Booz Allen Hamilton awarded $40.6M for Agile Assessment Applications to support Army's CERDEC

Contract Overview

Contract Amount: $40,559,007 ($40.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-09-28

End Date: 2022-03-27

Contract Duration: 1,276 days

Daily Burn Rate: $31.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TASK ORDER W56KGU18F0011 IS A COST PLUS FIXED FEE TERM AND COMPLETION TYPE CONTRACT IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF RESPONSIVE STRATEGIC SOURCING FOR SERVICES RS3 CONTRACT W15P7T17D0142 ALL WORK SHALL BE PERFORMED IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT PWS ENTITLED AGILE ASSESSMENT APPLICATIONS AAA TO SUPPORT THE MISSION OF THE COMMUNICATIONS ELECTRONICS RESEARCH, DEVELOPMENT AND ENGINEERING CENTER CERDEC THE INTELLIGENCE AND INFORMATION WARFARE DIRECTORATE I2WD IDENTITY INTELLIGENCE BRANCH

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $40.6 million to BOOZ ALLEN HAMILTON INC for work described as: TASK ORDER W56KGU18F0011 IS A COST PLUS FIXED FEE TERM AND COMPLETION TYPE CONTRACT IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF RESPONSIVE STRATEGIC SOURCING FOR SERVICES RS3 CONTRACT W15P7T17D0142 ALL WORK SHALL BE PERFORMED IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT… Key points: 1. Contract focuses on critical R&D for intelligence and information warfare. 2. Utilizes a Cost Plus Fixed Fee structure, common for complex R&D. 3. Task order issued under a broader Services contract, indicating potential for follow-on work. 4. Performance period spans over three years, suggesting a sustained need for these services. 5. The contract is a delivery order, not a standalone award, implying it's part of a larger procurement strategy. 6. Geographic location of performance is Maryland, a hub for defense R&D.

Value Assessment

Rating: good

The contract's value of $40.6 million over approximately 3.5 years appears reasonable for specialized R&D services in the defense sector. Benchmarking against similar contracts for Agile Assessment Applications or related intelligence support services would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure allows for flexibility in R&D but requires careful oversight to manage costs effectively. Without specific per-unit cost data or detailed PWS metrics, a definitive value assessment is challenging, but the overall award size is within expected ranges for this type of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under the Responsive Strategic Sourcing for Services (RS3) contract, which itself was competed full and open. The RS3 contract vehicle allows for a broad range of IT and R&D services, and task orders issued under it are typically competed among the awardees of the IDIQ. The specific competition level for this task order is not detailed, but the RS3 contract aims to foster competition. The presence of multiple bidders on the underlying RS3 contract suggests a competitive environment for this task order.

Taxpayer Impact: A full and open competition on the underlying IDIQ contract helps ensure that taxpayers benefit from competitive pricing and a wide range of innovative solutions for critical defense needs.

Public Impact

The Communications-Electronics Research, Development and Engineering Center (CERDEC) and the Intelligence and Information Warfare Directorate (I2WD) are the primary beneficiaries, receiving advanced application development. Services delivered include the development of Agile Assessment Applications (AAA) to support mission objectives. The geographic impact is concentrated in Maryland, where the work is performed. This contract supports a specialized workforce of researchers, developers, and analysts within the defense R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed diligently.
The duration of the contract (over 3 years) requires ongoing monitoring to ensure continued relevance and effectiveness of services.
Reliance on a single contractor for a critical task order under a larger IDIQ could pose a risk if performance issues arise.

Positive Signals

Awarded under a large, strategic IDIQ (RS3) suggests a structured and vetted procurement process.
The focus on Agile Assessment Applications aligns with modern defense requirements for rapid development and deployment.
Performance in Maryland places the contract within a strong ecosystem of defense contractors and government agencies.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). The defense R&D market is substantial, with significant government investment in areas like intelligence, electronic warfare, and communications. Contracts like this are crucial for maintaining technological superiority. Comparable spending benchmarks would involve looking at other R&D contracts awarded by CERDEC or similar Army research commands for software development, systems engineering, and intelligence analysis support.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton is a large business. While this specific task order may not directly involve small business set-asides, the underlying RS3 IDIQ contract likely has provisions for small business participation and subcontracting. The impact on the small business ecosystem would depend on Booz Allen Hamilton's subcontracting plan for this task order, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, specifically the contracting officer and program managers responsible for CERDEC and I2WD. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency is facilitated through contract reporting mechanisms. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

