DoD's $19.2M R&D contract for armaments analysis awarded to Booz Allen Hamilton Inc
Contract Overview
Contract Amount: $19,225,537 ($19.2M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2025-03-24
End Date: 2030-03-23
Contract Duration: 1,825 days
Daily Burn Rate: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 24-2636 PWS, TITLED "ADVANCED RESEARCH, ANALYSIS, TESTING, AND EVALUATION FOR ARMAMENTS AND AMMUNITION FOR THE OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR ACQUISITION & SUSTAINMENT (OUSD(A&S))"
Place of Performance
Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806
Plain-Language Summary
Department of Defense obligated $19.2 million to BOOZ ALLEN HAMILTON INC for work described as: 24-2636 PWS, TITLED "ADVANCED RESEARCH, ANALYSIS, TESTING, AND EVALUATION FOR ARMAMENTS AND AMMUNITION FOR THE OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR ACQUISITION & SUSTAINMENT (OUSD(A&S))" Key points: 1. Contract focuses on advanced research, analysis, testing, and evaluation for armaments and ammunition. 2. Awarded under full and open competition, suggesting a robust market for these specialized services. 3. The contract duration of five years indicates a long-term need for these critical defense capabilities. 4. Booz Allen Hamilton's extensive experience in defense contracting positions them well for this role. 5. The cost-plus-fixed-fee structure allows for flexibility in research but requires careful cost oversight. 6. This contract supports the Office of the Under Secretary of Defense for Acquisition & Sustainment (OUSD(A&S)).
Value Assessment
Rating: good
The contract value of $19.2 million over five years for advanced R&D in armaments and ammunition appears reasonable given the specialized nature of the work and the contractor's expertise. Benchmarking against similar complex defense research contracts, this award falls within expected ranges for high-level analysis and testing services. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D, necessitates diligent oversight to ensure cost efficiency and prevent scope creep, but it allows for necessary flexibility in research endeavors.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a healthy market for advanced armaments research and development services. This approach is generally expected to drive competitive pricing and encourage innovation among potential offerors, leading to better value for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, ensuring the government receives the best possible value for its investment in defense research.
Public Impact
The primary beneficiaries are the Department of Defense, specifically the Office of the Under Secretary of Defense for Acquisition & Sustainment (OUSD(A&S)), who will receive advanced research and analysis. The services delivered include critical testing and evaluation of armaments and ammunition, crucial for maintaining military readiness and technological superiority. The geographic impact is primarily national, supporting U.S. defense capabilities, though specific testing locations may vary. Workforce implications include the potential for highly skilled research scientists, engineers, and analysts to be engaged in critical defense projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize cost overruns if not managed rigorously.
- The specialized nature of armaments R&D may limit the pool of truly competitive bidders in the long term.
- Reliance on a single large contractor for critical R&D could pose a risk if contractor performance degrades.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Booz Allen Hamilton has a strong track record in defense contracting and R&D.
- The contract duration suggests a stable, long-term need for these critical services.
- The PWS outlines specific requirements for advanced research, analysis, testing, and evaluation.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences related to defense. The North American Industry Classification System (NAICS) code 541715 covers R&D in these areas. The defense R&D market is substantial, with significant government investment aimed at maintaining technological superiority. This contract represents a portion of that investment, focused on the critical area of armaments and ammunition analysis.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Booz Allen Hamilton is a large prime contractor. While there is no direct set-aside, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses. The extent of small business participation will depend on Booz Allen Hamilton's subcontracting plan and the specific needs of the research and analysis tasks.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Defense, specifically the contracting officer and technical representatives within OUSD(A&S). The cost-plus-fixed-fee structure necessitates robust financial oversight to monitor expenditures against the fixed fee and ensure compliance with the contract terms. Transparency will be maintained through regular reporting requirements outlined in the PWS and contract clauses. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Research and Development Programs
- Armaments and Ammunition Modernization Efforts
- Acquisition and Sustainment Support Services
- Advanced Technology Development Contracts
- Test and Evaluation Services for DoD
Risk Flags
- Cost Overrun Risk (CPFF)
- Scope Creep Potential
- Contractor Performance Monitoring
- Long-Term Dependency Risk
Tags
defense, research-and-development, armaments, ammunition, analysis, testing, evaluation, booz-allen-hamilton, department-of-defense, ousd(a&s), cost-plus-fixed-fee, full-and-open-competition
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.2 million to BOOZ ALLEN HAMILTON INC. 24-2636 PWS, TITLED "ADVANCED RESEARCH, ANALYSIS, TESTING, AND EVALUATION FOR ARMAMENTS AND AMMUNITION FOR THE OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR ACQUISITION & SUSTAINMENT (OUSD(A&S))"
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 $19.2 million.
