Air Force awards $219M R&D contract for nuclear weapons research to Booz Allen Hamilton

Contract Overview

Contract Amount: $219,127,809 ($219.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2020-07-29

End Date: 2025-12-29

Contract Duration: 1,979 days

Daily Burn Rate: $110.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: WEAPON SYSTEMS RESEARCH AND ANALYSIS FOR THE AIR FORCE NUCLEAR WEAPONS CENTER

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $219.1 million to BOOZ ALLEN HAMILTON INC for work described as: WEAPON SYSTEMS RESEARCH AND ANALYSIS FOR THE AIR FORCE NUCLEAR WEAPONS CENTER Key points: 1. Contract focuses on critical research and analysis for nuclear weapons systems. 2. Booz Allen Hamilton, a large defense contractor, holds the award. 3. The contract duration spans over five years, indicating a long-term need. 4. Research and Development in Physical Sciences is the primary NAICS code. 5. The contract is a Delivery Order under a larger IDIQ or similar vehicle. 6. The contract was awarded using full and open competition. 7. The contract is for Cost Plus Fixed Fee (CPFF) type, common in R&D. 8. The contract is located in New Mexico, a key area for nuclear research.

Value Assessment

Rating: good

The contract value of $219 million over approximately five years suggests a significant investment in nuclear weapons research. Benchmarking this against similar R&D contracts for specialized defense systems is challenging without more specific data on the scope of work. However, the CPFF pricing structure is typical for research where exact costs are difficult to predict, but it requires careful oversight to ensure cost control. The contractor's extensive experience in defense and R&D likely contributes to the perceived value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally fosters competitive pricing and allows the government to select the best value. The open competition suggests a healthy market for these specialized R&D services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages innovation among potential bidders.

Public Impact

The primary beneficiaries are the U.S. Air Force and the Department of Defense, ensuring the continued research and development of nuclear weapons systems. Services delivered include research and analysis critical to the safety, security, and effectiveness of the nation's nuclear deterrent. The geographic impact is centered in New Mexico, a state with significant defense and nuclear research infrastructure. Workforce implications include the potential for highly skilled scientists, engineers, and analysts, likely contributing to the local economy in New Mexico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed diligently.
The long duration of the contract requires ongoing performance monitoring to ensure objectives are met.
The specialized nature of nuclear weapons research may limit the pool of truly competitive bidders in the future.
Reliance on a single delivery order under a potentially larger contract vehicle could obscure the full scope and cost of the overall effort.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Booz Allen Hamilton has a strong track record in government contracting and R&D.
The contract supports a critical national security mission, indicating high strategic importance.
The research and development focus aligns with the Air Force's modernization efforts.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences related to defense. The market for specialized nuclear weapons research and analysis is highly concentrated, with a few large, established defense contractors dominating. Spending in this niche area is driven by national security imperatives and technological advancements. Comparable spending benchmarks would likely be found within other high-security, R&D-intensive defense programs.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Given the specialized nature of nuclear weapons research and the prime contractor being Booz Allen Hamilton, a large entity, the focus is likely on large business capabilities. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided data; they would depend on Booz Allen Hamilton's subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically be managed by the Air Force Nuclear Weapons Center and the Department of Defense. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting on costs and progress. Transparency is generally limited for classified or sensitive defense research, but contract performance metrics and financial expenditures are subject to internal DoD oversight and potentially GAO reviews. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Air Force Research Laboratory Contracts
Department of Energy Nuclear Programs
Defense Advanced Research Projects Agency (DARPA) Projects
Strategic Deterrence Research
Nuclear Weapons Complex Support Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Challenges
Limited Competition Pool
Contract Duration Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $219.1 million to BOOZ ALLEN HAMILTON INC. WEAPON SYSTEMS RESEARCH AND ANALYSIS FOR THE AIR FORCE NUCLEAR WEAPONS CENTER

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 Air Force).

What is the total obligated amount?

The obligated amount is $219.1 million.

What is the period of performance?

Start: 2020-07-29. End: 2025-12-29.

What is Booz Allen Hamilton's specific track record with the Air Force Nuclear Weapons Center or similar nuclear research programs?

Booz Allen Hamilton has a long history of supporting the Department of Defense across various domains, including research, development, and analysis. While specific contract details with the Air Force Nuclear Weapons Center for nuclear weapons research are not fully detailed here, the company's extensive experience in defense contracting, cybersecurity, and advanced analytics suggests a strong capability to handle complex R&D projects. Their past performance often includes providing strategic consulting, systems engineering, and technical support for critical national security missions. A deeper dive into their contract history would reveal the extent and success of their involvement in nuclear-related programs, including any prior work with this specific center or similar entities within the nuclear triad.

How does the $219 million value compare to other R&D contracts for similar specialized defense systems?

The $219 million value for this five-year R&D contract for nuclear weapons research is substantial, reflecting the high cost and specialized nature of such work. Comparing it directly to other R&D contracts requires careful consideration of scope, duration, and technological complexity. Contracts for advanced aerospace systems, cybersecurity research, or next-generation weapon platforms can range from tens to hundreds of millions of dollars. Given the sensitive and critical nature of nuclear weapons research, this contract value appears commensurate with the expertise, security clearances, and infrastructure required. It is likely within the expected range for long-term, high-stakes research and development efforts within the defense sector.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for nuclear weapons R&D revolve around cost control and contractor incentive. While CPFF is suitable for R&D where costs are uncertain, it shifts much of the cost risk to the government. The government pays allowable costs plus a fixed fee, which is the contractor's profit. If costs escalate beyond initial estimates, the government bears the burden. The fixed fee, however, is set upfront, providing the contractor with a predictable profit margin regardless of cost efficiency. This can potentially reduce the contractor's incentive to control costs rigorously, as their profit is not directly tied to cost savings. Effective oversight, detailed cost tracking, and robust performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.

How effective is full and open competition in ensuring value for taxpayer money in specialized R&D like this?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money, even in specialized R&D. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. For specialized R&D, this means that multiple firms with relevant expertise can vie for the contract, potentially leading to better technical solutions and more cost-effective approaches. While the pool of qualified bidders for highly specialized areas like nuclear weapons research might be smaller than for more common services, the principle of open competition still applies. It ensures that the government isn't locked into a single provider and has the opportunity to select the best combination of technical merit and price.

What are the historical spending patterns for nuclear weapons research and development within the Air Force?

Historical spending patterns for nuclear weapons research and development within the Air Force, and the broader Department of Defense, have consistently been significant, driven by national security priorities and the need to maintain a credible nuclear deterrent. Funding levels fluctuate based on geopolitical conditions, modernization requirements, and budget allocations. Over the past decades, substantial investments have been made in areas such as stockpile stewardship, warhead modernization, delivery systems research, and advanced simulation capabilities. While specific annual figures for nuclear R&D can vary, it represents a consistent and critical component of the defense budget. This contract, valued at $219 million over five years, aligns with this historical trend of sustained investment in maintaining and advancing nuclear capabilities.

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 › OTHER RESEARCH/DEVELOPMENT

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: $236,883,827

Exercised Options: $236,883,827

Current Obligation: $219,127,809

Actual Outlays: $5,482

Subaward Activity

Number of Subawards: 69

Total Subaward Amount: $13,178,299

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0004

IDV Type: IDC

Timeline