DoD awards $51.4M contract for C2 Systems Sustainment and Support to Booz Allen Hamilton

Contract Overview

Contract Amount: $51,383,251 ($51.4M)

Contractor: Booz Allen Hamilton Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-06

End Date: 2011-01-30

Contract Duration: 1,242 days

Daily Burn Rate: $41.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: C2 SYSTEMS SUSTAINMENT AND SUPPORT

Place of Performance

Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $51.4 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: C2 SYSTEMS SUSTAINMENT AND SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1242 days indicates a long-term need for these services. 3. The contract type is Time and Materials, which can pose cost control challenges. 4. The award was made by the Department of the Army, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services. 6. The contractor, Booz Allen Hamilton, is a well-established entity in government contracting.

Value Assessment

Rating: fair

The total award amount of $51.4 million over approximately 3.4 years for C2 Systems Sustainment and Support appears to be within a reasonable range for complex engineering services. However, without specific details on the scope of work, deliverables, and labor categories, a precise value-for-money assessment is challenging. The Time and Materials contract type introduces inherent risk for cost overruns if not managed diligently. Benchmarking against similar sustainment contracts for command and control systems would provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 14 bids suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged innovative solutions from multiple bidders, ensuring the government received the best value.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Department of the Army, who will receive sustainment and support for their Command and Control (C2) systems. This contract ensures the continued operational readiness and effectiveness of critical C2 systems, which are vital for military command and communication. The services delivered will likely involve maintenance, upgrades, technical support, and potentially training related to C2 systems. The geographic impact is likely global, supporting DoD operations worldwide, though the primary contractor location is in Maryland. Workforce implications may include employment opportunities for engineers, technicians, and support staff within Booz Allen Hamilton and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Time and Materials contract type can lead to cost overruns if not closely monitored.
  • Sustainment and support contracts can become increasingly expensive over time as systems age.
  • Reliance on a single large contractor for critical system support may present long-term dependency risks.

Positive Signals

  • Awarded through full and open competition, indicating a competitive process.
  • Multiple bids received (14), suggesting strong market interest and potential for good pricing.
  • Contractor (Booz Allen Hamilton) has extensive experience in government contracting and defense systems.

Sector Analysis

The Command and Control (C2) systems sector is a critical component of the defense industry, encompassing technologies that enable military forces to effectively direct and manage their operations. This contract falls within the broader Engineering Services (NAICS 541330) category, which serves various industries but is particularly vital for defense. The market for defense C2 system sustainment is substantial, driven by the continuous need to maintain and upgrade complex, often legacy, systems to meet evolving threats and technological advancements. Comparable spending benchmarks for similar sustainment contracts are often proprietary or difficult to access publicly, but the scale of this award suggests a significant program.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the prime contractor is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the specific requirements outlined in the contract and the prime contractor's subcontracting plan, if applicable. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance metrics, delivery schedules, and quality standards. Transparency is facilitated through contract award announcements and public contract databases. The Inspector General for the Department of Defense may also have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

  • DoD C2 Systems Modernization Programs
  • Defense Information Systems Agency (DISA) Support Contracts
  • Army Tactical Systems Support
  • Joint Command and Control Systems

Risk Flags

  • Time and Materials Contract Type
  • Potential for Cost Overruns
  • Long-Term System Dependency

Tags

defense, department-of-defense, department-of-the-army, c2-systems, sustainment, support, engineering-services, time-and-materials, full-and-open-competition, booz-allen-hamilton, maryland, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.4 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. C2 SYSTEMS SUSTAINMENT AND SUPPORT

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $51.4 million.

What is the period of performance?

Start: 2007-09-06. End: 2011-01-30.

What is the specific scope of 'C2 Systems Sustainment and Support' covered by this contract?

The contract details for 'C2 Systems Sustainment and Support' are broad, but generally encompass the maintenance, repair, and operational readiness of Command and Control systems. This can include hardware and software sustainment, lifecycle management, technical support, troubleshooting, system upgrades, integration services, and potentially training for end-users and maintainers. Given the Time and Materials nature, the scope likely involves ongoing support activities where the exact effort is not fully defined upfront, allowing for flexibility in addressing evolving needs or unforeseen issues within the C2 architecture.

How does the $51.4 million award compare to historical spending on similar C2 system sustainment contracts?

Direct comparison of this $51.4 million award to historical spending on similar C2 system sustainment contracts is challenging without access to proprietary databases or detailed historical contract data for specific C2 systems. However, the duration of the contract (approximately 3.4 years) suggests an average annual spend of roughly $15 million. This figure needs to be contextualized against the complexity and criticality of the specific C2 systems being supported. Larger, more complex, or more numerous systems would naturally command higher sustainment budgets. The fact that it was competed suggests the DoD sought competitive pricing, but the actual value benchmark requires more granular data on system scope and performance requirements.

What are the primary risks associated with a Time and Materials (T&M) contract for C2 system sustainment?

The primary risk with a Time and Materials (T&M) contract for C2 system sustainment is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred. If the scope of work is not well-defined, or if the contractor's efficiency is low, costs can escalate beyond initial estimates. For the government, this necessitates robust oversight to ensure labor hours are reasonable, rates are fair, and materials are necessary and appropriately priced. Effective management and clear task definitions are crucial to mitigate these risks and ensure value for money.

What is Booz Allen Hamilton's track record with DoD C2 system contracts?

Booz Allen Hamilton has a long and extensive track record of supporting the Department of Defense across a wide array of programs, including those related to command, control, communications, computers, and intelligence (C4I) systems. They are a major incumbent contractor for many complex defense IT and engineering services. Their experience typically includes system design, integration, sustainment, cybersecurity, and modernization efforts for various military branches. While specific details on their performance for every C2 contract are not publicly available, their continued success in winning large-scale DoD contracts indicates a generally positive performance history and strong capabilities in this domain.

How does the number of bidders (14) impact the potential for cost savings for the government?

A higher number of bidders, such as the 14 received for this contract, generally increases the likelihood of cost savings for the government. When multiple qualified companies compete, they are incentivized to offer competitive pricing and innovative solutions to win the contract. This competitive pressure can drive down prices compared to a scenario with fewer bidders or a sole-source award. The government can leverage this competition to negotiate favorable terms and ensure they are receiving the best value for their investment. The presence of numerous bidders suggests a healthy market for these services.

What are the potential implications of this contract on the future development or modernization of DoD C2 systems?

This contract focuses on sustainment and support, implying the continued operation and maintenance of existing C2 systems rather than the development of entirely new ones. However, the insights gained from sustaining these systems—identifying inefficiencies, technological limitations, and user feedback—can directly inform future modernization strategies. The contractor, Booz Allen Hamilton, through its support role, will likely play a part in advising the DoD on necessary upgrades or potential replacements. This sustainment contract ensures the current operational capability while providing a foundation of knowledge for future system evolution and modernization efforts.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 14

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 2551 RIVA ROAD, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $51,383,251

Exercised Options: $51,383,251

Current Obligation: $51,383,251

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB0703DB006

IDV Type: IDC

Timeline

Start Date: 2007-09-06

Current End Date: 2011-01-30

Potential End Date: 2011-01-30 00:00:00

Last Modified: 2015-04-02

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