Army awards $32.4M for research facilitation, Booz Allen Hamilton to provide IT services

Contract Overview

Contract Amount: $32,407,222 ($32.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2024-04-26

End Date: 2026-08-31

Contract Duration: 857 days

Daily Burn Rate: $37.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: RESEARCH FACILITATION LABORATORY (RFL) SERVICES FOR ARMY ANALYTICS GROUP (AAG)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to BOOZ ALLEN HAMILTON INC for work described as: RESEARCH FACILITATION LABORATORY (RFL) SERVICES FOR ARMY ANALYTICS GROUP (AAG) Key points: 1. Contract focuses on specialized IT support for Army analytics. 2. Booz Allen Hamilton, a large incumbent, secured the award. 3. The contract type is Time and Materials, which can pose cost control challenges. 4. Performance period extends over two years, indicating a need for sustained support. 5. The award was made under full and open competition. 6. This contract supports the Army Analytics Group's mission.

Value Assessment

Rating: fair

The contract value of $32.4 million over approximately two years suggests a moderate investment in research facilitation services. Benchmarking against similar IT support contracts for analytical groups is difficult without more granular data on the specific services provided. The Time and Materials pricing structure, while flexible, carries inherent risks for cost overruns if not closely managed. The total award value is within a typical range for specialized IT support for government agencies, but the value-for-money assessment hinges on the effective delivery and impact of the facilitated research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The data shows two bids were received. While competition was present, the low number of bids could suggest potential barriers to entry for other firms or a limited pool of qualified contractors for this specific niche. This level of competition may not have driven the most aggressive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the open competition, although the low number of bids warrants attention to ensure optimal value.

Public Impact

The Army Analytics Group (AAG) is the primary beneficiary, receiving enhanced research facilitation capabilities. Services delivered are expected to improve the efficiency and effectiveness of Army data analysis and research. The contract is geographically focused on Virginia, where the Army Analytics Group is likely located. The contract supports specialized IT and research roles, potentially impacting the workforce in these areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns if not diligently managed.
Low number of bids received (2) may indicate limited competition or specialized requirements that restrict market participation.
Contractor's track record on similar large-scale government IT contracts needs thorough review for performance and cost control.

Positive Signals

Awarded under full and open competition, allowing for broad market participation.
Contract supports a critical function for the Army Analytics Group, aligning with strategic objectives.
Clear performance period (through August 2026) provides a defined scope for service delivery.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a segment of the broader IT services market. This sector is characterized by high demand from government agencies for specialized analytical and data processing capabilities. The market size for government IT services is substantial, with significant spending allocated to areas like data analytics, cybersecurity, and research support. This contract represents a specific, albeit moderate, investment within this large sector, supporting the government's increasing reliance on data-driven decision-making.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses like Booz Allen Hamilton are the primary recipients. There is no explicit information on subcontracting plans for small businesses within this award. This suggests that the primary benefits will accrue to the large prime contractor, with limited direct opportunities for small businesses unless subcontracting is proactively pursued by the prime.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting officers and program managers responsible for the Army Analytics Group. Transparency is facilitated through contract award databases like FPDS. Accountability measures would be embedded in the contract's performance work statement and delivery terms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Data Analytics Initiatives
DoD Research and Development Support Services
IT Services for Military Intelligence
Command and Control Systems Support

Risk Flags

Cost Overrun Risk (T&M Contract)
Limited Competition (Low Bid Count)
Scope Creep Potential
Performance Monitoring Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to BOOZ ALLEN HAMILTON INC. RESEARCH FACILITATION LABORATORY (RFL) SERVICES FOR ARMY ANALYTICS GROUP (AAG)

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 $32.4 million.

What is the period of performance?

Start: 2024-04-26. End: 2026-08-31.

What is the historical spending pattern for similar research facilitation laboratory services within the Department of the Army?

Analyzing historical spending for 'Research Facilitation Laboratory Services' within the Department of the Army requires access to comprehensive contract databases. Typically, such services are procured through various contract vehicles, including IT support, professional services, and R&D contracts. Spending patterns can fluctuate based on evolving analytical needs, technological advancements, and budgetary allocations. Without specific historical data points for this exact service category, it's challenging to provide precise figures. However, the Army's increasing focus on data analytics and AI suggests a growing trend in spending for services that support these functions. Previous contracts for similar analytical support have ranged from a few million to tens of millions of dollars annually, depending on the scope and duration.

How does the awarded price compare to market rates for comparable IT support and research facilitation services?

Benchmarking the $32.4 million award against market rates for comparable IT support and research facilitation services is complex due to the specialized nature of the 'Research Facilitation Laboratory (RFL) Services for Army Analytics Group (AAG)'. The Time and Materials (T&M) pricing structure makes direct comparison difficult as it depends heavily on the hours worked and labor categories utilized. Generally, IT support services for government analytics groups command premium rates due to the need for high-level security clearances, specialized technical skills, and understanding of military operational contexts. Booz Allen Hamilton is a large, established contractor in this space, and their pricing is often competitive but reflects their expertise and overhead. A detailed comparison would require analyzing the specific labor categories, hours, and rates proposed against industry benchmarks for similar roles and contract types within the defense sector.

What is Booz Allen Hamilton's track record with the Department of Defense for similar services?

Booz Allen Hamilton has a long and extensive track record of providing a wide array of services to the Department of Defense (DoD), including IT support, data analytics, cybersecurity, and management consulting. They are a major incumbent contractor across numerous DoD programs. Their performance history with the DoD is generally robust, marked by significant contract awards and a deep understanding of military requirements. However, like any large contractor, they have also faced scrutiny and past performance issues on specific contracts, which are typically documented in past performance evaluations during the procurement process. For this specific contract, their extensive experience in supporting Army analytics likely played a significant role in their selection.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

The specific Key Performance Indicators (KPIs) for this 'Research Facilitation Laboratory (RFL) Services' contract are not detailed in the provided summary data. However, typical KPIs for such a contract would likely focus on the timeliness and quality of research support provided to the Army Analytics Group (AAG). This could include metrics related to the efficiency of data analysis, the accuracy of research findings, the responsiveness to AAG requests, the successful facilitation of laboratory operations, and adherence to project timelines. Success measurement would be tied to the contractor's ability to meet or exceed these defined KPIs as outlined in the Performance Work Statement (PWS). Regular performance reviews and reporting would be conducted by the government contracting officer's representative (COR).

What is the potential risk associated with the Time and Materials (T&M) contract type for this service?

The primary risk associated with a Time and Materials (T&M) contract type for these research facilitation services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates, plus actual costs for materials. If the scope of work is not well-defined, or if project requirements evolve significantly, the contractor could incur more labor hours or material costs than initially anticipated, leading to a higher final contract price. Effective oversight, diligent monitoring of labor hours, and robust change management processes are crucial to mitigate these risks and ensure the government receives good value for its investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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: 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: $43,181,592

Exercised Options: $43,035,279

Current Obligation: $32,407,222

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $26,500,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200008W

IDV Type: GWAC

Timeline