Booz Allen Hamilton awarded $63M R&D contract for Air Force nuclear weapons lifecycle capabilities

Contract Overview

Contract Amount: $63,057,738 ($63.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2025-04-21

End Date: 2030-04-20

Contract Duration: 1,825 days

Daily Burn Rate: $34.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: INTEGRATED SYSTEMS RESEARCH AND ANALYSIS FOR ASSURED LIFECYCLE CAPABILITIES FOR THE NUCLEAR WEAPONS ENTERPRISE FOR AIR FORCE NUCLEAR WEAPONS CENTER (AFNWC)/NUCLEAR TECHNOLOGY AND INTEGRATION DIRECTORATE (NT)

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $63.1 million to BOOZ ALLEN HAMILTON INC for work described as: INTEGRATED SYSTEMS RESEARCH AND ANALYSIS FOR ASSURED LIFECYCLE CAPABILITIES FOR THE NUCLEAR WEAPONS ENTERPRISE FOR AIR FORCE NUCLEAR WEAPONS CENTER (AFNWC)/NUCLEAR TECHNOLOGY AND INTEGRATION DIRECTORATE (NT) Key points: 1. Contract focuses on critical research and analysis for the nuclear weapons enterprise. 2. High value contract awarded through full and open competition. 3. Long duration suggests a sustained need for these specialized services. 4. Cost-plus-fixed-fee structure may incentivize cost management by the contractor. 5. Contractor has a significant presence in federal R&D services. 6. Geographic focus on New Mexico highlights a key operational area.

Value Assessment

Rating: good

The contract value of $63 million over five years for specialized R&D services appears reasonable when benchmarked against similar complex defense research and analysis contracts. The cost-plus-fixed-fee (CPFF) pricing structure, while potentially leading to higher final costs than fixed-price contracts, is common for R&D where scope can evolve. This structure allows for flexibility in research while providing the contractor with a defined profit margin, which can be advantageous for complex, uncertain projects.

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 vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award suggests that the government sought the best value from a range of potential contractors. This process is designed to foster price discovery and ensure that the government receives competitive pricing for its requirements.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the most capable and cost-effective solutions are considered.

Public Impact

The primary beneficiaries are the U.S. Air Force Nuclear Weapons Center (AFNWC) and its Nuclear Technology and Integration Directorate (NT), who will receive advanced research and analysis. Services delivered will support the assured lifecycle capabilities of the nuclear weapons enterprise, crucial for national security. The contract has a geographic impact primarily in New Mexico, where the AFNWC is located. This contract supports highly specialized scientific and engineering roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to higher overall costs if not managed diligently.
The long contract duration (5 years) requires ongoing performance monitoring to ensure continued value.
Dependence on a single 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.
Booz Allen Hamilton is a well-established contractor with extensive experience in government R&D.
The contract addresses a critical national security requirement, indicating high strategic importance.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve other large-scale, long-term research and analysis contracts awarded by the Department of Defense to support complex weapon systems and strategic initiatives.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Booz Allen Hamilton, is a large business. There is no explicit information on subcontracting plans for small businesses within the provided data, but large federal contractors often engage small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Air Force Nuclear Weapons Center (AFNWC) contracting and program management offices. Accountability measures are inherent in the CPFF structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Nuclear Weapons Center Operations
Nuclear Weapons Lifecycle Management
Defense Research and Development Programs
Strategic Weapons Systems Analysis
Nuclear Technology Integration

Risk Flags

Long contract duration requires sustained oversight.
CPFF structure necessitates careful cost management.
Potential for scope creep in R&D projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.1 million to BOOZ ALLEN HAMILTON INC. INTEGRATED SYSTEMS RESEARCH AND ANALYSIS FOR ASSURED LIFECYCLE CAPABILITIES FOR THE NUCLEAR WEAPONS ENTERPRISE FOR AIR FORCE NUCLEAR WEAPONS CENTER (AFNWC)/NUCLEAR TECHNOLOGY AND INTEGRATION DIRECTORATE (NT)

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 $63.1 million.

What is the period of performance?

Start: 2025-04-21. End: 2030-04-20.

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 domains, including nuclear deterrence, advanced analytics, and systems engineering. They are a prime contractor on numerous large-scale, complex programs. Their track record typically involves supporting critical national security missions through scientific research, technical analysis, and strategic consulting. While specific performance metrics for past contracts are not detailed here, their continued success in securing significant R&D awards suggests a generally positive performance history and strong client relationships within the DoD.

How does the $63 million value compare to other R&D contracts for nuclear weapons lifecycle support?

The $63 million contract value over five years ($12.6 million annually) for integrated systems research and analysis for the nuclear weapons enterprise is substantial but falls within the expected range for highly specialized, long-term R&D efforts within the defense sector. Contracts supporting nuclear weapons systems are inherently complex and require deep technical expertise, often leading to higher costs. Benchmarking against similar contracts is challenging without access to proprietary data, but this value is consistent with the criticality and technical demands of maintaining and modernizing nuclear capabilities, which often involve multi-year, multi-million dollar investments in research and development.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the final cost to the government could exceed initial estimates if the contractor's costs are higher than anticipated, although the contractor's fee (profit) is fixed. This structure is often used when the scope of work is not well-defined or is expected to evolve, as is common in R&D. For the government, the risk lies in potentially paying more than necessary if cost controls are not rigorously enforced. For the contractor, the risk is that their actual costs might exceed the anticipated costs, reducing their effective profit margin, though the fixed fee provides a guaranteed profit regardless of cost overruns.

How effective is the 'full and open competition' process in ensuring value for this type of specialized R&D?

The 'full and open competition' process is generally considered the most effective method for ensuring value in government contracting, including for specialized R&D. It allows the widest possible range of qualified contractors to compete, fostering innovation and driving down prices through market forces. For complex R&D like nuclear weapons lifecycle capabilities, this process helps ensure that the government accesses the best available technical expertise and solutions at a competitive price. While the specific number of bidders isn't provided, the process itself increases the likelihood of a favorable outcome for taxpayers compared to sole-source or limited competition scenarios.

What are the potential implications of the 5-year duration on program effectiveness and contractor performance?

A five-year duration for this R&D contract provides stability and allows for sustained focus on complex, long-term objectives critical to the nuclear weapons enterprise. This extended period enables the contractor, Booz Allen Hamilton, to build deep institutional knowledge and invest in specialized resources without the constant pressure of short-term re-competition. However, it also necessitates robust government oversight to ensure continued performance, adaptability to evolving requirements, and cost control throughout the contract's life. Without effective oversight, a long duration could lead to complacency or a drift from original objectives, potentially diminishing program effectiveness over time.

How does the NAICS code 541715 (R&D in Physical, Engineering, and Life Sciences) inform our understanding of this contract's scope?

The North American Industry Classification System (NAICS) code 541715 signifies that this contract is for research and development activities in the physical, engineering, and life sciences, excluding nanotechnology and biotechnology. This code precisely categorizes the contract's focus on scientific inquiry and experimentation to advance knowledge and capabilities within these fields. For this specific contract, it implies work related to the fundamental science, engineering principles, and technological applications necessary for the lifecycle management of nuclear weapons, covering areas like materials science, physics, systems engineering, and related analytical disciplines.

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: $785,727,890

Exercised Options: $785,727,890

Current Obligation: $63,057,738

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