Booz Allen Hamilton awarded $33.6M contract for R&D in social sciences and humanities by Department of the Army

Contract Overview

Contract Amount: $33,638,845 ($33.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2006-06-30

End Date: 2011-09-30

Contract Duration: 1,918 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: BASE PERIOD (3 MONTHS)

Place of Performance

Location: FORT MONROE, HAMPTON (CITY) County, VIRGINIA, 23651

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.6 million to BOOZ ALLEN HAMILTON INC for work described as: BASE PERIOD (3 MONTHS) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1918 days indicates a long-term engagement for research and development services. 3. Fixed-price contract type may offer cost certainty for the government, but could limit flexibility. 4. The award to a single contractor, Booz Allen Hamilton, warrants examination of their qualifications and past performance. 5. Research and Development in Social Sciences and Humanities is a specialized area, requiring specific expertise. 6. The contract's base period value of $33.6M provides a benchmark for the initial phase of work.

Value Assessment

Rating: fair

The base period value of $33.6M for a 3-month duration appears high, suggesting potential for significant follow-on work or a very high daily rate. Without comparable contracts for similar R&D in social sciences and humanities, it is difficult to definitively benchmark value. The fixed-price nature of the contract provides some cost control, but the overall value proposition depends heavily on the successful delivery of research outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specialized R&D service. While competition is present, the limited number of bidders might suggest a niche market or high barriers to entry for potential competitors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially driving down prices and improving service quality.

Public Impact

The Department of the Army benefits from specialized research and development in social sciences and humanities, potentially informing policy, strategy, or operational effectiveness. The contract supports the delivery of research services, the specific outcomes of which are not detailed but are crucial for advancing understanding in relevant fields. The geographic impact is primarily within the United States, where the contractor operates and where the research findings will likely be applied. Workforce implications include the employment of researchers, analysts, and support staff by Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen research complexities.
Risk of research outcomes not meeting the specific needs or expectations of the Department of the Army.
Dependence on a single contractor for critical R&D services could limit future flexibility or innovation.

Positive Signals

Awarded through full and open competition, indicating a structured and potentially fair procurement process.
Booz Allen Hamilton is a well-established contractor with significant experience in government services, suggesting a degree of reliability.
The fixed-price contract type provides a degree of budget certainty for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on social sciences and humanities. This is a niche area within the broader R&D market, often characterized by intellectual capital and specialized analytical skills rather than large-scale physical production. Comparable spending benchmarks are difficult to establish without more specific details on the research scope, but R&D contracts can range from millions to billions of dollars depending on the complexity and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit information on subcontracting plans. As a large contract awarded to a major prime contractor, it is possible that small businesses could be involved as subcontractors, but this would depend on Booz Allen Hamilton's subcontracting strategy and the specific requirements of the research tasks.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Army. Performance reviews, milestone tracking, and financial audits are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements, though the specifics of the research may be sensitive.

Related Government Programs

Department of Defense Research and Development
Social Science Research Contracts
Humanities Research Grants
Federal R&D Spending

Risk Flags

High base period cost warrants scrutiny for value.
Limited number of bidders may indicate reduced competitive pressure.
Fixed-price contract risk for R&D complexity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.6 million to BOOZ ALLEN HAMILTON INC. BASE PERIOD (3 MONTHS)

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 $33.6 million.

What is the period of performance?

Start: 2006-06-30. End: 2011-09-30.

What is the specific nature of the research and development in social sciences and humanities being conducted under this contract?

The provided data does not specify the exact nature of the research and development in social sciences and humanities. This category is broad and can encompass a wide range of studies, from sociological analyses of military personnel to historical research on strategic decisions, or economic impacts of defense policies. To understand the specifics, one would need to consult the contract's statement of work (SOW) or related documentation. The value of the contract suggests a significant undertaking, likely involving in-depth analysis, data collection, and report generation to inform policy or strategic planning within the Department of the Army.

How does the $33.6 million base period cost compare to similar R&D contracts in social sciences and humanities?

Benchmarking the $33.6 million base period cost is challenging without more specific details on the research scope and duration. However, for a 3-month base period, this figure appears exceptionally high, suggesting either a very intensive research effort, a high daily rate for specialized expertise, or that the 'base period' might encompass more than just 3 months of active work, or that significant follow-on work is anticipated and this is an initial funding allocation. Typical R&D contracts in specialized fields can vary widely, but such a substantial initial outlay warrants scrutiny to ensure it aligns with the expected deliverables and market rates for similar services.

What is Booz Allen Hamilton's track record with similar government R&D contracts, particularly in social sciences and humanities?

Booz Allen Hamilton is a large and established government contractor with extensive experience across various sectors, including research and development. They have a significant history of performing complex analytical and research services for defense and civilian agencies. While specific details on their performance for R&D in social sciences and humanities would require a deeper dive into contract databases and performance reports, their general profile suggests they possess the organizational capacity and expertise to undertake such work. However, a thorough assessment would involve reviewing past performance evaluations and any documented issues on prior related contracts.

What are the potential risks associated with a fixed-price contract for R&D services in social sciences and humanities?

The primary risk with a fixed-price contract for R&D, especially in fields like social sciences and humanities where outcomes can be less predictable than in hard sciences or engineering, is that the contractor may face unforeseen challenges or scope creep. If the research proves more complex or time-consuming than initially estimated, Booz Allen Hamilton might incur losses if they cannot complete the work within the agreed price. Conversely, if the contractor finds efficiencies or the scope is less demanding, they could realize higher profit margins. For the government, the risk is that the fixed price might not fully capture the value of the research if the scope is too narrowly defined, or that the contractor might cut corners to maintain profitability, potentially impacting the quality of the research outcomes.

How does the competition level (2 bidders) impact the value for money for this contract?

Having two bidders in a full and open competition suggests a moderate level of competition. While more than one bidder is preferable to a sole-source award, a higher number of bidders typically drives more aggressive pricing and innovation. With only two bidders, there's a possibility that the competition was not as robust as it could have been, potentially leading to a higher price than if several firms had vied for the contract. However, the specific nature of R&D in social sciences and humanities might limit the number of qualified bidders. Therefore, the value for money depends on whether these two bidders were highly competitive and whether their proposals represented fair market value for the specialized services required.

What is the historical spending pattern for research and development in social sciences and humanities by the Department of the Army?

The provided data only pertains to a single contract award. To understand historical spending patterns for R&D in social sciences and humanities by the Department of the Army, one would need to analyze aggregated contract data over several fiscal years. This would involve querying databases like USAspending.gov or FPDS-NG for contracts categorized under relevant NAICS codes (like 541720) and assigned to the Department of the Army. Such an analysis would reveal trends in spending levels, identify major contractors in this domain, and potentially highlight shifts in research priorities or funding allocations over time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912SU06R0004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DRIVE, MCLEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,362,066

Exercised Options: $33,638,845

Current Obligation: $33,638,845

Contract Characteristics

Cost or Pricing Data: NO

Timeline