Booz Allen Hamilton awarded $121M for R&D services, with a significant portion for Alabama

Contract Overview

Contract Amount: $121,051,837 ($121.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2019-09-01

End Date: 2024-08-31

Contract Duration: 1,826 days

Daily Burn Rate: $66.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: IGF::CL::IGF HUMAN DIMENSION SUPPORT SERVICES HDSS

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

General Services Administration obligated $121.1 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CL::IGF HUMAN DIMENSION SUPPORT SERVICES HDSS Key points: 1. Contract awarded to a single, large incumbent contractor. 2. Significant portion of contract value allocated to a specific geographic region. 3. Contract type is Time and Materials, which can pose cost control challenges. 4. Research and Development focus suggests potential for innovation and long-term impact. 5. Contract duration is substantial, indicating a long-term need for these services. 6. No small business set-aside, raising questions about broader economic participation.

Value Assessment

Rating: fair

The contract's value of over $121 million over five years for R&D services requires careful benchmarking. Without specific deliverables or performance metrics, assessing value for money is challenging. The Time and Materials pricing structure, while flexible, can lead to cost overruns if not closely managed. Comparing this to similar R&D contracts for specialized services would be necessary to determine if the pricing is competitive.

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. However, the data does not specify the number of bids received. A competitive process is generally favorable for price discovery, but the ultimate success depends on the number and quality of proposals submitted.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages a wider range of potential contractors to compete, potentially driving down costs and improving service quality.

Public Impact

The primary beneficiaries are likely government agencies requiring specialized R&D support. Services delivered fall under research and development in physical, engineering, and life sciences. A significant portion of the contract value is geographically tied to Alabama. The contract may support a specialized workforce in R&D fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost escalation without strict oversight.
Lack of specific performance metrics makes value assessment difficult.
Concentration of value in one state may limit broader economic benefits.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Long contract duration indicates a sustained need and potential for stable service provision.
Focus on R&D aligns with government priorities for innovation.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for such specialized R&D services is often dominated by large, established government contractors. Benchmarking this contract's value would involve comparing it to other R&D service contracts awarded by various federal agencies, considering the specific scientific domains and the level of expertise required.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and the prime contractor is a large business. This suggests that small businesses are unlikely to be direct beneficiaries of the prime contract value. However, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the nature of the R&D services required.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the agency's program management office. Transparency is generally facilitated through contract award databases and reporting requirements. The specific Inspector General jurisdiction would depend on the primary agency involved, likely the GSA or the agency receiving the R&D support.

Related Government Programs

Federal R&D Spending
Science and Technology Contracts
Engineering Services
Life Sciences Research

Risk Flags

Cost Overrun Risk (Time and Materials)
Scope Creep Potential
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $121.1 million to BOOZ ALLEN HAMILTON INC. IGF::CL::IGF HUMAN DIMENSION SUPPORT SERVICES HDSS

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $121.1 million.

What is the period of performance?

Start: 2019-09-01. End: 2024-08-31.

What is Booz Allen Hamilton's track record with similar R&D contracts?

Booz Allen Hamilton is a well-established government contractor with extensive experience in research and development across various scientific and engineering disciplines. They frequently secure large contracts for complex R&D projects, often involving advanced technologies and strategic analysis. Their historical performance on similar contracts would typically be evaluated through past performance questionnaires during the bidding process. Agencies often consider their demonstrated ability to manage large budgets, deliver technical solutions, and meet project milestones. A review of their contract history would likely reveal numerous awards in areas such as defense, intelligence, and civilian agency R&D support, indicating a strong presence and capability in this domain.

How does the $121M value compare to other R&D contracts of similar scope?

The $121 million contract value for R&D services over five years is substantial, placing it among significant federal investments in research. To benchmark this value, one would compare it against contracts for similar scientific domains (physical, engineering, life sciences) and service types (e.g., basic research, applied research, experimental development). Factors such as the number of bidders, the complexity of the research, and the specific agency's budget for R&D would influence comparability. Contracts awarded through full and open competition with multiple bidders often provide a better basis for comparison than sole-source awards. Without more granular data on the specific R&D tasks and deliverables, a precise comparison is difficult, but this value suggests a long-term, high-impact research effort.

What are the primary risks associated with a Time and Materials contract of this magnitude?

Time and Materials (T&M) contracts, like this one, carry inherent risks, primarily related to cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual cost of labor and materials, plus a fixed fee or profit. The primary risk is that costs can escalate beyond initial estimates if the scope of work is not well-defined or if project durations extend unexpectedly. For a $121 million contract, this could translate into significant budget overruns if not managed with rigorous oversight, detailed tracking of hours and materials, and clear milestones. Effective management by the government requires vigilant monitoring of labor categories, rates, and direct costs to ensure they are reasonable and allocable to the contract.

What is the expected effectiveness of R&D services delivered under this contract?

The effectiveness of R&D services under this contract is contingent upon the specific objectives set by the awarding agency and the contractor's ability to meet them. As a research and development contract, its success is measured by the generation of new knowledge, the development of innovative technologies, or the advancement of scientific understanding within the specified domains. The contract's duration of five years suggests a commitment to long-term research goals. Effectiveness will be gauged by milestones achieved, research findings published or patented, prototypes developed, and the ultimate applicability of the research to agency missions or broader societal benefits. The quality of the research team, the rigor of the scientific methodology, and the alignment with strategic R&D priorities are key indicators of potential effectiveness.

How does historical spending on R&D services by the General Services Administration compare?

The General Services Administration (GSA) primarily acts as a procurement and management agency for the federal government, facilitating the acquisition of goods and services. While GSA awards numerous contracts, its direct spending on R&D services might be less prominent compared to mission-oriented agencies like the Department of Defense or the National Institutes of Health. However, GSA does procure R&D support services to enhance its own operations or to support other agencies through its acquisition vehicles. Analyzing GSA's historical spending on R&D would involve examining contract databases for similar NAICS codes (like 541712) and contract types. The $121 million awarded here, while significant, needs to be contextualized within GSA's overall procurement portfolio and its specific role in facilitating R&D acquisitions.

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: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID04180141

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, 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: $369,752,749

Exercised Options: $212,691,783

Current Obligation: $121,051,837

Actual Outlays: $-13,683

Subaward Activity

Number of Subawards: 49

Total Subaward Amount: $13,554,432

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU406

IDV Type: IDC

Timeline