DoD Awards $52.8M for Microsystems Devices Support Services to Booz Allen Hamilton
Contract Overview
Contract Amount: $52,812,265 ($52.8M)
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: $28.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MICROSYSTEMS DEVICES (MTO3) SUPPORT SERVICES EO14042
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $52.8 million to BOOZ ALLEN HAMILTON INC for work described as: MICROSYSTEMS DEVICES (MTO3) SUPPORT SERVICES EO14042 Key points: 1. Significant contract value of $52.8M awarded to a single large business. 2. Competition method was 'Full and Open', suggesting a competitive process. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Sector is professional, scientific, and technical services, with a focus on defense research.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risk of cost escalation. Benchmarking against similar contracts for specialized technical services is difficult without more granular data on labor categories and hours.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation. However, the specific impact on price discovery is unclear without knowing the number of bids received and the final negotiated price relative to initial proposals.
Taxpayer Impact: Taxpayer funds are being used for specialized technical support. The cost-plus nature of the contract warrants close monitoring to ensure value for money.
Public Impact
Supports advanced research and development in microsystems, potentially leading to technological advancements. Contract awarded to a large, established defense contractor, Booz Allen Hamilton. Duration of nearly 5 years suggests a long-term need for these specialized services. Funding allocated through a delivery order under a larger contract vehicle.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- No small business participation indicated
Positive Signals
- Full and open competition
- Supports critical defense research
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically supporting the Defense Advanced Research Projects Agency (DARPA). Spending in this area is crucial for maintaining a technological edge but requires careful oversight due to its specialized nature and often high costs.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
The contract is a delivery order under a larger contract, suggesting it may be subject to existing oversight mechanisms. However, the Cost Plus Fixed Fee structure necessitates robust monitoring of costs and performance to ensure accountability and prevent waste.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- No small business participation identified.
- Limited detail on specific services and deliverables.
- Long contract duration requires sustained oversight.
Tags
all-other-professional-scientific-and-te, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.8 million to BOOZ ALLEN HAMILTON INC. MICROSYSTEMS DEVICES (MTO3) SUPPORT SERVICES EO14042
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 $52.8 million.
What is the period of performance?
Start: 2021-11-01. End: 2026-10-31.
What specific technical services are included under 'Microsystems Devices (MTO3) Support Services' and how do they align with DARPA's strategic goals?
The contract details are limited, but 'Microsystems Devices Support Services' likely encompasses a range of technical expertise related to the design, development, testing, and integration of advanced microelectronic and microelectromechanical systems. These services would align with DARPA's mission to foster breakthrough technologies for national security, potentially in areas like advanced computing, sensors, or secure communication.
Given the Cost Plus Fixed Fee structure, what are the primary cost drivers and how will the government ensure cost efficiency?
Primary cost drivers for a Cost Plus Fixed Fee contract typically include direct labor (salaries, benefits), indirect costs (overhead, G&A), and potentially material costs. The government will ensure cost efficiency through rigorous monitoring of incurred costs, regular audits, performance reviews, and adherence to the fixed fee, which incentivizes the contractor to manage costs within the estimated ceiling.
What is the potential long-term impact of this contract on technological innovation within the defense sector?
This contract supports DARPA's role in pioneering cutting-edge technologies. By funding specialized support services for microsystems, it can accelerate the development and maturation of novel devices and systems, potentially leading to significant advancements in defense capabilities, cybersecurity, and other critical national security areas.
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: 1
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: $77,084,579
Exercised Options: $77,084,579
Current Obligation: $52,812,265
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $8,819,985
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
Start Date: 2021-11-01
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2025-12-18
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