Booz Allen Hamilton awarded $17.4M for disruptive ISR S&T R&D, with a 3-year performance period

Contract Overview

Contract Amount: $17,386,890 ($17.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2024-08-30

End Date: 2027-09-09

Contract Duration: 1,105 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DISRUPTIVE ISR S&T R&D

Place of Performance

Location: ADELPHI, PRINCE GEORGES County, MARYLAND, 20783

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to BOOZ ALLEN HAMILTON INC for work described as: DISRUPTIVE ISR S&T R&D Key points: 1. Contract focuses on advanced research and development in intelligence, surveillance, and reconnaissance (ISR) technologies. 2. The contract type, Cost Plus Fixed Fee, allows for flexibility in research but requires careful cost oversight. 3. Performance period extends over three years, indicating a sustained effort in a critical technology area. 4. The specific NAICS code (541715) points to a broad scope within physical, engineering, and life sciences R&D. 5. This award represents a significant investment in the future capabilities of the Department of Defense. 6. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, suggesting potential for future task orders.

Value Assessment

Rating: good

Benchmarking the value of this R&D contract is challenging due to its specialized nature and focus on future capabilities. However, the $17.4 million award over three years suggests a substantial investment in developing cutting-edge ISR technologies. The Cost Plus Fixed Fee structure, while common for R&D, necessitates close monitoring to ensure costs remain reasonable relative to the research objectives. Without specific performance metrics or comparable contract data for similar disruptive R&D efforts, a definitive value-for-money assessment is difficult, but the award size indicates a perceived high value by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment that can lead to better pricing and innovative solutions. This approach allows the government to leverage the broadest possible range of capabilities available in the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value by encouraging a wide array of proposals and potentially driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of the Army and the broader Department of Defense, which will gain enhanced ISR capabilities. The services delivered involve research and development in advanced technologies, aiming to improve intelligence gathering and situational awareness. The geographic impact is likely national, supporting defense operations and potentially influencing technological advancements across the country. Workforce implications may include the need for highly skilled scientists, engineers, and technical personnel 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 means outcomes are not guaranteed, posing a risk to the investment.
Reliance on a single large contractor like Booz Allen Hamilton for critical R&D could present concentration risk.

Positive Signals

Awarding through full and open competition suggests a robust vetting process and potential for strong technical solutions.
The multi-year performance period indicates a commitment to developing and integrating advanced capabilities.
Booz Allen Hamilton's established track record in defense contracting provides a degree of confidence in execution.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on Intelligence, Surveillance, and Reconnaissance (ISR) technologies. This is a critical area for defense modernization, with significant government investment aimed at maintaining technological superiority. The market for ISR R&D is highly specialized, often dominated by large, established defense contractors with deep expertise and security clearances. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of 'disruptive' R&D, but overall defense R&D spending runs into the tens of billions annually.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the specialized nature of advanced R&D in ISR, it is likely that the prime contractor, Booz Allen Hamilton, will manage the program. Any subcontracting opportunities for small businesses would depend on the specific technical needs and Booz Allen Hamilton's subcontracting strategy, but direct set-asides are less common for highly specialized R&D efforts.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting officer and the Defense Contract Management Agency (DCMA). Booz Allen Hamilton is a large, established contractor with existing oversight mechanisms. Transparency will be maintained through regular reporting requirements and contract reviews. The Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Advanced Technology Development
Department of Defense Research and Development Programs
Information Technology Services
Defense Science and Technology

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
R&D outcomes are inherently uncertain, posing a risk to achieving desired technological advancements.
The specialized nature of the R&D may limit the pool of potential future contractors if the technology matures.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to BOOZ ALLEN HAMILTON INC. DISRUPTIVE ISR S&T R&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 $17.4 million.

What is the period of performance?

Start: 2024-08-30. End: 2027-09-09.

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

Booz Allen Hamilton has a long and extensive history of supporting the Department of Defense (DoD) across a wide range of services, including research and development, systems engineering, and advanced analytics. They are a prime contractor on numerous contracts related to intelligence, surveillance, and reconnaissance (ISR) capabilities. Their experience spans various technological domains, from sensor development and data fusion to artificial intelligence applications for ISR platforms. While specific details on past ISR R&D contracts of identical scope and value are proprietary, their overall portfolio demonstrates a strong capability in managing complex, high-value R&D efforts for the DoD. Past performance reviews and contract awards indicate a consistent ability to deliver on technical requirements, though like any large contractor, they have faced scrutiny on specific contract performance metrics in the past. Their significant presence in the defense sector suggests a deep understanding of DoD requirements and acquisition processes for advanced technologies.

How does the $17.4 million value compare to other DoD ISR R&D investments?

The $17.4 million award for this specific disruptive ISR S&T R&D effort represents a significant, but not exceptionally large, investment within the broader context of the Department of Defense's overall R&D budget. The DoD's annual R&D spending typically runs into the tens of billions of dollars, covering a vast array of scientific and technological pursuits. Contracts for major weapon system development or large-scale platform integration can easily reach hundreds of millions or even billions of dollars. However, for targeted, specialized R&D focused on 'disruptive' technologies in a specific domain like ISR, $17.4 million over three years is a substantial commitment. It suggests a focused effort to achieve a technological breakthrough or develop a novel capability, rather than a broad-spectrum development program. This amount is competitive with other advanced technology development contracts that aim to mature nascent technologies towards potential future fielding.

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

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility for research and development where scope can evolve, carry inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the final cost incurred. This can lead to cost overruns if the contractor's actual costs significantly exceed their estimates. Another risk is scope creep, where the project's objectives expand beyond the initial agreement, potentially increasing costs without a corresponding increase in the fixed fee, leading to negotiation challenges. For the contractor, the risk lies in underestimating the costs required to achieve the fixed fee, potentially resulting in reduced profit margins or even a loss if actual costs are substantially higher than anticipated. Effective oversight, detailed cost tracking, and clear definition of milestones are crucial to mitigate these risks for both parties.

How might this contract contribute to the effectiveness of future ISR operations?

This contract is designed to enhance the effectiveness of future ISR operations by focusing on 'disruptive' Science and Technology (S&T) R&D. Disruptive technologies are those that have the potential to fundamentally change how ISR is conducted, offering significant advantages over current methods. This could involve advancements in sensor technology for improved detection and identification, AI-driven data analysis for faster intelligence processing, novel platform concepts for enhanced persistence or reach, or improved communication and networking capabilities for seamless data dissemination. By investing in these cutting-edge areas, the DoD aims to equip its forces with superior situational awareness, faster decision-making cycles, and a decisive operational advantage. The success of this R&D effort could lead to more agile, resilient, and effective ISR capabilities that can operate in contested environments and counter evolving threats.

What historical spending patterns exist for ISR-related R&D within the Department of Defense?

Historical spending patterns for ISR-related R&D within the Department of Defense show a consistent and significant investment over decades, reflecting its critical importance to national security. Budgets allocated to ISR have generally increased, particularly following major conflicts and in response to evolving technological landscapes and geopolitical challenges. Major areas of investment have included advancements in satellite technology, aerial platforms (manned and unmanned), sensor development (electro-optical, infrared, radar, signals intelligence), data processing and exploitation, and secure communication systems. Funding often flows through various agencies and commands, including DARPA, service-specific research labs (like the Army Research Laboratory), and program executive offices responsible for acquisition. While specific figures fluctuate annually based on strategic priorities and technological readiness, ISR R&D remains a core component of the DoD's modernization efforts, consistently receiving billions of dollars annually across the services and defense agencies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, 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: $53,200,390

Exercised Options: $20,134,813

Current Obligation: $17,386,890

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $8,733,446

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W911QX23D0010

IDV Type: IDC

Timeline