Department of Defense awards $16.3M R&D contract to Booz Allen Hamilton for physical, engineering, and life sciences research

Contract Overview

Contract Amount: $22,635,408 ($22.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2015-07-16

End Date: 2020-10-18

Contract Duration: 1,921 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF CONTRACT AWARD TO BOOZ ALLEN HAMILTON (BAH) IN THE TOTAL AMOUNT OF $16,345,158.00 OUT OF WHICH $7,500,000.00 IS FUNDED.

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.6 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF CONTRACT AWARD TO BOOZ ALLEN HAMILTON (BAH) IN THE TOTAL AMOUNT OF $16,345,158.00 OUT OF WHICH $7,500,000.00 IS FUNDED. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense innovation. 4. The contract duration of over 1900 days indicates a long-term research effort. 5. Booz Allen Hamilton is a large, established government contractor with extensive experience in R&D. 6. The funded amount of $7.5M represents a significant portion of the total award, indicating immediate resource allocation.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns. CPFF contracts can sometimes lead to higher costs if not managed tightly, as the contractor is reimbursed for allowable costs plus a fixed fee. Comparing this award to similar R&D contracts in the physical, engineering, and life sciences sector would provide better context on whether the $16.3 million total obligation represents a fair price for the anticipated research outcomes. The fixed fee component, however, offers some incentive for the contractor to manage costs efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders suggests a reasonable level of competition for this R&D requirement. A competitive process generally helps in achieving better pricing and service quality by allowing the government to select the most advantageous offer.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it drives down costs and encourages innovation among bidders, leading to a more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the broader national security apparatus, through advancements in physical, engineering, and life sciences. The contract supports research and development activities, the specific outcomes of which are not detailed but are expected to enhance defense capabilities. The geographic impact is likely concentrated around Booz Allen Hamilton's research facilities, with potential for broader application across military branches. Workforce implications include employment for researchers, scientists, engineers, and support staff within Booz Allen Hamilton and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not rigorously monitored.
The long duration of the contract may present challenges in adapting to evolving research needs or technological advancements.
Lack of specific performance metrics makes it difficult to assess the true value and success of the R&D effort.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Booz Allen Hamilton is a reputable contractor with a strong track record in government R&D.
The contract supports critical research and development for national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a crucial area for defense innovation, aiming to develop new technologies and scientific understanding to maintain a military advantage. The market for defense R&D is highly specialized, with a few large contractors like Booz Allen Hamilton dominating significant portions of the spending. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by the DoD in similar scientific domains.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed in this award notice, and it's important to monitor compliance with any applicable subcontracting goals to ensure small businesses benefit from this spending.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. The Cost Plus Fixed Fee structure necessitates careful monitoring of allowable costs and the contractor's progress towards research objectives. Transparency is often limited in R&D contracts due to the proprietary nature of the research, but periodic reporting requirements should be in place. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development Programs
Army Research Laboratory Contracts
Science and Technology Development Contracts
Advanced Technology Development Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Long contract duration may lead to obsolescence or shifting priorities.
Lack of specific performance metrics hinders objective evaluation of success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.6 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF CONTRACT AWARD TO BOOZ ALLEN HAMILTON (BAH) IN THE TOTAL AMOUNT OF $16,345,158.00 OUT OF WHICH $7,500,000.00 IS FUNDED.

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 Army).

What is the total obligated amount?

The obligated amount is $22.6 million.

What is the period of performance?

Start: 2015-07-16. End: 2020-10-18.

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

Booz Allen Hamilton (BAH) has a long and extensive history of performing Cost Plus Fixed Fee (CPFF) Research and Development (R&D) contracts for the Department of Defense (DoD) and other federal agencies. Their expertise spans various scientific and engineering disciplines, aligning with the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). CPFF contracts are common for R&D where the scope of work can be uncertain or evolve, allowing the contractor to recover costs while providing a fixed profit incentive. BAH's significant presence in the government contracting space suggests they are adept at managing the complexities of these contracts, including cost tracking, reporting, and navigating evolving research requirements. However, the success and value derived from such contracts are highly dependent on the specific project goals, the government's oversight, and the contractor's execution. Historical data on BAH's performance on similar CPFF R&D contracts would be needed for a comprehensive assessment, focusing on adherence to budget, timely delivery of research milestones, and the ultimate impact of the research outcomes.

