Air Force awards $325M R&D contract to Booz Allen Hamilton for advanced operational solutions

Contract Overview

Contract Amount: $32,543,529 ($32.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2025-02-28

End Date: 2028-04-27

Contract Duration: 1,154 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ADVANCED EVALUATION AND READINESS OF OPERATIONAL SOLUTIONS (AEROS)

Place of Performance

Location: ROME, ONEIDA County, NEW YORK, 13441

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $32.5 million to BOOZ ALLEN HAMILTON INC for work described as: ADVANCED EVALUATION AND READINESS OF OPERATIONAL SOLUTIONS (AEROS) Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Booz Allen Hamilton, a large established contractor, secured this award. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. This award represents a significant investment in advanced operational solutions for the Air Force. 5. The contract duration is over three years, indicating a long-term need for these services. 6. The geographic location of performance is New York.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns. CPFF contracts can be less cost-effective than fixed-price contracts if contractor costs escalate significantly. However, for R&D efforts where scope can be uncertain, CPFF can provide flexibility. Comparing this to similar R&D contracts for advanced solutions would require access to detailed performance metrics and cost data, which are not publicly available. The fixed fee component provides some cost control, but the overall value hinges on efficient execution and management of direct costs by Booz Allen Hamilton.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while a competitive process was intended, certain sources were excluded, potentially limiting the pool of bidders. The specific reasons for exclusion are not detailed, but this approach can sometimes lead to less robust competition than a truly open process. The number of bidders is not specified, making it difficult to fully assess the competitive landscape and its impact on price discovery.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price that could have been achieved through broader outreach to potential offerors.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive advanced operational solutions. This contract supports research and development in critical scientific and engineering fields. The services delivered are expected to enhance the Air Force's operational readiness and capabilities. Work is anticipated to be performed in New York, potentially impacting the local economy and workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure carries inherent risk of cost escalation if not tightly managed.
Limited competition may have restricted the range of innovative solutions and price points considered.
The specific nature of 'advanced operational solutions' is broad and could lead to scope creep if not clearly defined.

Positive Signals

Award to an established contractor like Booz Allen Hamilton suggests a level of confidence in their capabilities.
The contract's focus on R&D aligns with the Air Force's strategic goals for technological advancement.
The multi-year duration indicates a sustained commitment to developing critical capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization, as advancements in these fields can lead to significant improvements in military technology and operational effectiveness. The market for R&D services in the defense sector is substantial, with numerous large and small businesses competing for government contracts. Benchmarking this specific award against others in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541715) would require analyzing contract values, performance periods, and the specific research areas covered.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false) or be specifically targeted towards small businesses (sb: false). Therefore, the primary impact on the small business ecosystem would be indirect, through potential subcontracting opportunities. Booz Allen Hamilton, as a large prime contractor, may engage small businesses for specialized services or components. However, without specific subcontracting plans or goals outlined, the direct benefit to small businesses from this particular award is uncertain.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program management personnel within the Department of the Air Force. The Cost Plus Fixed Fee structure necessitates rigorous oversight of incurred costs to ensure reasonableness and allowability. Transparency is typically managed through contract reporting requirements and performance reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or alleged.

Related Government Programs

Advanced Technology Development
Research and Development Services
Defense Science and Technology
Air Force Research Laboratory Contracts
Engineering and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Limited competition may reduce price discovery and innovation.
Scope definition for R&D contracts can be challenging, risking scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.5 million to BOOZ ALLEN HAMILTON INC. ADVANCED EVALUATION AND READINESS OF OPERATIONAL SOLUTIONS (AEROS)

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 $32.5 million.

What is the period of performance?

Start: 2025-02-28. End: 2028-04-27.

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

Booz Allen Hamilton has a extensive history of performing research and development contracts for the Department of Defense across various scientific and engineering disciplines. They are a large, established government contractor with significant experience in areas such as systems engineering, advanced analytics, and technology integration. Their past performance on similar contracts would typically be evaluated during the source selection process. While specific details of past performance are often proprietary, their continued success in winning large DoD contracts suggests a generally positive track record in delivering R&D services. However, a deeper dive into specific contract performance metrics, past performance reviews, and any documented issues would be necessary for a comprehensive assessment.

How does the $325 million value compare to typical R&D spending in the physical, engineering, and life sciences for the Air Force?

The $325 million award is a substantial sum, reflecting a significant investment in advanced operational solutions. To contextualize this, one would need to examine the Air Force's historical R&D budget allocations and the distribution of funds across different research areas. The NAICS code 541715 covers a broad spectrum of R&D, and this contract's value should be compared against the total spending within this specific sub-sector for the Air Force. Without access to detailed budget breakdowns and a comparative analysis of other R&D contracts awarded by the Air Force in recent years, it's difficult to definitively state whether this represents a high, low, or average investment. However, given the multi-year duration, it signifies a considerable commitment over the contract period.

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

The primary risks associated with a CPFF contract for R&D revolve around cost control and potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. If the contractor's actual costs exceed estimates, the government bears the burden of these increased costs, while the contractor's profit remains fixed. This can disincentivize cost efficiency if not managed rigorously. For R&D, where the scope and technical challenges can be uncertain, estimating costs accurately is difficult, increasing the risk of cost escalation. Effective oversight, detailed cost tracking, and strong program management are crucial to mitigate these risks and ensure value for taxpayer money.

What does 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' encompass in the context of this contract?

This NAICS code (541715) broadly covers R&D activities in fundamental scientific research, applied research, and experimental development across a wide array of disciplines. For this Air Force contract, it likely involves research into areas such as advanced materials, aerospace engineering, complex systems, human factors, environmental science, and other physical or biological sciences relevant to military operations. The exclusion of nanotechnology and biotechnology suggests the focus is on other advanced scientific domains. The specific 'advanced evaluation and readiness of operational solutions' implies the research aims to develop, test, and prepare new technologies or systems for deployment, enhancing the Air Force's capabilities.

How might the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' impact the innovation and cost-effectiveness of the solutions developed?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOCI) is a procurement method that allows for competition but restricts the pool of eligible bidders. While it aims to be competitive, the exclusion of certain sources inherently limits the breadth of innovation and potential cost-saving proposals that might have emerged from a truly unrestricted competition. The rationale for exclusion is critical; if based on specific technical requirements or security clearances that only a few entities possess, it might be justified. However, if the exclusions are arbitrary or overly restrictive, it could stifle competition, potentially leading to higher prices and a narrower range of innovative solutions compared to a fully open process. The impact on cost-effectiveness is directly tied to the degree of competition that remains after exclusions.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $47,951,870

Exercised Options: $47,951,870

Current Obligation: $32,543,529

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $14,029,653

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA875021D1100

IDV Type: IDC

Timeline