DoD's CLUE III contract awards Booz Allen Hamilton $25.8M for drone integration R&D

Contract Overview

Contract Amount: $25,830,568 ($25.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-07-28

End Date: 2027-11-27

Contract Duration: 1,948 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: COLLABORATIVE LOW-ALTITUDE UNMANNED AIRCRAFT SYSTEMS INTEGRATION EFFORT UTM RDT&E, MATURATION, PRODUCTIZATION, OPERATIONAL ASSESSMENT, AND DEPLOYMENT (CLUE III)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to BOOZ ALLEN HAMILTON INC for work described as: COLLABORATIVE LOW-ALTITUDE UNMANNED AIRCRAFT SYSTEMS INTEGRATION EFFORT UTM RDT&E, MATURATION, PRODUCTIZATION, OPERATIONAL ASSESSMENT, AND DEPLOYMENT (CLUE III) Key points: 1. This contract focuses on integrating unmanned aircraft systems (UAS) at low altitudes. 2. Booz Allen Hamilton, a large defense contractor, secured this R&D award. 3. The contract spans multiple phases: RDT&E, maturation, productization, assessment, and deployment. 4. The sector is Research and Development in Physical, Engineering, and Life Sciences.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts for UAS integration is difficult due to the specialized nature of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not have yielded the most competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for advanced drone integration research, with potential long-term benefits for defense capabilities, but the limited competition raises concerns about cost-effectiveness.

Public Impact

Advancements in drone technology could enhance military surveillance and operational capabilities. Integration efforts may lead to more efficient and safer airspace management for drones. The project's success could influence future defense spending on unmanned systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may result in higher costs.
  • Cost Plus Fixed Fee contracts carry inherent cost overrun risks.
  • The specific R&D outcomes are uncertain.

Positive Signals

  • Addresses a critical emerging technology area (UAS integration).
  • Involves a phased approach from R&D to deployment.
  • Supports national defense objectives.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but can be subject to long development cycles and uncertain outcomes.

Small Business Impact

This contract was awarded to Booz Allen Hamilton, a large business. There is no indication of subcontracting opportunities 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.

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.
  • Limited competition (after exclusion of sources).
  • Long contract duration (1948 days).
  • Focus on R&D with inherent uncertainty.

Tags

research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to BOOZ ALLEN HAMILTON INC. COLLABORATIVE LOW-ALTITUDE UNMANNED AIRCRAFT SYSTEMS INTEGRATION EFFORT UTM RDT&E, MATURATION, PRODUCTIZATION, OPERATIONAL ASSESSMENT, AND DEPLOYMENT (CLUE III)

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 $25.8 million.

What is the period of performance?

Start: 2022-07-28. End: 2027-11-27.

What is the projected return on investment for this drone integration R&D effort?

The projected return on investment for this drone integration R&D effort is not explicitly stated in the provided data. However, the investment aims to enhance national defense capabilities through advanced unmanned aircraft systems. The long-term benefits are expected to materialize through improved surveillance, operational efficiency, and potentially reduced risk to personnel in future military operations.

What are the primary risks associated with the limited competition for this contract?

The primary risks associated with limited competition include potentially higher contract costs due to a lack of competitive pressure, reduced innovation from a smaller pool of bidders, and a perception of unfairness. This approach may not guarantee the best value for taxpayer dollars compared to a full and open competition.

How will the effectiveness of the CLUE III integration effort be measured?

The effectiveness of the CLUE III integration effort will likely be measured through a series of operational assessments and productization milestones outlined in the contract. Key performance indicators would probably include successful integration of UAS, adherence to safety and regulatory standards, and demonstrated improvements in mission capabilities during deployment phases.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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: $34,989,680

Exercised Options: $34,989,680

Current Obligation: $25,830,568

Actual Outlays: $387,211

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $3,188,566

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

Start Date: 2022-07-28

Current End Date: 2027-11-27

Potential End Date: 2027-11-27 00:00:00

Last Modified: 2025-07-25

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