How does the total contract value of $16.3 million compare to other R&D contracts in the physical, engineering, and life sciences sector awarded by the DoD?

The total contract value of $16.3 million for this R&D effort in physical, engineering, and life sciences falls within a moderate range for large-scale federal R&D projects. The Department of Defense awards billions of dollars annually in R&D contracts, with many individual awards significantly exceeding this amount, particularly for major weapon system development or advanced technology initiatives. However, contracts in the $10-20 million range are substantial and typically support focused, multi-year research objectives. For instance, contracts for specific scientific research grants, prototype development, or specialized engineering studies often fall into this category. To provide a precise comparison, one would need to analyze recent DoD contract awards under NAICS code 541712 and similar codes, filtering for contracts with durations comparable to this award (over 1900 days) and those awarded to large, established contractors like Booz Allen Hamilton. This would reveal whether $16.3 million represents a typical investment for the scope and duration of research anticipated under this specific contract.

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

The primary risk with Cost Plus Fixed Fee (CPFF) contracts, especially for R&D, is the potential for cost overruns. Since the contractor is reimbursed for allowable costs plus a fixed fee, there is less inherent incentive to control costs compared to fixed-price contracts. This can be exacerbated in R&D where the scope and technical challenges are often uncertain, leading to unexpected expenses. Mitigation strategies employed by the government typically include rigorous cost monitoring and auditing, clearly defined allowable cost principles, and strong program management oversight to ensure the research stays within budget and on track. The fixed fee itself provides some incentive for efficiency, as the contractor aims to complete the work within the estimated cost to maximize their profit. For this specific contract, the government's contracting officer and technical team would be responsible for closely tracking expenditures, reviewing progress reports, and ensuring that all costs claimed by Booz Allen Hamilton are reasonable, allocable, and necessary for the R&D effort. The contract's duration (1921 days) also necessitates careful long-term financial planning and oversight.

What is the significance of the 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' classification (NAICS 541712)?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' signifies that this contract is focused on scientific inquiry and experimentation aimed at advancing knowledge and capabilities within these broad fields. This includes areas like materials science, advanced manufacturing, robotics, aerospace engineering, environmental science, and various branches of biology and medicine (excluding biotechnology, which has its own specific NAICS codes). For the Department of Defense, R&D in these areas is critical for developing next-generation technologies, improving existing systems, and understanding complex physical and biological phenomena relevant to national security. This classification suggests the contract could involve theoretical research, applied research, or experimental development, potentially leading to new defense capabilities, improved operational effectiveness, or enhanced soldier well-being. The breadth of the classification indicates a wide range of potential research applications.

Given the contract duration of 1921 days (over 5 years), what are the potential challenges in maintaining relevance and achieving objectives?

A contract duration of 1921 days, spanning over five years, presents several potential challenges for R&D projects. Firstly, the pace of technological advancement in physical, engineering, and life sciences is rapid. Research objectives defined at the outset may become outdated or less relevant by the time the project concludes, requiring flexibility and adaptation. Secondly, maintaining consistent funding and programmatic focus over such an extended period can be difficult due to shifting government priorities, budget fluctuations, and changes in leadership. Thirdly, retaining key research personnel with specialized skills can be a challenge over multiple years, impacting institutional knowledge and project continuity. To mitigate these challenges, effective contract management includes regular reviews, milestone-based funding, clear communication channels, and mechanisms for scope adjustments if necessary. The government contracting team must actively manage the contract to ensure the research remains aligned with evolving defense needs and technological landscapes throughout its lifecycle.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Offers Received: 4

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: $22,775,017

Exercised Options: $22,775,017

Current Obligation: $22,635,408

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $193,500

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: W15P7T14DA210

IDV Type: IDC

Timeline