Booz Allen Hamilton awarded $41.5M contract for Microsystems Analysis Support Services by DARPA

Contract Overview

Contract Amount: $41,494,772 ($41.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2021-11-01

End Date: 2026-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MICROSYSTEMS ANALYSIS SPT (MTO1) SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.5 million to BOOZ ALLEN HAMILTON INC for work described as: MICROSYSTEMS ANALYSIS SPT (MTO1) SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in specialized technical services. 2. Full and open competition suggests a robust market for these capabilities. 3. Contract duration of five years indicates a long-term need for these services. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code covers a broad range of specialized expertise. 5. The contract's primary focus on analysis suggests a role in informing strategic decision-making. 6. The Cost Plus Fixed Fee (CPFF) pricing structure may require close monitoring to ensure cost control.

Value Assessment

Rating: good

The contract value of $41.5 million over five years, averaging approximately $8.3 million annually, appears reasonable for specialized R&D support services. Benchmarking against similar contracts for advanced research and technical support within the Department of Defense is necessary for a definitive value assessment. The CPFF structure, while common for research, necessitates careful oversight to manage costs effectively and ensure value for money.

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 presence of three bidders suggests a competitive environment, which typically drives better pricing and innovation. The level of competition is a positive sign for price discovery and ensures the government can select the most capable and cost-effective solution.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider selection of high-quality services.

Public Impact

The primary beneficiaries are the Defense Advanced Research Projects Agency (DARPA) and the broader Department of Defense, who will receive critical analytical support. Services delivered will likely involve in-depth analysis of microsystems technologies, contributing to research and development efforts. The geographic impact is primarily centered in Virginia, where the contractor is located, but the insights gained can have national security implications. Workforce implications include the employment of highly skilled scientists, engineers, and analysts within Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Cost Plus Fixed Fee (CPFF) structure if not managed diligently.
The broad NAICS code could mask the specific nature of services, requiring clear performance metrics.
Reliance on a single large contractor for critical analysis could pose a risk if capabilities are not maintained or expanded.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for strong performance.
Long contract duration suggests a stable and ongoing need, allowing for deep expertise development.
Contractor's established presence and experience in government contracting are positive indicators.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on advanced research and development support. The market for such specialized analytical services is driven by government needs for cutting-edge technological advancements, particularly in defense. Comparable spending benchmarks would involve analyzing other DARPA or DoD contracts for similar analytical support, which often represent significant investments in specialized expertise.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Booz Allen Hamilton is a large prime contractor, and while they may utilize small businesses for subcontracting, the primary award is not directed towards small business participation. The impact on the small business ecosystem would depend on whether Booz Allen Hamilton actively seeks small business subcontractors for specialized support.

Oversight & Accountability

Oversight for this contract will likely be managed by DARPA program managers and contracting officers, ensuring adherence to the contract terms and performance requirements. Accountability measures are embedded within the CPFF structure, requiring justification for costs incurred. Transparency is facilitated through contract reporting requirements, and while specific Inspector General jurisdiction isn't detailed, the DoD IG has broad oversight over defense spending.

Related Government Programs

Defense Research and Development
Advanced Technology Support
Microsystems Engineering
Scientific and Technical Consulting Services
Department of Defense IT and Engineering Support

Risk Flags

Cost Overrun Risk (CPFF)
Broad NAICS Code Ambiguity
Contractor Performance Monitoring
Long-Term Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.5 million to BOOZ ALLEN HAMILTON INC. MICROSYSTEMS ANALYSIS SPT (MTO1) SUPPORT SERVICES

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 (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $41.5 million.

What is the period of performance?

Start: 2021-11-01. End: 2026-10-31.

What is Booz Allen Hamilton's track record with DARPA and similar defense contracts?

Booz Allen Hamilton has a long-standing and extensive track record of supporting government agencies, including the Department of Defense and DARPA. They are a major contractor known for providing a wide range of services, from IT and cybersecurity to strategic consulting and advanced research support. Their experience with complex, high-technology projects is well-documented. Analyzing their past performance on cost-plus contracts specifically would provide further insight into their ability to manage budgets effectively and deliver within the agreed-upon fixed fee parameters. Historical data on contract awards and performance reviews would be crucial for a comprehensive assessment.

How does the $41.5 million contract value compare to similar DARPA analytical support contracts?

The $41.5 million contract value over five years, averaging approximately $8.3 million annually, is within the typical range for significant research and development support contracts awarded by agencies like DARPA. DARPA often funds high-risk, high-reward projects requiring specialized expertise, which can command substantial budgets. To provide a precise comparison, one would need to analyze the scope, duration, and specific technical requirements of other DARPA contracts for 'All Other Professional, Scientific, and Technical Services' or similar categories. However, given the agency's mission and the nature of advanced microsystems analysis, this funding level appears commensurate with the expected complexity and strategic importance of the work.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D services, is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, the government bears the risk of all allowable costs exceeding estimates. This structure can sometimes lead to less stringent cost management by the contractor if oversight is not robust. For DARPA, where research can be inherently unpredictable, CPFF is often used to attract innovative solutions. However, effective oversight, clear performance metrics, and regular audits are crucial to mitigate the risk of the government paying more than anticipated for the services rendered.

How effective is 'full and open competition' in ensuring value for money for specialized technical services like this?

Full and open competition is generally considered the most effective method for ensuring value for money, as it allows the widest possible pool of qualified vendors to compete. This broad competition typically drives down prices and encourages innovation as contractors strive to offer the best technical solution at the most competitive price. For specialized technical services, where unique expertise is required, it ensures that the government can identify and select the contractor offering the optimal balance of technical capability and cost. The fact that three bids were received suggests sufficient market interest and a competitive dynamic that should benefit the taxpayer.

What is the historical spending trend for 'All Other Professional, Scientific, and Technical Services' within the Department of Defense?

Historical spending trends for the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) category within the Department of Defense (DoD) show a consistent and significant investment. This broad category encompasses a wide array of specialized services, including scientific research, technical consulting, and analytical support, which are critical for defense modernization and operations. Over the past decade, spending in this sector has generally remained robust, reflecting the DoD's continuous need for external expertise in areas ranging from emerging technologies to strategic planning. Fluctuations may occur based on specific program priorities and budget allocations, but the overall trend indicates a sustained demand for these services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HR001118R0001

Offers Received: 3

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: $55,643,008

Exercised Options: $55,643,008

Current Obligation: $41,494,772

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $10,626,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HR001118D0001

IDV Type: IDC

Timeline