Navy awards Booz Allen Hamilton $44.5M for analytics support to OPNAV N1, spanning 5 years
Contract Overview
Contract Amount: $44,549,460 ($44.5M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2023-09-28
End Date: 2028-09-27
Contract Duration: 1,826 days
Daily Burn Rate: $24.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: NAVY ANALYTICS DEVELOPMENT, DEPLOYMENT, SUSTAINMENT, AND MODIFICATION FOR OFFICE OF THE CHIEF OF NAVAL OPERATIONS (OPNAV) N1 (PERSONNEL, MANPOWER, AND TRAINING)
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $44.5 million to BOOZ ALLEN HAMILTON INC for work described as: NAVY ANALYTICS DEVELOPMENT, DEPLOYMENT, SUSTAINMENT, AND MODIFICATION FOR OFFICE OF THE CHIEF OF NAVAL OPERATIONS (OPNAV) N1 (PERSONNEL, MANPOWER, AND TRAINING) Key points: 1. Contract focuses on R&D in physical, engineering, and life sciences. 2. Booz Allen Hamilton, a large established firm, is the sole awardee. 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.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type carries inherent risk for cost control. While the fixed fee provides some predictability, the government bears the cost of performance, potentially leading to higher overall spending than fixed-price contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were considered. This method generally promotes price discovery and competitive pricing, though the CPFF structure still requires careful oversight.
Taxpayer Impact: Taxpayer funds are being used for research and development services. The CPFF structure necessitates robust oversight to ensure cost efficiency and prevent unnecessary expenditures.
Public Impact
Enhances personnel, manpower, and training analytics for the Navy's OPNAV N1. Supports critical R&D efforts in physical, engineering, and life sciences. Potential for improved decision-making through advanced data analysis. Long-term contract (5 years) provides stability for development and sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can lead to cost overruns.
- No small business participation noted.
- Specific performance metrics and deliverables need close monitoring.
Positive Signals
- Awarded under full and open competition.
- Supports critical R&D for naval operations.
- Long-term engagement allows for deep expertise development.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541715). Spending in this sector is crucial for technological advancement but can be subject to cost volatility due to the nature of R&D.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that the prime contractor, Booz Allen Hamilton, is handling the entirety of the work, potentially missing opportunities for subcontracting to smaller, specialized firms.
Oversight & Accountability
Given the CPFF structure, rigorous oversight by the Department of the Air Force (as the servicing agency) is essential. This includes detailed cost tracking, performance reviews, and ensuring adherence to contract scope to safeguard taxpayer funds.
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.
- No small business participation.
- Long contract duration (5 years) requires sustained oversight.
- R&D projects inherently carry technical and cost uncertainty.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.5 million to BOOZ ALLEN HAMILTON INC. NAVY ANALYTICS DEVELOPMENT, DEPLOYMENT, SUSTAINMENT, AND MODIFICATION FOR OFFICE OF THE CHIEF OF NAVAL OPERATIONS (OPNAV) N1 (PERSONNEL, MANPOWER, AND TRAINING)
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 $44.5 million.
What is the period of performance?
Start: 2023-09-28. End: 2028-09-27.
What is the projected return on investment for the analytics development and deployment under this contract?
The return on investment (ROI) is not explicitly detailed in the award data. However, the contract aims to improve personnel, manpower, and training through advanced analytics. Success will be measured by the Navy's ability to leverage these insights for more effective resource allocation, personnel management, and operational readiness, ultimately contributing to mission success and potentially reducing long-term costs.
What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) structure in this R&D context?
The primary risk of CPFF in R&D is that the government assumes the cost of performance, potentially leading to cost overruns if the project scope expands or unforeseen technical challenges arise. While the fixed fee provides some contractor incentive, it doesn't cap the total cost. This necessitates stringent government oversight to manage scope creep and ensure efficient resource utilization.
How will the effectiveness of the deployed analytics solutions be measured and validated?
Effectiveness will likely be measured through key performance indicators (KPIs) tied to OPNAV N1's mission objectives, such as improvements in personnel retention, training efficiency, or manpower planning accuracy. Validation will involve regular performance reviews, user feedback, and potentially independent assessments to ensure the analytics tools provide actionable insights and contribute to desired operational outcomes.
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: $61,568,916
Exercised Options: $61,568,916
Current Obligation: $44,549,460
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $10,245,350
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: 2023-09-28
Current End Date: 2028-09-27
Potential End Date: 2028-09-27 00:00:00
Last Modified: 2025-12-22
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