift awarded to Booz Allen Hamilton

Contract Overview

Contract Amount: $44,014,962 ($44.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-11

End Date: 2029-03-17

Contract Duration: 2,014 days

Daily Burn Rate: $21.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ANALYSIS, TESTING, AND DEVELOPMENT FOR FUTURE VERTICAL LIFT CROSS FUNCTIONAL TEAM AND PROGRAM EXECUTIVE OFFICE AVIATION

Place of Performance

Location: NATICK, MIDDLESEX County, MASSACHUSETTS, 01760

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $44.0 million to BOOZ ALLEN HAMILTON INC for work described as: ANALYSIS, TESTING, AND DEVELOPMENT FOR FUTURE VERTICAL LIFT CROSS FUNCTIONAL TEAM AND PROGRAM EXECUTIVE OFFICE AVIATION Key points: 1. Contract focuses on critical research and development for advanced aviation capabilities. 2. Booz Allen Hamilton, a large defense contractor, holds this award. 3. The contract is structured as Cost Plus Fixed Fee, indicating potential for cost overruns. 4. Awarded by the Department of the Air Force, supporting a key DoD initiative. 5. The contract duration extends over five years, suggesting a long-term commitment to the R&D effort. 6. Research and Development in Physical, Engineering, and Life Sciences is the primary NAICS code.

Value Assessment

Rating: fair

Benchmarking Cost Plus Fixed Fee contracts is challenging due to their variable nature. However, the fixed fee component provides some cost control. Comparing this to similar R&D contracts within the DoD for advanced aviation systems would be necessary for a more precise value assessment. The total value of $44 million over five years suggests a significant investment in this specific technology area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of two bids indicates a moderate level of competition for this specialized R&D effort. While two bidders is better than one, a higher number of bids could potentially drive prices down further.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of solutions and potentially more competitive pricing, although the specific cost structure of CPFF contracts requires careful monitoring.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Air Force, who will receive advanced research and development for future vertical lift aircraft. Services delivered include analysis, testing, and development crucial for next-generation aviation technology. The geographic impact is national, supporting U.S. military readiness and technological superiority. Workforce implications include highly skilled research scientists, engineers, and technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee, requiring robust oversight.
The specialized nature of R&D means that cost overruns are a common risk, potentially impacting the final price.
Long contract durations can sometimes lead to scope creep or evolving requirements that may not be fully captured in initial pricing.

Positive Signals

Awarded through full and open competition, ensuring a broad search for qualified contractors.
The fixed fee component provides a defined profit margin, offering some predictability.
The contract supports a critical national security initiative, indicating strategic importance and potential for significant technological advancement.

Sector Analysis

This contract falls within the Aerospace and Defense sector, specifically focusing on Research and Development for advanced military aviation. The market for such specialized R&D is dominated by a few large, experienced contractors. Comparable spending benchmarks would involve looking at other major DoD R&D programs for new aircraft or weapon systems, which often represent multi-million dollar investments over several years.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting plans for small businesses. Given the specialized nature of the R&D and the prime contractor's size, the direct impact on the small business ecosystem may be limited unless specific subcontracting opportunities are pursued.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Air Force's contracting and program management offices. Accountability measures are tied to the delivery of research and development milestones as outlined in the contract. Transparency is generally maintained through contract awards databases, though specific project details may be sensitive.

Related Government Programs

Future Vertical Lift (FVL) Program
Department of Defense Research and Development
Aviation Technology Development
Advanced Military Aircraft Programs

Risk Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not properly managed.
Long contract duration may increase risk of scope creep or requirement changes.
Specialized R&D nature inherently carries technical and performance risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.0 million to BOOZ ALLEN HAMILTON INC. ANALYSIS, TESTING, AND DEVELOPMENT FOR FUTURE VERTICAL LIFT CROSS FUNCTIONAL TEAM AND PROGRAM EXECUTIVE OFFICE AVIATION

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 $44.0 million.

What is the period of performance?

Start: 2023-09-11. End: 2029-03-17.

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

Booz Allen Hamilton has a extensive history of supporting the Department of Defense across various R&D, analysis, and consulting services. They are a large, established contractor with significant experience in complex defense programs. Their track record typically involves providing technical expertise, program management, and strategic guidance. Specific performance on similar Future Vertical Lift or advanced aviation R&D contracts would require a deeper dive into their past performance evaluations and contract history, but their overall profile suggests a capable provider for this type of work. They often serve as prime contractors or key subcontractors on large-scale defense initiatives.

How does the $44 million total contract value compare to other R&D investments in advanced aviation?

The $44 million total contract value for this Future Vertical Lift R&D effort is substantial but falls within the typical range for significant, multi-year research and development projects in advanced military aviation. Major platform development programs, such as new fighter jets or helicopters, can easily run into billions of dollars over their lifecycle. However, for a specific R&D phase focused on analysis, testing, and initial development, $44 million over five years represents a considerable investment. It indicates a high priority placed on advancing vertical lift capabilities. Comparable R&D contracts for emerging technologies in aerospace often range from tens to hundreds of millions of dollars, depending on the scope and maturity of the technology.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of R&D?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract for R&D is the potential for cost overruns. While the 'fixed fee' component caps the contractor's profit, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the R&D proves more complex or time-consuming than initially estimated, the total cost to the government can escalate significantly. This structure can sometimes disincentivize cost control by the contractor, as their profit is fixed regardless of the final cost. Effective oversight, detailed cost tracking, and clear milestone definitions are crucial to mitigate these risks and ensure value for taxpayer money.

How might the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code influence the contract's focus?

The NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' indicates that this contract is focused on fundamental and applied research that advances scientific knowledge and understanding in engineering and physical sciences. For the Future Vertical Lift program, this means the R&D will likely involve areas such as aerodynamics, materials science, propulsion systems, structural integrity, control systems, and potentially human-factors engineering related to advanced aircraft. It suggests a focus on the scientific and engineering underpinnings required to develop novel vertical lift capabilities, rather than solely on the manufacturing or integration aspects.

What does the contract duration of over five years imply for the R&D program's maturity and goals?

A contract duration extending beyond five years for R&D in advanced aviation suggests that the program is focused on developing technologies that are not yet mature and require significant, sustained effort. This timeframe is typical for exploring novel concepts, conducting extensive testing, and iterating designs for complex systems like future vertical lift aircraft. It implies that the goals are ambitious, aiming for substantial technological advancements rather than incremental improvements. Such long-term commitments allow for deeper investigation, adaptation to unforeseen challenges, and the potential for groundbreaking innovation, aligning with the strategic, long-term nature of military modernization.

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: $76,072,722

Exercised Options: $76,072,722

Current Obligation: $44,014,962

Actual Outlays: $1,664,762

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $37,022,528

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