Booz Allen Hamilton awarded $48.4M for Army Corps of Engineers R&D in remote sensing and GIS

Contract Overview

Contract Amount: $48,403,898 ($48.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2024-01-23

End Date: 2029-01-22

Contract Duration: 1,826 days

Daily Burn Rate: $26.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ANALYSIS SECURING HOMELAND INFORMATION SERVICE RESEARCH DEVELOPMENT FOR ARMY CORPS OF ENGINEERS, ENGINEER RESEARCH DEVELOPMENT CENTER, COLD REGIONS RESEARCH ENGINEERING LABORATORY, REMOTE SENSING GEOGRAPHIC INFORMATION SYSTEM CENTER OF EXPERTISE

Place of Performance

Location: HANOVER, GRAFTON County, NEW HAMPSHIRE, 03755

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $48.4 million to BOOZ ALLEN HAMILTON INC for work described as: ANALYSIS SECURING HOMELAND INFORMATION SERVICE RESEARCH DEVELOPMENT FOR ARMY CORPS OF ENGINEERS, ENGINEER RESEARCH DEVELOPMENT CENTER, COLD REGIONS RESEARCH ENGINEERING LABORATORY, REMOTE SENSING GEOGRAPHIC INFORMATION SYSTEM CENTER OF EXPERTISE Key points: 1. Contract focuses on critical R&D for the Army Corps of Engineers' Cold Regions Research and Engineering Laboratory. 2. Booz Allen Hamilton, a large incumbent contractor, secured this award. 3. The contract has a duration of five years, indicating a long-term need for these services. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. The specific NAICS code (541715) points to specialized R&D in physical and engineering sciences. 6. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature. However, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control. While Booz Allen Hamilton is a reputable contractor, the CPFF structure requires diligent oversight to ensure costs remain reasonable and do not escalate beyond the fixed fee. Without detailed cost breakdowns and performance metrics, a definitive value-for-money assessment is difficult, but the potential for cost growth warrants careful monitoring.

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 had the opportunity to submit proposals. The presence of two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the evaluation process are not detailed. Full and open competition generally promotes price discovery and allows the government to select the best value offer, but the specific dynamics of this R&D market may limit the number of highly qualified bidders.

Taxpayer Impact: Taxpayers benefit from the competitive process which aims to secure the best possible technical solution at a reasonable price. Full and open competition helps prevent sole-source awards that could be more expensive.

Public Impact

The primary beneficiaries are the Army Corps of Engineers, specifically the Engineer Research and Development Center (ERDC) and its Cold Regions Research and Engineering Laboratory (CRREL). The contract will deliver advanced research and development services in remote sensing and Geographic Information Systems (GIS). These services are crucial for understanding and operating in cold regions, impacting military readiness and civil engineering projects in such environments. The contract is geographically focused on supporting the ERDC's operations, with potential implications for research facilities and personnel in New Hampshire. The contract supports highly skilled scientific and technical workforce in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
Long contract duration (5 years) requires sustained oversight to ensure continued value and relevance.
Limited public information on specific performance metrics and deliverables makes independent assessment of effectiveness difficult.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Booz Allen Hamilton is a large, experienced contractor with a significant presence in government R&D.
Contract supports critical research for the Army Corps of Engineers in specialized cold regions technology.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541715. This is a highly specialized area focused on advanced scientific inquiry and technological innovation. The market for such services is dominated by large, established government contractors with deep technical expertise. Comparable spending benchmarks are difficult to establish without more specific details on the R&D scope, but federal investment in defense-related R&D remains substantial, with significant portions allocated to areas like geospatial intelligence and environmental science.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. As Booz Allen Hamilton is a large business, there may be opportunities for small businesses to subcontract, but this is not explicitly mandated by the award details. The focus on specialized R&D may also limit the direct applicability or availability of work for many small businesses in this particular contract.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting agency, the Department of Defense, specifically the Army Corps of Engineers. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to track expenditures against the agreed-upon fixed fee and ensure compliance with contract terms. Accountability measures would be tied to performance metrics and deliverables outlined in the contract. Transparency is generally limited for specific R&D contracts due to the sensitive nature of the work, but contract award data is publicly available.

