DoD Awards Booz Allen Hamilton $36M for NORAD/NORTHCOM Tech R&D
Contract Overview
Contract Amount: $35,994,658 ($36.0M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2025-04-28
End Date: 2030-04-27
Contract Duration: 1,825 days
Daily Burn Rate: $19.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TECHNOLOGY INTEGRATION AND ASSESSMENT RESEARCH AND DEVELOPMENT FOR UNITED STATES NORTHERN COMMAND AND NORTH AMERICAN AEROSPACE DEFENSE COMMAND
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $36.0 million to BOOZ ALLEN HAMILTON INC for work described as: TECHNOLOGY INTEGRATION AND ASSESSMENT RESEARCH AND DEVELOPMENT FOR UNITED STATES NORTHERN COMMAND AND NORTH AMERICAN AEROSPACE DEFENSE COMMAND Key points: 1. Booz Allen Hamilton secures a significant contract for critical technology integration and assessment. 2. The contract focuses on R&D within the physical, engineering, and life sciences, excluding nano/biotech. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The award highlights ongoing investment in advanced technological capabilities for North American defense.
Value Assessment
Rating: good
The Cost Plus Fixed Fee contract type allows for flexibility in R&D while managing costs. The award amount of $35.99M over five years appears reasonable for specialized technology research and development services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure advanced technological solutions for national defense at a fair price.
Public Impact
Enhances NORAD/NORTHCOM's technological edge in a rapidly evolving threat landscape. Supports research and development crucial for maintaining aerospace and territorial defense capabilities. Invests in innovation that could have broader applications in national security technology. Ensures advanced assessment tools are available for critical defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed carefully.
- Reliance on a single vendor for a significant R&D effort may pose long-term dependency risks.
Positive Signals
- Awarded through full and open competition.
- Focuses on critical defense technology R&D.
- Long-term contract duration allows for sustained development.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is vital for maintaining a technological advantage in defense, with benchmarks varying widely based on specific research areas and project scope.
Small Business Impact
While Booz Allen Hamilton is a large business, the nature of this specialized R&D contract may involve subcontracting opportunities for small businesses with specific technological expertise.
Oversight & Accountability
The Department of the Air Force, acting on behalf of DoD, is responsible for oversight. The Cost Plus Fixed Fee structure requires diligent monitoring of costs and performance to ensure accountability and value.
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
- Potential for cost overruns inherent in CPFF contracts.
- Long-term reliance on a single large contractor.
- Scope creep in R&D projects can be challenging to manage.
- Dependence on specific technological expertise that may become obsolete.
Tags
research-and-development-in-the-physical, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.0 million to BOOZ ALLEN HAMILTON INC. TECHNOLOGY INTEGRATION AND ASSESSMENT RESEARCH AND DEVELOPMENT FOR UNITED STATES NORTHERN COMMAND AND NORTH AMERICAN AEROSPACE DEFENSE COMMAND
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 $36.0 million.
What is the period of performance?
Start: 2025-04-28. End: 2030-04-27.
What specific technological advancements are prioritized under this R&D contract, and how do they align with current and future threats to North American aerospace and defense?
The contract focuses on 'Technology Integration and Assessment Research and Development.' While specific advancements aren't detailed, the context of NORAD/NORTHCOM suggests priorities likely include advanced sensor integration, data fusion, AI-driven threat detection, cybersecurity for critical systems, and improved command and control capabilities to counter evolving aerospace and cyber threats.
What are the key performance indicators (KPIs) for this contract, and how will the success of the R&D efforts be measured to ensure effective use of taxpayer funds?
Success metrics would likely include the successful integration and testing of new technologies, the accuracy and efficiency improvements demonstrated by these technologies, the timely delivery of research reports and assessments, and the overall contribution to enhanced operational capabilities for NORAD/NORTHCOM. Performance will be monitored through regular reviews and milestone achievements.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control potential cost overruns and ensure the final cost remains within reasonable bounds for the delivered R&D value?
The 'Fixed Fee' component of the contract provides a ceiling for the contractor's profit, incentivizing efficiency. Oversight by the Department of the Air Force will involve rigorous review of incurred costs, regular progress reports, and potentially establishing target costs with incentive sharing. Clear scope definition and change control processes are crucial.
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: $138,245,484
Exercised Options: $138,245,484
Current Obligation: $35,994,658
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $500,000
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: 2025-04-28
Current End Date: 2030-04-27
Potential End Date: 2030-04-27 00:00:00
Last Modified: 2025-11-25
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