DoD awards Booz Allen Hamilton $52.1M for R&D support services under full and open competition

Contract Overview

Contract Amount: $52,119,106 ($52.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2019-07-22

End Date: 2025-01-21

Contract Duration: 2,010 days

Daily Burn Rate: $25.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TO AWARD A FIVE (5) YEAR TASK ORDER TO PROCURE SERVICES TO INCLUDE ENGINEERING, ADMINISTRATIVE, PROCUREMENT, TECHNICAL WRITING, LABORATORY EQUIPMENT MANAGEMENT, AND TRAINING SUPPORT AND PROJECT MANAGEMENT ASSOCIATED WITH NERF-D

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $52.1 million to BOOZ ALLEN HAMILTON INC for work described as: TO AWARD A FIVE (5) YEAR TASK ORDER TO PROCURE SERVICES TO INCLUDE ENGINEERING, ADMINISTRATIVE, PROCUREMENT, TECHNICAL WRITING, LABORATORY EQUIPMENT MANAGEMENT, AND TRAINING SUPPORT AND PROJECT MANAGEMENT ASSOCIATED WITH NERF-D Key points: 1. Contract awarded to a large, established firm with significant past performance. 2. Services include engineering, administrative, technical writing, and project management. 3. Risk of cost overruns due to Cost Plus Fixed Fee (CPFF) contract type. 4. Spending falls within the Research and Development sector, specifically physical and engineering sciences.

Value Assessment

Rating: good

The contract's pricing is based on a Cost Plus Fixed Fee structure, which can be less predictable than fixed-price contracts. Benchmarking against similar R&D support contracts is necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary research and development support services.

Public Impact

Supports critical research and development functions for the Department of the Army. Services provided are diverse, covering engineering, administrative, and technical aspects. Contract duration extends over multiple years, indicating a long-term need for these services. Potential for follow-on work or expansion of services based on performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • CPFF contract type can lead to cost overruns.
  • Reliance on a single large contractor for diverse support functions.

Positive Signals

  • Awarded under full and open competition.
  • Contractor has a strong track record.
  • Services align with core defense R&D objectives.

Sector Analysis

This contract falls under the Research and Development sector, specifically NAICS code 541712. Spending in this sector is crucial for technological advancement and national security, with benchmarks varying widely based on the specific research area and scope.

Small Business Impact

The contract was awarded to Booz Allen Hamilton Inc., a large business. There is no indication that small businesses were involved as subcontractors in this specific award, which is a missed opportunity for small business participation.

Oversight & Accountability

The Department of the Army is responsible for oversight of this task order. The CPFF structure necessitates robust monitoring to ensure costs remain reasonable and within the fixed fee parameters.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Potential for cost overruns.
  • Lack of small business participation noted.
  • Reliance on a single large contractor for diverse support.

Tags

research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.1 million to BOOZ ALLEN HAMILTON INC. TO AWARD A FIVE (5) YEAR TASK ORDER TO PROCURE SERVICES TO INCLUDE ENGINEERING, ADMINISTRATIVE, PROCUREMENT, TECHNICAL WRITING, LABORATORY EQUIPMENT MANAGEMENT, AND TRAINING SUPPORT AND PROJECT MANAGEMENT ASSOCIATED WITH NERF-D

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 $52.1 million.

What is the period of performance?

Start: 2019-07-22. End: 2025-01-21.

What is the historical cost performance of Booz Allen Hamilton on similar CPFF contracts with the DoD?

Analyzing Booz Allen Hamilton's past performance on Cost Plus Fixed Fee contracts with the Department of Defense is crucial. This includes examining their ability to manage costs effectively, stay within budget projections, and deliver services without significant cost overruns. Understanding their track record provides insight into the potential financial risks associated with this current award and helps in assessing the overall value for taxpayer money.

How does the scope of services compare to other R&D support contracts awarded competitively?

Comparing the breadth and depth of services (engineering, administrative, technical writing, etc.) in this contract to similar R&D support contracts awarded through full and open competition is essential. This analysis helps determine if the fixed fee is appropriate for the complexity and volume of work. It also informs whether the government is receiving competitive pricing for the comprehensive support package being procured.

What mechanisms are in place to ensure efficient service delivery and prevent scope creep under this CPFF contract?

Effective oversight mechanisms are vital for this Cost Plus Fixed Fee contract to ensure efficient service delivery and prevent scope creep. This includes clear performance metrics, regular progress reviews, and stringent change control processes. The Department of the Army must actively monitor contractor performance and expenditures to ensure alignment with the contract's objectives and to safeguard taxpayer funds from unnecessary increases.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch 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: 1

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: $54,790,474

Exercised Options: $54,317,006

Current Obligation: $52,119,106

Actual Outlays: $91,988

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $4,257,668

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

Start Date: 2019-07-22

Current End Date: 2025-01-21

Potential End Date: 2025-01-21 00:00:00

Last Modified: 2025-08-19

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