Army Ground Vehicle R&D contract awarded to Booz Allen Hamilton for $693M over 5 years

Contract Overview

Contract Amount: $69,301,390 ($69.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2024-05-14

End Date: 2029-05-13

Contract Duration: 1,825 days

Daily Burn Rate: $38.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: GROUND SYSTEM TECHNOLOGY AND LABORATORY RESEARCH AND DEVELOPMENT FOR THE UNITED STATES ARMY GROUND VEHICLE SYSTEMS CENTER

Place of Performance

Location: FORT NOVOSEL, DALE County, ALABAMA, 36362

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $69.3 million to BOOZ ALLEN HAMILTON INC for work described as: GROUND SYSTEM TECHNOLOGY AND LABORATORY RESEARCH AND DEVELOPMENT FOR THE UNITED STATES ARMY GROUND VEHICLE SYSTEMS CENTER Key points: 1. Contract focuses on critical ground vehicle systems research and development. 2. Booz Allen Hamilton, a large defense contractor, holds this award. 3. The contract duration of 1825 days suggests a long-term commitment to R&D. 4. Awarded under full and open competition, indicating a broad search for qualified bidders. 5. The contract type (Cost Plus Fixed Fee) is common for R&D where costs can be uncertain. 6. Geographic location in Alabama may indicate specific research facilities or workforce concentration.

Value Assessment

Rating: good

The contract value of $693 million over five years for R&D in ground vehicle systems appears reasonable given the scope. Benchmarking against similar large-scale R&D contracts in the defense sector would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee structure, while allowing for flexibility in R&D, necessitates careful oversight to manage costs effectively and ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple companies were invited to bid. The presence of two bidders indicates a competitive process, which generally leads to better pricing and innovation. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and encourages a wider pool of talent and technology to be considered.

Public Impact

The U.S. Army Ground Vehicle Systems Center is the primary beneficiary, receiving advanced research and development. This contract supports the modernization and technological advancement of U.S. Army ground vehicles. The geographic impact is centered in Alabama, potentially benefiting the local economy and workforce. The contract may lead to job creation or require specialized engineering and technical skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed tightly.
Long-term R&D contracts require continuous monitoring to ensure alignment with evolving military needs.
Reliance on a single large contractor for critical R&D could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The significant investment indicates a commitment to advancing critical defense technology.
The contract duration allows for in-depth research and development cycles.

Sector Analysis

This contract falls within the broader defense research and development sector, specifically focusing on physical sciences and engineering related to ground vehicles. The market for defense R&D is characterized by significant government investment, long procurement cycles, and a focus on technological superiority. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the Department of Defense for vehicle systems or related engineering services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. While the prime contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific needs of the research and development tasks.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially involving program managers, contracting officers, and technical representatives. Accountability measures would include performance reviews, milestone tracking, and adherence to the Cost Plus Fixed Fee agreement. Transparency is facilitated through contract award databases, but detailed R&D progress reports are typically not public.

Related Government Programs

Army Ground Vehicle Modernization Programs
Defense Research and Development Contracts
Advanced Engineering Services
Tactical Vehicle Technology Research

Risk Flags

Cost Overrun Risk (CPFF)
Technical Feasibility Risk
Long-Term Programmatic Risk
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.3 million to BOOZ ALLEN HAMILTON INC. GROUND SYSTEM TECHNOLOGY AND LABORATORY RESEARCH AND DEVELOPMENT FOR THE UNITED STATES ARMY GROUND VEHICLE SYSTEMS CENTER

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 $69.3 million.

What is the period of performance?

Start: 2024-05-14. End: 2029-05-13.

What is the track record of Booz Allen Hamilton in managing large-scale defense R&D contracts?

Booz Allen Hamilton has a long and extensive history of managing complex defense contracts, including significant R&D efforts across various domains. They are known for their expertise in systems engineering, technology integration, and program management. While specific performance metrics for individual contracts are often not publicly disclosed, their consistent presence as a prime contractor on major government programs suggests a generally positive track record. However, like any large contractor, they may have faced scrutiny or performance issues on specific projects, which would require a deeper dive into contract performance reports or Inspector General findings if available.

How does the $693 million value compare to similar Army ground vehicle R&D efforts?

The $693 million contract value over five years represents a substantial investment in ground vehicle R&D. To benchmark this effectively, one would need to compare it against historical spending on similar programs within the Army or other branches of the Department of Defense. For instance, major platform development or modernization programs often involve multi-billion dollar investments over longer periods. However, for focused R&D efforts in specific technological areas like advanced materials, propulsion, or autonomous systems for ground vehicles, this figure appears to be within a reasonable range for a five-year effort. A detailed analysis would involve identifying comparable contracts based on scope, duration, and technological focus.

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 R&D, is the potential for cost overruns. While the contractor is incentivized to control costs to ensure their fixed fee is maximized, the 'cost-plus' nature means the government ultimately bears the direct costs incurred. If the R&D effort encounters unforeseen technical challenges or scope creep, costs can escalate significantly. For the government, effective oversight is crucial to scrutinize incurred costs, ensure efficiency, and prevent unnecessary expenditures. The fixed fee itself is negotiated upfront, providing some predictability, but the total contract value can still grow substantially if costs increase.

What is the expected impact of this contract on the future capabilities of Army ground vehicles?

This contract is expected to significantly enhance the future capabilities of Army ground vehicles by driving innovation in areas such as survivability, mobility, lethality, and network integration. The R&D focus implies the development of new technologies, materials, and system designs that could lead to vehicles that are lighter, faster, more protected, more fuel-efficient, and better equipped for networked warfare. This could translate into improved soldier protection, enhanced operational effectiveness on the battlefield, and greater adaptability to diverse mission requirements. The specific advancements will depend on the precise R&D objectives outlined within the contract.

How has spending on Army ground vehicle R&D evolved over the past decade?

Spending on Army ground vehicle R&D has likely fluctuated over the past decade, influenced by evolving threat assessments, budget priorities, and technological advancements. Following periods of intense operational tempo in Iraq and Afghanistan, there may have been a shift towards modernizing legacy fleets and investing in next-generation platforms. Factors such as the rise of near-peer competitors and the increasing importance of networked warfare have likely driven increased investment in areas like advanced armor, directed energy, autonomous systems, and improved C4ISR capabilities for ground vehicles. Analyzing historical budget requests and contract awards for the Army's research, development, test, and evaluation (RDT&E) accounts would provide a quantitative view of this evolution.

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: $193,407,542

Exercised Options: $193,407,542

Current Obligation: $69,301,390

Actual Outlays: $1,116,792

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $25,592,815

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