Booz Allen Hamilton awarded $14.8M contract for R&D services, with a high benchmarked value

Contract Overview

Contract Amount: $14,839,874 ($14.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2009-03-27

End Date: 2011-03-30

Contract Duration: 733 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: ENCORE II IT SOLUTIONS-FFP TAS::97 0100::TAS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.8 million to BOOZ ALLEN HAMILTON INC for work described as: ENCORE II IT SOLUTIONS-FFP TAS::97 0100::TAS Key points: 1. Contract value of $14.8M for R&D services. 2. Awarded to Booz Allen Hamilton Inc., a large, established government contractor. 3. Contract duration of 733 days. 4. Procured under full and open competition. 5. Services fall under Research and Development in Physical, Engineering, and Life Sciences. 6. High benchmarked value suggests potential for cost savings. 7. No small business set-aside indicated.

Value Assessment

Rating: good

The contract value of $14.8M for R&D services appears reasonable given the duration and the nature of the work. Benchmarking against similar contracts in the R&D sector for IT solutions would provide a clearer picture of value for money. The fixed-price nature of the contract shifts risk to the contractor, which can be beneficial for the government if managed effectively. However, without specific performance metrics, a definitive assessment of value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 2 bidders suggests a moderate level of competition for this specific award. While full and open competition is generally preferred for maximizing price discovery, the limited number of bidders might suggest specific expertise requirements or a concentrated market for these specialized R&D services.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally leads to more competitive pricing for taxpayers compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are likely the Department of Defense and its various branches, receiving advanced R&D support. Services delivered are expected to advance physical, engineering, and life sciences research relevant to defense applications. The geographic impact is primarily within Virginia, where the contractor is located, but the research outcomes could have national implications. Workforce implications include employment for highly skilled researchers and technical personnel at Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if R&D scope is not tightly managed.
Dependence on contractor's proprietary knowledge and innovation.
Risk of research not yielding desired or applicable outcomes within the contract period.

Positive Signals

Fixed-price contract structure incentivizes contractor efficiency.
Booz Allen Hamilton's established track record in government contracting.
Full and open competition, even with few bidders, suggests a structured procurement process.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization and technological advancement. The market for such specialized R&D services is often dominated by a few large, experienced contractors like Booz Allen Hamilton. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by the DoD or other federal agencies for similar scientific and engineering support.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary awardee is a large business, and the nature of the R&D services may not have been conducive to small business participation in the prime contract. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures would be tied to the performance requirements outlined in the contract's statement of work. Transparency is generally maintained through contract award databases, though specific project details might be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Information Technology Research and Development
Engineering Services Contracts
Scientific Research Services

Risk Flags

Potential for cost overruns if R&D scope is not tightly managed.
Risk of research not yielding desired or applicable outcomes.
Dependence on contractor's proprietary knowledge and innovation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.8 million to BOOZ ALLEN HAMILTON INC. ENCORE II IT SOLUTIONS-FFP TAS::97 0100::TAS

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 Information Systems Agency).

What is the total obligated amount?

The obligated amount is $14.8 million.

What is the period of performance?

Start: 2009-03-27. End: 2011-03-30.

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

Booz Allen Hamilton Inc. has a long and extensive history of performing research and development services for the Department of Defense across various scientific and engineering disciplines. They are a prime contractor on numerous large-scale R&D efforts, often involving advanced technologies, systems engineering, and strategic analysis. Their track record includes supporting major defense programs, contributing to technological innovation, and providing critical research insights. While specific contract performance details are often proprietary, their consistent presence as a major awardee in this space indicates a strong capability and established relationship with the DoD. Analyzing their past performance on similar fixed-price R&D contracts would reveal their ability to manage costs and deliver on complex research objectives within budget and schedule.

How does the $14.8M contract value compare to other R&D contracts of similar scope and duration?

The $14.8M contract value for a 733-day duration (approximately 2 years) for R&D services in the physical, engineering, and life sciences sector is substantial. To benchmark its value, one would compare it to other full and open competition contracts awarded by the DoD or other federal agencies for similar research areas, requiring comparable levels of expertise and technical complexity. Factors such as the specific scientific disciplines involved, the required deliverables, and the contractor's overhead rates play a significant role. If this contract's per-diem or per-researcher cost is significantly higher than comparable contracts, it might indicate a less competitive pricing environment or unique, high-demand expertise. Conversely, if it aligns with or is lower than benchmarks, it suggests good value.

What are the primary risks associated with this specific R&D contract?

The primary risks associated with this R&D contract include technical risks, such as the research not yielding the desired outcomes or encountering unforeseen scientific challenges. There are also performance risks, where the contractor might not meet the specified research milestones or quality standards. Financial risks, particularly for a fixed-price contract, involve the contractor potentially underestimating the costs required to achieve the research objectives, leading to reduced profit margins or, in extreme cases, financial distress. Furthermore, there's a risk of scope creep if the research objectives are not clearly defined and managed, potentially leading to cost increases or schedule delays if not handled through contract modifications. Finally, there's the risk of the research becoming obsolete before completion due to rapid technological advancements in the field.

What is the expected program effectiveness or impact of the R&D services delivered under this contract?

The expected program effectiveness and impact hinge on the specific objectives of the R&D services. As the contract falls under 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' the impact could range from developing new materials, improving engineering processes, advancing sensor technologies, or enhancing understanding in areas critical to national security or technological superiority. The effectiveness will be measured by whether the research leads to tangible advancements, prototypes, new methodologies, or foundational knowledge that can be leveraged in future defense systems or applications. The contract's success will ultimately be judged by its contribution to the DoD's strategic goals and its ability to foster innovation within the defense sector.

How has federal spending in the R&D sector, particularly for IT and engineering support, trended in recent years?

Federal spending in the R&D sector, especially for IT and engineering support, has generally seen consistent investment, particularly from agencies like the Department of Defense, which prioritizes technological advancement. In recent years, there has been a notable increase in funding directed towards areas such as artificial intelligence, cybersecurity, advanced manufacturing, and space technologies, all of which heavily rely on R&D in physical, engineering, and life sciences. While overall R&D spending fluctuates based on budgetary priorities and national security needs, the trend indicates a sustained commitment to innovation. Contracts like this one, even if dated, reflect the ongoing need for specialized research and development capabilities to maintain a technological edge.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,839,874

Exercised Options: $14,839,874

Current Obligation: $14,839,874

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102808D2015

IDV Type: IDC

Timeline