What is the period of performance?
Start: 2025-03-24. End: 2030-03-23.
What is Booz Allen Hamilton's track record with similar DoD R&D contracts?
Booz Allen Hamilton Inc. has a long and extensive history of performing research, development, analysis, and technical support services for the Department of Defense and other federal agencies. They are a major defense contractor with significant experience in areas directly related to armaments, ammunition, acquisition, and sustainment. Their portfolio includes numerous contracts involving advanced research, testing, and evaluation, often utilizing complex methodologies and requiring high levels of technical expertise. This specific contract aligns well with their established capabilities and past performance, suggesting a low risk associated with their ability to meet the PWS requirements.
How does the $19.2 million value compare to similar DoD R&D contracts for armaments analysis?
The $19.2 million value for a five-year contract focused on advanced research, analysis, testing, and evaluation for armaments and ammunition is within a reasonable range for specialized defense R&D. Contracts of this nature often involve highly skilled personnel, proprietary research methodologies, and significant testing infrastructure. While exact comparisons are difficult without knowing the specific scope and deliverables, similar multi-year R&D efforts for critical defense systems can range from tens to hundreds of millions of dollars. This award appears to be a moderate-sized investment for targeted, high-level analysis supporting OUSD(A&S) objectives.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, like this one, revolve around cost control and contractor incentives. While CPFF allows for flexibility needed in research where exact costs are unpredictable, it can incentivize contractors to incur higher costs to increase their fee base if not managed carefully. The fixed fee is negotiated upfront, and the contractor is reimbursed for allowable costs. Key risks include potential for scope creep, where the project expands beyond initial expectations, leading to increased costs. Robust oversight by the government is crucial to monitor expenditures, ensure costs are reasonable and allocable, and prevent unnecessary spending. The government must also ensure the fixed fee adequately compensates the contractor for the risk and effort involved.
How effective is full and open competition in ensuring value for taxpayer money in specialized R&D contracts?
Full and open competition is generally considered the most effective method for ensuring value for taxpayer money, even in specialized R&D contracts. It maximizes the pool of potential offerors, fostering a competitive environment that drives innovation and encourages contractors to propose their best technical solutions at competitive prices. For specialized R&D, this means the government is more likely to receive proposals that are not only technically sound but also cost-effective. While the complexity of R&D can sometimes make direct price comparisons challenging, the competitive process itself helps to establish a benchmark for fair pricing and encourages contractors to optimize their resource allocation to win the contract. This leads to better overall value compared to sole-source or limited competition scenarios.
What is the historical spending trend for armaments and ammunition R&D within the DoD?
Historical spending trends for armaments and ammunition R&D within the DoD have generally shown consistent, significant investment, reflecting the ongoing need to maintain and advance military capabilities. While specific figures fluctuate annually based on strategic priorities, technological advancements, and geopolitical factors, the overall budget allocation for defense R&D, including areas like armaments, remains substantial. Agencies like OUSD(A&S) are tasked with overseeing these investments to ensure they align with modernization goals and provide a technological edge. Spending in this area is often driven by the need to counter emerging threats, replace aging systems, and develop next-generation weaponry, making it a perennial focus of the defense budget.
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: $207,299,549
Exercised Options: $207,299,549
Current Obligation: $19,225,537
Actual Outlays: $374,250
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: 2025-03-24
Current End Date: 2030-03-23
Potential End Date: 2030-03-23 00:00:00
Last Modified: 2025-12-29
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