DoD's $31.8M LCEI contract awarded to Booz Allen Hamilton for R&D in physical sciences

Contract Overview

Contract Amount: $31,832,078 ($31.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-01

End Date: 2026-12-31

Contract Duration: 1,582 days

Daily Burn Rate: $20.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: LOW COLLATERAL EFFECTS INTERCEPTOR (LCEI)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.8 million to BOOZ ALLEN HAMILTON INC for work described as: LOW COLLATERAL EFFECTS INTERCEPTOR (LCEI) Key points: 1. Contract focuses on research and development, indicating investment in future capabilities. 2. Awarded to a large, established contractor, suggesting a need for specialized expertise. 3. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight. 4. Competition was full and open after exclusion of sources, implying a structured procurement process. 5. The duration of nearly 4 years suggests a complex and long-term research objective. 6. Geographic location in Virginia may indicate proximity to key defense research facilities.

Value Assessment

Rating: good

Benchmarking the value of this R&D contract is challenging due to its specialized nature. However, the $31.8 million award over approximately four years for research and development in physical sciences appears reasonable for a project of this scope, especially given the contractor's expertise. The Cost Plus Fixed Fee structure, while common for R&D, necessitates diligent cost tracking to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was broad, specific sources may have been excluded based on predefined criteria, possibly related to security, capability, or prior performance. The exact number of bidders is not provided, but this method suggests a deliberate effort to ensure a competitive process while managing specific procurement constraints.

Taxpayer Impact: This procurement approach aims to balance broad competition with specific requirements, potentially leading to a fair price for taxpayers by leveraging market forces while ensuring the selection of highly qualified entities.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, who will receive advanced research and development outcomes. The services delivered are focused on research and development in physical sciences, contributing to technological advancement. The geographic impact is primarily within Virginia, where the contractor is located, potentially supporting local high-tech employment. Workforce implications include specialized research and engineering roles within Booz Allen Hamilton and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed rigorously.
The exclusion of sources in the competition, while potentially justified, warrants scrutiny to ensure fairness and optimal price discovery.
The specialized nature of R&D makes direct performance benchmarking difficult.

Positive Signals

Award to a reputable contractor like Booz Allen Hamilton suggests a high likelihood of technical competence.
The full and open competition aspect, even with exclusions, indicates a structured and deliberate procurement process.
The contract's focus on R&D aligns with strategic defense modernization goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences. The market for defense R&D is highly specialized, with significant government investment. Comparable spending benchmarks are difficult to establish without knowing the specific research area, but the overall federal R&D spending is in the billions annually, with defense being a major component. This contract represents a small but potentially impactful investment within that broader landscape.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Booz Allen Hamilton, may engage small businesses as subcontractors for specialized services or components, contributing to the small business ecosystem indirectly.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures will involve regular reporting on research progress, cost expenditure, and adherence to the fixed fee. Transparency is typically maintained through contract databases and official reporting, though specific research details 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
Air Force Advanced Technology Development
Physical Sciences Research Initiatives
Advanced Weapon Systems Development

Risk Flags

Cost Overrun Risk (CPFF contract type)
Limited Competition Impact (Exclusion of sources)
R&D Uncertainty Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.8 million to BOOZ ALLEN HAMILTON INC. LOW COLLATERAL EFFECTS INTERCEPTOR (LCEI)

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 $31.8 million.

What is the period of performance?

Start: 2022-09-01. End: 2026-12-31.

What is the specific research area within physical sciences this contract addresses?

The provided data identifies the contract's North American Industry Classification System (NAICS) code as 541715, which covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' However, the specific research topic within this broad category for the LOW COLLATERAL EFFECTS INTERCEPTOR (LCEI) project is not detailed in the provided information. Further investigation into the contract's statement of work or related documentation would be required to ascertain the precise scientific or engineering domain being explored.

How does the $31.8 million award compare to similar R&D contracts in physical sciences for the DoD?

Direct comparison of the $31.8 million award for the LCEI project to similar R&D contracts in physical sciences for the DoD is challenging without more specific details on the research scope and duration. However, R&D contracts of this magnitude are common within the defense sector, reflecting the significant investment required for cutting-edge technological development. The contract's duration of nearly four years (September 2022 to December 2026) suggests a substantial, multi-phase research effort. While the total value appears reasonable for a project of this length and complexity, a more precise benchmark would necessitate analyzing contracts with identical or highly similar research objectives and technical requirements.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for the LOW COLLATERAL EFFECTS INTERCEPTOR (LCEI) contract. For Cost Plus Fixed Fee R&D contracts, success is typically measured against milestones outlined in the Statement of Work (SOW), technical performance objectives, and the successful delivery of research findings or prototypes. The Department of the Air Force would establish these KPIs, likely focusing on the advancement of scientific understanding, the feasibility of proposed solutions, and the timely completion of research phases. Regular technical reviews and progress reports would be the primary mechanisms for assessing performance against these unstated KPIs.

What is Booz Allen Hamilton's track record with similar R&D contracts for the Department of Defense?

Booz Allen Hamilton is a well-established government contractor with extensive experience in research and development across various sectors, including defense. While specific details on their track record for 'LOW COLLATERAL EFFECTS INTERCEPTOR' (LCEI) related R&D are not provided, the company consistently secures large contracts for advanced research, engineering, and technical services for the DoD. Their history includes work on complex systems, strategic analysis, and technological innovation. Past performance evaluations and contract awards databases would offer a more granular view of their success rates and capabilities in comparable R&D endeavors.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond initial projections, the government bears the increased expense, although the contractor's profit (the fixed fee) remains constant. For R&D, this structure is often used due to the inherent uncertainties in research outcomes. Mitigation strategies employed by the government include rigorous cost monitoring, detailed audits of expenditures, clearly defined milestones in the Statement of Work, and strong program management oversight to ensure that costs remain reasonable and allocable to the contract's objectives. The 'fixed fee' component provides some incentive for the contractor to manage costs efficiently to protect their profit margin.

How does the 'after exclusion of sources' clause in the competition affect price discovery and potential savings for taxpayers?

The 'after exclusion of sources' clause in a 'Full and Open Competition' procurement means that while the competition was initially open, certain potential bidders were excluded based on specific, documented criteria. This exclusion, if applied judiciously and transparently, can streamline the competition by focusing on highly qualified entities, potentially leading to more efficient proposal evaluations. However, it can also limit the breadth of competition. If the excluded sources represented significant competitive threats or offered substantially lower pricing, their exclusion might lead to a less competitive environment, potentially resulting in higher prices for taxpayers than if a broader competition had been pursued. The justification for exclusion is critical in assessing its impact on price discovery and taxpayer savings.

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: $33,953,468

Exercised Options: $33,953,468

Current Obligation: $31,832,078

Actual Outlays: $797,084

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $3,240,412

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