DoD's $19.8M R&D contract for CERDEC S&TCD RFC Division awarded to Booz Allen Hamilton Inc

Contract Overview

Contract Amount: $19,802,998 ($19.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2017-08-24

End Date: 2021-04-26

Contract Duration: 1,341 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF THIS CONTRACT/ORDER SUPPORTS THE MISSION OF THE U.S. CERDEC S&TCD RFC DIVISION.

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF THIS CONTRACT/ORDER SUPPORTS THE MISSION OF THE U.S. CERDEC S&TCD RFC DIVISION. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 3. Booz Allen Hamilton Inc. is the prime contractor for this effort. 4. The contract duration is 1341 days, spanning from August 2017 to April 2021. 5. This contract falls under the Research and Development sector, specifically NAICS 541712. 6. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee. 7. The contract was awarded as a Delivery Order, indicating it's part of a larger contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific $19.8 million R&D contract is challenging without detailed scope of work and deliverables. Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to higher costs if not managed tightly, as the contractor is reimbursed for costs incurred plus a fee. However, CPFF is common for R&D where the scope may evolve. Without comparable contract data for similar R&D efforts within CERDEC S&TCD RFC Division, a precise value-for-money assessment is difficult. The fixed fee component provides some incentive for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the 'full and open' designation generally implies a robust competitive environment. This approach is intended to foster price discovery and ensure the government receives competitive pricing by allowing a wide range of potential contractors to participate.

Taxpayer Impact: A full and open competition typically benefits taxpayers by driving down prices through market competition, ensuring that the government is not overpaying for services or research.

Public Impact

This contract directly supports the mission of the U.S. CERDEC S&TCD RFC Division, contributing to advancements in physical, engineering, and life sciences research. The research and development activities undertaken are expected to yield technological advancements and solutions for the Department of Defense. The primary beneficiaries are the U.S. Army's research and development capabilities, enhancing its technological edge. The contract's impact is primarily within the defense sector, focusing on scientific and technical advancements rather than broad public services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes incentivize cost overruns if not rigorously monitored, as the contractor is reimbursed for incurred costs.
The specific deliverables and outcomes of the R&D are not detailed, making it difficult to assess the return on investment.
The duration of the contract (over 3.5 years) requires sustained oversight to ensure continued alignment with evolving research needs and objectives.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
The contract supports critical R&D missions for a key Army division (CERDEC S&TCD RFC), indicating strategic importance.
Booz Allen Hamilton is a well-established contractor with significant experience in government R&D and technical services.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is characterized by innovation, intellectual property development, and often long-term projects. The market size for defense-related R&D is substantial, with significant government investment aimed at maintaining technological superiority. This contract represents a portion of that investment, focused on specific scientific and engineering challenges within the Army's purview.

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, Booz Allen Hamilton, it is possible that subcontracting opportunities may exist for small businesses. However, without specific subcontracting plans or data, the extent of small business participation is unknown. The focus on specialized R&D may limit the types of small businesses that could participate as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army, overseeing CERDEC. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring of incurred costs and the contractor's progress towards defined milestones. Transparency would be facilitated through regular reporting requirements and potentially through contract performance reviews. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Research Laboratory (ARL) Contracts
Defense Advanced Research Projects Agency (DARPA) Projects
CERDEC S&TCD Contracts
Department of Defense Research and Development Spending
Information Technology R&D Contracts

Risk Flags

Cost Overruns Possible with CPFF
R&D Success is Inherently Uncertain
Scope Creep Risk in Evolving Research Areas
Requires Strong Technical Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF THIS CONTRACT/ORDER SUPPORTS THE MISSION OF THE U.S. CERDEC S&TCD RFC DIVISION.

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 $19.8 million.

What is the period of performance?

Start: 2017-08-24. End: 2021-04-26.

What is the specific nature of the R&D supported by this contract for the CERDEC S&TCD RFC Division?

The contract data indicates it supports the mission of the U.S. CERDEC S&TCD RFC Division, which focuses on research and development in physical, engineering, and life sciences. While the specific project details are not provided, CERDEC (Communications-Electronics Research, Development and Engineering Center) historically works on areas like command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, electronic warfare, and cyber technologies. The RFC (Readiness and Force C-E Capabilities) Division likely focuses on ensuring these technologies are robust, reliable, and meet the evolving needs of Army forces in the field. The R&D could encompass areas such as advanced materials, sensor technologies, communication systems, or computational modeling and simulation relevant to these domains.

How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and contractor incentives for this R&D effort?

The Cost Plus Fixed Fee (CPFF) contract type means the contractor, Booz Allen Hamilton, is reimbursed for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee. This structure is often used for R&D where the scope of work can be uncertain or evolve. The fixed fee provides a clear profit margin, incentivizing the contractor to complete the work within the estimated cost to maximize their overall return. However, it can also create less incentive for aggressive cost reduction compared to fixed-price contracts, as the contractor is guaranteed reimbursement for costs. Effective oversight by the government is crucial to ensure costs are reasonable and allocable to the contract, and that the fixed fee is commensurate with the effort and risk involved.

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

Booz Allen Hamilton is a major government contractor with extensive experience across various sectors, including significant work in research and development for the Department of Defense. They have a long history of supporting complex technical and analytical efforts for agencies like the Army, Navy, Air Force, and DARPA. Their portfolio often includes R&D in areas such as cybersecurity, artificial intelligence, data analytics, systems engineering, and strategic planning. While specific performance metrics for this particular $19.8 million contract are not detailed here, Booz Allen Hamilton's general track record suggests they possess the technical expertise and capacity to handle such R&D requirements. However, like any large contractor, performance can vary across individual contracts, and rigorous oversight remains essential.

How does this $19.8 million R&D contract compare to overall DoD spending on similar research initiatives?

The $19.8 million awarded to Booz Allen Hamilton represents a relatively modest portion of the Department of Defense's overall R&D budget, which typically runs into the tens of billions of dollars annually. DoD R&D spending is distributed across numerous projects, programs, and contractors, covering a vast spectrum of technological advancements from basic research to applied science and advanced development. This specific contract, focused on physical, engineering, and life sciences R&D for a particular Army division (CERDEC S&TCD RFC), is one of many contributing to the DoD's broader technological objectives. Its size suggests a focused effort rather than a large-scale, multi-year program, but it is integral to the specific mission it supports.

What are the potential risks associated with this contract, given its R&D nature and CPFF structure?

The primary risks associated with this R&D contract, particularly under a CPFF structure, include potential cost growth if the research encounters unforeseen technical challenges or requires more resources than initially estimated. Scope creep is another risk, where the objectives or requirements may expand beyond the original intent without adequate adjustments to cost and schedule. Contractor performance risk also exists; while Booz Allen Hamilton is experienced, the success of R&D is inherently uncertain, and breakthroughs are not guaranteed. Ensuring clear communication, robust technical oversight, and adherence to the defined scope are critical to mitigating these risks. The fixed fee component offers some protection against unlimited cost escalation, but careful management of allowable costs is paramount.

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

Solicitation ID: W56KGU17RT004

Offers Received: 2

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: $36,486,896

Exercised Options: $36,486,896

Current Obligation: $19,802,998

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $2,233,777

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