DoD's $82.7M C-SUAS C2 contract awarded to Booz Allen Hamilton for R&D in Iowa

Contract Overview

Contract Amount: $82,733,891 ($82.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-28

End Date: 2027-08-29

Contract Duration: 2,161 days

Daily Burn Rate: $38.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: C-SUAS COMMAND AND CONTROL (C2), RADIO FREQUENCY, INTERCEPTO

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $82.7 million to BOOZ ALLEN HAMILTON INC for work described as: C-SUAS COMMAND AND CONTROL (C2), RADIO FREQUENCY, INTERCEPTO Key points: 1. Contract focuses on Command and Control (C2) for Counter-Small Unmanned Aerial Systems (C-SUAS). 2. Research and Development in Physical, Engineering, and Life Sciences is the primary NAICS code. 3. Booz Allen Hamilton, a large incumbent, secured this Delivery Order. 4. The contract spans nearly five years, indicating a long-term need. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. This award is part of a larger effort to counter drone threats.

Value Assessment

Rating: fair

The contract value of $82.7 million for a nearly five-year R&D effort in C-SUAS C2 appears within a reasonable range for specialized defense research. However, without specific benchmarks for similar C-SUAS C2 R&D contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring to ensure costs remain controlled and aligned with the fixed fee, which is a common but potentially less cost-efficient structure for R&D compared to fixed-price options.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while initial broad competition may have occurred, specific circumstances led to the exclusion of certain sources before the final award. This implies a limited competitive landscape for this specific delivery order, potentially impacting price discovery. The number of bidders is not specified, but the award mechanism suggests a pre-selected pool or a specific justification for excluding other potential offerors.

Taxpayer Impact: A limited competition may result in higher prices for taxpayers compared to a fully open and unrestricted competition, as fewer vendors are vying for the contract.

Public Impact

The Department of Defense, specifically the Air Force, is the primary beneficiary, enhancing its counter-drone capabilities. The contract supports research and development in advanced command and control systems for C-SUAS. The geographic impact is centered in Iowa, where the research and development activities will likely take place. This contract supports highly skilled R&D professionals in the defense technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost growth if not rigorously managed.
Limited competition after exclusion of sources may lead to suboptimal pricing for the government.
The specific nature of R&D makes performance metrics and success criteria critical for oversight.

Positive Signals

Award to a well-established contractor like Booz Allen Hamilton suggests a degree of confidence in their capabilities.
The long duration of the contract (nearly 5 years) indicates a sustained commitment to addressing a critical defense need.
Focus on C-SUAS C2 addresses a growing and significant threat to national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on defense technology related to counter-small unmanned aerial systems (C-SUAS). The market for C-SUAS technology is rapidly evolving due to the proliferation of drones. Spending in this area is driven by national security imperatives and technological advancements. Comparable spending benchmarks would typically be found within broader DoD R&D budgets for electronic warfare, command and control systems, and emerging threat defense.

Small Business Impact

The contract was not set aside for small businesses, and Booz Allen Hamilton is a large business. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. Therefore, the direct impact on the small business ecosystem is likely minimal unless subcontracting opportunities are actively pursued by the prime contractor.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve rigorous review of incurred costs, progress reports, and adherence to the fixed fee structure by the Department of the Air Force. Accountability measures will be tied to the successful completion of R&D milestones and deliverables. Transparency is generally maintained through contract reporting mechanisms, though specific details of R&D progress may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Counter-Unmanned Aircraft Systems (C-UAS) Initiatives
Command and Control Systems Development
Air Force Science and Technology Investments

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition may impact price competitiveness.
R&D success is inherently uncertain and subject to technical challenges.
Need for robust oversight to manage scope and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.7 million to BOOZ ALLEN HAMILTON INC. C-SUAS COMMAND AND CONTROL (C2), RADIO FREQUENCY, INTERCEPTO

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 $82.7 million.

What is the period of performance?

Start: 2021-09-28. End: 2027-08-29.

What is Booz Allen Hamilton's track record with similar C-SUAS or C2 R&D contracts?

Booz Allen Hamilton has a significant history of supporting the Department of Defense across various domains, including C2 systems, intelligence analysis, and emerging technologies. While specific C-SUAS C2 R&D contract details are often sensitive, their extensive portfolio suggests substantial experience in developing complex systems for military applications. They are known for their research capabilities and have been involved in numerous advanced technology development programs. Their past performance on large, complex R&D efforts, particularly within the DoD, indicates a capacity to manage the technical and programmatic challenges associated with this contract. However, a deeper dive into specific C-SUAS related R&D performance metrics would provide a more precise assessment.

How does the $82.7 million value compare to other C-SUAS R&D efforts?

Benchmarking the $82.7 million value for this C-SUAS C2 R&D contract requires comparing it against similar, publicly available data, which can be challenging due to the specialized and often classified nature of defense R&D. However, considering the nearly five-year duration and the complexity of developing advanced command and control systems for counter-drone operations, this figure appears to be within a plausible range for a significant R&D effort. Larger, multi-year R&D programs within the DoD can easily reach hundreds of millions of dollars. The value is influenced by factors such as the scope of research, the number of personnel involved, the sophistication of the technology being developed, and the specific threat environment it aims to address. Without more granular data on comparable contracts, it's difficult to definitively state if it represents exceptional value or is on the higher end.

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 Research and Development (R&D) revolve around cost control and potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the R&D effort encounters unforeseen technical challenges, scope creep, or inefficiencies, the total costs can escalate significantly beyond initial estimates. While the fee is fixed, the government bears the risk of increased costs. Effective management, stringent oversight of expenditures, and clear definition of R&D objectives are crucial to mitigate these risks. Conversely, CPFF can be beneficial for R&D where the scope is uncertain, allowing flexibility to adapt to new findings without extensive contract modifications.

How effective are 'Full and Open Competition after Exclusion of Sources' awards in achieving best value?

Awards made under 'Full and Open Competition after Exclusion of Sources' present a mixed picture regarding achieving best value. This acquisition approach implies that while the initial solicitation was open, specific sources were later excluded, leading to a more limited competition pool for the final award. This exclusion could be based on various factors, such as specific technical capabilities, past performance, or security requirements. While it can ensure that the remaining bidders possess highly specialized qualifications, it inherently reduces the breadth of competition. A smaller pool of bidders may lead to less aggressive pricing and potentially limit the government's ability to leverage the full spectrum of market innovation. Therefore, while it can secure necessary expertise, it may not always yield the lowest price or the most innovative solutions compared to a truly unrestricted full and open competition.

What is the historical spending trend for C-SUAS related R&D within the Department of Defense?

Historical spending trends for Counter-Small Unmanned Aerial Systems (C-SUAS) related Research and Development (R&D) within the Department of Defense (DoD) have shown a significant upward trajectory over the past decade. This increase is directly correlated with the proliferation of affordable and accessible drone technology globally and its demonstrated use in various conflict zones. Initially, spending was more fragmented, focusing on individual component research. However, as the threat evolved, the DoD has consolidated efforts and increased investment in integrated C-SUAS solutions, including command and control, detection, tracking, and neutralization systems. Budgets dedicated to C-SUAS R&D have grown substantially, reflecting its high priority within national defense strategies. This trend is expected to continue as technology advances and new threats emerge.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $82,794,335

Exercised Options: $82,794,335

Current Obligation: $82,733,891

Actual Outlays: $5,695,682

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $4,511,533

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA875021D1100

IDV Type: IDC

Timeline