Related Government Programs

Army Corps of Engineers Research and Development
Cold Regions Research and Engineering Laboratory (CRREL) Programs
Remote Sensing Technology Development
Geographic Information System (GIS) Research
Department of Defense Research and Development Contracts
Defense Advanced Research Projects Agency (DARPA) Initiatives

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring for cost control.
Long-term contract duration necessitates sustained performance evaluation.
Specialized R&D nature makes direct value-for-money comparison difficult.
Potential for limited competition in highly specialized R&D fields.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.4 million to BOOZ ALLEN HAMILTON INC. ANALYSIS SECURING HOMELAND INFORMATION SERVICE RESEARCH DEVELOPMENT FOR ARMY CORPS OF ENGINEERS, ENGINEER RESEARCH DEVELOPMENT CENTER, COLD REGIONS RESEARCH ENGINEERING LABORATORY, REMOTE SENSING GEOGRAPHIC INFORMATION SYSTEM CENTER OF EXPERTISE

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 $48.4 million.

What is the period of performance?

Start: 2024-01-23. End: 2029-01-22.

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

Booz Allen Hamilton has a long and extensive history of performing research and development services for the Department of Defense across various agencies and domains. They are a major incumbent contractor for numerous defense R&D efforts, including those related to intelligence, surveillance, reconnaissance, cyber, and advanced technologies. Their track record typically involves large, complex contracts requiring deep technical expertise and program management capabilities. While specific performance details for past contracts are often not publicly disclosed in detail, their continued success in winning significant defense R&D awards suggests a generally positive performance history and strong client relationships within the DoD. However, like any large contractor, they may have faced past performance challenges on specific projects, which would be detailed in government past performance reviews during the procurement process.

How does the $48.4 million value compare to similar R&D contracts in remote sensing and GIS?

The $48.4 million value for this five-year contract (averaging approximately $9.7 million per year) is within a typical range for specialized R&D efforts in advanced fields like remote sensing and GIS, particularly when supporting a major government entity like the Army Corps of Engineers. Larger, more comprehensive R&D programs or those involving extensive hardware development or large-scale system integration could easily exceed this amount. Conversely, smaller, more focused research projects or those with shorter durations would be valued lower. Given the specific focus on cold regions and the expertise required, this funding level appears commensurate with the scope and complexity of the research objectives, reflecting the specialized nature of the work and the contractor's capabilities.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for research and development, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. If the R&D effort proves more complex or time-consuming than initially estimated, costs can escalate significantly. While the fee is fixed, the total contract cost is not. This can incentivize contractors to be less cost-conscious than in a fixed-price environment, as they are guaranteed to cover their expenses and receive their profit regardless of the final cost. Effective government oversight, detailed cost tracking, and robust performance management are crucial to mitigate these risks and ensure the government receives good value.

How effective is full and open competition in ensuring value for taxpayer money in specialized R&D?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money, even in specialized R&D. It allows a wider pool of potential contractors to compete, fostering innovation and driving down prices through market forces. For specialized R&D, this means the government can solicit proposals from various entities with unique expertise, potentially uncovering novel approaches or more cost-effective solutions. However, the effectiveness is contingent on the market's competitiveness. If only a few highly specialized firms exist, the competition might be limited in practice. Furthermore, R&D inherently involves uncertainty, making 'value' a complex metric that includes not just cost but also technical merit and the probability of successful innovation. Rigorous evaluation criteria are essential to select the best technical solution at a fair price.

What are the historical spending patterns for remote sensing and GIS R&D within the Army Corps of Engineers?

Historical spending patterns for remote sensing and GIS R&D within the Army Corps of Engineers (USACE) reflect a consistent and growing investment in these capabilities. USACE utilizes these technologies for a wide range of applications, including environmental monitoring, infrastructure assessment, disaster response, and operational planning, particularly in challenging environments like cold regions. Funding allocations for such R&D have generally increased over the years, driven by advancements in sensor technology, data processing, and the increasing need for sophisticated geospatial intelligence. While specific annual figures fluctuate based on program priorities and budget cycles, USACE consistently allocates significant resources to research that enhances its understanding and management of the physical environment, with remote sensing and GIS being core components of this investment strategy.

What are the implications of awarding this contract to a large incumbent like Booz Allen Hamilton?

Awarding this contract to a large incumbent like Booz Allen Hamilton has several implications. Positively, it suggests continuity of service and leverages the contractor's established expertise, infrastructure, and understanding of the government's needs, potentially reducing transition risks and accelerating project initiation. Booz Allen's experience may lead to more efficient execution. However, it also raises concerns about potential complacency, reduced price competition if the incumbent is perceived as having an advantage, and limited opportunities for innovative smaller firms to enter the market. For taxpayers, the key is whether the incumbent's established position translates into superior performance and value, or if it leads to higher costs due to a lack of competitive pressure. Robust oversight remains critical regardless of the contractor's size or incumbency status.

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: $120,724,773

Exercised Options: $120,724,773

Current Obligation: $48,403,898

Actual Outlays: $4,280,265

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $37,792,415

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