Responsive Strategic Sourcing for Services (RS3)
Army Research Laboratory (ARL) Contracts
Intelligence and Information Warfare Directorate (I2WD) Support
CERDEC Research and Development Programs
Agile Software Development Contracts
Defense R&D Services

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Intensity
Definition of 'Allowable Costs'

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.6 million to BOOZ ALLEN HAMILTON INC. TASK ORDER W56KGU18F0011 IS A COST PLUS FIXED FEE TERM AND COMPLETION TYPE CONTRACT IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF RESPONSIVE STRATEGIC SOURCING FOR SERVICES RS3 CONTRACT W15P7T17D0142 ALL WORK SHALL BE PERFORMED IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT PWS ENTITLED AGILE ASSESSMENT APPLICATIONS AAA TO SUPPORT THE MISSION OF THE COMMUNICATIONS ELECTRONICS RESEARCH, DEVELOPMENT AND ENGINEERING CENTER CERDEC THE INTELLIGENCE AND INFORMATION WARFARE DIRECTORATE I2WD IDE

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 $40.6 million.

What is the period of performance?

Start: 2018-09-28. End: 2022-03-27.

What is the track record of Booz Allen Hamilton in delivering similar R&D services for the Department of Defense?

Booz Allen Hamilton has a long and extensive track record of providing a wide array of services to the Department of Defense, including R&D, systems engineering, IT support, and intelligence analysis. They are a major defense contractor with significant experience in complex projects. For R&D specifically, they have been involved in numerous contracts supporting various military branches and agencies, focusing on areas like cybersecurity, data analytics, artificial intelligence, and advanced technologies. Their history suggests a capacity to handle large-scale, technically demanding projects. However, like any large contractor, they have faced scrutiny and reviews on specific contracts regarding performance and cost management, underscoring the importance of diligent oversight for individual awards such as this task order.

How does the $40.6 million award compare to other Agile Assessment Application contracts?

Comparing the $40.6 million award for this specific task order requires context regarding its scope, duration, and the specific services rendered under the PWS. Agile Assessment Applications (AAA) can encompass a range of activities from pure research to software development and system integration. If this contract covers a significant development lifecycle over its 1276-day (approx. 3.5 year) period, the value appears within a reasonable range for specialized R&D services. However, without access to a database of comparable AAA contracts, precise benchmarking is difficult. Generally, R&D contracts for advanced technologies and intelligence support awarded to large prime contractors can range from tens to hundreds of millions of dollars, depending on complexity and duration. This award seems moderate within that broader spectrum.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially in R&D, is the potential for cost overruns. 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 R&D effort proves more complex or time-consuming than initially estimated, costs can escalate significantly. This structure can incentivize contractors to incur higher costs if oversight is not rigorous, as their fee remains constant regardless of the actual costs incurred. Effective risk mitigation requires robust government oversight, detailed cost tracking, regular audits, and clear definition of allowable costs within the contract terms to ensure the government receives good value and avoids excessive spending.

How effective is the RS3 contract vehicle in driving competition for task orders?

The Responsive Strategic Sourcing for Services (RS3) contract vehicle was designed by the U.S. Army to streamline the procurement of a wide range of IT and R&D services, aiming to foster competition among multiple awardees. RS3 is an IDIQ (Indefinite Delivery/Indefinite Quantity) contract with a large ceiling, allowing the Army to issue numerous task orders to pre-qualified vendors. The effectiveness in driving competition for individual task orders like this one depends on how the Army structures the competition at the task order level. While the IDIQ itself was competed full and open, task orders can be competed among all RS3 awardees or a subset, or in some cases, may be sole-sourced if justified. Generally, having a large pool of potential bidders on the IDIQ provides a strong foundation for competitive task order awards, leading to better pricing and innovative solutions for the government.

What is the historical spending pattern for similar R&D services by CERDEC or I2WD?

Historical spending patterns for CERDEC and I2WD on similar R&D services indicate a consistent and significant investment in advanced technologies, particularly in areas related to communications, electronics, intelligence, and information warfare. These organizations frequently award contracts for research, development, prototyping, and systems integration. Spending often occurs through large IDIQ vehicles like RS3, as well as specific research grants and other contract types. The total annual spending can fluctuate based on evolving threats, technological advancements, and budgetary allocations, but it typically runs into hundreds of millions of dollars across various programs. This $40.6 million task order represents a portion of that broader investment strategy aimed at maintaining technological superiority.

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: 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: $62,441,212

Exercised Options: $44,520,883

Current Obligation: $40,559,007

Actual Outlays: $135,265

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $3,307,766

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T17D0142

IDV Type: IDC

Timeline