Booz Allen Hamilton's $66M DARPA SETA contract awarded by Interior Department shows long-term engagement

Contract Overview

Contract Amount: $66,220,617 ($66.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Interior

Start Date: 2003-10-09

End Date: 2011-03-31

Contract Duration: 2,730 days

Daily Burn Rate: $24.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SETA SUPPORT FOR DARPA

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $66.2 million to BOOZ ALLEN HAMILTON INC for work described as: SETA SUPPORT FOR DARPA Key points: 1. Contract awarded for SETA support to DARPA, indicating a need for specialized technical and engineering services. 2. The contract duration of 2730 days (over 7 years) suggests a stable, long-term requirement for these services. 3. Awarded under full and open competition, implying a robust bidding process. 4. The contract type (Cost Plus Fixed Fee) suggests that costs were estimated and a fixed fee was negotiated. 5. The contractor, Booz Allen Hamilton, is a well-established entity in the government contracting space. 6. The awarding agency is the Department of the Interior, with the service being performed for DARPA. 7. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable SETA support contracts. The Cost Plus Fixed Fee (CPFF) structure can sometimes lead to cost overruns if not managed tightly. However, the fixed fee component provides some cost certainty for the government. The total award amount of over $66 million spread across more than seven years suggests a significant but potentially reasonable annual investment for specialized support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This suggests a competitive environment that should theoretically drive better pricing and service quality. The number of bids received is not specified, but the 'full and open' designation implies a broad solicitation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive market that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The primary beneficiary is DARPA, which receives essential SETA support to manage its complex research and development programs. Services delivered likely include technical analysis, program management support, strategic planning, and acquisition assistance. The geographic impact is likely concentrated around DARPA facilities, primarily in Virginia where the contract is noted. Workforce implications include the employment of highly skilled engineers, scientists, and program managers by Booz Allen Hamilton to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to achieve a higher fee if not carefully monitored.
Long contract durations (over 7 years) may reduce flexibility to adapt to changing technological needs or market conditions.
Reliance on a single large contractor for critical SETA support could create vendor lock-in.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield good value.
Booz Allen Hamilton is a reputable contractor with extensive experience in government support services.
The long duration indicates a stable and consistent need for the services, suggesting the contract is meeting ongoing requirements.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced research and development initiatives. The market for SETA (Systems Engineering and Technical Assistance) support is significant, with numerous firms competing to provide specialized expertise to government agencies like DARPA. Spending in this area is crucial for maintaining technological superiority and driving innovation. Comparable spending benchmarks would involve looking at other large, long-term support contracts for R&D-focused agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton, as a large prime contractor, may engage small businesses as subcontractors. However, the absence of specific set-aside requirements means that opportunities for small business prime contracting on this specific award are limited. The overall impact on the small business ecosystem depends on the subcontracting plans and execution by the prime.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within DARPA, supported by the Department of the Interior's contracting activities. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are expected to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, though specific performance details may be sensitive.

Related Government Programs

DARPA Research and Development Programs
Government Engineering Services Contracts
SETA Support Services
Department of Defense R&D Support
Cost Plus Fixed Fee Contracts

Risk Flags

Long contract duration may limit flexibility.
CPFF contracts require diligent oversight to manage costs.
Concentration of work in a high-cost labor area.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $66.2 million to BOOZ ALLEN HAMILTON INC. SETA SUPPORT FOR DARPA

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $66.2 million.

What is the period of performance?

Start: 2003-10-09. End: 2011-03-31.

What is the historical spending trend for SETA support contracts awarded by DARPA?

Analyzing historical spending trends for SETA support contracts awarded by DARPA requires access to comprehensive federal procurement data. Generally, DARPA's budget is focused on high-risk, high-reward research, and SETA support is crucial for managing these complex projects. Spending in this area can fluctuate based on strategic priorities, the number of active research programs, and the specific technical challenges being addressed. Contracts like the one awarded to Booz Allen Hamilton represent a significant portion of the operational budget needed to effectively oversee and execute these advanced R&D initiatives. Over time, DARPA has consistently utilized external expertise for SETA support, recognizing the specialized skills required that may not be available internally. The total value and duration of such contracts are indicative of the sustained need for these services to bridge the gap between scientific discovery and technological application.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D support?

The Cost Plus Fixed Fee (CPFF) contract structure is common for research and development (R&D) efforts where the scope of work is not precisely defined at the outset, making it difficult to establish a firm fixed price. In a CPFF contract, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing the contractor's profit. This contrasts with Firm-Fixed-Price (FFP) contracts, which offer the greatest cost certainty to the government but are best suited for well-defined requirements. Cost-Reimbursement contracts, like CPFF, shift some cost risk to the government but allow for greater flexibility in evolving R&D environments. Time and Materials (T&M) contracts are another option, often used for smaller efforts or staff augmentation, where payment is based on direct labor hours and associated costs. For R&D support, CPFF strikes a balance, providing flexibility while capping the contractor's profit margin, which can be advantageous when dealing with the inherent uncertainties of research.

What are the key performance indicators (KPIs) typically used to evaluate SETA contractors?

Key Performance Indicators (KPIs) for Systems Engineering and Technical Assistance (SETA) contractors are designed to measure their effectiveness in supporting complex government programs, particularly in R&D environments like DARPA. Common KPIs include technical performance, such as the quality of analysis provided, the accuracy of technical recommendations, and the successful integration of systems. Schedule adherence is critical, ensuring that support activities align with program milestones. Cost control is also paramount, especially in cost-reimbursement contracts, where KPIs might track budget variance and efficiency. Contractor responsiveness and communication effectiveness are vital for seamless collaboration between the contractor and government personnel. Furthermore, KPIs may assess the contractor's contribution to risk mitigation, innovation, and the overall achievement of program objectives. Regular performance reviews and feedback mechanisms are used to track these KPIs and ensure the contractor is meeting contractual obligations and delivering value.

What is Booz Allen Hamilton's track record with large federal R&D support contracts?

Booz Allen Hamilton has a long and extensive track record of securing and performing large federal R&D support contracts across various agencies, including the Department of Defense (DoD) and intelligence community. They are a major player in the government contracting landscape, known for providing a wide range of services, including systems engineering, technical assistance, cybersecurity, and management consulting. Their history includes numerous multi-year, multi-million dollar awards for supporting complex technological development programs. While specific performance details for individual contracts are often proprietary, Booz Allen Hamilton's sustained presence and continued success in winning competitive bids for critical R&D support indicate a generally positive performance record and a strong capability to meet the demanding requirements of agencies like DARPA. Their experience spans various technological domains, positioning them as a go-to contractor for high-level technical expertise.

How does the geographic location of contract performance (Virginia) impact service delivery and costs?

The performance location noted as Virginia is significant because it is a major hub for federal contracting, particularly for defense and intelligence agencies, including DARPA which has significant operations in the region. This proximity can facilitate easier communication, collaboration, and oversight between government personnel and contractor staff, potentially leading to more efficient service delivery. Having contractor personnel located near government facilities can reduce travel costs and allow for more immediate support. However, the cost of labor in the Washington D.C. metropolitan area, including Virginia, is generally higher than in many other parts of the country. This can translate to higher direct labor costs within the contract, even with a fixed fee. The presence of a large pool of experienced technical and engineering talent in the region benefits contractors like Booz Allen Hamilton in recruiting qualified personnel, but it also contributes to a competitive labor market that can drive up wages.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: BOOZ ALLEN HAMILTON INC., MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $66,220,617

Exercised Options: $66,220,617

Current Obligation: $66,220,617

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline