Booz Allen Hamilton awarded $15.6M R&D contract for defense information systems, highlighting specialized research capabilities

Contract Overview

Contract Amount: $15,641,126 ($15.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2010-01-26

End Date: 2012-12-29

Contract Duration: 1,068 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RTB BASE YEAR LABOR

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to BOOZ ALLEN HAMILTON INC for work described as: RTB BASE YEAR LABOR Key points: 1. Contract awarded to a large, established firm with extensive government contracting experience. 2. The contract type (Cost Plus Fixed Fee) suggests a need for flexibility in research and development projects. 3. Competition was full and open, indicating a broad market search for qualified offerors. 4. The duration of the contract (over 3 years) points to a significant, ongoing research effort. 5. The NAICS code 541712 signifies a focus on physical, engineering, and life sciences research. 6. This award represents a portion of broader defense information systems development and research spending.

Value Assessment

Rating: good

The base year labor cost of $15.6 million for this R&D contract appears reasonable given the specialized nature of defense information systems research. Benchmarking against similar contracts for R&D services in the physical and engineering sciences, particularly those involving complex systems integration and development, would provide a more precise value assessment. However, the Cost Plus Fixed Fee structure allows for cost control while accommodating the inherent uncertainties in research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple companies were likely solicited and submitted proposals. The presence of three bidders, as indicated by the 'no' field, points to a healthy level of competition for this specific requirement. This competitive process is expected to drive more favorable pricing and innovative solutions for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through a wide range of offers and potentially lower prices due to market forces.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, receiving advanced research and development services. Services delivered likely include research into new technologies, system enhancements, and problem-solving for defense information systems. The geographic impact is primarily within the United States, supporting national defense infrastructure. Workforce implications include employment for highly skilled researchers, engineers, and technical 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 sometimes lead to cost overruns if not managed diligently.
The specialized nature of R&D may limit the pool of truly competitive firms in the long run.
Reliance on a single large contractor for critical R&D could pose a risk if their focus shifts.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Booz Allen Hamilton is a well-established contractor with a proven track record in defense.
The contract duration suggests a commitment to advancing critical defense technologies.
The R&D focus aligns with the DoD's need for technological superiority.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sector is characterized by innovation and the pursuit of new knowledge and applications. Spending in this area is crucial for maintaining technological advantages, particularly in defense. Comparable spending benchmarks would involve analyzing other large R&D contracts awarded by the DoD for information systems and related technologies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Booz Allen Hamilton is a large business, and while they may engage small businesses as subcontractors, the primary awardee is not a small entity. Analysis of subcontracting plans would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to ensure value for money. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) Contracts
Department of Defense Research and Development Programs
Information Technology Services for Defense
Systems Engineering and Technical Assistance (SETA) Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Long-term R&D projects carry inherent uncertainty in outcomes and final costs.
Reliance on specialized R&D expertise may limit future competition if knowledge is not widely disseminated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to BOOZ ALLEN HAMILTON INC. RTB BASE YEAR LABOR

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 $15.6 million.

What is the period of performance?

Start: 2010-01-26. End: 2012-12-29.

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

Booz Allen Hamilton has a long and extensive history of performing research and development services for the Department of Defense across various domains, including information technology, cybersecurity, and advanced analytics. They are a prime contractor on numerous large, complex programs. Their track record typically involves delivering sophisticated technical solutions, strategic consulting, and systems engineering support. While specific performance metrics for individual contracts are often proprietary or found in past performance evaluations, their continued success in winning competitive bids for high-value R&D work suggests a generally positive performance history. However, like any large contractor, they may have faced past performance challenges or criticisms on specific projects, which would be detailed in government source selection documents.

How does the $15.6 million base year labor cost compare to similar R&D contracts in the defense sector?

The $15.6 million base year labor cost for this R&D contract is substantial, reflecting the complexity and specialized expertise required for defense information systems research. To benchmark this effectively, one would need to compare it against contracts with similar NAICS codes (e.g., 541712) and contract types (Cost Plus Fixed Fee) awarded by agencies like DISA or other DoD components. Factors such as contract duration, scope of work (e.g., software development, hardware integration, theoretical research), and the specific technologies involved significantly influence pricing. Without access to detailed scope of work and specific performance periods for comparable contracts, a precise comparison is difficult. However, for a multi-year R&D effort involving advanced systems, this figure is within the expected range for a large, established contractor like Booz Allen Hamilton.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for R&D, particularly for the government, revolve around cost control and potential for cost growth. While the 'fixed fee' component provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses the contractor's allowable costs. If the research proves more complex or time-consuming than initially anticipated, the total cost to the government can escalate significantly. This requires robust government oversight to ensure that all costs incurred are reasonable, allocable, and necessary. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee remains profitable, especially if unforeseen technical challenges arise that increase labor hours or material expenses beyond initial projections.

How does this contract contribute to the overall effectiveness of defense information systems?

This contract is intended to contribute to the effectiveness of defense information systems by advancing the state-of-the-art through dedicated research and development. The specific R&D activities undertaken will likely focus on enhancing capabilities such as data processing, secure communications, network resilience, intelligence analysis, or command and control systems. By investing in R&D, the Department of Defense aims to develop next-generation technologies that provide a strategic advantage, improve operational efficiency, and counter evolving threats. The success of this contract in improving effectiveness will depend on the successful translation of research findings into practical applications and the seamless integration of new technologies into existing defense infrastructure.

What are the historical spending patterns for R&D contracts of this nature within the Department of Defense?

Historical spending patterns for R&D contracts within the Department of Defense, particularly for information systems and related engineering sciences, have shown a consistent and significant investment. The DoD is typically one of the largest government spenders in R&D, driven by the need for technological superiority. Spending in this area often fluctuates based on strategic priorities, emerging threats, and technological breakthroughs. Contracts like this one, awarded under full and open competition to large, established firms, represent a common approach to acquiring specialized research capabilities. Over the years, there has been a trend towards acquiring more complex, integrated systems and services, often through larger, longer-term contracts, reflecting the increasing sophistication of both threats and technological solutions.

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: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,641,126

Exercised Options: $15,641,126

Current Obligation: $15,641,126

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102808D2015

IDV Type: IDC

Timeline