Booz Allen Hamilton Inc. awarded $27.8M for consulting services to DARPA's Strategic Technology Office

Contract Overview

Contract Amount: $27,843,079 ($27.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Interior

Start Date: 2010-11-08

End Date: 2016-05-07

Contract Duration: 2,007 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: DEFENSE ADVANCED RESEARCH PROJECTS AGENCY (DARPA) STRATEGIC TECHNOLOGY OFFICE (STO) OFFICE-WIDE SETA SUPPORT.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $27.8 million to BOOZ ALLEN HAMILTON INC for work described as: DEFENSE ADVANCED RESEARCH PROJECTS AGENCY (DARPA) STRATEGIC TECHNOLOGY OFFICE (STO) OFFICE-WIDE SETA SUPPORT. Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Services provided are in a specialized consulting category, indicating a need for expert knowledge. 3. The contract duration of approximately 2007 days (5.5 years) suggests a long-term need for these services. 4. The award to a single contractor, Booz Allen Hamilton Inc., highlights their established presence in this niche. 5. The use of Time and Materials pricing may warrant scrutiny for cost control. 6. The contract falls under 'Other Scientific and Technical Consulting Services', a broad category.

Value Assessment

Rating: fair

The contract value of $27.8 million over approximately 5.5 years averages to roughly $5 million annually. Benchmarking this against similar large-scale, long-term consulting contracts for advanced research projects is challenging without more specific service details. However, the duration and specialized nature suggest a significant investment. The Time and Materials (T&M) pricing structure, while common for R&D support, can lead to cost overruns if not closely managed, making direct value-for-money assessment difficult without detailed performance metrics and labor rate analysis.

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 two bids suggests a competitive process, though the exact number of interested parties and the rigor of the evaluation are not detailed. A competitive process is generally expected to drive better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of potential contractors to participate, potentially leading to more competitive pricing and innovative solutions, ultimately maximizing the value of taxpayer dollars.

Public Impact

The primary beneficiaries are DARPA's Strategic Technology Office, receiving critical support for its research and development initiatives. Services delivered likely include strategic planning, technical analysis, program management support, and advisory services to advance cutting-edge technologies. The geographic impact is primarily within the defense research community, potentially influencing technological advancements nationwide. Workforce implications include the employment of highly skilled consultants and subject matter experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure.
Lack of specific performance metrics makes it difficult to assess the true value delivered.
Reliance on a single contractor for a significant period may limit future innovation or cost reduction opportunities.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible process.
Contract duration suggests a stable and predictable need for specialized expertise.
Booz Allen Hamilton Inc. is a well-established contractor with a track record in government consulting.

Sector Analysis

This contract falls within the Scientific and Technical Consulting Services sector, a critical component of the broader professional services market supporting government R&D. This sector is characterized by high demand for specialized expertise, particularly in areas like defense technology. The market size for such services is substantial, with significant government spending allocated to research, development, testing, and evaluation. This contract with DARPA represents a specific instance of federal agencies leveraging external expertise to advance strategic technological goals.

Small Business Impact

The provided 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 requirement. However, as a large contract awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would typically be managed by DARPA's contracting officers and program managers, who are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. Transparency is facilitated through contract databases like FPDS. Accountability measures are inherent in the contract terms, including performance requirements and payment schedules tied to deliverables. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DARPA Research and Development Contracts
Scientific and Technical Consulting Services
Department of Defense IT and R&D Support
Advanced Technology Development Contracts

Risk Flags

Potential for cost creep due to T&M pricing.
Need for strong government oversight to ensure efficient performance.
Limited transparency on specific performance metrics and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $27.8 million to BOOZ ALLEN HAMILTON INC. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY (DARPA) STRATEGIC TECHNOLOGY OFFICE (STO) OFFICE-WIDE SETA SUPPORT.

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 $27.8 million.

What is the period of performance?

Start: 2010-11-08. End: 2016-05-07.

What is Booz Allen Hamilton Inc.'s track record with DARPA and similar agencies for providing SETA support?

Booz Allen Hamilton Inc. has a long-standing and extensive track record of providing support services, including SETA (Systems Engineering and Technical Assistance), to various government agencies, including DARPA and the Department of Defense. Their history includes numerous large-scale contracts for strategic planning, program management, and technical consulting across a wide range of R&D initiatives. This specific contract with DARPA's Strategic Technology Office, valued at approximately $27.8 million over roughly 5.5 years, is indicative of their established relationship and capability in supporting advanced technology development. Their extensive experience suggests a deep understanding of the unique requirements and challenges associated with DARPA's mission.

How does the $27.8 million award compare to other SETA support contracts awarded by DARPA or similar R&D agencies?

The $27.8 million award for SETA support to DARPA's Strategic Technology Office is a substantial but not extraordinary figure for long-term, specialized consulting services within the federal R&D landscape. DARPA, by its nature, funds high-risk, high-reward research, often requiring significant technical and programmatic support. Contracts of this magnitude are common for agencies like DARPA, the Air Force Research Laboratory, or ONR, especially when they involve multi-year support for complex, evolving technology programs. While specific comparisons depend on the exact scope of services, the duration (approx. 5.5 years) and the nature of SETA support place this contract within the typical range for significant federal R&D program enablement.

What are the primary risks associated with a Time and Materials contract of this nature?

The primary risk associated with a Time and Materials (T&M) contract, like the one awarded to Booz Allen Hamilton Inc., is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer task durations or less efficient work if not rigorously monitored. For the government, risks include difficulty in predicting the total cost upfront, potential for inflated labor rates, and the need for robust oversight to ensure that effort is necessary and efficiently performed. Effective management requires detailed tracking of hours, validation of rates, and clear performance expectations.

How effective is full and open competition in ensuring value for money for SETA support contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for SETA support. By allowing all responsible sources to submit bids, it fosters a competitive environment that can drive down prices, encourage innovation, and lead to the selection of the most capable contractor at a fair market price. For SETA support, where technical expertise and strategic insight are paramount, competition allows the government to evaluate not only price but also the technical approach, past performance, and management capabilities of potential contractors. While effective competition requires careful solicitation design and evaluation, it provides a strong foundation for achieving optimal value.

What is the historical spending pattern for 'Other Scientific and Technical Consulting Services' by DARPA?

Historical spending by DARPA on 'Other Scientific and Technical Consulting Services' (NAICS code 541690) has been significant, reflecting the agency's reliance on external expertise to drive its advanced research and development mission. While specific annual figures fluctuate based on program priorities and funding cycles, DARPA consistently allocates substantial resources to consulting services that support its strategic technology offices and various research programs. This spending supports activities ranging from initial concept development and feasibility studies to program management, systems engineering, and technical analysis. The $27.8 million awarded in this instance is part of a broader pattern of investment in specialized consulting to augment internal capabilities and access cutting-edge knowledge.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N10PS20031

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $42,123,766

Exercised Options: $42,123,766

Current Obligation: $27,843,079

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline