Booz Allen Hamilton awarded $160M contract for space and missile systems R&D by the Air Force

Contract Overview

Contract Amount: $159,608,839 ($159.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2020-08-10

End Date: 2025-09-19

Contract Duration: 1,866 days

Daily Burn Rate: $85.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ASSESSMENT AND IMPROVEMENT OF SPACE AND MISSILE SYSTEMS CENTER.

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $159.6 million to BOOZ ALLEN HAMILTON INC for work described as: ASSESSMENT AND IMPROVEMENT OF SPACE AND MISSILE SYSTEMS CENTER. Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Significant duration of over 5 years suggests a long-term strategic investment. 3. Awarded under full and open competition, indicating a broad market search. 4. Delivery order type suggests flexibility in tasking and project evolution. 5. Contractor has a substantial presence in government contracting. 6. The North American Industry Classification System (NAICS) code 541715 points to specialized R&D services.

Value Assessment

Rating: good

The contract value of approximately $160 million over five years represents a significant investment in advanced research and development. Benchmarking this against similar R&D contracts in the defense sector requires detailed analysis of scope and deliverables. However, the fixed-fee component suggests a degree of cost control, though the 'cost plus' nature allows for flexibility in managing research expenses. Without specific performance metrics or comparable project costs, a definitive value-for-money assessment is challenging, but the duration and scope imply a strategic importance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Department of the Air Force sought proposals from a wide range of qualified contractors. The presence of two bidders indicates a competitive environment, which generally benefits price discovery and innovation. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing for taxpayers, as it encourages multiple firms to offer their best terms to secure the contract.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force, through advancements in space and missile systems. Services delivered include research and development in critical physical, engineering, and life sciences domains. The geographic impact is likely concentrated around the contractor's facilities and relevant Air Force installations, primarily in California. Workforce implications include the employment of highly skilled scientists, engineers, and researchers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts, especially in R&D where outcomes can be uncertain.
Long-term nature of the contract could lead to vendor lock-in if not managed carefully.
Complexity of space and missile systems R&D may present unforeseen technical challenges and delays.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contractor's established expertise in defense and R&D likely ensures high-quality service delivery.
The fixed-fee component provides some level of cost predictability for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical, engineering, and life sciences. The market for space and missile systems R&D is highly specialized, dominated by a few large defense contractors and R&D firms. Spending in this area is driven by national security priorities and technological advancement. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the DoD for similar technological domains.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton is a large prime contractor. While there is no direct indication of subcontracting plans for small businesses within the provided data, large prime contractors are often required to meet small business subcontracting goals as part of their contractual obligations. The impact on the small business ecosystem would depend on whether specific R&D needs are subcontracted to specialized small firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management teams within the Department of the Air Force. Accountability measures are embedded in the contract's performance requirements and milestones. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Space Force Research and Development Programs
Missile Defense Agency Research Initiatives
Air Force Materiel Command R&D Contracts
Department of Defense Science and Technology Programs

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Technical Feasibility Risk (R&D Nature)
Long-Term Project Management Complexity
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $159.6 million to BOOZ ALLEN HAMILTON INC. ASSESSMENT AND IMPROVEMENT OF SPACE AND MISSILE SYSTEMS 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 $159.6 million.

What is the period of performance?

Start: 2020-08-10. End: 2025-09-19.

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

Booz Allen Hamilton has a long and extensive history of performing research and development services for the Department of Defense across various domains, including space, missile systems, cybersecurity, and advanced analytics. They are a major prime contractor with significant experience managing large, complex R&D efforts. Their track record often involves providing strategic consulting, systems engineering, and technical support. Analyzing their past performance on similar cost-plus, fixed-fee contracts would reveal their ability to manage budgets, timelines, and technical objectives effectively. Publicly available contract databases and CPARS (Contractor Performance Assessment Reporting System) reports, if accessible, would offer detailed insights into their past performance, including strengths and areas for improvement on comparable DoD R&D endeavors.

How does the $160 million value compare to other R&D contracts for space and missile systems?

The $160 million contract value for Booz Allen Hamilton over approximately five years is substantial but falls within the typical range for major R&D initiatives in the defense sector, particularly for space and missile systems. Large-scale R&D programs in these areas often exceed hundreds of millions, and sometimes billions, of dollars due to the complexity, long development cycles, and cutting-edge technology involved. For instance, contracts related to developing new missile defense platforms, advanced satellite technologies, or next-generation space launch systems frequently command higher values. This contract's value suggests a significant, but not unprecedented, investment in a specific area of R&D, likely focused on assessment and improvement rather than entirely new system development, which could influence its overall cost relative to broader platform development contracts.

What are the primary risks associated with this specific contract?

The primary risks associated with this contract are inherent in its nature as a Cost Plus Fixed Fee (CPFF) R&D award. Firstly, the CPFF structure, while providing flexibility for research, carries a risk of cost overruns if research activities prove more expensive than initially estimated, although the fixed fee provides a ceiling on contractor profit. Secondly, R&D projects, especially in the complex fields of space and missile systems, face technical risks; the research may not yield the desired outcomes, or unforeseen technical hurdles could delay progress significantly. Thirdly, the long duration (over five years) increases the risk of changing technological landscapes or evolving mission requirements, potentially rendering the research obsolete or requiring costly pivots. Finally, ensuring effective knowledge transfer and preventing contractor lock-in over such a long period requires diligent program management.

How effective is the 'full and open competition' approach for specialized R&D like this?

The 'full and open competition' approach is generally considered the most effective method for acquiring specialized R&D services, as it maximizes the pool of potential offerors and encourages innovation. For complex R&D in areas like space and missile systems, this approach allows the government to solicit proposals from a diverse range of companies, including established defense contractors, specialized R&D firms, and potentially academic institutions or consortia. This broad competition increases the likelihood of finding the best technical solutions and the most cost-effective approaches. While it requires a more extensive acquisition process, the benefits of wider market access, enhanced price discovery, and the potential for breakthrough innovations often outweigh the increased administrative effort for taxpayers.

What are the historical spending patterns for R&D in space and missile systems by the Air Force?

The Air Force has consistently allocated significant portions of its budget to research and development in space and missile systems, reflecting their critical role in national security and strategic deterrence. Historical spending patterns show a trend of increasing investment in these areas, driven by evolving threats, technological advancements, and the expansion of space-based capabilities. Major programs related to satellite technology, missile warning systems, hypersonic weapons, and space domain awareness have historically commanded substantial R&D funding. The Air Force's R&D spending in this sector often fluctuates based on specific program needs, geopolitical developments, and congressional appropriations. Analyzing multi-year budget data and specific program awards would reveal detailed trends, including shifts in focus towards areas like artificial intelligence, directed energy, and advanced materials within space and missile R&D.

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: 2

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: $166,553,606

Exercised Options: $166,553,606

Current Obligation: $159,608,839

Actual Outlays: $987,570

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $35,099,468

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