DoD Awards $191M R&D Contract to Booz Allen Hamilton for Military Health System Capabilities
Contract Overview
Contract Amount: $191,181,720 ($191.2M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2021-04-13
End Date: 2026-04-18
Contract Duration: 1,831 days
Daily Burn Rate: $104.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IDENTIFICATION, ANALYSIS, RECOMMENDATIONS, AND DELIVERY OF MILITARY HEALTH SYSTEM AND JOINT STAFF MEDICAL CAPABILITIES FOR DEFENSE HEALTH AGENCY
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $191.2 million to BOOZ ALLEN HAMILTON INC for work described as: IDENTIFICATION, ANALYSIS, RECOMMENDATIONS, AND DELIVERY OF MILITARY HEALTH SYSTEM AND JOINT STAFF MEDICAL CAPABILITIES FOR DEFENSE HEALTH AGENCY Key points: 1. Contract focuses on R&D for military health systems, a critical but complex sector. 2. Booz Allen Hamilton, a large established firm, is the sole awardee. 3. Potential risks include cost overruns in R&D and limited competition. 4. The IT and Healthcare sectors are indirectly impacted by improved medical capabilities.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Benchmarking is difficult without specific deliverables, but the scale suggests significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive process. However, it's a delivery order, implying it might be part of a larger IDIQ, and the specific price discovery for this order needs further review.
Taxpayer Impact: Taxpayer funds are being used for critical defense health research, with the value dependent on the successful development and implementation of the capabilities.
Public Impact
Enhances medical capabilities for service members and veterans. Supports advancements in military healthcare technology and operations. Potential for improved medical readiness and response in defense scenarios.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Limited visibility into specific R&D outcomes and their direct cost-effectiveness.
- Potential for scope creep in long-term R&D projects.
Positive Signals
- Addresses critical needs within the Military Health System.
- Awarded through full and open competition.
- Long-term contract duration allows for sustained development.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this area is crucial for technological advancement but can be prone to cost overruns and uncertain outcomes.
Small Business Impact
The contract does not indicate any specific set-asides or participation goals for small businesses. The prime contractor is a large business, suggesting limited direct opportunities for small businesses on this specific award.
Oversight & Accountability
Oversight will be critical to ensure the R&D objectives are met efficiently and within budget. The Department of Defense and the Defense Health Agency are responsible for monitoring performance and expenditures.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- R&D projects inherently carry uncertainty in outcomes.
- Potential for scope creep over the contract duration.
- Lack of explicit small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $191.2 million to BOOZ ALLEN HAMILTON INC. IDENTIFICATION, ANALYSIS, RECOMMENDATIONS, AND DELIVERY OF MILITARY HEALTH SYSTEM AND JOINT STAFF MEDICAL CAPABILITIES FOR DEFENSE HEALTH AGENCY
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 $191.2 million.
What is the period of performance?
Start: 2021-04-13. End: 2026-04-18.
How will the effectiveness of the delivered military health system capabilities be measured against the R&D investment?
Effectiveness will likely be measured through a combination of technical performance metrics, user feedback from military medical personnel, and demonstrated improvements in patient care outcomes or operational readiness. Key Performance Parameters (KPPs) should be established early to track progress against defined R&D goals and ensure alignment with the Defense Health Agency's strategic objectives.
What are the primary risks associated with the Cost Plus Fixed Fee structure in this R&D context?
The primary risks with CPFF in R&D include potential for cost overruns if the scope is not well-defined or if unforeseen technical challenges arise. The contractor has less incentive to control costs compared to fixed-price contracts. Effective oversight is crucial to manage scope, monitor expenditures, and ensure the government receives value for its investment.
What is the anticipated taxpayer impact if the R&D objectives are not fully achieved?
If R&D objectives are not fully achieved, taxpayers could face a financial loss on the invested funds without realizing the intended improvements in military healthcare. However, even partial success may yield valuable research data or incremental advancements. The impact is mitigated by the competitive award process and ongoing oversight, aiming to maximize the return on investment.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
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: $191,965,467
Exercised Options: $191,965,467
Current Obligation: $191,181,720
Actual Outlays: $13,501,057
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $25,024,833
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
Start Date: 2021-04-13
Current End Date: 2026-04-18
Potential End Date: 2026-04-18 00:00:00
Last Modified: 2026-01-06
More Contracts from Booz Allen Hamilton Inc
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (General Services Administration)
- Transformation Twenty-One Total Technology Next Generation (T4NG) Task Order - Benefits Integrated Delivery — $1.4B (Department of Veterans Affairs)
- Federal Contract — $1.2B (General Services Administration)
- Product and Technology Ecosystem Management Services (ptems)which Includes Product Delivery and Lifecycle Management to Transform VA by Tapping Into Emerging Technologies, Connecting Developers With VA Data, and Making Human Centered Design (HCD) — $1.1B (Department of Veterans Affairs)
- Task Order Award — $1.1B (General Services Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)