DoD's DANCE Program Awards $208M to Booz Allen Hamilton for R&D in Contested Environments
Contract Overview
Contract Amount: $20,803,035 ($20.8M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2020-09-15
End Date: 2026-03-12
Contract Duration: 2,004 days
Daily Burn Rate: $10.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DIRECTIONAL AIRBORNE NETWORKS FOR CONTESTED ENVIRONMENTS (DANCE)
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $20.8 million to BOOZ ALLEN HAMILTON INC for work described as: DIRECTIONAL AIRBORNE NETWORKS FOR CONTESTED ENVIRONMENTS (DANCE) Key points: 1. Booz Allen Hamilton, a major defense contractor, secured a significant R&D contract. 2. The contract focuses on developing airborne networks for challenging operational settings. 3. Full and open competition was used, suggesting a robust price discovery process. 4. The R&D nature of the contract implies potential for future technological advancements.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific unit costs, but the total award value is substantial for R&D.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is positive for price discovery. However, the specific details of the bidding process and the number of bidders are not provided, making a full assessment of price competitiveness challenging.
Taxpayer Impact: Taxpayer funds are being invested in advanced R&D, which could yield long-term national security benefits, but the immediate return on investment is uncertain.
Public Impact
Enhances U.S. military capabilities in contested airspace. Drives innovation in communication and network technologies. Supports research and development jobs within the defense sector. Potential for dual-use technologies benefiting civilian sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration (2004 days) increases risk of scope creep or obsolescence.
- Lack of specific performance metrics makes outcome assessment difficult.
Positive Signals
- Full and open competition utilized.
- Focus on critical R&D for national security.
- Experienced contractor selected.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining technological superiority but often involves high uncertainty and long development cycles.
Small Business Impact
The contract was awarded to Booz Allen Hamilton, a large business. There is no indication of specific subcontracting goals for small businesses within the provided data.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be critical to manage the Cost Plus Fixed Fee structure and ensure the R&D objectives are met efficiently and effectively.
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
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- R&D projects have inherent uncertainty.
- Potential for scope creep.
- Limited insight into specific performance metrics.
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.8 million to BOOZ ALLEN HAMILTON INC. DIRECTIONAL AIRBORNE NETWORKS FOR CONTESTED ENVIRONMENTS (DANCE)
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 $20.8 million.
What is the period of performance?
Start: 2020-09-15. End: 2026-03-12.
What specific technological advancements are expected from the DANCE program, and how will they be measured?
The DANCE program aims to develop directional airborne networks for contested environments, likely focusing on resilient communication and data transmission capabilities under electronic warfare or jamming conditions. Specific advancements would include enhanced signal integrity, secure data links, and adaptable network architectures. Measurement would involve rigorous testing in simulated and real-world contested scenarios, assessing metrics like data throughput, latency, signal-to-noise ratio, and resistance to interference.
Given the CPFF contract type, what mechanisms are in place to control costs and prevent contractor overruns?
Cost Plus Fixed Fee (CPFF) contracts provide for the reimbursement of allowable incurred costs plus a fixed fee representing profit. To control costs, the government typically employs stringent oversight, detailed auditing of expenses, and clearly defined ceilings. The fixed fee itself acts as a ceiling on profit, but the total cost reimbursement is uncapped. Effective management requires robust Earned Value Management (EVM) systems and regular performance reviews to ensure the contractor remains within budget expectations.
How does this R&D investment align with the Air Force's broader strategic goals for future warfare?
This investment directly supports the Air Force's strategic goals by addressing the critical need for resilient communication and networking in future contested battlespaces. As adversaries develop sophisticated electronic warfare capabilities, maintaining command and control through airborne platforms is paramount. The DANCE program's focus on developing adaptable, secure networks aligns with concepts like Joint All-Domain Command and Control (JADC2), ensuring information superiority across multiple domains.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: FA875020S7003
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: $24,774,196
Exercised Options: $24,774,196
Current Obligation: $20,803,035
Actual Outlays: $763,399
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-09-15
Current End Date: 2026-03-12
Potential End Date: 2026-03-12 00:00:00
Last Modified: 2025-09-17
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