Air Force awards $12.4M for microelectronics R&D to Booz Allen Hamilton

Contract Overview

Contract Amount: $12,377,969 ($12.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2025-05-19

End Date: 2030-05-18

Contract Duration: 1,825 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DEVELOPMENT OF RESILIENT AND ASSURED MICROELECTRONICS FOR AIR FORCE RESEARCH LABORATORY RESILIENT AND ASSURED MICROELECTRONICS BRANCH

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to BOOZ ALLEN HAMILTON INC for work described as: DEVELOPMENT OF RESILIENT AND ASSURED MICROELECTRONICS FOR AIR FORCE RESEARCH LABORATORY RESILIENT AND ASSURED MICROELECTRONICS BRANCH Key points: 1. Contract focuses on developing resilient and assured microelectronics, a critical area for national security. 2. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting ongoing program needs. 3. Booz Allen Hamilton, a large defense contractor, is the awardee, indicating a reliance on established players for complex R&D. 4. The contract duration of five years suggests a long-term investment in this technology. 5. Research and Development in Physical, Engineering, and Life Sciences is a broad category, but the specific focus on microelectronics is key. 6. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control while allowing for flexibility in R&D.

Value Assessment

Rating: good

Benchmarking the value of this specific R&D contract is challenging without more detailed cost breakdowns or comparable project data. However, the award amount of $12.4 million over five years for specialized microelectronics research appears reasonable given the complexity and strategic importance of the work. Booz Allen Hamilton's extensive experience in defense R&D suggests they can deliver value, but the CPFF contract type requires careful monitoring to ensure cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of three bidders suggests a competitive landscape for this type of specialized R&D. This level of competition is generally favorable for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The primary beneficiaries are the U.S. Air Force and potentially other Department of Defense entities requiring advanced microelectronic capabilities. The services delivered will focus on research and development to enhance the resilience and assurance of microelectronic components. The geographic impact is primarily within the United States, supporting domestic innovation and manufacturing capabilities in a critical sector. Workforce implications include potential employment for highly skilled scientists, engineers, and researchers in the microelectronics field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely managed.
Reliance on a single large contractor for critical R&D may limit opportunities for smaller, innovative firms.
The specific performance metrics and deliverables for this R&D effort need to be clearly defined and monitored to ensure success.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Booz Allen Hamilton has a strong track record in defense contracting and R&D.
Focus on a strategically important area (resilient microelectronics) aligns with national security priorities.

Sector Analysis

The microelectronics sector is a critical component of national security and economic competitiveness. This contract falls within the broader Research and Development in the Physical, Engineering, and Life Sciences category. The market for advanced microelectronics is highly competitive, with significant investment from both government and private sectors. Comparable spending benchmarks for specialized R&D in this area can vary widely based on project scope and duration.

Small Business Impact

This contract does not appear to have a small business set-aside. Booz Allen Hamilton is a large business, and while they may engage small businesses as subcontractors, the primary award is not directed towards small business participation. Further analysis would be needed to determine if subcontracting opportunities for small businesses are anticipated or required.

Oversight & Accountability

Oversight will likely be conducted by the Air Force Research Laboratory's Resilient and Assured Microelectronics Branch. Accountability measures will be tied to the performance metrics and deliverables outlined in the contract. Transparency will depend on the extent to which the government releases information about the R&D progress and outcomes, subject to national security considerations. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) microelectronics initiatives
Air Force Science and Technology programs
National Security Agency (NSA) research efforts
Department of Commerce - CHIPS Act funding

Risk Flags

Potential for cost overruns in CPFF contract
Technical feasibility of R&D goals
Long-term reliability of developed microelectronics
Dependence on specialized supply chains

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to BOOZ ALLEN HAMILTON INC. DEVELOPMENT OF RESILIENT AND ASSURED MICROELECTRONICS FOR AIR FORCE RESEARCH LABORATORY RESILIENT AND ASSURED MICROELECTRONICS BRANCH

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 $12.4 million.

What is the period of performance?

Start: 2025-05-19. End: 2030-05-18.

What is Booz Allen Hamilton's specific experience in microelectronics R&D for the Air Force?

Booz Allen Hamilton has a long history of supporting the Department of Defense, including the Air Force, across a wide range of research and development initiatives. Their expertise often lies in systems engineering, program management, and advanced technology integration. While they may not be a primary semiconductor manufacturer, they frequently lead or contribute to complex R&D efforts that involve identifying requirements, managing development cycles, and ensuring the integration of new technologies into existing or future defense systems. Their role in microelectronics R&D likely focuses on the application, assurance, and resilience aspects rather than fundamental chip design or fabrication, aligning with the contract's stated goals.

How does the $12.4 million award compare to typical R&D spending in this niche?

The $12.4 million award for five years of R&D in resilient and assured microelectronics is a significant but not extraordinary sum for a specialized government contract. R&D projects in cutting-edge fields like advanced materials, cybersecurity, and specialized electronics can range from a few million to tens or even hundreds of millions of dollars, depending on the scope, duration, and number of performers. For a focused effort on microelectronics assurance for the Air Force, this amount suggests a substantial project likely involving multiple research tasks and potentially advanced prototyping or testing. It is within the expected range for a multi-year, high-priority R&D initiative in a critical defense technology area.

What are the primary risks associated with this type of R&D contract?

The primary risks associated with this R&D contract include technical risk (the research may not yield the desired outcomes or breakthroughs), schedule risk (development may take longer than anticipated), cost risk (especially with CPFF contracts, costs could exceed projections if not managed tightly), and program execution risk (the contractor may not perform as expected). For microelectronics, specific risks involve the rapid pace of technological change, potential supply chain vulnerabilities for specialized materials or components, and the challenge of ensuring long-term reliability and security in advanced designs. The government's oversight and the contractor's management of these risks will be crucial for success.

What does 'resilient and assured microelectronics' mean in a defense context?

In a defense context, 'resilient and assured microelectronics' refers to semiconductor components that are designed to withstand harsh operating environments (e.g., extreme temperatures, radiation, electromagnetic interference), resist tampering or counterfeiting, and maintain their functionality and security throughout their lifecycle. This is critical because modern military systems rely heavily on microelectronics, and failures or compromises in these components can have catastrophic consequences. 'Resilience' implies the ability to continue operating despite damage or disruption, while 'assurance' means having confidence in the component's integrity, security, and reliability against adversarial threats.

What is the historical spending trend for R&D in microelectronics by the Air Force?

Historical spending by the Air Force on microelectronics R&D has been substantial and has often increased in response to evolving threats and technological advancements. The Air Force, through entities like the Air Force Research Laboratory (AFRL), consistently invests in next-generation technologies to maintain a military advantage. Spending in this area is influenced by national security priorities, such as reducing reliance on foreign supply chains, enhancing electronic warfare capabilities, and developing secure communication systems. While specific historical figures for 'resilient and assured microelectronics' are not readily available without deep database dives, the overall trend for advanced microelectronics R&D within the DoD has been one of sustained and often growing investment, reflecting its critical importance.

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: $438,214,834

Exercised Options: $438,214,834

Current Obligation: $12,377,969

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